A month has gone by since the last earnings report for Viper Energy Partners (VNOM Quick QuoteVNOM - Free Report) . Shares have added about 3.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Viper Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Viper Energy Q2 Earnings Beat Estimates

Viper Energy Partners 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.

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.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

At this time, Viper Energy has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Viper Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.