Viper Energy (VNOM) Up 3.3% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Viper Energy Partners reported mixed results in its Q3 2024 earnings, with adjusted earnings per share beating estimates but revenues falling short, leading to a decline in overall performance compared to the previous year [2][3]. Financial Performance - Adjusted earnings per share for Q3 2024 were 49 cents, exceeding the Zacks Consensus Estimate of 43 cents, but down from $1.10 in the same quarter last year [2]. - Operating income was $209.6 million, missing the Zacks Consensus Estimate of $213 million, and down from $293.2 million year-over-year [3]. - Total expenses increased to $74 million from $50.4 million in the prior-year quarter, surpassing the estimate of $69.6 million [8]. - Net cash provided by operating activities decreased to $203 million from $239.7 million in Q3 2023 [9]. Production Metrics - The company produced 4,542 thousand oil-equivalent barrels (MBoe) in Q3 2024, up from 3,721 MBoe a year ago, exceeding the estimate of 4,376 MBoe [4]. - Oil production specifically increased to 2,482 thousand barrels (MBbls) from 2,037 MBbls year-over-year, beating the estimate of 2,443 MBbls [4]. Pricing Trends - The average realized price per barrel of oil equivalent was $45.83, down from $52.57 in Q3 2023, and below the estimate of $49.11 [6]. - The average realized oil price was $75.24 per barrel, down from $82.48 year-over-year, missing the estimate of $77.99 [6]. - Natural gas prices fell to 13 cents per thousand cubic feet from $1.81 a year ago, also missing the estimate of 80 cents [7]. Guidance and Outlook - The company updated its total production guidance for 2024 to 48.75-49.25 Mboe/d, indicating an increase from 39.2 Mboe/d reported in the previous year [11]. - Fourth-quarter net production is expected to be in the range of 52.50-53.00 Mboe/d [11]. - Overall, estimates for the stock have been trending downward, with a Zacks Rank of 3 (Hold) indicating an expectation of in-line returns in the coming months [15]. Industry Comparison - Viper Energy operates within the Zacks Oil and Gas - Exploration and Production - United States industry, where competitor SM Energy reported revenues of $643.61 million, reflecting a year-over-year change of +0.4% [16][17]. - SM Energy's EPS for the same period was $1.62, down from $1.73 a year ago, with a projected earnings increase of +25% for the current quarter [17].