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Jun 30, 2022
Viper Energy Q2 2022 Earnings Report
Viper Energy's financial and operating results for Q2 2022 were reported, capital return program was enhanced, and buyback authorization was increased.
Key Takeaways
Viper Energy Partners LP reported strong Q2 2022 results, with increased oil production and cash available for distribution. The company also announced an enhanced capital return program, including a base annual distribution of $1.00 per common unit and an increased unit repurchase authorization of $750.0 million.
Q2 2022 average production of 19,758 bo/d (33,560 boe/d), an increase of 9% from Q1 2022 and 20% year over year.
Q2 2022 consolidated net income (including non-controlling interest) of $171.6 million; net income attributable to Viper Energy Partners LP of $34.0 million, or $0.44 per common unit.
Q2 2022 cash distribution of $0.81 per common unit, representing approximately 70% of total cash available for distribution.
The Board also increased the authorization of its common unit repurchase program to $750.0 million, up from $250.0 million previously.
Viper Energy
Viper Energy
Viper Energy Revenue by Segment
Revenue by Segment
Royalty Income Revenue
CapyFin.comLease Bonus Income Revenue
CapyFin.com Forward Guidance
Viper Energy Partners provided guidance for Q3 and Q4 2022, as well as full year 2022 net production.
Positive Outlook
- Q3 2022 / Q4 2022 Net Production - MBo/d: 19.25 - 20.25
- Q3 2022 / Q4 2022 Net Production - MBoe/d: 32.75 - 34.50
- Full Year 2022 Net Production - MBo/d: 19.00 - 19.75
- Full Year 2022 Net Production - MBoe/d: 32.50 - 33.75
- Production and Ad Valorem Taxes (% of Revenue): 7%
Challenges Ahead
- Depletion: $9.75 - $10.75
- Cash G&A: $0.60 - $0.80
- Non-Cash Unit-Based Compensation: $0.10 - $0.20
- Interest Expense: $3.25 - $3.75
- Cash Tax Rate (% of Pre-Tax Income Attributable to Viper Energy Partners LP): 13% - 18%