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Viper Energy (VNOM) Q3 Earnings & Revenues Beat Estimates

Viper Energy Partners LP VNOM reported third-quarter 2022 adjusted earnings per unit of 98 cents, beating the Zacks Consensus Estimate of 40 cents. The bottom line significantly improved from the year-ago quarter’s profit of 21 cents per share.

The partnership, with mineral interests in North America oil and gas resources, generated an operating income of $222 million, beating the Zacks Consensus Estimate of $214 million. The top line increased from the year-ago quarter’s $128 million.

Viper Energy’s strong quarterly results were aided by higher oil-equivalent production and prices.

Viper Energy Partners LP Price, Consensus and EPS Surprise

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

Production

The resources, wherein the partnership has mineral interests, produced 3,173 thousand oil-equivalent barrels (MBoe) in the September quarter of 2022, up from 2,541 MBoe a year ago. Of the total volume, oil contributed 57.6%. The production of crude oil, natural gas and natural gas liquids increased from the prior-year quarter.

Realized Prices

Overall average realized price per barrel of oil equivalent was recorded at $69.31 compared with $50.24 in third-quarter 2021. Average realized oil prices in the quarter under review were $91.87 per barrel, up from $67.67 a year ago. The price of natural gas was $7.01 per thousand cubic feet, up from $3.61 in the year-ago quarter. The same for natural gas liquids was $35.15 a barrel, up from $30.66.

Costs & Expenses

In third-quarter 2022, total expenses amounted to $48.2 million compared with $35.7 million in the prior-year quarter. On a per barrel of oil equivalent (Boe) basis, total operating expenses were recorded at $5.49 compared with $3.98 in the year-ago quarter.

Cash Flow

Net cash from operating activities was recorded at $214.2 million, up from $69.9 million in the third quarter of 2021.

Balance Sheet

As of Sep 30, 2022, Viper Energy’s cash and cash equivalents were $11.6 million. It reported net long-term debt of $669.6 million.

Guidance

For the fourth and first quarters, Viper Energy expects its production in the range of 33,250 to 35,000 Boe/d. For 2022, the partnership is projecting its production in the band of 33,250 to 33,750 Boe/d.

Zacks Rank & Stocks to Consider

Viper Energy currently carries a Zacks Rank #3 (Hold). Better-ranked players in the same space include Magellan Midstream Partners MMP, EQT Corporation EQT and Shell plc SHEL. All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Being a midstream energy player, Magellan Midstream’s business model is less exposed to volatility in oil and gas prices. In fact, contributions from core fee-based transportation and terminals activities have aided MMP’s results in the third quarter of this year.

In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. Being a leading producer of natural gas, EQT is benefiting from high natural gas prices. For 2022, it is likely to witness earnings growth of 369.6%.

Being a leading player in liquefied natural gas across the globe, Shell’s business prospects seem bright. In the energy transition front, it is playing a crucial role, setting an ambitious goal of becoming a net-zero-emissions energy business by 2050 or before. For 2022, SHEL is likely to see earnings growth of almost 115%.


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Magellan Midstream Partners, L.P. (MMP) : Free Stock Analysis Report
 
EQT Corporation (EQT) : Free Stock Analysis Report
 
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