Viper Energy (VNOM) Q2 Earnings Top, Revenues Fall Y/Y
Viper Energy Partners LP VNOM reported second-quarter 2023 adjusted earnings per unit of 47 cents, which beat the Zacks Consensus Estimate of 21 cents. The bottom line increased from the year-ago quarter’s level of 43 cents.
The partnership, with mineral interests in North America oil and gas resources, generated an operating income of $161 million, which outpaced the Zacks Consensus Estimate of $160 million. However, the top line declined from the year-ago quarter’s figure of $239 million.
Viper Energy’s strong quarterly earnings were aided by higher oil-equivalent production volumes and decreasing total costs.
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 3,429 thousand oil-equivalent barrels (MBoe) in the June-end quarter of 2023, up from 3,054 MBoe a year ago. The reported figure came in higher than our estimate of 3,414 Mboe. Of the total volume, oil contributed 56.1% at 1,924 thousand barrels of oil (MBbls), up from 1,798 MBbls a year ago. 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 $46.14 compared with $78.20 in second-quarter 2022. The figure was lower than our estimate of $47.35. Average realized oil prices in the quarter under review were $72.40 per barrel, down from $106.34 in the year-ago quarter. The price of natural gas was $1.09 per thousand cubic feet, down from $6.10 in the year-ago quarter and lower than our estimate of $1.97. The price for natural gas liquids was $19.07 a barrel, down from $39.28 a year ago.
Costs & Expenses
In the second quarter, total expenses were $48.7 million compared with $49.9 million in the prior-year quarter. The figure came in lower than our estimate of $51.5 million. On a per barrel of oil-equivalent (Boe) basis, total operating expenses were $4.19 compared with $5.76 in the year-ago quarter.
Cash Flow
Net cash provided by operating activities was $145.4 million, down from $163.2 million in the second quarter of 2022.
Balance Sheet
As of Mar 31, 2023, Viper Energy’s cash and cash equivalents were $13.1 million. The company reported net long-term debt of $649.4 million.
Guidance
For 2023, the partnership now expects total production in the range of 36.5-37.5 MBoe/d. For the third quarter, it anticipates production in the band of 37.5-38.5 MBoe/d.
Zacks Rank & Stocks to Consider
Currently, Viper Energy carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy space are Evolution Petroleum Corporation EPM, Murphy USA Inc. MUSA and MPLX LP MPLX. While both EPM and MUSA sport a Zacks Rank #1 (Strong Buy), MPLX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Through its ownership interests in onshore oil and natural gas properties in the United States, Evolution Petroleum is touted as a key independent energy player.
Murphy USA serves 1.6 million customers daily and owns a dedicated line space on the Colonial Pipeline. MUSA operates stations close to Walmart supercenters and is a low-cost, high-volume fuel seller. This enables the company to attract significantly more transactions than its peers.
MPLX generates stable fee-based revenues from diverse midstream energy assets via long-term contracts and is least exposed to commodity price fluctuations. The partnership is well positioned to capitalize on the growing demand for fresh midstream assets in order to support increasing volumes of crude oil, natural gas and NGLs in the prolific shale plays in the United States.
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Viper Energy Partners LP (VNOM) : Free Stock Analysis Report
