Viper Energy Inc. VNOM reported fourth-quarter 2024 adjusted earnings per share of 42 cents, which beat the Zacks Consensus Estimate of 41 cents. However, the bottom line declined from the year-ago level of 67 cents. Since the earnings release, the company’s shares have fallen almost 3.7%, closing at $45.54 in the last trading session.

The company, with mineral interests in North America’s oil and gas resources, generated an operating income of $228.7 million, which topped the Zacks Consensus Estimate of $223 million. The top line also increased from the year-ago quarter’s figure of $204.7 million.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Better-than-expected quarterly results can be attributed to higher oil equivalent production volumes, partially offset higher total costs and expenses.

Production

The resources, wherein the company has mineral interests, produced 5,162 thousand oil-equivalent barrels (MBoe) in the fourth quarter of 2024, up from 4,208 MBoe a year ago. The reported figure surpassed our estimate of 4,850 Mboe.

Oil contributed 53.2% to the total production volume. Oil production increased to 2,747 thousand barrels (MBbls) from 2,257 MBbls a year ago. The metric beat our estimate of 2,711 MBbls.

The production of crude oil, natural gas and natural gas liquids witnessed an increase from the prior-year levels.

Realized Prices

The overall average realized price per barrel of oil equivalent was $43.56 compared with $50.20 in the fourth quarter of 2023. Our estimate for the same was pinned at $43.04 per barrel.

Average realized oil price in the quarter under review was $69.91 per barrel, down from $77.65 in the year-ago quarter. The figure surpassed our estimate of $67.52.

The price of natural gas was 84 cents per thousand cubic feet, down from $1.50 in the year-ago quarter. The figure also missed our estimate of $1.11.

The price for natural gas liquids was $22.15 a barrel, higher than $21.47 recorded a year ago. Our estimate for the same was pinned at $17.38 per barrel.

Costs & Expenses

In the fourth quarter, total expenses were $85.3 million, higher than $61.7 million recorded in the prior-year quarter. The figure also surpassed our estimate of $80.8 million.

On a per barrel of oil-equivalent (Boe) basis, total operating expenses were $3.85 compared with $4.03 in the year-ago quarter. The figure lagged our estimate of $4.32.

Cash Flow

Net cash provided by operating activities was $157.9 million, up from $145.8 million in the fourth quarter of 2023.

Balance Sheet

As of Dec. 31, 2024, Viper Energy’s cash and cash equivalents were $26.9 million. The company reported a net long-term debt of $1,083 million.

Guidance

The company projects production for the first quarter of 2025 to be in the range of 54-56 Mboe/d. Viper Energy has also announced the purchase of certain mineral and royalty interest subsidiaries of Diamondback Energy, which is expected to close in the second quarter of 2025. Upon closing this deal, the company's production for the rest of 2025 is projected to lie between 85 and 88 Mboe/d.

VNOM’s Zacks Rank and Key Picks

VNOM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Archrock Inc. AROC, Matador Resources Corporation MTDR and Equinor ASA EQNR. Archrock currently sports a Zacks Rank #1 (Strong Buy), while Matador Resources and Equinor carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

Matador Resources is a leading U.S.-based exploration and production firm. The company has consistently exceeded production expectations, demonstrating operational efficiency and robust growth. MTDR’s production efficiency, combined with the favorable oil price environment, is expected to positively impact its bottom line.

Equinor is one of the leading integrated energy companies globally and the second-largest supplier of natural gas in Europe. The company’s expansion in the renewable energy space positions it for long-term growth as more and more countries transition toward cleaner energy solutions to meet their climate goals. Its strategic pivot toward low-carbon energy solutions unlocks new revenue streams in the growing market for clean energy and carbon management solutions.

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