Viper Energy Partners LP (VNOM) Bundle
A Brief History of Viper Energy, Inc.
Viper Energy, Inc. is a publicly traded entity focused on acquiring and owning mineral and royalty interests in oil and natural gas properties, primarily within the Permian Basin. The company underwent a significant transition in 2024, converting from a Delaware limited partnership to a Delaware corporation on November 13, 2023.
Recent Acquisitions
In 2024, Viper Energy completed several important acquisitions that expanded its mineral and royalty interests:
- On September 3, 2024, Viper acquired approximately 406 net royalty acres for $113.6 million in cash.
- Also on September 3, 2024, the company acquired approximately 267 net royalty acres for $75.8 million in cash.
- On October 1, 2024, the TWR Acquisition was completed for approximately $458.9 million in cash and 10.09 million Operating Company units.
Financial Performance
As of September 30, 2024, Viper Energy reported the following financial results:
| Metric | Q3 2024 | Q2 2024 |
|---|---|---|
| Oil Income ($ in thousands) | $186,750 | $194,335 |
| Natural Gas Income ($ in thousands) | $823 | $1,143 |
| Natural Gas Liquids Income ($ in thousands) | $20,585 | $20,008 |
| Total Operating Income ($ in thousands) | $209,588 | $216,708 |
| Net Income ($ in thousands) | $109,045 | $122,226 |
Production Data
Viper Energy's production data for the third quarter of 2024 is summarized as follows:
| Production Type | Q3 2024 | Q2 2024 |
|---|---|---|
| Oil (MBbls) | 2,482 | 2,398 |
| Natural Gas (MMcf) | 6,150 | 5,631 |
| Natural Gas Liquids (MBbls) | 1,035 | 983 |
| Combined Volumes (MBOE) | 4,542 | 4,320 |
| Average Daily Oil Volumes (BO/d) | 26,978 | 26,352 |
| Average Daily Combined Volumes (BOE/d) | 49,370 | 47,473 |
Dividends and Shareholder Returns
On October 31, 2024, Viper Energy declared a cash dividend of $0.61 per share of Class A Common Stock and $0.73 per Operating Company unit. This included a base dividend of $0.30 per share and a variable dividend of $0.31 per share.
Market Conditions and Pricing
During the nine months ended September 30, 2024, Viper Energy's average prices for key products were:
| Product | Average Price Q3 2024 | Average Price Q3 2023 |
|---|---|---|
| Oil ($/Bbl) | $75.24 | $81.04 |
| Natural Gas ($/Mcf) | $0.13 | $0.20 |
| Natural Gas Liquids ($/Bbl) | $19.89 | $20.35 |
As of September 30, 2024, Viper Energy's total assets were approximately $3.34 billion, reflecting its increased operational scale post-acquisitions.
A Who Owns Viper Energy Partners LP (VNOM)
Ownership Structure
As of September 30, 2024, Viper Energy Partners LP (VNOM) has a total of 102,947,008 shares of Class A Common Stock issued and 85,431,453 shares of Class B Common Stock outstanding. All shares of Class B Common Stock are owned by Diamondback Energy, Inc., which represents approximately 45% of the total shares outstanding.
Beneficial Ownership
Diamondback Energy also holds 85,431,453 Operating Company units, which equates to a 45% non-controlling interest in the Operating Company. The Company retains ownership of the remaining 102,947,008 Operating Company units.
Recent Equity Offering
On September 13, 2024, Viper Energy completed an underwritten public offering of approximately 11.50 million shares of its Class A Common Stock at a price of $42.50 per share, generating net proceeds of approximately $475.9 million.
Ownership Changes
Following the 2024 Equity Offering, Diamondback's ownership has fluctuated. The company’s relative ownership in the Operating Company may change due to various factors such as stock repurchases and issuance of new shares.
Financial Overview
As of September 30, 2024, Viper Energy reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Total Long-term Debt | $821,505 |
| Total Stockholders' Equity | $1,400,958 |
| Non-controlling Interest | $1,934,550 |
| Total Liabilities and Equity | $4,206,010 |
Dividend Information
On October 31, 2024, Viper Energy declared a cash dividend of $0.61 per share of Class A Common Stock for the third quarter of 2024.
Production and Operational Data
As of October 1, 2024, Viper Energy's mineral and royalty interests encompass approximately 35,634 net royalty acres, with around 54% operated by Diamondback.
Ownership Implications
The ownership structure indicates a strong control by Diamondback over Viper Energy, influencing strategic decisions and operational directions. The ability to exchange Operating Company units for Class A Common Stock provides flexibility in capital management.
Viper Energy Partners LP (VNOM) Mission Statement
Company Overview
Viper Energy Partners LP (VNOM) operates as a publicly traded limited partnership focused on acquiring, owning, and managing mineral and royalty interests in oil and natural gas properties. The company is primarily involved in the Permian Basin, which is known for its significant reserves and production capabilities.
Mission Statement
Viper Energy Partners LP aims to provide attractive returns to its unitholders through a focus on high-quality mineral and royalty interests. The company is committed to maximizing cash flow and minimizing operational risks while maintaining a strong balance sheet and pursuing strategic acquisitions.
Financial Performance (2024)
As of September 30, 2024, Viper Energy reported significant financial metrics that illustrate its operational efficiency and profitability. The company achieved:
| Metric | Value |
|---|---|
| Net Income (9 months) | $330,846,000 |
| Total Revenue (9 months) | $631,688,000 |
| Royalty Income (9 months) | $628,711,000 |
| Oil Income (9 months) | $558,203,000 |
| Natural Gas Income (9 months) | $8,763,000 |
| Natural Gas Liquids Income (9 months) | $61,745,000 |
| Total Assets (as of September 30, 2024) | $4,206,010,000 |
| Total Liabilities (as of September 30, 2024) | $870,502,000 |
| Total Stockholders' Equity (as of September 30, 2024) | $3,335,508,000 |
Operational Highlights
In 2024, Viper Energy maintained a robust operational profile, with production metrics indicating strong performance:
| Production Data | Value |
|---|---|
| Oil Production (MBbls, 9 months) | 7,192 |
| Natural Gas Production (MMcf, 9 months) | 17,370 |
| Natural Gas Liquids Production (MBbls, 9 months) | 2,972 |
| Combined Production (MBOE, 9 months) | 13,059 |
| Average Daily Oil Volumes (BO/d) | 26,248 |
| Average Daily Combined Volumes (BOE/d) | 47,661 |
Acquisition and Growth Strategy
Viper Energy has pursued an aggressive acquisition strategy to expand its mineral and royalty interests. Recent acquisitions include:
- Q Acquisition: Acquired approximately 406 net royalty acres for $113.6 million.
- M Acquisition: Acquired approximately 267 net royalty acres for $75.8 million.
- GRP Acquisition (2023): Acquired approximately 4,600 net royalty acres for $747.6 million.
Dividends and Returns to Shareholders
Viper Energy has consistently returned capital to its unitholders through dividends. The following table summarizes recent dividend payments:
| Quarter | Dividend per Share | Total Paid (in thousands) |
|---|---|---|
| Q4 2023 | $0.69 | $62,590 |
| Q1 2024 | $0.70 | $59,803 |
| Q2 2024 | $0.76 | $64,927 |
| Q3 2024 | $0.61 | Pending |
Conclusion
Viper Energy Partners LP continues to strengthen its market position through strategic acquisitions and a commitment to maximizing shareholder returns. The company’s focus on high-quality assets and efficient operations positions it well for future growth.
How Viper Energy Partners LP (VNOM) Works
Overview of Operations
Viper Energy Partners LP focuses on owning and acquiring mineral and royalty interests in oil and natural gas properties, primarily in the Permian Basin. As of October 1, 2024, the company has approximately 35,634 net royalty acres, with about 54% operated by Diamondback Energy, Inc.
Production and Financial Performance
For the full year of 2024, Viper Energy has projected net production of 27.00 - 27.25 MBO/d and 48.75 - 49.25 MBOE/d. The fourth quarter guidance estimates net production of 29.25 - 29.75 MBO/d and 52.50 - 53.00 MBOE/d.
| Metric | Q4 2024 Guidance | Full Year 2024 Guidance |
|---|---|---|
| Net Production (MBO/d) | 29.25 - 29.75 | 27.00 - 27.25 |
| Net Production (MBOE/d) | 52.50 - 53.00 | 48.75 - 49.25 |
| Depletion ($/BOE) | $11.50 - $12.00 | $11.50 - $12.00 |
| Cash G&A Expenses ($/BOE) | $0.80 - $1.00 | $0.80 - $1.00 |
| Interest Expense ($/BOE) | $4.00 - $4.25 | $4.00 - $4.25 |
| Cash Tax Rate (% of Pre-tax Income) | 20% - 22% | 20% - 22% |
Income and Expenses
In the third quarter of 2024, Viper Energy reported total operating income of $209.588 million, with oil income at $186.750 million. The total costs and expenses for the same period were $74.020 million, leading to an income from operations of $135.568 million.
| Income Statement Item | Q3 2024 ($ thousands) | Q2 2024 ($ thousands) |
|---|---|---|
| Oil Income | 186,750 | 194,335 |
| Natural Gas Income | 823 | 1,143 |
| Natural Gas Liquids Income | 20,585 | 20,008 |
| Total Operating Income | 209,588 | 216,708 |
| Total Costs and Expenses | 74,020 | 68,155 |
| Income from Operations | 135,568 | 148,553 |
| Net Income Attributable to Viper Energy, Inc. | 48,917 | 56,901 |
Production Data
As of September 30, 2024, Viper Energy reported production data showcasing significant output across oil and gas sectors.
| Production Data | Q3 2024 | Q2 2024 |
|---|---|---|
| Oil (MBbls) | 2,482 | 2,398 |
| Natural Gas (MMcf) | 6,150 | 5,631 |
| Natural Gas Liquids (MBbls) | 1,035 | 983 |
| Average Daily Oil Volumes (BO/d) | 26,978 | 26,352 |
| Average Daily Combined Volumes (BOE/d) | 49,370 | 47,473 |
Debt and Liquidity
As of September 30, 2024, Viper Energy's total long-term debt was $821.505 million, comprising various senior unsecured notes and credit facilities. The company had no outstanding borrowings on its revolving credit facility, which has a maximum credit amount of $2.0 billion.
| Debt Item | September 30, 2024 ($ thousands) | December 31, 2023 ($ thousands) |
|---|---|---|
| 5.375% Senior Unsecured Notes due 2027 | 430,350 | 430,350 |
| 7.375% Senior Unsecured Notes due 2031 | 400,000 | 400,000 |
| Revolving Credit Facility | 0 | 263,000 |
| Total Long-term Debt | 821,505 | 1,083,082 |
Recent Acquisitions
In October 2024, Viper Energy completed the TWR Acquisition for approximately $458.9 million in cash and 10.09 million Operating Company units, increasing its mineral and royalty holdings in the Permian Basin.
Dividend Policy
As of October 31, 2024, Viper Energy declared a cash dividend of $0.61 per share of Class A Common Stock, consisting of a base dividend of $0.30 and a variable dividend of $0.31.
How Viper Energy Partners LP (VNOM) Makes Money
Revenue Streams
Viper Energy Partners LP primarily generates revenue through various streams, including:
- Oil income
- Natural gas income
- Natural gas liquids income
- Royalty income
- Lease bonus income
Financial Performance as of September 30, 2024
The following table summarizes Viper Energy's income and expenses for the nine months ended September 30, 2024, compared to the same period in 2023:
| Operating Income | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Oil income | $558,203 | $443,927 |
| Natural gas income | $8,763 | $22,974 |
| Natural gas liquids income | $61,745 | $47,995 |
| Royalty income | $628,711 | $514,896 |
| Lease bonus income—related party | $227 | $105,585 |
| Lease bonus income | $2,289 | $1,730 |
| Other operating income | $461 | $774 |
| Total operating income | $631,688 | $622,985 |
| Costs and expenses | ||
| Production and ad valorem taxes | $44,720 | $37,794 |
| Depletion | $149,821 | $101,331 |
| General and administrative expenses—related party | $7,391 | $2,772 |
| General and administrative expenses | $6,712 | $3,880 |
| Other operating expense | (3) | - |
| Total costs and expenses | $208,641 | $145,777 |
| Income from operations | $423,047 | $477,208 |
| Net income | $330,846 | $375,410 |
| Net income attributable to Viper Energy, Inc. | $149,178 | $143,116 |
Production Data
Viper Energy's production data for the nine months ended September 30, 2024, is as follows:
| Production Data | 2024 | 2023 |
|---|---|---|
| Oil (MBbls) | 7,192 | 5,771 |
| Natural gas (MMcf) | 17,370 | 13,809 |
| Natural gas liquids (MBbls) | 2,972 | 2,224 |
| Combined volumes (MBOE) | 13,059 | 10,297 |
| Average daily oil volumes (BO/d) | 26,248 | 21,139 |
| Average daily combined volumes (BOE/d) | 47,661 | 37,718 |
Average Sales Prices
The average sales prices for the nine months ended September 30, 2024, are as follows:
| Average Sales Prices | 2024 | 2023 |
|---|---|---|
| Oil ($/Bbl) | $77.61 | $76.92 |
| Natural gas ($/Mcf) | $0.50 | $1.66 |
| Natural gas liquids ($/Bbl) | $20.78 | $21.58 |
| Combined ($/BOE) | $48.14 | $50.00 |
Cash Flow from Operating Activities
For the nine months ended September 30, 2024, the cash flows from operating activities were as follows:
| Cash Flow Components | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net income | $330,846 | $375,410 |
| Net cash provided by operating activities | $461,700 | $492,397 |
Debt Structure
As of September 30, 2024, Viper Energy's long-term debt consisted of the following:
| Debt Instruments | Amount (in thousands) |
|---|---|
| 5.375% Senior unsecured notes due 2027 | $430,350 |
| 7.375% Senior unsecured notes due 2031 | $400,000 |
| Total long-term debt | $821,505 |
Dividends
Viper Energy declared the following dividends for 2024:
| Dividend Period | Amount per Share | Total Amount (in thousands) |
|---|---|---|
| Q1 2024 | $0.59 | $54,077 |
| Q2 2024 | $0.64 | $58,669 |
| Q3 2024 | $0.61 | $67,060 |
Guidance for 2024
Viper Energy's production guidance for the full year 2024 includes:
| Guidance | Full Year 2024 Estimate |
|---|---|
| Net production (MBO/d) | 27.00 - 27.25 |
| Net production (MBOE/d) | 48.75 - 49.25 |
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Resources:
- Viper Energy Partners LP (VNOM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Viper Energy Partners LP (VNOM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Viper Energy Partners LP (VNOM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.