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Viper Energy (VNOM) Tops on Q1 Earnings, Expects '24 Output Hike
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Viper Energy Partners LP (VNOM - Free Report) reported first-quarter 2024 adjusted earnings per unit of 52 cents, which beat the Zacks Consensus Estimate of 37 cents. The bottom line declined from the year-ago quarter’s 53 cents.
The partnership, with mineral interests in North America oil and gas resources, generated an operating income of $205.4 million, which surpassed the Zacks Consensus Estimate of $201 million. The top line increased from the year-ago quarter’s $169 million.
Viper Energy’s better-than-expected quarterly earnings were aided by higher oil-equivalent production volumes. The positives were partially offset by a lower average realized price per barrel of oil equivalent.
Viper Energy Inc. Price, Consensus and EPS Surprise
The resources, wherein the partnership has mineral interests, produced 4,198 thousand oil-equivalent barrels (MBoe) in the March-end quarter of 2024, up from 3,147 MBoe a year ago. The reported figure surpassed our estimate of 3,823 Mboe.
Of the total volume, oil contributed 55% to 2,312 thousand barrels of oil (MBbls), up from 1,810 MBbls a year ago. The metric also beat our estimate of 2,277 MBbls.
The production of crude oil, natural gas and natural gas liquids increased from the prior-year quarter’s levels.
Realized Prices
The overall average realized price per barrel of oil equivalent was $48.85 compared with $51.19 in first-quarter 2023. The figure was almost in line with our estimate.
Average realized oil prices in the quarter under review were $76.61 per barrel, up from $75.48 in the year-ago quarter and beating our estimate of $72.28.
The price of natural gas was $1.22 per thousand cubic feet, down from $2.13 in the year-ago quarter. The price for natural gas liquids was $22.17 a barrel, down from $24.45 a year ago.
Costs & Expenses
In the first quarter, total expenses were $66.5 million compared with $46.6 million in the prior-year quarter. The figure beat our estimate of $64.4 million.
On a per barrel of oil-equivalent (Boe) basis, total operating expenses were $4.51 compared with $4.86 in the year-ago quarter. The figure also lagged our estimate of $6.24.
Cash Flow
Net cash provided by operating activities was $115.4 million, down from $107.2 million in the first quarter of 2023.
Balance Sheet
As of Mar 31, 2024, Viper Energy’s cash and cash equivalents were $20 million. The company reported a net long-term debt of $1.1 billion.
Guidance
For 2024, the partnership expects a total production of 46-48 MBoe/d, indicating an increase from the 43.8 MBoe/d reported in 2023. For the second quarter, it anticipates a production of 46.50-47.25 MBoe/d.
Zacks Rank & Stocks to Consider
Currently, Viper Energy carries a Zacks Rank #3 (Hold).
SM Energy Company (SM - Free Report) is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition, and production of oil and gas in North America.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.33 and $6.96, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Hess Corporation (HES - Free Report) is a leading oil and natural gas exploration and production company. The exploration and production company’s oil and gas proved reserves increased last year by more than 8% year over year.
The Zacks Consensus Estimate for HES’s 2024 and 2025 EPS is pegged at $8.33 and $10.49, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
YPF Sociedad Anonima (YPF - Free Report) is a vertically integrated energy company primarily engaged in the oil and gas sector. The company is associated with both upstream and downstream activities, including the exploration, production and refining of crude oil and natural gas.
The Zacks Consensus Estimate for YPF’s 2024 and 2025 EPS is pegged at $6.38 and $7.83, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
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Viper Energy (VNOM) Tops on Q1 Earnings, Expects '24 Output Hike
Viper Energy Partners LP (VNOM - Free Report) reported first-quarter 2024 adjusted earnings per unit of 52 cents, which beat the Zacks Consensus Estimate of 37 cents. The bottom line declined from the year-ago quarter’s 53 cents.
The partnership, with mineral interests in North America oil and gas resources, generated an operating income of $205.4 million, which surpassed the Zacks Consensus Estimate of $201 million. The top line increased from the year-ago quarter’s $169 million.
Viper Energy’s better-than-expected quarterly earnings were aided by higher oil-equivalent production volumes. The positives were partially offset by a lower average realized price per barrel of oil equivalent.
Viper Energy Inc. Price, Consensus and EPS Surprise
Viper Energy Inc. price-consensus-eps-surprise-chart | Viper Energy Inc. Quote
Production
The resources, wherein the partnership has mineral interests, produced 4,198 thousand oil-equivalent barrels (MBoe) in the March-end quarter of 2024, up from 3,147 MBoe a year ago. The reported figure surpassed our estimate of 3,823 Mboe.
Of the total volume, oil contributed 55% to 2,312 thousand barrels of oil (MBbls), up from 1,810 MBbls a year ago. The metric also beat our estimate of 2,277 MBbls.
The production of crude oil, natural gas and natural gas liquids increased from the prior-year quarter’s levels.
Realized Prices
The overall average realized price per barrel of oil equivalent was $48.85 compared with $51.19 in first-quarter 2023. The figure was almost in line with our estimate.
Average realized oil prices in the quarter under review were $76.61 per barrel, up from $75.48 in the year-ago quarter and beating our estimate of $72.28.
The price of natural gas was $1.22 per thousand cubic feet, down from $2.13 in the year-ago quarter. The price for natural gas liquids was $22.17 a barrel, down from $24.45 a year ago.
Costs & Expenses
In the first quarter, total expenses were $66.5 million compared with $46.6 million in the prior-year quarter. The figure beat our estimate of $64.4 million.
On a per barrel of oil-equivalent (Boe) basis, total operating expenses were $4.51 compared with $4.86 in the year-ago quarter. The figure also lagged our estimate of $6.24.
Cash Flow
Net cash provided by operating activities was $115.4 million, down from $107.2 million in the first quarter of 2023.
Balance Sheet
As of Mar 31, 2024, Viper Energy’s cash and cash equivalents were $20 million. The company reported a net long-term debt of $1.1 billion.
Guidance
For 2024, the partnership expects a total production of 46-48 MBoe/d, indicating an increase from the 43.8 MBoe/d reported in 2023. For the second quarter, it anticipates a production of 46.50-47.25 MBoe/d.
Zacks Rank & Stocks to Consider
Currently, Viper Energy carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy Company (SM - Free Report) is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition, and production of oil and gas in North America.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.33 and $6.96, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Hess Corporation (HES - Free Report) is a leading oil and natural gas exploration and production company. The exploration and production company’s oil and gas proved reserves increased last year by more than 8% year over year.
The Zacks Consensus Estimate for HES’s 2024 and 2025 EPS is pegged at $8.33 and $10.49, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
YPF Sociedad Anonima (YPF - Free Report) is a vertically integrated energy company primarily engaged in the oil and gas sector. The company is associated with both upstream and downstream activities, including the exploration, production and refining of crude oil and natural gas.
The Zacks Consensus Estimate for YPF’s 2024 and 2025 EPS is pegged at $6.38 and $7.83, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.