Viper Energy (NASDAQ: VNOM) reported Q1 EPS of $0.61, versus $0.09 reported last year.

• Q1 2019 cash distribution of $0.38 per common unit; implies a last twelve month yield of 5.9% based on the April 26, 2019 unit closing price of $34.82
• Q1 2019 consolidated net income (including non-controlling interest) of $74.3 million, consolidated adjusted EBITDA (as defined and reconciled below) of $57.3 million and cash available for distribution to Limited Partner units (as defined below) of $24.0 million
• Q1 2019 production of 19,042 boe/d (67% oil), an increase of 35% year over year
• Initiating average production guidance for Q2 2019/Q3 2019 of 19,000 to 21,000 boe/d
• Reaffirm full year 2019 production guidance of 20,000 to 23,000 boe/d (67% - 71% oil)
• Closed 39 acquisitions for an aggregate purchase price of approximately $82.7 million in Q1 2019, increasing Viper's mineral interests to a total of 15,469 net royalty acres, up 47% year over year
• As of April 17, 2019, there were 38 active rigs on Viper's mineral acreage and approximately 553 active drilling permits filed in the past six months; average 3.6% NRI in approximately 113 gross wells expected to be drilled by the 38 active rigs
• 110 total gross (1.8 net 100% royalty interest) wells turned to production during Q1 2019 on existing acreage; acquired interest in an additional 55 gross (2.0 net 100% royalty interest) producing horizontal wells through the quarter
• Q4 2018 and Q1 2019 distributions reasonably estimated to not constitute dividends for U.S. federal income tax purposes; instead should generally constitute non-taxable reductions to the tax basis

“After delivering double digit sequential production growth for four consecutive quarters, Viper experienced a six percent quarter over quarter decline in production in the first quarter of 2019. Non-operated production outside of Spanish Trail increased over five percent during the quarter as we continue to see robust activity levels across our acreage position. However, after completing an eight-well pad in Spanish Trail in October 2018, there have not been any further wells completed on the acreage. Looking forward, Diamondback plans to complete another 12 wells in Spanish Trail in the third quarter of 2019 with an average royalty interest of 22% for Viper as well as an additional 5 wells in the fourth quarter with a full 25% NRI. These Spanish Trail wells, along with our visible net DUC inventory and net rig activity, gives us confidence in our full year 24% year over year organic production growth expectations,” stated Travis Stice, Chief Executive Officer of Viper’s general partner.

Mr. Stice continued, “Our business development operation continues to consolidate the fragmented private minerals market, having completed another 39 acquisitions for $82.7 million in the first quarter of 2019. We look forward to multiple visible catalysts over the remainder of 2019 including a return to growing production as DUCs are completed, improving oil realizations beginning in the second quarter of 2019, and finally, the continued execution of our acquisition strategy, including both our normal business development operations as well as the potential for a significant drop down transaction from our parent company.”

For earnings history and earnings-related data on Viper Energy (VNOM) click here.