Viper Energy (VNOM) Q3 earnings report preview: what to look for

What happened

Viper Energy, a mineral and royalty company, will report earnings Monday afternoon. Last quarter it reported $677 million in revenue, up 128% year on year, with oil production growth of 56.4%. This quarter the market expects revenue to grow 52.1% year on year.

Confirmed

Global impact / market context

The expected slowdown from 99.4% growth a year earlier suggests Viper's sales growth is cooling. Because the company has missed revenue estimates several times in two years, investors may question whether the $677 million beat last quarter can be repeated.

Analyst inference

Peers Cactus and Expand Energy already reported third-quarter results, offering hints for the upstream and integrated segment. Cactus met expectations with 63.2% growth and traded up 1.8%, while Expand beat estimates, suggesting demand conditions varied across the industry.

Analyst inference

What to watch

1. Watch whether Viper's reported revenue matches the market's expectation of 52.1% year-on-year growth, and whether it again misses Wall Street's revenue estimates as it has multiple times over two years. Confirmed
2. Watch whether analysts reconfirming their estimates over the last 30 days hold, which would suggest they expect the business to stay the course into earnings. Proposed
3. Watch oil production growth, after last quarter's 56.4% year-on-year gain, because lower output would reduce the revenue this mineral and royalty company collects from its interests. Analyst inference

Evidence

• stockstory.org