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Why Is Viper Energy (VNOM) Down 4.4% Since Last Earnings Report?
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It has been about a month since the last earnings report for Viper Energy Partners (VNOM - Free Report) . Shares have lost about 4.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Viper Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Viper Energy Q3 Earnings Beat Estimates
Viper Energy reported adjusted earnings per unit of 21 cents for the third quarter, beating the Zacks Consensus Estimate for earnings of 9 cents. The bottom line improved from the breakeven earnings in the year-ago quarter.
The partnership — with mineral interests in North America oil and gas resources — generated operating income of $128 million, beating the Zacks Consensus Estimate of $101 million. The top line also increased from the year-ago quarter’s $62.9 million.
The strong quarterly results were aided by an increase in oil-equivalent production volumes and higher commodity price realizations.
Distribution
The partnership was authorized by the board of directors of its general partner to make a cash distribution of 38 cents per common unit, payable Nov 18, 2021, to shareholders of record as of Nov 11, 2021. The metric increased 15% from the prior-quarter figure of 33 cents per common unit.
Production
The resources, wherein the partnership has mineral interests, produced 2,541 thousand oil-equivalent barrels (MBoe) for the September-end quarter of 2021, up from 2,430 MBoe in the year-ago quarter. Of the total volumes, oil contributed 58.2% to the total production. The production of crude oil, natural gas and natural gas liquids increased from the prior-year quarter figure.
Realized Prices
Overall average realized price per barrel of oil equivalent was recorded at $50.24 compared with $25.76 in third-quarter 2020. Average realized oil prices for the quarter under review were recorded at $67.67 per barrel, up from $36.80 a year ago. The price of natural gas was $3.61 per thousand cubic feet, up from $1.07 in the year-ago quarter. The same for natural gas liquids was recorded at $30.66 a barrel, up from the year-ago quarter’s $12.44.
Costs & Expenses
Total expenses for third-quarter 2021 amounted to $35.7 million versus $31.6 million in the prior-year quarter. On a per barrel of oil equivalent (Boe) basis, total operating expenses were recorded at $3.98 versus $2.71 in the year-ago quarter.
Cash Flow
Net cash from operating activities was recorded at $70 million, up from $27.3 million in the third quarter of 2020.
Balance Sheet
As of Sep 30, 2021, Viper Energy’s cash and cash equivalents were $41.5 million. It reported net long-term debt of $564.5 million, representing a debt to capitalization of 23.3%.
Guidance
For 2021, the partnership increased its daily average oil equivalent production to 27.3-27.8 thousand barrels of oil equivalent per day (MBoe/d) from 26.3-27 MBoe/d mentioned earlier.
The partnership sets its average daily production guidance for fourth-quarter 2021 and first-quarter 2022 in the range of 28.3-29.5 Mboe/d.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 18.64% due to these changes.
VGM Scores
Currently, Viper Energy has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, 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.
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Why Is Viper Energy (VNOM) Down 4.4% Since Last Earnings Report?
It has been about a month since the last earnings report for Viper Energy Partners (VNOM - Free Report) . Shares have lost about 4.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Viper Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Viper Energy Q3 Earnings Beat Estimates
Viper Energy reported adjusted earnings per unit of 21 cents for the third quarter, beating the Zacks Consensus Estimate for earnings of 9 cents. The bottom line improved from the breakeven earnings in the year-ago quarter.
The partnership — with mineral interests in North America oil and gas resources — generated operating income of $128 million, beating the Zacks Consensus Estimate of $101 million. The top line also increased from the year-ago quarter’s $62.9 million.
The strong quarterly results were aided by an increase in oil-equivalent production volumes and higher commodity price realizations.
Distribution
The partnership was authorized by the board of directors of its general partner to make a cash distribution of 38 cents per common unit, payable Nov 18, 2021, to shareholders of record as of Nov 11, 2021. The metric increased 15% from the prior-quarter figure of 33 cents per common unit.
Production
The resources, wherein the partnership has mineral interests, produced 2,541 thousand oil-equivalent barrels (MBoe) for the September-end quarter of 2021, up from 2,430 MBoe in the year-ago quarter. Of the total volumes, oil contributed 58.2% to the total production. The production of crude oil, natural gas and natural gas liquids increased from the prior-year quarter figure.
Realized Prices
Overall average realized price per barrel of oil equivalent was recorded at $50.24 compared with $25.76 in third-quarter 2020. Average realized oil prices for the quarter under review were recorded at $67.67 per barrel, up from $36.80 a year ago. The price of natural gas was $3.61 per thousand cubic feet, up from $1.07 in the year-ago quarter. The same for natural gas liquids was recorded at $30.66 a barrel, up from the year-ago quarter’s $12.44.
Costs & Expenses
Total expenses for third-quarter 2021 amounted to $35.7 million versus $31.6 million in the prior-year quarter. On a per barrel of oil equivalent (Boe) basis, total operating expenses were recorded at $3.98 versus $2.71 in the year-ago quarter.
Cash Flow
Net cash from operating activities was recorded at $70 million, up from $27.3 million in the third quarter of 2020.
Balance Sheet
As of Sep 30, 2021, Viper Energy’s cash and cash equivalents were $41.5 million. It reported net long-term debt of $564.5 million, representing a debt to capitalization of 23.3%.
Guidance
For 2021, the partnership increased its daily average oil equivalent production to 27.3-27.8 thousand barrels of oil equivalent per day (MBoe/d) from 26.3-27 MBoe/d mentioned earlier.
The partnership sets its average daily production guidance for fourth-quarter 2021 and first-quarter 2022 in the range of 28.3-29.5 Mboe/d.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 18.64% due to these changes.
VGM Scores
Currently, Viper Energy has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, 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.