Viper Energy Q4 2022 Earnings Report
Key Takeaways
Viper Energy Partners reported a record year with Q4 oil production setting a company record. The company delivered on return of capital and financial initiatives, reducing net debt by $100 million, repurchasing roughly 1 million units, and declared a distribution that provides a greater than 6% annualized yield.
Q4 2022 average production of 19,978 bo/d (34,935 boe/d), an increase of 1% from Q3 2022 and 9% year over year; highest in Company history
Received $17.3 million in lease bonus income
Q4 2022 consolidated net income (including non-controlling interest) of $145.2 million; net income attributable to Viper Energy Partners LP of $21.7 million, or $0.29 per common unit
Repurchased 1.0 million common units in Q4 2022 for $31.7 million (average price of $32.40 per unit)
Viper Energy
Viper Energy
Viper Energy Revenue by Segment
Forward Guidance
Viper has initiated average production guidance for the first half of 2023 of 19,750 to 20,750 bo/d (34,000 to 35,750 boe/d) and full year 2023 average daily production guidance of 20,000 to 22,000 bo/d (34,500 to 38,000 boe/d).
Positive Outlook
- Viper is uniquely positioned to continue to return substantial amounts of capital
- Viper can offer organic production growth with almost zero exposure to inflationary cost pressures.
- Average production guidance for the full year implies 8% year over year growth
- Diamondback continues to focus their development on Viper’s high concentration royalty acreage.
- 477 gross horizontal wells in the process of active development on Viper’s acreage
Challenges Ahead
- Changes in supply and demand levels for oil, natural gas, and natural gas liquids
- Impact of public health crises, including epidemic or pandemic diseases such as the COVID-19 pandemic
- Actions taken by the members of OPEC and Russia affecting the production and pricing of oil
- Concerns over economic slowdown or potential recession
- Rising interest rates and their impact on the cost of capital
Revenue & Expenses
Visualization of income flow from segment revenue to net income