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Viper Energy's (VNOM) Q4 Production Rises 29% Year Over Year

Zacks Equity Research

Viper Energy Partners LP VNOM recently announced fourth-quarter 2019 production, which averaged 26.1 thousand barrels of oil equivalent per day (MBoe/d). The figure was significantly higher than the year-ago period’s 20.2 MBoe/d and third-quarter 2019 level of 21.3 Mboe/d.

Oil production in the fourth quarter was recorded at 16.5 thousand barrels per day (MBbls/d), higher than 13.7 MBbls/d a quarter ago. Full-year 2019 production averaged 21.5 MBoe/d, which reflects almost 25% rise from the year-ago level of 17.3MBoe/d. Oil production in 2019 was recorded at 14 MBbls/d, higher than 12.1 MBbls/d a year ago.

The production surge was aided by its parent organization, Diamondback Energy, Inc.’s FANG strong operations. In the fourth quarter, it brought five wells to production in the Spanish Trail, wherein Viper Energy holds a 25% royalty interest.

The higher production level is expected to lead to increased profits. This is reflected in the Zacks Consensus Estimate for the partnership’s fourth-quarter earnings of 11 cents, which indicates a 10% year-over-year rise. Notably, it missed estimates thrice in the last four quarters, with the average negative earnings surprise being 19.8%. The partnership is scheduled to report fourth-quarter results on Feb 11, 2020, after the closing bell.

Midland, TX-based Viper Energy has mineral interest in prolific oil-rich shale plays like the Eagle Ford and Permian Basin. The stock has fallen 6.8% in the past year compared with 21.6% decline of the industry it belongs to.

Zacks Rank & Key Picks

The partnership currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy sector include CNX Resources Corporation CNX and Antero Midstream AM, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CNX Resources’ earnings for the current year have witnessed four upward revisions in the past 60 days versus no movement in the opposite direction.

Antero Midstream’s fourth-quarter 2019 earnings growth is expected to be 130%.

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