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Viper Energy Partners LP, a subsidiary of Diamondback energy reported weaker than expected third quarter earnings after the market close Monday. $VNOM surpassed $1 billion in aquistions since it's IPO four years ago. The company raised production guidance.

Viper Mineral Assets

Viper Energy Partners (NASDAQ: $VNOM) Report Earnings After Close Monday

$0.05 Missed $0.41 EPS But $78.60 Beat $77.28 million Forecast Revenue 

Earnings

Viper Energy (VNOM) reported third quarter earnings on Monday of $0.05 per share, missing the consensus estimate of $0.41 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items. Revenues of $78.60 million beat the expected $77.28 million in revenue. Last quarter $VNOM reported $1.35 earnings per share beating the consensus estimate of $0.38.earnings.  

Viper Energy NYSE: $VNOM 

Market Reaction After hours 32.40 −2.49 (-7.14%)

“During the third quarter, Viper surpassed $1 billion of closed acquisitions since its IPO four years ago, with over $500 million of these deals having been completed through the first three quarters of 2018. Viper continues to use its size, scale and expertise in the Permian Basin to consolidate the fragmented private minerals market, and we believe there remain significant opportunities ahead for us to continue this consolidation,” stated Travis Stice, Chief Executive Officer of Viper’s general partner.

Highlights

  • Q3 2018 cash distribution of $0.58 per common unit , up 72% year over year; implies a 6.4% annualized yield based on the October 26, 2018 unit closing price of $36.29
  • Q3 2018 consolidated net income (including non-controlling interest) of $50.8 million, consolidated adjusted EBITDA (as defined and reconciled below) of $72.4 million and cash available for distribution to Limited Partner units (as defined below) of $29.9 million
  • Q3 2018 production of 18,384 boe/d (69% oil), up 13% over Q2 2018 and 46% year over year
  • Closed 15 acquisitions for an aggregate purchase price of approximately $260 million in Q3 2018, including a completed drop down from Diamondback; increases Viper's mineral assets by 2,457 net royalty acres to 13,908 total net royalty acres, up 52% year over year
  • As of October 22, 2018, there were 24 active rigs on Viper's mineral acreage and approximately 523 active drilling permits filed in the past six months

Outlook

  • Raising full year 2018 production guidance to 16,750 to 17,250 boe/d (69% - 73% oil), up 1% from previous full year 2018 guidance, which implies 54% annualized growth over full year 2017 production 

 

Viper Energy Q2 Earnings Recap

Viper Energy Partners LP NASDAQ: $VNOM Beat Earnings After Close Wednesday

$1.35 Beat $0.38 EPS and $526.3 million Beat $477 million forecast in revenue 

Earnings

EPS of $1.35 on total operating income of $75.41 million beat forecast EPS of 38 cents andl operating income of $69 million.

  • Viper Energy Partners LP (NASDAQ): $VNOM
  • Market Reaction - After hours $38.20 +$2.26 (+6.29%)

Highlights

  • Total production rose 56% year-over-year to 16,323 barrels per day.
  • Q2 2018 production of 16,323 boe/d (71% oil), up 16% over Q1 2018 and 56% year over year
  • As of August 7, 2018, there were 32 active rigs on Viper's mineral acreage and approximately 367 active permits which had been filed in the past six months
  • Initiating average production guidance for Q3 2018/Q4 2018 of 17,500 to 19,000 boe/d, the midpoint of which is up 12% from Q2 2018 production
  • Its aggregated realized price of oil, natural gas and natural liquids was during Q2 was $50.10 per boe vs. $49.09 in Q1.

Outlook

  • Viper raised its full year 2018 up 5% from its previous outlook to 16,500 to 17,000 boe/d (70% - 73% oil).
  • Guidance and implies 52% annualized growth over full year 2017 production

About Viper Energy Partners LP

Viper is a limited partnership formed by Diamondback to own, acquire and exploit oil and natural gas properties in North America, with a focus on oil-weighted basins, primarily the Permian Basin in West Texas. For more information, please visit www.viperenergy.com.

About Diamondback

Diamondback Energy is an independent oil and natural gas company headquartered in Midland, TX. Diamondback’s growth strategy is focused on the acquisition, development, exploration and exploitation of unconventional, long-life, onshore oil and natural gas reserves in the major oil producing Permian Basin in West Texas. The Company’s operations are directed primarily at the large acreage areas of the Clearfork, Spraberry, Wolfcamp, Cline, Strawn and Atoka formations, collectively known as the Wolfberry Trend.

Source Diamondback Energy, Viper Energy

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