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Sep 30, 2024

Viper Energy Q3 2024 Earnings Report

Viper Energy's financial performance remained strong, driven by increased production and strategic acquisitions.

Key Takeaways

Viper Energy reported a solid third quarter in 2024, marked by increased production, strategic acquisitions including the Tumbleweed Acquisitions, and a strong free cash flow conversion despite commodity price volatility. The company's average production was 49,370 boe/d, and it declared a total base-plus-variable dividend of $0.61 per Class A common share.

Average production increased by 2.4% from the previous quarter to 49,370 boe/d.

Net income attributable to Viper Energy, Inc. was $48.9 million, or $0.52 per common share.

Cash available for distribution to Viper's common shares was $75.4 million, or $0.73 per Class A common share.

The company closed the acquisition of mineral and royalty interest-owning subsidiaries of Tumbleweed-Q Royalty Partners, LLC and MC Tumbleweed Royalty, LLC on September 3, 2024.

Total Revenue
$208M
Previous year: $196M
+6.4%
EPS
$0.49
Previous year: $1.1
-55.5%
Oil Production
26.98K
Combined Production Volume
49.37K
Gross Profit
$139M
Previous year: $147M
-5.8%
Cash and Equivalents
$169M
Previous year: $147M
+14.9%
Free Cash Flow
-$68.1M
Previous year: $189M
-136.1%
Total Assets
$4.21B
Previous year: $3.14B
+33.8%

Viper Energy

Viper Energy

Viper Energy Revenue by Segment

Forward Guidance

Viper Energy is initiating average daily production guidance for Q4 2024 of 29,250 to 29,750 bo/d (52,500 to 53,000 boe/d) and increasing full year 2024 average daily production guidance to 27,000 to 27,250 bo/d (48,750 to 49,250 boe/d).

Positive Outlook

  • Q4 2024 Net Production - MBo/d between 29.25 and 29.75
  • Q4 2024 Net Production - MBoe/d between 52.50 and 53.00
  • Full Year 2024 Net Production - MBo/d between 27.00 and 27.25
  • Full Year 2024 Net Production - MBoe/d between 48.75 and 49.25
  • Depletion share costs between $11.50 and $12.00 per boe

Challenges Ahead

  • Cash G&A share costs between $0.80 and $1.00 per boe
  • Non-Cash Share-Based Compensation between $0.10 and $0.20 per boe
  • Interest Expense between $4.00 and $4.25 per boe
  • Production and Ad Valorem Taxes ~7% of Revenue
  • Q4 2024 Cash Taxes between $13.0 and $18.0 million