Yahoo Finance Why Is Viper Energy (VNOM) Up 3.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Viper Energy Partners (VNOM). Shares have added about 3.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Viper Energy due for a pullback? 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
Viper Energy reported first-quarter 2024 adjusted earnings per share 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 company, 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.
Production
The resources, wherein the company 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 company 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.
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 an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. 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 is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, EQT Corporation (EQT), a stock from the same industry, has gained 5.3%. The company reported its results for the quarter ended March 2024 more than a month ago.
EQT reported revenues of $1.72 billion in the last reported quarter, representing a year-over-year change of -8.9%. EPS of $0.82 for the same period compares with $1.70 a year ago.
For the current quarter, EQT is expected to post a loss of $0.08 per share, indicating a change of +52.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -100% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for EQT. Also, the stock has a VGM Score of D.
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Viper Energy Inc. (VNOM) : Free Stock Analysis Report
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