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Viper Energy (VNOM) Tops on Q4 Earnings, Expects '24 Output Hike
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Viper Energy Partners LP (VNOM - Free Report) reported fourth-quarter 2023 adjusted earnings per unit of 67 cents, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also increased from the year-ago quarter’s 28 cents.
The partnership, with mineral interests in North America oil and gas resources, generated an operating income of $204.7 million, which missed the Zacks Consensus Estimate of $207 million. The top line increased from the year-ago quarter’s $203.6 million.
Viper Energy’s strong quarterly earnings were aided by higher oil-equivalent production volumes.
Viper Energy Inc. Price, Consensus and EPS Surprise
The resources, wherein the partnership has mineral interests, produced 4,028 thousand oil-equivalent barrels (MBoe) in the December-end quarter of 2023, up from 3,214 MBoe a year ago. The reported figure is in line with our estimate.
Of the total volume, oil contributed 56% to 2,257 thousand barrels of oil (MBbls), up from 1,838 MBbls a year ago. The metric also beat our estimate of 2,240 MBbls.
The production of crude oil, natural gas and natural gas liquids increased from the prior-year quarter’s level.
Realized Prices
The overall average realized price per barrel of oil equivalent was $50.20 compared with $57.92 in fourth-quarter 2022. The figure was slightly above our estimate of $49.42.
Average realized oil prices in the quarter under review were $77.65 per barrel, down from $83.30 in the year-ago quarter. The price of natural gas was $1.50 per thousand cubic feet, down from $3.74 in the year-ago quarter. The price for natural gas liquids was $21.47 a barrel, down from $25.65 a year ago.
Costs & Expenses
In the fourth quarter, total expenses were $61.7 million compared with $44.6 million in the prior-year quarter. The figure is below our estimate of $66.5 million.
On a per barrel of oil-equivalent (Boe) basis, total operating expenses were $4.03 compared with $4.07 in the year-ago quarter. The figure also lagged our estimate of $5.84.
Cash Flow
Net cash provided by operating activities was $145.8 million, down from $186.6 million in the fourth quarter of 2022.
Balance Sheet
As of Dec 31, 2023, Viper Energy’s cash and cash equivalents were $25.9 million. The company reported a net long-term debt of $1.1 billion.
Guidance
For 2024, the partnership expects a total production of 45.5-49 MBoe/d, indicating an increase from the 43.8 MBoe/d reported in 2023. For the first quarter, it anticipates production of 44.75-45.50 MBoe/d.
Zacks Rank & Stocks to Consider
Currently, Viper Energy carries a Zacks Rank #4 (Sell).
Murphy USA Inc. (MUSA - Free Report) is a leading independent retailer of motor fuel and convenience merchandise in the United States.
The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $25.36. It has a Zacks Style Score of A for Growth and Value. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
Oceaneering International, Inc. (OII - Free Report) is one of the leading suppliers of offshore equipment and technology solutions to the energy industry.
The Zacks Consensus Estimate for OII’s 2024 EPS is pegged at $1.52. It has a Zacks Style Score of A for Growth and B for Value. OII’s earnings for 2024 are expected to surge 76.4% year over year.
USA Compression Partners, LP (USAC - Free Report) is one of the largest independent natural gas compression services providers across the United States in terms of fleet horsepower.
The Zacks Consensus Estimate for USAC’s 2024 EPS is pegged at 58 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. USAC’s earnings for 2024 are expected to rise 39.7% year over year.
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Viper Energy (VNOM) Tops on Q4 Earnings, Expects '24 Output Hike
Viper Energy Partners LP (VNOM - Free Report) reported fourth-quarter 2023 adjusted earnings per unit of 67 cents, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also increased from the year-ago quarter’s 28 cents.
The partnership, with mineral interests in North America oil and gas resources, generated an operating income of $204.7 million, which missed the Zacks Consensus Estimate of $207 million. The top line increased from the year-ago quarter’s $203.6 million.
Viper Energy’s strong quarterly earnings were aided by higher oil-equivalent production volumes.
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 4,028 thousand oil-equivalent barrels (MBoe) in the December-end quarter of 2023, up from 3,214 MBoe a year ago. The reported figure is in line with our estimate.
Of the total volume, oil contributed 56% to 2,257 thousand barrels of oil (MBbls), up from 1,838 MBbls a year ago. The metric also beat our estimate of 2,240 MBbls.
The production of crude oil, natural gas and natural gas liquids increased from the prior-year quarter’s level.
Realized Prices
The overall average realized price per barrel of oil equivalent was $50.20 compared with $57.92 in fourth-quarter 2022. The figure was slightly above our estimate of $49.42.
Average realized oil prices in the quarter under review were $77.65 per barrel, down from $83.30 in the year-ago quarter. The price of natural gas was $1.50 per thousand cubic feet, down from $3.74 in the year-ago quarter. The price for natural gas liquids was $21.47 a barrel, down from $25.65 a year ago.
Costs & Expenses
In the fourth quarter, total expenses were $61.7 million compared with $44.6 million in the prior-year quarter. The figure is below our estimate of $66.5 million.
On a per barrel of oil-equivalent (Boe) basis, total operating expenses were $4.03 compared with $4.07 in the year-ago quarter. The figure also lagged our estimate of $5.84.
Cash Flow
Net cash provided by operating activities was $145.8 million, down from $186.6 million in the fourth quarter of 2022.
Balance Sheet
As of Dec 31, 2023, Viper Energy’s cash and cash equivalents were $25.9 million. The company reported a net long-term debt of $1.1 billion.
Guidance
For 2024, the partnership expects a total production of 45.5-49 MBoe/d, indicating an increase from the 43.8 MBoe/d reported in 2023. For the first quarter, it anticipates production of 44.75-45.50 MBoe/d.
Zacks Rank & Stocks to Consider
Currently, Viper Energy carries a Zacks Rank #4 (Sell).
Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Murphy USA Inc. (MUSA - Free Report) is a leading independent retailer of motor fuel and convenience merchandise in the United States.
The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $25.36. It has a Zacks Style Score of A for Growth and Value. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
Oceaneering International, Inc. (OII - Free Report) is one of the leading suppliers of offshore equipment and technology solutions to the energy industry.
The Zacks Consensus Estimate for OII’s 2024 EPS is pegged at $1.52. It has a Zacks Style Score of A for Growth and B for Value. OII’s earnings for 2024 are expected to surge 76.4% year over year.
USA Compression Partners, LP (USAC - Free Report) is one of the largest independent natural gas compression services providers across the United States in terms of fleet horsepower.
The Zacks Consensus Estimate for USAC’s 2024 EPS is pegged at 58 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. USAC’s earnings for 2024 are expected to rise 39.7% year over year.