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Viper Energy Q2 Earnings Beat Estimates on Higher Production
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Key Takeaways
{\"0\":\"VNOM posted Q2 EPS of $0.41, beating estimates but down from $0.61 a year earlier.\",\"1\":\"Higher oil-equivalent output of 7,215 MBoe drove revenue above expectations at $297 million.\",\"2\":\"Realized oil prices fell to $63.64, while total expenses more than doubled to $162 million.\"}
Viper Energy Inc. (VNOM - Free Report) reported second-quarter 2025 adjusted earnings per share of 41 cents, which beat the Zacks Consensus Estimate of 34 cents. The bottom line, however, declined from the year-ago level of 61 cents.
The company, with mineral interests in North America’s oil and gas resources, generated operating income of $297 million, which beat the Zacks Consensus Estimate of $294 million. The top line increased from the year-ago quarter’s figure of $217 million.
The better-than-expected quarterly results can be primarily attributed to a significant increase in oil-equivalent production. However, lower realized oil prices and higher total expenses partially offset the positives.
Viper Energy Inc. Price, Consensus and EPS Surprise
The resources, wherein the company has mineral interests, produced 7,215 thousand oil-equivalent barrels (MBoe), up from 4,320 MBoe a year ago. The reported figure outpaced our estimate of 6,940 Mboe.
Oil contributed to approximately 52.5% of the total production volume. Oil production increased to 3,787 thousand barrels (MBbls) from 2,398 MBbls a year ago. The reported figure surpassed our estimate of 3,748 MBbls.
Natural gas production increased to 10,132 million cubic feet (MMcf) in the second quarter of 2025, compared to 5,631 MMcf in the corresponding period of 2024. The production of crude oil, natural gas and natural gas liquids witnessed a significant increase from the prior-year levels.
Realized Prices
The overall average realized price per barrel of oil equivalent was $39.78 compared with $49.88 in the second quarter of 2024. Our estimate for the same was pinned at $41.75 per barrel.
The average realized oil price in the quarter under review was $63.64 per barrel, down from $81.04 in the year-ago quarter. The figure also missed our estimate of $64.22.
The price of natural gas was $0.99 per thousand cubic feet, up from $0.20 in the year-ago quarter. Our estimate for the same was pinned at $2.12.
The price for natural gas liquids was $20.70 a barrel, higher than $20.35 recorded a year ago. Our estimate for the same was pinned at $18.80 per barrel.
Costs and Expenses
In the second quarter, total expenses were $162 million, higher than $68 million recorded in the prior-year quarter. The figure also surpassed our estimate of $151.8 million.
On a per barrel of oil-equivalent (Boe) basis, total operating expenses were $3.60 compared with $4.36 in the year-ago quarter. Our estimate for the same was pegged at $4.35.
Cash Flow
Net cash provided by operating activities was $172 million, up from $144 million in the second quarter of 2024.
Balance Sheet
As of June 30, 2025, Viper Energy’s cash and cash equivalents were $28 million. The company reported net long-term debt of $1,098 million.
Guidance
The company projects production for the third quarter of 2025 to be in the range of 86-92 Mboe/d. Its net production for full-year 2025 is projected to be in the 76.5-81.5 Mboe/d range.
Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield compared to its sub-industry peers makes it an attractive choice for investors who seek consistent returns.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.
Vermilion Energy is an international oil and gas producer with properties in Western Canada, Australia, France and the Netherlands. The company's asset base consists of conventional oil and gas fields with low decline rates. It also includes assets in Deep Basin, Montney and Germany that can support long-term production growth.
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Viper Energy Q2 Earnings Beat Estimates on Higher Production
Key Takeaways
Viper Energy Inc. (VNOM - Free Report) reported second-quarter 2025 adjusted earnings per share of 41 cents, which beat the Zacks Consensus Estimate of 34 cents. The bottom line, however, declined from the year-ago level of 61 cents.
The company, with mineral interests in North America’s oil and gas resources, generated operating income of $297 million, which beat the Zacks Consensus Estimate of $294 million. The top line increased from the year-ago quarter’s figure of $217 million.
The better-than-expected quarterly results can be primarily attributed to a significant increase in oil-equivalent production. However, lower realized oil prices and higher total expenses partially offset the positives.
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 7,215 thousand oil-equivalent barrels (MBoe), up from 4,320 MBoe a year ago. The reported figure outpaced our estimate of 6,940 Mboe.
Oil contributed to approximately 52.5% of the total production volume. Oil production increased to 3,787 thousand barrels (MBbls) from 2,398 MBbls a year ago. The reported figure surpassed our estimate of 3,748 MBbls.
Natural gas production increased to 10,132 million cubic feet (MMcf) in the second quarter of 2025, compared to 5,631 MMcf in the corresponding period of 2024. The production of crude oil, natural gas and natural gas liquids witnessed a significant increase from the prior-year levels.
Realized Prices
The overall average realized price per barrel of oil equivalent was $39.78 compared with $49.88 in the second quarter of 2024. Our estimate for the same was pinned at $41.75 per barrel.
The average realized oil price in the quarter under review was $63.64 per barrel, down from $81.04 in the year-ago quarter. The figure also missed our estimate of $64.22.
The price of natural gas was $0.99 per thousand cubic feet, up from $0.20 in the year-ago quarter. Our estimate for the same was pinned at $2.12.
The price for natural gas liquids was $20.70 a barrel, higher than $20.35 recorded a year ago. Our estimate for the same was pinned at $18.80 per barrel.
Costs and Expenses
In the second quarter, total expenses were $162 million, higher than $68 million recorded in the prior-year quarter. The figure also surpassed our estimate of $151.8 million.
On a per barrel of oil-equivalent (Boe) basis, total operating expenses were $3.60 compared with $4.36 in the year-ago quarter. Our estimate for the same was pegged at $4.35.
Cash Flow
Net cash provided by operating activities was $172 million, up from $144 million in the second quarter of 2024.
Balance Sheet
As of June 30, 2025, Viper Energy’s cash and cash equivalents were $28 million. The company reported net long-term debt of $1,098 million.
Guidance
The company projects production for the third quarter of 2025 to be in the range of 86-92 Mboe/d. Its net production for full-year 2025 is projected to be in the 76.5-81.5 Mboe/d range.
VNOM’s Zacks Rank & Key Picks
Currently, VNOM carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Antero Midstream Corporation (AM - Free Report) , Galp Energia SGPS SA (GLPEY - Free Report) and Vermilion Energy Inc. (VET - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1(Strong Buy) stocks here.
Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield compared to its sub-industry peers makes it an attractive choice for investors who seek consistent returns.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.
Vermilion Energy is an international oil and gas producer with properties in Western Canada, Australia, France and the Netherlands. The company's asset base consists of conventional oil and gas fields with low decline rates. It also includes assets in Deep Basin, Montney and Germany that can support long-term production growth.