Viper Energy Q2 Earnings Beat Estimates on Higher Production

Core Insights - Viper Energy Inc. (VNOM) reported second-quarter 2025 adjusted earnings per share of 41 cents, exceeding the Zacks Consensus Estimate of 34 cents, but down from 61 cents a year ago [1][9] - The company generated operating income of $297 million, surpassing the Zacks Consensus Estimate of $294 million, and increased from $217 million in the same quarter last year [1][9] Production - The company produced 7,215 thousand oil-equivalent barrels (MBoe), up from 4,320 MBoe a year ago, exceeding the estimate of 6,940 MBoe [3] - Oil accounted for approximately 52.5% of total production, with oil production rising to 3,787 thousand barrels (MBbls) from 2,398 MBbls a year ago, surpassing the estimate of 3,748 MBbls [3][9] - Natural gas production increased to 10,132 million cubic feet (MMcf) in Q2 2025, compared to 5,631 MMcf in Q2 2024 [4] Realized Prices - The average realized price per barrel of oil equivalent was $39.78, down from $49.88 in Q2 2024, and below the estimate of $41.75 [5] - The average realized oil price was $63.64 per barrel, down from $81.04 a year ago, and missed the estimate of $64.22 [5] - The price of natural gas was $0.99 per thousand cubic feet, up from $0.20 in the prior year, but below the estimate of $2.12 [6] Costs and Expenses - Total expenses in Q2 were $162 million, significantly higher than $68 million in the prior-year quarter and above the estimate of $151.8 million [7] - On a per barrel of oil-equivalent (Boe) basis, total operating expenses were $3.60, down from $4.36 in the year-ago quarter, and below the estimate of $4.35 [7] Cash Flow - Net cash provided by operating activities was $172 million, an increase from $144 million in Q2 2024 [8] Balance Sheet - As of June 30, 2025, Viper Energy's cash and cash equivalents were $28 million, with net long-term debt reported at $1,098 million [10] Guidance - The company projects production for Q3 2025 to be in the range of 86-92 Mboe/d, with full-year 2025 net production projected to be in the 76.5-81.5 Mboe/d range [11]