Viper Energy Partners LP VNOM 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.