- Viper's guidance indicates that 2021 production may decline slightly compared to 2020, below my earlier expectations.
- This is partially due to February's winter storm, but also reflects the capital discipline shown by producers so far.
- Viper may also need to acquire more of a royalty interest in the Guidon and QEP acreage to boost its production going forward.
- Viper's estimated value is $17 per unit at $55 WTI long-term oil, although its guidance has proven to be conservative recently.
For further details see:
Viper Energy Partners: Production May Decline Slightly In 2021