Viper(US:VNOM)2023-02-22 16:00Financial Highlights - Viper's Q4 2022 cash available for distribution was $0.91 per unit, with $0.68 per unit returned to unitholders through a 75% commitment of total cash available for distribution[4] - The company ended Q4 2022 with net debt of $564 million, resulting in a net debt to last twelve months (LTM) EBITDA ratio of 0.7x[9] - Viper repurchased 1 million common units in Q4 2022 for $31.7 million, at an average price of $32.40 per unit[17] - The company's base distribution of $0.25 per unit implies a 3.3% annualized yield, representing approximately 50% of estimated cash available for distribution assuming $50 WTI[14] - A variable distribution for Q4 2022 of $0.24 per unit was declared, resulting in a total base-plus-variable distribution of $0.49 per unit, implying a 6.5% annualized yield[16] Production and Reserves - Average production for Q4 2022 was 19,978 barrels of oil per day (Bo/d) or 34,935 barrels of oil equivalent per day (Boe/d), representing a 1% increase from Q3 2022 and a 9% year-over-year increase[5] - The company's FY 2023 average production guidance is 20,000 – 22,000 Bo/d (34,500 – 38,000 Boe/d), implying 8% year-over-year growth at the midpoint[11] - Proved reserves at year-end 2022 were 148.9 million barrels of oil equivalent (MMBoe), with 79 million barrels of oil (MMBo), representing a 16% increase over year-end 2021 reserves[23] - Net proved reserve additions of 33.3 MMBoe resulted in a reserve replacement ratio of 271%, with an organic reserve replacement ratio of 280%[23] Asset and Development - Viper has 26,315 net royalty acres located entirely in the Permian Basin, with 44 rigs currently operating on its acreage[18] - There are 272 total gross (4.6 net 100% royalty interest) horizontal wells turned to production during Q4 2022, with an average lateral length of 10,630 feet[8] - The company has 477 gross (10.3 net 100% royalty interest) horizontal wells in the process of active development and an additional 501 gross (13.7 net 100% royalty interest) horizontal wells with line-of-sight to future development[13]