Viper Energy (VNOM) Beats Earnings & Revenue Estimates in Q3
Viper Energy Partners LP VNOM reported third-quarter 2023 adjusted earnings per unit of $1.10, which beat the Zacks Consensus Estimate of 46 cents. The bottom line also increased from the year-ago quarter’s 98 cents.
The partnership, with mineral interests in North America oil and gas resources, generated an operating income of $293.2 million, which outpaced the Zacks Consensus Estimate of $196 million. The top line increased from the year-ago quarter’s $221.6 million.
Viper Energy’s strong quarterly results were aided by higher oil-equivalent production volumes.
Viper Energy Partners LP Price, Consensus and EPS Surprise
Viper Energy Partners LP price-consensus-eps-surprise-chart | Viper Energy Partners LP Quote
Production
The resources, wherein the partnership has mineral interests, produced 3,721 thousand oil-equivalent barrels (MBoe) in the September-end quarter of 2023, up from 3,173 MBoe a year ago. The reported figure beat our estimate of 3,477 Mboe.
Of the total volume, oil contributed 54.7% at 2,037 thousand barrels of oil (MBbls), up from 1,828 MBbls a year ago. The metric also beat our estimate of 2,011 MBbls.
The production of crude oil, natural gas and natural gas liquids increased from the prior-year quarter’s level.
Realized Prices
The overall average realized price per barrel of oil equivalent was $52.57 compared with $69.31 in third-quarter 2022. The figure was slightly above our estimate of $48.20.
Average realized oil prices in the quarter under review were $82.48 per barrel, down from $91.87 in the year-ago quarter. The price of natural gas was $1.81 per thousand cubic feet, down from $7.01 in the year-ago quarter. The price for natural gas liquids was $21.58 a barrel, down from $35.15 a year ago.
Costs & Expenses
In the third quarter, total expenses were $50.4 million compared with $48.2 million in the prior-year quarter. The figure lagged our estimate of $59 million.
On a per barrel of oil-equivalent (Boe) basis, total operating expenses were $3.71 compared with $5.49 in the year-ago quarter. The figure also lagged our estimate of $5.43.
Cash Flow
Net cash provided by operating activities was $239.7 million, up from $214.2 million in the third quarter of 2022.
Balance Sheet
As of Sep 30, 2023, Viper Energy’s cash and cash equivalents were $146.8 million. The company reported net long-term debt of $675.7 million.
Guidance
For 2023, the partnership expects a total production of 39.25 MBoe/d. For the fourth quarter, it anticipates production of 43.25-44.25 MBoe/d.
Zacks Rank & Other Stocks to Consider
Currently, Viper Energy carries a Zacks Rank #2 (Buy).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering International, Inc. OII reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of 27 cents. OII’s outperformance was largely due to the robust results in certain segments.
For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues from that reported in the third quarter.
Matador Resources Company MTDR reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil-and-natural-gas-equivalent per day.
For the fourth quarter of 2023, Matador expects an average daily oil-equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the prior mentioned 143,000 BOE/D.
Liberty Energy Inc. LBRT reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of 7 cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.
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