Mineral and royalty company Viper Energy (NASDAQ: VNOM) will be reporting earnings this Monday afternoon. Here’s what to expect.
Viper Energy beat analysts’ revenue expectations last quarter, reporting revenues of $677 million, up 128% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates. It reported year-on-year oil production growth of 56.4%.
Is Viper Energy a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Viper Energy’s revenue to grow 52.1% year on year, slowing from the 99.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Viper Energy has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Viper Energy’s peers in the upstream & integrated segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Cactus delivered year-on-year revenue growth of 63.2%, meeting analysts’ expectations, and Expand Energy reported revenues up 11.6%, topping estimates by 54.4%. Cactus traded up 1.8% following the results while Expand Energy was down 3.2%.
Read our full analysis of Cactus’s results here and Expand Energy’s results here.
There has been positive sentiment among investors in the upstream & integrated segment, with share prices up 6.2% on average over the last month. Viper Energy is up 17.4% during the same time and is heading into earnings with an average analyst price target of $55.20 (compared to the current share price of $47.75).
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