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Viper Energy (VNOM) Gains 4.5% as Q2 Earnings Beat Estimates
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Viper Energy Partners LP (VNOM - Free Report) has gained 4.5% since it reported strong second-quarter 2021 results on Aug 2. Higher oil equivalent barrels and price primarily aided the partnership’s bottom line.
The partnership – an affiliate of Diamondback Energy, Inc. (FANG - Free Report) – reported adjusted earnings per unit of 9 cents for the second quarter, beating the Zacks Consensus Estimate by a penny. The bottom line compared favorably with the year-ago loss of 4 cents per unit.
The partnership — with mineral interests in North America oil and gas resources — generated operating income of $114 million, beating the Zacks Consensus Estimate of $88 million. The top line increased from the year-ago quarter’s $33 million.
Viper Energy Partners LP Price, Consensus and EPS Surprise
The partnership was authorized by the board of directors of its general partner to make a cash distribution of 33 cents per common unit, payable on Aug 19, 2021, to all shareholders of record as of Aug 12, 2021. The metric increased 32% from the prior-quarter figure of 25 cents per common unit.
Production
The resources, wherein the partnership has mineral interests, produced 2,489 thousand oil equivalent barrels (MBoe) for the June-end quarter of 2021, up from 2,230 MBoe in the year-ago quarter. Of the total volumes, oil contributed 60.4% to total production. The production of crude oil and natural gas increased from the prior-year quarter figure. The production of natural gas liquid declined from the year-ago level in the reported quarter.
Realized Prices
Overall average realized price per barrel of oil equivalent was recorded at $45.58 compared with $14.55 in second-quarter 2020. Average realized oil prices for the quarter under review were recorded at $62.51 per barrel, up from $21 a year ago. The price of natural gas was $2.96 per thousand cubic feet, up from 46 cents in the year-ago quarter. The same for natural gas liquids was recorded at $22.21 a barrel, up from the year-ago quarter’s $7.69.
Cost & Expenses
Total expenses for second-quarter 2021 amounted to $34.3 million versus $27.6 million in the prior-year quarter. On a per barrel of oil equivalent (Boe) basis, total operating expenses were recorded at $4.01 versus $2.02 in the year-ago quarter.
Cash Flow
Net cash from operating activities was recorded at $75 million, up from $19.8 million in the second quarter of 2020.
Balance Sheet
As of Jun 30, 2021, Viper Energy’s cash and cash equivalents were at $42.4 million. It reported net long-term debt of $534.2 million, representing a debt to capitalization of 22.4%.
Guidance
For 2021, the partnership revised upward its daily average oil equivalent production to 26.3-27 thousand barrels of oil equivalent per day (MBoe/d). At midpoint, the new production guidance suggests an improvement of 2%.
The partnership sets its average daily production guidance for second half of 2021 between 25.8 Mboe/d and 27 Mboe/d.
Zacks Rank & Other Stocks to Consider
The partnership currently has a Zacks Rank #2 (Buy). Two other prospective players in the energy space include Whiting Petroleum Corporation and Continental Resources, Inc. . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Continental is expected to witness earnings growth of 256% in 2021.
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Viper Energy (VNOM) Gains 4.5% as Q2 Earnings Beat Estimates
Viper Energy Partners LP (VNOM - Free Report) has gained 4.5% since it reported strong second-quarter 2021 results on Aug 2. Higher oil equivalent barrels and price primarily aided the partnership’s bottom line.
The partnership – an affiliate of Diamondback Energy, Inc. (FANG - Free Report) – reported adjusted earnings per unit of 9 cents for the second quarter, beating the Zacks Consensus Estimate by a penny. The bottom line compared favorably with the year-ago loss of 4 cents per unit.
The partnership — with mineral interests in North America oil and gas resources — generated operating income of $114 million, beating the Zacks Consensus Estimate of $88 million. The top line increased from the year-ago quarter’s $33 million.
Viper Energy Partners LP Price, Consensus and EPS Surprise
Viper Energy Partners LP price-consensus-eps-surprise-chart | Viper Energy Partners LP Quote
Distribution
The partnership was authorized by the board of directors of its general partner to make a cash distribution of 33 cents per common unit, payable on Aug 19, 2021, to all shareholders of record as of Aug 12, 2021. The metric increased 32% from the prior-quarter figure of 25 cents per common unit.
Production
The resources, wherein the partnership has mineral interests, produced 2,489 thousand oil equivalent barrels (MBoe) for the June-end quarter of 2021, up from 2,230 MBoe in the year-ago quarter. Of the total volumes, oil contributed 60.4% to total production. The production of crude oil and natural gas increased from the prior-year quarter figure. The production of natural gas liquid declined from the year-ago level in the reported quarter.
Realized Prices
Overall average realized price per barrel of oil equivalent was recorded at $45.58 compared with $14.55 in second-quarter 2020. Average realized oil prices for the quarter under review were recorded at $62.51 per barrel, up from $21 a year ago. The price of natural gas was $2.96 per thousand cubic feet, up from 46 cents in the year-ago quarter. The same for natural gas liquids was recorded at $22.21 a barrel, up from the year-ago quarter’s $7.69.
Cost & Expenses
Total expenses for second-quarter 2021 amounted to $34.3 million versus $27.6 million in the prior-year quarter. On a per barrel of oil equivalent (Boe) basis, total operating expenses were recorded at $4.01 versus $2.02 in the year-ago quarter.
Cash Flow
Net cash from operating activities was recorded at $75 million, up from $19.8 million in the second quarter of 2020.
Balance Sheet
As of Jun 30, 2021, Viper Energy’s cash and cash equivalents were at $42.4 million. It reported net long-term debt of $534.2 million, representing a debt to capitalization of 22.4%.
Guidance
For 2021, the partnership revised upward its daily average oil equivalent production to 26.3-27 thousand barrels of oil equivalent per day (MBoe/d). At midpoint, the new production guidance suggests an improvement of 2%.
The partnership sets its average daily production guidance for second half of 2021 between 25.8 Mboe/d and 27 Mboe/d.
Zacks Rank & Other Stocks to Consider
The partnership currently has a Zacks Rank #2 (Buy). Two other prospective players in the energy space include Whiting Petroleum Corporation and Continental Resources, Inc. . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Continental is expected to witness earnings growth of 256% in 2021.