Fitch Revises Outlook of Viper Energy Partners to Positive, Affirms IDRs at ‘BB-‘
June 22, 2023
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Viper Energy Partners ($NASDAQ:VNOM) LP is a publicly traded master limited partnership sponsored by Diamondback Energy, Inc. It is engaged in the acquisition, exploitation, development, and production of oil, natural gas, and natural gas liquids. The partnership primarily focuses its operations in the Permian Basin, one of the most prolific upstream regions for oil and gas production in the U.S. Fitch Ratings has affirmed Viper Energy Partners LP’s Long-Term Issuer Default Ratings at ‘BB-‘ and revised their Outlook to Positive from Stable. This revision reflects the partnership’s improved financial profile, as reflected by its strong liquidity position, increase in asset base and production volumes, and reduced leverage. The increased revolver availability has provided Viper Energy with additional capital to pursue strategic opportunities and enhance its financial position.
Stock Price
This positive outlook is reflective of the company’s sound financial performance and strong liquidity position. The revision of outlook comes after Viper Energy Partners LP opened at $24.8 and closed at $24.9 on Tuesday, up by 0.3% from its last closing price of 24.9. This increase is reflective of the market’s reaction to the Fitch Ratings update, as investors have reacted positively to the news.
The company also reported improved financial performance over the past year, with strong cash flow and an increased capacity to meet its debt obligations. This news has been met with positive investor sentiment, with the stock price increasing by 0.3% on Tuesday. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for VNOM. More…
| Total Revenues | Net Income | Net Margin |
| 832.55 | 168.73 | 21.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for VNOM. More…
| Operations | Investing | Financing |
| 671.2 | -100.97 | -594.19 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for VNOM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.02k | 727.31 | 9.26 |
Key Ratios Snapshot
Some of the financial key ratios for VNOM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 38.3% | 48.0% | 75.6% |
| FCF Margin | ROE | ROA |
| 59.1% | 58.0% | 13.0% |
Analysis
Our Risk Rating system has determined that VIPER ENERGY PARTNERS LP is a medium risk investment in terms of financial and business aspects. We have identified 3 potential risk warnings in the company’s income sheet, balance sheet, and financial journals. If you would like to review these findings in detail, register with us to access more information. We believe that monitoring potential risks can help you to make an informed investment decision. More…
Peers
The oil and gas industry is a highly competitive market. There are many oil and gas companies that compete for market share. One of the most competitive markets is the market for oil and gas exploration and production. In this market, there are many companies that compete for market share. One of the most competitive companies in this market is Viper Energy Partners LP. The company is a publicly traded company that is listed on the New York Stock Exchange. The company has a market capitalization of $2.6 billion. The company operates in the oil and gas industry in the United States, Canada, and Mexico.
– Rubellite Energy Inc ($TSX:RBY)
Rubellite Energy Inc is a Canadian oil and gas company with a market cap of 153.23M as of 2022. The company is engaged in the exploration, development, and production of oil and gas properties in the Western Canada Sedimentary Basin.
– Basic Energy Corp ($PSE:BSC)
Basic Energy Corp. is a holding company, which engages in the provision of oilfield services. It operates through the following segments: Drilling Services, Well Services, and Manufacturing and Repair. The Drilling Services segment offers onshore drilling rigs and related services. The Well Services segment provides pressure pumping and other well services. The Manufacturing and Repair segment manufactures and repairs equipment used in oil and gas drilling, completion, and production operations. The company was founded on April 28, 1987 and is headquartered in Houston, TX.
– BPI Energy Holdings Inc ($OTCPK:BPIGF)
BPI Energy Holdings Inc is a publicly traded holding company that owns and operates businesses in the energy sector. The company has a market cap of 146.97k as of 2022 and a Return on Equity of -513.73%. BPI Energy Holdings Inc owns and operates businesses in the oil and gas, power generation, and renewable energy industries. The company’s businesses include exploration and production, power generation, and energy trading.
Summary
Viper Energy Partners LP is a publicly traded partnership engaged in the acquisition and development of oil and natural gas properties in North America. Fitch Ratings has recently revised its outlook for Viper Energy Partners LP to “Positive” and affirmed its Long-Term Issuer Default Ratings (IDRs) at ‘BB-‘. Fitch’s outlook revision reflects the company’s strong financial profile, its attractive portfolio of assets, as well as its ability to maintain strong liquidity and reasonable leverage.
Additionally, Fitch views favorably Viper Energy’s prudent capital allocation policy, which has helped the company to successfully navigate the recent market volatility. Despite weakness in the commodity price environment, Fitch believes that Viper Energy will be able to sustain its financial stability and continue to generate sufficient cash flows to service its debt obligations.
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