Viper Energy (NASDAQ: VNOM) reported Q4 EPS of $0.12, $0.13 better than the analyst estimate of ($0.01).

“Viper’s business has rebounded strongly from the unprecedented volatility experienced throughout 2020 as commodity prices have increased and activity has returned to Viper’s acreage. This recovery again highlights both the advantaged nature of the royalty business model, as well as the benefit of Viper’s symbiotic relationship with Diamondback. During the fourth quarter of 2020, we were able to generate more than $40 million in one-time proceeds from asset sales, which, in addition to the roughly $50 million in net cash provided by operating activities that the business delivered, helped accelerate our debt reduction and kick start our common unit repurchase program. We have now reduced total debt by 16% over the past nine months and have repurchased more than 2.5 million common units in the last three months, or a repurchase of 1.6% of our previous total units outstanding,” stated Travis Stice, Chief Executive Officer of Viper’s General Partner.

Mr. Stice continued, “Viper’s 10% quarter over quarter increase in oil production was driven primarily by Viper having an interest in 21 of Diamondback’s 35 completions in the fourth quarter of 2020, with well performance exceeding internal expectations. Viper also benefited from third party well performance and timing of wells being turned to production that exceeded our prior conservative expectations that were lowered due to the uncertainty presented by the volatile oil prices experienced in 2020. Looking ahead to 2021, Diamondback’s continued focus on developing Viper’s acreage, as well as exposure to other well-capitalized operators in the Permian Basin, underscores our confidence in Viper’s forward production and free cash flow outlook, even considering the impact of the recent winter storms in the Permian Basin.”

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