Yahoo Finance Viper Energy (VNOM) Down 7.2% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Viper Energy Partners (VNOM). Shares have lost about 7.2% 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 the most recent earnings report in order to get a better handle on the important drivers.
Viper Energy Q1 Earnings Top Estimates, Revenues Fall Y/Y
Viper Energy Partners reported first-quarter 2023 adjusted earnings per unit of 53 cents, beating the Zacks Consensus Estimate of 26 cents. The bottom line increased from the year-ago quarter’s profit of 23 cents per share.
The partnership, with mineral interests in North America oil and gas resources, generated an operating income of $169 million, beating the Zacks Consensus Estimate of $161 million. The top line declined from the year-ago quarter’s $202 million.
Viper Energy’s strong quarterly earnings were aided by higher oil-equivalent production volumes.
Production
The resources, wherein the partnership has mineral interests, produced 3,147 thousand oil-equivalent barrels (MBoe) in the March-end quarter of 2023, up from 2,841 MBoe a year ago. Of the total volume, oil contributed 57.5%. The production of crude oil, natural gas and natural gas liquids increased from the prior-year quarter.
Realized Prices
The overall average realized price per barrel of oil equivalent was $51.19 compared with $67.97 in first-quarter 2022. Average realized oil prices in the quarter under review were $75.48 per barrel, down from $94.95. The price of natural gas was $2.13 per thousand cubic feet, down from $4.07 in the year-ago quarter. The same for natural gas liquids was $24.45 a barrel, down from $38.99.
Costs & Expenses
In first-quarter 2023, total expenses amounted to $46.6 million compared with $43.2 million in the prior-year quarter. On a per barrel of oil-equivalent (Boe) basis, total operating expenses were $4.86 compared with $5.47 in the year-ago quarter.
Cash Flow
Net cash provided by operating activities was $107.2 million, down from $135.8 million in the first quarter of 2022.
Balance Sheet
As of Mar 31, 2023, Viper Energy’s cash and cash equivalents were $9.1 million. It reported net long-term debt of $695.2 million.
Guidance
For 2023, the partnership expects total production of 35.25-38.75 MBoe/d. For the second and third quarter, Viper Energy expects production of 36.25-38.75 MBoe/d.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Viper Energy has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, Viper Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Viper Energy belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Range Resources (RRC), has gained 9.6% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
Range Resources reported revenues of $853 million in the last reported quarter, representing a year-over-year change of -13.6%. EPS of $0.99 for the same period compares with $1.18 a year ago.
Range Resources is expected to post earnings of $0.39 per share for the current quarter, representing a year-over-year change of -69.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -6.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Range Resources. Also, the stock has a VGM Score of B.
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Viper Energy Partners LP (VNOM) : Free Stock Analysis Report
Range Resources Corporation (RRC) : Free Stock Analysis Report
