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Sep 30, 2023
Viper Energy Q3 2023 Earnings Report
Viper Energy's financial performance was strong, marked by increased production and strategic moves towards becoming a Delaware corporation.
Key Takeaways
Viper Energy Partners LP reported a strong Q3 2023, with record average production, significant lease bonus income, and solid net income. The company also announced its conversion into a Delaware corporation and completed the GRP Acquisition, enhancing its asset base and future growth prospects. Production guidance for Q4 2023 and full year 2024 was also provided.
Q3 2023 average production reached a record high of 22,141 bo/d (40,446 boe/d), up 4.7% from Q2 2023 and 11.4% year-over-year.
The company received $97.4 million in lease bonus income during the quarter.
Consolidated net income for Q3 2023 was $207.2 million, with $78.6 million attributable to Viper Energy Partners LP, or $1.11 per common unit.
Viper repurchased 0.4 million common units in Q3 2023 for $9.6 million, averaging $26.22 per unit.
Viper Energy
Viper Energy
Forward Guidance
Viper Energy provided production guidance for Q4 2023 and preliminary guidance for full year 2024, anticipating continued growth and the integration of the GRP Acquisition.
Positive Outlook
- Q4 2023 average daily production is projected to be between 24,250 and 24,750 bo/d (43,250 to 44,250 boe/d).
- Including the GRP Acquisition, pro forma oil production for Q4 2023 would be roughly 1,500 bo/d higher.
- Full year 2023 average daily production is expected to be approximately 22,000 bo/d (39,250 boe/d).
- Preliminary full year 2024 average daily production is guided at 25,500 to 27,500 bo/d (44,500 to 48,000 boe/d).
- Q4 2024 production is expected to be roughly 5% higher than pro forma Q4 2023.
Challenges Ahead
- Production in Q1 2024 is expected to decline 2-3% quarter-over-quarter on a pro forma basis.
- Depletion costs are estimated between $9.50 and $10.00 per BOE.
- Cash G&A expenses are projected to be $0.50 to $0.60 per BOE.
- Interest expense is expected to be $3.00 to $3.25 per BOE.
- Cash taxes for Q4 2023 are estimated between $13.0 and $17.0 million.