NASDAQ$VNOM

VIPER ENERGY INC-CL A · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Viper Energy Partners LP, a subsidiary of Diamondback Energy, Inc., announced financial and operating results for the fourth quarter and full year ended December 31, 2022.

Viper Energy Partners reported a record year with Q4 oil production setting a company record. The company delivered on return of capital and financial initiatives, reducing net debt by $100 million, repurchasing roughly 1 million units, and declared a distribution that provides a greater than 6% annualized yield.

  • Q4 2022 average production of 19,978 bo/d (34,935 boe/d), an increase of 1% from Q3 2022 and 9% year over year; highest in Company history
  • Received $17.3 million in lease bonus income
  • Q4 2022 consolidated net income (including non-controlling interest) of $145.2 million; net income attributable to Viper Energy Partners LP of $21.7 million, or $0.29 per common unit
  • Repurchased 1.0 million common units in Q4 2022 for $31.7 million (average price of $32.40 per unit)

Headline financials

Total Revenue

$204M

Previous: $166M+22.8%
EPS (adj)

$0.28

Previous: $0.36-22.2%
Net Income

$145M

Previous: $117M+24.1%
Operating Income

$204M

Previous: $166M+22.8%
Gross Profit

$204M

Previous: $166M+22.8%
Cash & Equivalents

$18.2M

Previous: $39.4M-53.9%
Total Assets

$2.92B

Previous: $3.03B-3.7%

Revenue & EPS history

Viper Energy · Revenue · Quarterly

$204M

Q4 2022+22.8%vs Q4 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 the first half of 2023 of 19,750 to 20,750 bo/d (34,000 to 35,750 boe/d) and full year 2023 average daily production guidance of 20,000 to 22,000 bo/d (34,500 to 38,000 boe/d).

Tailwinds

  • Viper is uniquely positioned to continue to return substantial amounts of capital
  • Viper can offer organic production growth with almost zero exposure to inflationary cost pressures.
  • Average production guidance for the full year implies 8% year over year growth
  • Diamondback continues to focus their development on Viper’s high concentration royalty acreage.
  • 477 gross horizontal wells in the process of active development on Viper’s acreage

Headwinds

  • Changes in supply and demand levels for oil, natural gas, and natural gas liquids
  • Impact of public health crises, including epidemic or pandemic diseases such as the COVID-19 pandemic
  • Actions taken by the members of OPEC and Russia affecting the production and pricing of oil
  • Concerns over economic slowdown or potential recession
  • Rising interest rates and their impact on the cost of capital

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 Q4 2022

Historical avgQ4 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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