NASDAQ$VNOM

VIPER ENERGY INC-CL A · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Announced third quarter 2022 financial and operating results.

Viper Energy Partners LP reported a strong third quarter in 2022, with record oil production and the implementation of an enhanced capital return program, including significant common unit repurchases and a competitive distribution per unit.

  • Q3 2022 average production of 19,870 bo/d (34,489 boe/d).
  • Consolidated net income (including non-controlling interest) of $210.1 million; net income attributable to Viper Energy Partners LP of $79.3 million, or $1.06 per common unit.
  • Cash available for distribution to Viper’s common units of $79.2 million, or $1.07 per common unit.
  • Repurchased 1.8 million common units in Q3 2022 for $50.7 million (average price of $27.91 per unit).

Headline financials

Total Revenue

$222M

Previous: $128M+73.1%
EPS (adj)

$0.98

Previous: $0.21+366.7%
Average Daily Combined (boe/d)

34.5K

No prior period
Net Income

$210M

No prior period
Operating Income

$222M

No prior period
Cash & Equivalents

$11.6M

No prior period

Revenue & EPS history

Viper Energy · Revenue · Quarterly

$222M

Q3 2022+73.1%vs Q3 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Viper Energy · $856M total across 5 segments · Q4 2025

  • Royalty Income
    $422M
  • Oil Income
    $357M
  • Natural Gas Liquids Income
    $49M
  • Natural Gas Income
    $16M
  • Lease Bonus Income
    $12M

Forward guidance

Viper has initiated average production guidance for Q4 2022 and Q1 2023 that implies roughly flat volumes relative to the third quarter and Viper continues to expect Diamondback to focus on developing Viper’s high concentration royalty acreage in the Northern Midland Basin, and as a result, growing Viper’s 2023 Diamondback-operated net oil volumes by roughly 10% year over year.

Tailwinds

  • Viper expects Diamondback to focus on developing Viper’s high concentration royalty acreage in the Northern Midland Basin
  • Viper expects Diamondback to grow Viper’s 2023 Diamondback-operated net oil volumes by roughly 10% year over year.
  • Viper initiated average production guidance for Q4 2022
  • Viper initiated average production guidance for Q1 2023
  • Viper expects roughly flat volumes relative to the third quarter.

Headwinds

  • Royalty volumes can be subject to somewhat uneven volumes from quarter to quarter.
  • Existing permits or active development of Viper’s royalty acreage does not ensure that those wells will be turned to production.
  • Concerns over economic slowdown or potential recession
  • Rising interest rates and their impact on the cost of capital
  • Changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.6%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+0.9%

Avg return

30 days after

55%

24 / 44 earnings

Positive

+9.1%

Q2 2019

Best reaction

-7.4%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.6%-4.9%-9.0%
Q4 2025-0.5%+3.5%+6.4%
Q3 2025-3.0%-0.7%+5.8%
Q2 2025-0.2%+0.8%+4.1%
Q1 2025-3.4%-2.0%-2.9%
Q4 2024-4.8%-1.6%-6.2%
Q3 2024+0.9%+4.4%-0.2%
Q2 2024+7.0%+12.8%+15.2%
Q1 2024-6.2%-5.0%-3.5%
Q4 2023+0.9%+1.8%+6.5%
Q3 2023+3.0%+6.5%+3.6%
Q2 2023+7.8%+8.1%+5.9%
Q1 2023-4.6%-6.5%-12.4%
Q4 2022-2.4%-3.9%-10.4%
Q3 2022-0.3%-3.0%-8.9%
Q2 2022-0.2%-6.0%-0.7%
Q1 2022+7.9%+6.2%+17.7%
Q4 2021+5.1%+8.7%+14.6%
Q3 2021+2.3%+4.2%-6.3%
Q2 2021-0.2%-0.4%+2.2%
Q1 2021+0.0%+5.1%+3.7%
Q4 2020+5.1%-1.8%-2.7%
Q3 2020+6.7%+7.3%+64.3%
Q2 2020+0.9%+0.1%-5.9%
Q1 2020-4.9%+2.8%+31.9%
Q4 2019+3.2%+8.5%-65.7%
Q3 2019-7.0%-7.4%-9.1%
Q2 2019+9.1%+6.8%-1.3%
Q1 2019-7.4%-7.1%-18.5%
Q4 2018+2.3%+0.3%+4.0%
Q3 2018-2.5%-10.6%-20.9%
Q2 2018+4.3%+1.3%+5.2%
Q1 2018+5.7%+5.8%+13.1%
Q4 2017-3.8%-5.4%-5.6%
Q3 2017+1.8%+4.6%+8.5%
Q2 2017+3.5%+3.0%-0.6%
Q1 2017+4.5%+5.9%+0.5%
Q4 2016+0.3%-1.2%-0.7%
Q3 2016+0.4%+7.4%+12.8%
Q2 2016+1.0%+3.9%+0.9%
Q1 2016-4.0%
Q3 2015+2.0%
Q2 2015-5.4%
Q2 2014+4.5%
Q4 2013

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