Back to top

Image: Bigstock

Viper Energy (VNOM) Misses Q1 Earnings on Lower Oil Price

Read MoreHide Full Article

Viper Energy Partners LP’s (VNOM - Free Report) loss per unit came in at a penny against the Zacks Consensus Estimate of earnings of 4 cents. In the prior-year quarter, the partnership had reported earnings of 38 cents.

The partnership, an affiliate of Diamondback Energy, Inc. (FANG - Free Report) , generated operating income of $62 million, which missed the Zacks Consensus Estimate of $68 million. However, the top line was almost flat year over year.

The decline in realized commodity prices primarily attributed to the lower-than-expected quarterly results.

Cash Distribution

The partnership received authorization from the board of directors of its general partner to report cash distributions for the March quarter of 2019 at 38 cents per common unit.  The new distribution reflects a sequential decline of 25.5%.

Production & Realized Prices

The resources where the partnership has mineral interest produced 1,714 thousand oil equivalent barrels (MBoE) in the March quarter of 2019, up from 1,271 MBoE a year ago. Of the total volumes, oil accounted for 67%.

Realized oil prices during the quarter were recorded at $45.31 per barrel, down from $61.41 a year ago. The price of natural gas liquids was recorded at $18.09 a barrel, down from the year-ago quarter’s $23.47. Moreover, the average sale price of natural gas fell to $2.05 per Mcf from $2.11 in the year-ago quarter.

Balance Sheet

As of Mar 31, 2019, the partnership’s cash and cash equivalents were recorded at $10.1 million. The partnership reported long-term debt of $157 million, representing a debt-to-capitalization ratio of roughly 9%.

Guidance

For second and third quarter of 2019, the partnership projects daily net production in the band of 19 to 21 MBoE. For 2019, Viper Energy expects daily net production in the range of 20 to 23 MBoE. The partnership added that the proportion of oil, of the total expected production volumes, is projected in the band of 67% to 71%.

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

Zacks Rank and Key Picks

Viper Energy currently carries a Zacks Rank #3 (Hold). Meanwhile, two better-ranked players in the energy space are Murphy Oil Corporation (MUR - Free Report) and Anadarko Petroleum Corporation . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.      

Murphy Oil has average positive earnings surprise of 17.3% for the last four quarters.

Anadarko Petroleum has average positive earnings surprise of 6.6% for the last four quarters.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.

See 7 breakthrough stocks now>>


See More Zacks Research for These Tickers


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


Murphy Oil Corporation (MUR) - free report >>

Diamondback Energy, Inc. (FANG) - free report >>

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

Published in