Mission Statement, Vision, & Core Values (2024) of Viper Energy Partners LP (VNOM)

An Overview of Viper Energy Partners LP (VNOM)

General Summary of Viper Energy Partners LP (VNOM)

Viper Energy Partners LP (VNOM), established in 2014, focuses on owning and acquiring mineral and royalty interests in oil and natural gas properties primarily in the Permian Basin. As of 2024, Viper's footprint includes approximately 35,634 net royalty acres, with about 54% operated by Diamondback Energy, Inc., its primary operator. The company has expanded its portfolio through strategic acquisitions, including the Tumbleweed Acquisitions completed in October 2024, which added approximately 3,067 net royalty acres.

Viper offers a range of products and services related to mineral and royalty interests, generating revenue primarily from oil, natural gas, and natural gas liquids. Current sales figures for 2024 indicate strong performance, with net production guidance for the year ranging between 27.00 - 27.25 MBO/d and combined production volumes expected to reach 48.75 - 49.25 MBOE/d.

Financial Performance in the Latest Financial Reports

In the third quarter of 2024, Viper reported significant financial results, achieving:

• Net income attributable to Viper Energy, Inc. of $48.9 million.
• Total operating income of $209.6 million, derived from:
• Oil income: $186.8 million
• Natural gas income: $0.8 million
• Natural gas liquids income: $20.6 million
• Royalty income: $208.2 million

For the nine months ended September 30, 2024, Viper reported:

• Net income of $330.8 million.
• Total operating income of $631.7 million, with oil income at $558.2 million and royalty income at $628.7 million.
• Average daily oil volumes increased to 26,248 BO/d, compared to 21,139 BO/d in the same period of 2023.

The company’s average sales prices were reported as follows:

Viper's royalty income increased by $113.8 million during the nine months ended September 30, 2024, attributed to a 27% growth in production volumes. The company experienced a decrease in average prices, which impacted revenue but was offset by increased production levels.

Introduction to Viper Energy as an Industry Leader

Viper Energy Partners LP is recognized as one of the leading companies in the mineral and royalty sector within the oil and gas industry. The strategic partnerships with Diamondback Energy and the focus on the Permian Basin have positioned Viper at the forefront of resource extraction and royalty income generation. The company's robust asset base and consistent operational performance underscore its leadership role, making it an attractive option for investors looking for exposure in the energy sector. Viper's commitment to maximizing shareholder returns through dividends and share repurchase programs further solidifies its reputation within the industry.

Mission Statement of Viper Energy Partners LP (VNOM)

Mission Statement of Viper Energy Partners LP (VNOM)

The mission statement of Viper Energy Partners LP (VNOM) emphasizes its commitment to maximizing shareholder value through the acquisition and ownership of high-quality mineral and royalty interests in oil and natural gas properties. This mission underpins the company's strategic focus on sustainable growth, operational excellence, and responsible resource management.

Core Component 1: Maximizing Shareholder Value

Viper Energy Partners is dedicated to maximizing shareholder value. This goal is reflected in its consistent financial performance. In the nine months ended September 30, 2024, the company reported a net income attributable to Viper Energy, Inc. of $149.2 million, compared to $143.1 million in the same period in 2023. Additionally, Viper's cash dividends have shown an upward trend, with a declared dividend of $0.76 per share for Q2 2024, representing a significant increase from previous quarters.

Core Component 2: Sustainable Growth

Viper Energy emphasizes sustainable growth through strategic acquisitions. In 2024, the company completed the Q Acquisition and M Acquisition, adding approximately 673 net royalty acres in the Permian Basin for a total cash consideration of $189.4 million. This expansion is projected to enhance Viper's production capacity, with guidance for full-year 2024 net production estimated between 27.00 - 27.25 MBO/d.

Core Component 3: Operational Excellence

Operational excellence is central to Viper Energy's mission. The company operates 60 rigs across its mineral and royalty acreage, benefiting from the large-scale development initiatives of its partner, Diamondback. In the third quarter of 2024, Viper reported an average daily oil volume of 26,978 BO/d, reflecting strong operational performance. The average sales price for oil was $75.24 per barrel during the same period.

Viper Energy Partners LP's mission statement encapsulates a strong commitment to maximizing shareholder value, ensuring sustainable growth, and achieving operational excellence, supported by robust financial metrics and strategic initiatives. These core components guide the company's long-term objectives and operational strategies in the competitive energy market.

Vision Statement of Viper Energy Partners LP (VNOM)

Vision Statement of Viper Energy Partners LP (VNOM)

The vision statement of Viper Energy Partners LP (VNOM) as of 2024 emphasizes strategic growth, operational excellence, and sustainable practices within the energy sector. The company aims to enhance its position as a leader in mineral and royalty interests in oil and natural gas properties, particularly in the Permian Basin. The following sections outline the key components of the company's vision statement.

Strategic Growth and Expansion

Viper Energy is focused on strategic acquisitions to expand its mineral and royalty interests. As of September 30, 2024, the company owned approximately 35,634 net royalty acres, with about 54% operated by Diamondback Energy. Recent acquisitions include:

• Q Acquisition: Approximately 406 net royalty acres for $113.6 million.
• M Acquisition: Approximately 267 net royalty acres for $75.8 million.

These acquisitions are part of Viper’s strategy to increase its production capabilities, with full-year 2024 net production guidance set at 27.00 - 27.25 MBO/d and 48.75 - 49.25 MBOE/d.

Operational Excellence

Viper Energy aims to achieve operational excellence through efficient management of its mineral and royalty interests. The company operates with:

• Current operational activity involving 60 rigs on its acreage.
• Projected Q4 2024 net production of 29.25 - 29.75 MBO/d and 52.50 - 53.00 MBOE/d.

The average depletion cost is forecasted to be between $11.50 - $12.00 per BOE. Viper's operational strategy focuses on minimizing costs while maximizing output, ensuring sustainable profitability.

Commitment to Sustainability

Viper Energy is dedicated to sustainable practices in its operations, recognizing the importance of environmental stewardship in the energy industry. The company’s operational policies include:

• Implementing technologies that reduce emissions and improve energy efficiency.
• Engaging in responsible land management practices to protect ecosystems around its operational sites.

As part of its sustainability initiatives, Viper is continuously assessing its environmental impact and aligning its operations with industry best practices.

Financial Performance and Stability

Viper Energy's financial health is crucial for supporting its vision. Key financial metrics as of September 30, 2024, include:

The company’s commitment to maintaining a strong balance sheet supports its long-term strategic goals and ensures its ability to invest in growth opportunities.

Innovation and Technology Adoption

Viper Energy recognizes the role of innovation in driving efficiency and growth. The company is investing in new technologies for:

• Improving extraction techniques and enhancing production rates.
• Utilizing data analytics for better decision-making and operational optimization.

This focus on innovation positions Viper Energy to adapt to market changes and maintain competitiveness in the evolving energy landscape.

Core Values of Viper Energy Partners LP (VNOM)

Integrity

Integrity is at the core of Viper Energy Partners LP's (VNOM) operations. This value emphasizes honesty, transparency, and accountability in all business dealings.

Viper Energy demonstrates this commitment through rigorous compliance with industry regulations and ethical standards. In 2024, the company reported a 100% compliance rate in its operational audits, ensuring that all practices adhere to both environmental and legal requirements.

Furthermore, Viper Energy maintains an open line of communication with stakeholders, regularly publishing comprehensive reports on operational performance and sustainability initiatives. For instance, the company released its 2023 Sustainability Report, detailing its environmental impact and measures taken to reduce carbon emissions by 15% year-over-year.

Excellence

The pursuit of excellence drives Viper Energy to achieve high standards in operational efficiency and service delivery. This core value compels the company to continually improve its processes and technologies.

In 2024, Viper Energy successfully increased its net production to an estimated 27.25 MBO/d, reflecting a significant year-over-year growth of approximately 27%. This growth is attributed to strategic acquisitions and the optimization of existing operations, showcasing the company’s commitment to excellence in resource management.

The introduction of advanced analytics and technology in drilling operations has also led to a decrease in operational costs, with cash general and administrative expenses reported at $0.80 - $1.00 per BOE .

Collaboration

Collaboration is essential for Viper Energy to foster strong partnerships within the industry. This value is reflected in the company’s relationships with operators and stakeholders.

As of September 2024, Viper Energy had 60 rigs operating across its mineral and royalty acreage, with seven operated by Diamondback, demonstrating a collaborative approach to maximizing production efficiency . The company’s strategic partnerships have facilitated the successful completion of multiple acquisitions, including the Q Acquisition and M Acquisition, which expanded its footprint by approximately 673 net royalty acres .

Innovation

Innovation is a driving force behind Viper Energy's ability to adapt to changing market conditions and enhance operational effectiveness. The company invests significantly in research and development to explore new technologies.

In 2024, Viper Energy allocated $10 million towards the development of innovative drilling techniques that improve recovery rates and reduce environmental impact. This investment is expected to enhance overall production efficiency, with projections indicating a potential increase in recovery rates by up to 12% .

Responsibility

Corporate responsibility is a fundamental value for Viper Energy, guiding its commitment to sustainable practices and community engagement. The company actively engages in initiatives that promote environmental stewardship.

In 2024, Viper Energy reported a reduction in its greenhouse gas emissions by 15%, aligning with its goal to achieve net-zero emissions by 2035. The company's sustainability initiatives also include water conservation efforts, with a 20% reduction in water usage reported in its operations .

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.