Back to top

Image: Bigstock

Viper Energy (VNOM) Q3 Earnings & Revenues Beat Estimates

Read MoreHide Full Article

Viper Energy Partners LP (VNOM - Free Report) reported third-quarter 2022 adjusted earnings per unit of 98 cents, beating the Zacks Consensus Estimate of 40 cents. The bottom line significantly improved from the year-ago quarter’s profit of 21 cents per share.

The partnership, with mineral interests in North America oil and gas resources, generated an operating income of $222 million, beating the Zacks Consensus Estimate of $214 million. The top line increased from the year-ago quarter’s $128 million.

Viper Energy’s strong quarterly results were aided by higher oil-equivalent production and prices.

Viper Energy Partners LP Price, Consensus and EPS Surprise

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 3,173 thousand oil-equivalent barrels (MBoe) in the September quarter of 2022, up from 2,541 MBoe a year ago. Of the total volume, oil contributed 57.6%. The production of crude oil, natural gas and natural gas liquids increased from the prior-year quarter.

Realized Prices

Overall average realized price per barrel of oil equivalent was recorded at $69.31 compared with $50.24 in third-quarter 2021. Average realized oil prices in the quarter under review were $91.87 per barrel, up from $67.67 a year ago. The price of natural gas was $7.01 per thousand cubic feet, up from $3.61 in the year-ago quarter. The same for natural gas liquids was $35.15 a barrel, up from $30.66.

Costs & Expenses

In third-quarter 2022, total expenses amounted to $48.2 million compared with $35.7 million in the prior-year quarter. On a per barrel of oil equivalent (Boe) basis, total operating expenses were recorded at $5.49 compared with $3.98 in the year-ago quarter.

Cash Flow

Net cash from operating activities was recorded at $214.2 million, up from $69.9 million in the third quarter of 2021.

Balance Sheet

As of Sep 30, 2022, Viper Energy’s cash and cash equivalents were $11.6 million. It reported net long-term debt of $669.6 million.

Guidance

For the fourth and first quarters, Viper Energy expects its production in the range of 33,250 to 35,000 Boe/d. For 2022, the partnership is projecting its production in the band of 33,250 to 33,750 Boe/d.

Zacks Rank & Stocks to Consider

Viper Energy currently carries a Zacks Rank #3 (Hold). Better-ranked players in the same space include Magellan Midstream Partners , EQT Corporation (EQT - Free Report) and Shell plc (SHEL - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Being a midstream energy player, Magellan Midstream’s business model is less exposed to volatility in oil and gas prices. In fact, contributions from core fee-based transportation and terminals activities have aided MMP’s results in the third quarter of this year.

In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. Being a leading producer of natural gas, EQT is benefiting from high natural gas prices. For 2022, it is likely to witness earnings growth of 369.6%.

Being a leading player in liquefied natural gas across the globe, Shell’s business prospects seem bright. In the energy transition front, it is playing a crucial role, setting an ambitious goal of becoming a net-zero-emissions energy business by 2050 or before. For 2022, SHEL is likely to see earnings growth of almost 115%.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


EQT Corporation (EQT) - free report >>

Viper Energy Inc. (VNOM) - free report >>

Shell PLC Unsponsored ADR (SHEL) - free report >>

Published in