Viper Energy's Q4 Earnings and Revenues Beat on Higher Production

Core Viewpoint - Viper Energy Inc. reported fourth-quarter 2024 adjusted earnings per share of 42 cents, exceeding the Zacks Consensus Estimate of 41 cents, but down from 67 cents year-over-year. Following the earnings release, shares fell approximately 3.7% to close at $45.54 [1]. Financial Performance - The company generated an operating income of $228.7 million, surpassing the Zacks Consensus Estimate of $223 million and increasing from $204.7 million in the same quarter last year [2]. - Net cash provided by operating activities was $157.9 million, up from $145.8 million in the fourth quarter of 2023 [9]. Production Metrics - Viper Energy produced 5,162 thousand oil-equivalent barrels (MBoe) in Q4 2024, an increase from 4,208 MBoe a year ago, and exceeding the estimate of 4,850 MBoe. Oil accounted for 53.2% of total production, with oil production rising to 2,747 MBbls from 2,257 MBbls year-over-year, also beating the estimate of 2,711 MBbls [4][5]. Pricing Analysis - The average realized price per barrel of oil equivalent was $43.56, down from $50.20 in Q4 2023, but above the estimate of $43.04. The average realized oil price was $69.91 per barrel, down from $77.65 year-over-year, yet surpassing the estimate of $67.52 [6]. - The price of natural gas was 84 cents per thousand cubic feet, down from $1.50 in the prior year, missing the estimate of $1.11. Natural gas liquids were priced at $22.15 per barrel, higher than $21.47 a year ago, exceeding the estimate of $17.38 [7]. Cost Structure - Total expenses in Q4 were $85.3 million, higher than $61.7 million in the prior-year quarter and above the estimate of $80.8 million. On a per barrel of oil-equivalent basis, total operating expenses were $3.85, compared to $4.03 in the year-ago quarter, lagging the estimate of $4.32 [8]. Future Guidance - The company projects production for Q1 2025 to be in the range of 54-56 Mboe/d. Additionally, Viper Energy announced the acquisition of certain mineral and royalty interest subsidiaries from Diamondback Energy, expected to close in Q2 2025, with projected production for the remainder of 2025 between 85 and 88 Mboe/d [11].