On August 5, 2024, Viper Energy Inc (VNOM, Financial) released its 8-K filing detailing the financial and operating results for the second quarter ended June 30, 2024. Viper Energy Inc, a subsidiary of Diamondback Energy Inc, focuses on owning and acquiring mineral and royalty interests in oil and natural gas properties primarily in the Permian Basin.
Performance Overview
Viper Energy Inc reported a consolidated net income of $122.2 million for Q2 2024, with net income attributable to Viper Energy Inc amounting to $56.9 million, or $0.62 per common share. This performance surpassed the analyst estimate of $0.50 per share. The company also reported total operating income of $216.7 million, slightly above the estimated $216.24 million.
Key Financial Achievements
Viper Energy Inc's financial achievements for Q2 2024 include:
- Average production of 26,352 barrels of oil per day (bo/d), a 3.7% increase from Q1 2024.
- Cash available for distribution to common shares of $78.4 million, or $0.86 per Class A common share.
- Declared a base cash dividend of $0.30 per Class A common share and a variable cash dividend of $0.34 per Class A common share, totaling $0.64 per share.
- Closed divestiture of non-Permian assets for cash proceeds of approximately $90.2 million.
Income Statement Highlights
The income statement for Q2 2024 shows:
| Category | Q2 2024 | Q2 2023 |
|---|---|---|
| Oil Income | $194.3 million | $139.3 million |
| Natural Gas Income | $1.1 million | $5.1 million |
| Natural Gas Liquids Income | $20.0 million | $13.8 million |
| Total Operating Income | $216.7 million | $160.8 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Viper Energy Inc had a cash balance of $35.2 million and total long-term debt of $1.0 billion. The company’s net debt stood at $972.1 million. The cash flow statement indicates net cash provided by operating activities of $143.3 million for Q2 2024.
Operational Highlights
During Q2 2024, Viper Energy Inc turned 375 gross horizontal wells to production on its acreage, with an average lateral length of 12,037 feet. The company also initiated average daily production guidance for Q3 2024 of 26,500 to 27,000 bo/d, representing approximately 1.5% growth relative to Q2 2024.
Commentary and Analysis
"The 11% increase in our base dividend announced today highlights our Board’s belief in a sustainable and growing base dividend that can be maintained through the cycle. This belief and commitment to our shareholders is supported by Viper’s strong balance sheet and durable cash flow profile," stated Travis Stice, Chief Executive Officer of Viper.
Viper Energy Inc's performance in Q2 2024 demonstrates its ability to generate strong financial results and maintain a robust dividend policy. The company's focus on the Permian Basin, coupled with strategic divestitures and increased production, positions it well for continued growth.
Conclusion
Viper Energy Inc's Q2 2024 earnings report highlights its strong financial and operational performance, exceeding analyst estimates and increasing shareholder returns through dividends. The company's strategic focus and robust cash flow profile underscore its potential for sustained growth in the oil and gas sector.
Explore the complete 8-K earnings release (here) from Viper Energy Inc for further details.
