Workflow
Viper(VNOM) - 2024 Q4 - Annual Results
VNOMViper(VNOM)2025-02-24 21:04

Acquisitions and Transactions - Viper Energy, Inc. entered into a definitive equity purchase agreement to acquire Endeavor Subsidiaries for 1.0billionincashandtheissuanceof69,626,640OpCoUnitsandClassBCommonStock[2]−VipercompletedtheTWRAcquisitiononOctober1,2024,foratotalconsiderationofapproximately1.0 billion in cash and the issuance of 69,626,640 OpCo Units and Class B Common Stock[2] - Viper completed the TWR Acquisition on October 1, 2024, for a total consideration of approximately 458.9 million in cash, 10,093,670 OpCo Units, and contingent cash consideration of up to 41.0million[5]−TheQAcquisitioninvolvedapproximately406netroyaltyacresfor41.0 million[5] - The Q Acquisition involved approximately 406 net royalty acres for 113.6 million in cash and contingent cash consideration of up to 5.4million[7]−TheMAcquisitionincludedapproximately267netroyaltyacresfor5.4 million[7] - The M Acquisition included approximately 267 net royalty acres for 75.8 million in cash and contingent cash consideration of up to 3.6million[8]−TheGRPAcquisitionwascompletedforatotalconsiderationof3.6 million[8] - The GRP Acquisition was completed for a total consideration of 747.6 million in cash and 9,018,760 common units[10] - The Pending Drop Down is subject to approval by a majority of the voting power of the Company's common stock and regulatory clearance under the Hart-Scott-Rodino Antitrust Improvement Act[4] - The Pending Drop Down consideration amounts to 4.32billion,with4.32 billion, with 3.32 billion in OpCo Unit consideration and 1billionincashconsideration[42]−ThefairvalueofcontingentconsiderationfortheTWRAcquisitionisestimatedat1 billion in cash consideration[42] - The fair value of contingent consideration for the TWR Acquisition is estimated at 21.3 million[47] - The company issued 11.5 million shares of Class A Common Stock in September 2024 to partially fund the cash consideration for the TWR Acquisition[48] Financial Performance - Total operating income for the nine months ended September 30, 2024, was 1,056,483,000,reflectingasignificantincreasefromthepreviousperiod[28]−NetincomeattributabletoViperEnergy,Inc.was1,056,483,000, reflecting a significant increase from the previous period[28] - Net income attributable to Viper Energy, Inc. was 158,299,000, compared to a loss of 82,281,000inthepriorperiod[28]−Basicearningspershareincreasedto82,281,000 in the prior period[28] - Basic earnings per share increased to 1.55, up from 1.64inthepreviousperiod[28]−TotaloperatingincomefortheyearendedDecember31,2023,was1.64 in the previous period[28] - Total operating income for the year ended December 31, 2023, was 1,008,428,000, reflecting a significant increase from the previous year[34] - Net income attributable to Viper Energy, Inc. for the same period was 241,779,000,comparedto241,779,000, compared to 26,330,000 in the prior year, indicating a substantial growth[34] - Basic and diluted earnings per share for the year were both 2.43,upfrom2.43, up from 2.40 in the previous year[34] - Total costs and expenses amounted to 429,776,000,whichincludesproductionandadvaloremtaxesof429,776,000, which includes production and ad valorem taxes of 73,605,000[28] - Total costs and expenses amounted to 306,055,000,whichisanincreasefrom306,055,000, which is an increase from 31,155,000 in the previous year[34] - The provision for income taxes was 55,897,000,reflectingthecompany′staxobligationsfortheperiod[28]−Theprovisionforincometaxeswas55,897,000, reflecting the company's tax obligations for the period[28] - The provision for income taxes was 57,577,000, compared to 270,000inthepreviousyear,reflectingahighertaxburdenduetoincreasedincome[34]−Interestexpense,net,wasreportedat270,000 in the previous year, reflecting a higher tax burden due to increased income[34] - Interest expense, net, was reported at (69,844,000), indicating a rise in financing costs[28] - The company incurred interest expense of 94,771,000,whichisasignificantcostimpactingnetincome[34]AssetsandLiabilities−TotalassetsasofSeptember30,2024,amountto94,771,000, which is a significant cost impacting net income[34] Assets and Liabilities - Total assets as of September 30, 2024, amount to 4,976,542,000, reflecting an increase of 490,013,000fromhistoricalvalues[21]−Currentassetstotal490,013,000 from historical values[21] - Current assets total 202,751,000, with cash and cash equivalents at 26,831,000[21]−Oilandnaturalgasinterestsusingthefullcostmethodofaccountingarevaluedat26,831,000[21] - Oil and natural gas interests using the full cost method of accounting are valued at 5,702,279,000, with a total property net value of 4,691,794,000[21]−Totalliabilitiesstandat4,691,794,000[21] - Total liabilities stand at 1,172,688,000, including long-term debt of 1,101,505,000[23]−Stockholders′equityforViperEnergy,Inc.isreportedat1,101,505,000[23] - Stockholders' equity for Viper Energy, Inc. is reported at 1,400,958,000, with additional paid-in capital of 1,429,649,000[23]−Thecompanyhasanon−controllinginterestvaluedat1,429,649,000[23] - The company has a non-controlling interest valued at 2,402,896,000, contributing to total equity of 3,803,854,000[23]−Totalcurrentliabilitiesare3,803,854,000[23] - Total current liabilities are 45,052,000, with accrued liabilities at 42,227,000[23]ProFormaFinancialStatements−TheproformafinancialstatementsreflecttheimpactsoftheTWRAcquisition,PendingDropDown,GRPAcquisition,andassumedEquityOfferingasiftheyoccurredonJanuary1,2023[15]−TheproformafinancialstatementsdonotpredictfutureresultsandshouldnotbeusedtoprojecttheCompany′sfinancialperformanceforanyfutureperiod[17]−TheproformaadjustmentsfortheTWRAcquisitionindicateasignificantincreaseintotalassetsto42,227,000[23] Pro Forma Financial Statements - The pro forma financial statements reflect the impacts of the TWR Acquisition, Pending Drop Down, GRP Acquisition, and assumed Equity Offering as if they occurred on January 1, 2023[15] - The pro forma financial statements do not predict future results and should not be used to project the Company's financial performance for any future period[17] - The pro forma adjustments for the TWR Acquisition indicate a significant increase in total assets to 9,294,940,000[22] - The company anticipates further growth in equity with an additional 1,000,000,000inpaid−incapitalfromtheacquisition[22]−Theproformacombinedtotaloperatingincome,includingacquisitions,isprojectedtobe1,000,000,000 in paid-in capital from the acquisition[22] - The pro forma combined total operating income, including acquisitions, is projected to be 1,454,954,000[34] - The pro forma statements indicate a 15.1millionincreaseininterestexpensefortheninemonthsendedSeptember30,2024,duetoincrementalborrowings[47]−Theproformaadjustmentsreflecta15.1 million increase in interest expense for the nine months ended September 30, 2024, due to incremental borrowings[47] - The pro forma adjustments reflect a 378.8 million decrease in contributed capital and retained earnings due to the elimination of TWR's net equity interests[45] - The pro forma financial statements include a 280millionincreaseincashandlong−termdebttofundpartofthecashconsiderationfortheTWRAcquisition[47]ReservesandFutureProjections−AsofDecember31,2023,netprovedoilreservesincreasedto95,532MBbls,upfrom82,297MBblsasofDecember31,2022,representingagrowthofapproximately16.1280 million increase in cash and long-term debt to fund part of the cash consideration for the TWR Acquisition[47] Reserves and Future Projections - As of December 31, 2023, net proved oil reserves increased to 95,532 MBbls, up from 82,297 MBbls as of December 31, 2022, representing a growth of approximately 16.1%[55] - Total net proved natural gas reserves as of December 31, 2023, reached 290,553 MMcf, an increase from 224,962 MMcf in the previous year, marking a rise of about 29.1%[55] - The company reported a total of 189,374 MBOE in proved reserves as of December 31, 2023, compared to 154,693 MBOE as of December 31, 2022, indicating an increase of approximately 22.3%[56] - Pro forma total proved developed reserves as of December 31, 2023, were 149,909 MBOE, while proved undeveloped reserves were 39,465 MBOE[56] - Future net cash flows are projected to be 12,564,103, with a breakdown of 7,441,971fromViperand7,441,971 from Viper and 5,122,132 from TWR[60] - The standardized measure of discounted future net cash flows at the end of the period is 6,011,256,reflectingadecreasefromthebeginningoftheperiod′s6,011,256, reflecting a decrease from the beginning of the period's 7,286,482[60] - The company reported a purchase of minerals in place amounting to 547,019,contributingpositivelytofuturecashinflows[60]−Thecompanyanticipatesa10547,019, contributing positively to future cash inflows[60] - The company anticipates a 10% discount to reflect the timing of cash flows, amounting to 6,552,847[60] Income Tax and Cash Flow Considerations - The estimated incremental income tax provision associated with pro forma income before taxes for the nine months ended September 30, 2024, is calculated at a blended rate of 21.9%[51] - The company experienced a net change in income taxes amounting to 218,138,whichmayimpactfuturecashflowprojections[60]−Accretionofdiscountcontributed218,138, which may impact future cash flow projections[60] - Accretion of discount contributed 813,393 to the standardized measure, highlighting the importance of time value in cash flow assessments[60] - Extensions and discoveries added 706,855tofuturecashflows,showcasingsuccessfulexplorationefforts[60]−Thecompanyincurredfuturedevelopmentcostsof706,855 to future cash flows, showcasing successful exploration efforts[60] - The company incurred future development costs of 58, which are minimal compared to overall cash flow projections[60] - The future production taxes are estimated at $1,025,515, which will affect net cash flow calculations[60]