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Dec 31, 2022
Viper Energy Q4 2022 Earnings Report
Viper Energy Partners LP, a subsidiary of Diamondback Energy, Inc., announced financial and operating results for the fourth quarter and full year ended December 31, 2022.
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
Revenue by Segment
Royalty Income Revenue
CapyFin.comLease Bonus Income Revenue
CapyFin.com 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