Viper Energy Ut (VNOM)

Pretax margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 503,935 505,723 608,576 561,725 547,293 565,330 499,931 589,352 622,351 589,741 500,399 364,975 258,198 87,932 29,765 -45,669 -50,947 50,598 78,031 158,541
Revenue (ttm) US$ in thousands 857,231 833,288 918,177 863,299 826,788 825,642 754,001 832,552 865,767 827,982 734,448 609,231 504,297 414,675 349,427 267,952 249,566 265,913 275,067 314,791
Pretax margin 58.79% 60.69% 66.28% 65.07% 66.20% 68.47% 66.30% 70.79% 71.88% 71.23% 68.13% 59.91% 51.20% 21.21% 8.52% -17.04% -20.41% 19.03% 28.37% 50.36%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $503,935K ÷ $857,231K
= 58.79%

The pretax margin of Viper Energy Ut has shown fluctuations over the given periods. It started strongly in the first quarter of 2020 at 50.36% and gradually decreased to 28.37% in the second quarter. The margin further declined to 19.03% in the third quarter as the year progressed. However, there was a significant negative turn in the last quarter of 2020, with a pretax margin of -20.41%.

The negative trend continued into the first quarter of 2021 with a pretax margin of -17.04%. The company managed to improve its position in the second quarter of 2021, achieving a pretax margin of 8.52%. The positive momentum continued in the following quarters, reaching 21.21% and 51.20% in the third and fourth quarters of 2021, respectively.

In the subsequent periods up to December 2024, Viper Energy Ut demonstrated consistent growth in its pretax margin, with values ranging from a low of 58.79% in the last quarter of 2024 to a high of 71.88% in the fourth quarter of 2022. Overall, the pretax margin trend reflects both periods of struggle and recovery, with the company managing to significantly improve its profitability metrics in the later years.