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Sep 30, 2022
Viper Energy Q3 2022 Earnings Report
Announced third quarter 2022 financial and operating results.
Key Takeaways
Viper Energy Partners LP reported a strong third quarter in 2022, with record oil production and the implementation of an enhanced capital return program, including significant common unit repurchases and a competitive distribution per unit.
Q3 2022 average production of 19,870 bo/d (34,489 boe/d).
Consolidated net income (including non-controlling interest) of $210.1 million; net income attributable to Viper Energy Partners LP of $79.3 million, or $1.06 per common unit.
Cash available for distribution to Viper’s common units of $79.2 million, or $1.07 per common unit.
Repurchased 1.8 million common units in Q3 2022 for $50.7 million (average price of $27.91 per unit).
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 has initiated average production guidance for Q4 2022 and Q1 2023 that implies roughly flat volumes relative to the third quarter and Viper continues to expect Diamondback to focus on developing Viper’s high concentration royalty acreage in the Northern Midland Basin, and as a result, growing Viper’s 2023 Diamondback-operated net oil volumes by roughly 10% year over year.
Positive Outlook
- Viper expects Diamondback to focus on developing Viper’s high concentration royalty acreage in the Northern Midland Basin
- Viper expects Diamondback to grow Viper’s 2023 Diamondback-operated net oil volumes by roughly 10% year over year.
- Viper initiated average production guidance for Q4 2022
- Viper initiated average production guidance for Q1 2023
- Viper expects roughly flat volumes relative to the third quarter.
Challenges Ahead
- Royalty volumes can be subject to somewhat uneven volumes from quarter to quarter.
- Existing permits or active development of Viper’s royalty acreage does not ensure that those wells will be turned to production.
- Concerns over economic slowdown or potential recession
- Rising interest rates and their impact on the cost of capital
- Changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities