Viper Energy (VNOM) Up 5.6% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Viper Energy Partners reported a mixed performance in its latest earnings report, with a notable increase in production but a decline in earnings per share compared to the previous year [3][4]. Financial Performance - The company reported Q2 2025 adjusted earnings per share of 41 cents, exceeding the Zacks Consensus Estimate of 34 cents, but down from 61 cents in the same quarter last year [3]. - Operating income reached $297 million, surpassing the Zacks Consensus Estimate of $294 million, and increased from $217 million year-over-year [4]. - Net cash provided by operating activities was $172 million, up from $144 million in Q2 2024 [10]. Production Metrics - Viper Energy produced 7,215 thousand oil-equivalent barrels (MBoe) in Q2 2025, a significant increase from 4,320 MBoe a year ago, and above the estimate of 6,940 MBoe [5]. - Oil production rose to 3,787 thousand barrels (MBbls) from 2,398 MBbls year-over-year, exceeding the estimate of 3,748 MBbls [5]. - Natural gas production increased to 10,132 million cubic feet (MMcf) compared to 5,631 MMcf in the same period of 2024 [6]. Pricing Information - 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 [7]. - The average realized oil price was $63.64 per barrel, down from $81.04 year-over-year, and missed the estimate of $64.22 [7]. - 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 [8]. Cost and Expenses - Total expenses for Q2 were $162 million, significantly higher than $68 million in the prior-year quarter and above the estimate of $151.8 million [9]. - On a per barrel of oil-equivalent basis, total operating expenses were $3.60, down from $4.36 year-over-year, and slightly below the estimate of $4.35 [9]. Guidance - The company projects production for Q3 2025 to be in the range of 86-92 Mboe/d, with full-year 2025 net production expected to be between 76.5-81.5 Mboe/d [12]. Market Position - Viper Energy has a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return in the coming months [15]. - The stock has a poor Growth Score of F and a Momentum Score of C, with an overall VGM Score of F, placing it in the bottom 20% for value investors [14].