VNOM VALUATION
Posted: Mon Oct 10, 2022 9:09 am
Dan, Do you have any recent information that would alter your value of VNOM. I would appreciate your thoughts.
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TipRanks: "In the last 3 months, 10 ranked analysts set 12-month price targets for VNOM. The average price target among the analysts is $39.30."
My valuation is $43.00.
I expect their Q3 results to beat the current First Call EPS estimate of $0.58. Not including the mark-to-market gain on their hedges in Q3, I expect them to report Adjusted Q3 EPS of $0.88.
Very little of their production is hedged in Q4 and 2023, so they should report a big increase in free cash flow this quarter. Q4 Adjusted EPS should be around $0.98 with operating cash flow per share of around $1.13.
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