Viper Energy's Q1 Earnings Beat Estimates on Higher Production

Viper Energy Inc. VNOM reported first-quarter 2025 adjusted earnings per share of 54 cents, which beat the Zacks Consensus Estimate of 45 cents. The bottom line improved from the year-ago level of 52 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The company, with mineral interests in North America’s oil and gas resources, generated an operating income of $245 million, which missed the Zacks Consensus Estimate of $249 million. The top line increased from the year-ago quarter’s figure of $205 million.

The strong quarterly earnings can be attributed to higher oil equivalent production volumes.

Viper Energy Inc. Price, Consensus and EPS Surprise

Viper Energy Inc. price-consensus-eps-surprise-chart | Viper Energy Inc. Quote

Production

The resources, wherein the company has mineral interests, produced 5,164 thousand oil-equivalent barrels (MBoe), up from 4,198 MBoe a year ago. The reported figure outpaced our estimate of 5,163 Mboe.

Oil contributed 54.6% to the total production volume. Oil production increased to 2,818 thousand barrels (MBbls) from 2,312 MBbls a year ago. The reported figure matched our estimate.

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 $47.25 compared with $48.85 in the first quarter of 2024. Our estimate for the same was pinned at $46.37 per barrel.

Average realized oil price in the quarter under review was $71.33 per barrel, down from $76.61 in the year-ago quarter. The figure surpassed our estimate of $69.76.

The price of natural gas was $2.08 per thousand cubic feet, up from $1.22 in the year-ago quarter. Our estimate for the same was pinned at $2.79.

The price for natural gas liquids was $24.52 a barrel, higher than $22.17 recorded a year ago. Our estimate for the same was pinned at $19.91 per barrel.

Costs & Expenses

In the first quarter, total expenses were $90 million, higher than $66 million recorded in the prior-year quarter. The figure also surpassed our estimate of $88 million.

On a per barrel of oil-equivalent (Boe) basis, total operating expenses were $4.26 compared with $4.51 in the year-ago quarter. Our estimate for the same was pegged at $4.33.

Cash Flow

Net cash provided by operating activities was $201 million, up from $115 million in the first quarter of 2024.

Balance Sheet

As of March 31, 2025, Viper Energy’s cash and cash equivalents were $560 million. The company reported a net long-term debt of $830 million.

Guidance

The company projects production for the second quarter of 2025 to be in the range of 72.5-78 Mboe/d.

Its net production for full-year 2025 is projected to be in the 74.5-79 Mboe/d range.

VNOM’s Zacks Rank and Key Picks

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

Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, EQT Corporation EQT and RPC Inc. RES. While Archrock presently sports a Zacks Rank #1 (Strong Buy), EQT and RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

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

Archrock’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 8.81%.

As the largest natural gas producer in the United States, EQT is well-positioned to capitalize on the growing demand for clean energy. With numerous premium natural gas drilling locations in the core Appalachian Basin, the company’s production outlook is solid. The firm aims for net-zero Scope 1 and 2 emissions from operations by 2025, underscoring its commitment to sustainability. 

EQT’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 62.9%.

RPC derives strong and stable revenues via diverse oilfield services, which include pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield stands higher than the composite stocks belonging to the industry. Its new Tier IV dual-fuel fleet boosted profits, with plans for more high-efficiency equipment expansion to enhance operational capabilities. 

RES’ earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 8.66%.

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This article originally published on Zacks Investment Research (zacks.com).

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