Financial Data and Key Metrics Changes - In Q4 2025, Viper Energy achieved over $8 billion in mineral acquisitions and significant growth in both absolute and per share metrics, with a nearly 2.5 times increase in Permian Basin acreage and a 7% increase in oil production per share year-over-year [4][5] - The company reported a pro forma net debt of approximately $1.6 billion, representing just over 1 turn of leverage after fully repaying a $500 million term loan and outstanding revolver balance [5][6] - The board approved a 15% increase in the base dividend, which now represents about 50% of estimated 2026 free cash flow at $50 WTI, and is fully covered below $30 WTI [6][7] Business Line Data and Key Metrics Changes - Viper Energy's relationship with Diamondback Energy remains strategic, supporting development across their Permian acreage, which is characterized by strong activity levels [4][5] - The company has initiated average daily production guidance for 2026, implying mid-single digit organic production growth from the Q4 2025 exit rate [4] Market Data and Key Metrics Changes - The company has not observed a slowdown in third-party activity, capturing about 50% of all third-party operations across the entire basin, supported by major players in the industry [19][20] - The guidance for production growth is based on existing DUCs and permits, with expectations for strong third-party activity to continue [20] Company Strategy and Development Direction - Viper Energy is focused on generating strong free cash flow, delivering attractive shareholder returns, and pursuing accretive Permian consolidation opportunities [8] - The company emphasizes the importance of mineral ownership, which allows it to benefit from operators' innovations without incurring capital risk [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to return upwards of 100% of cash available for distribution while maintaining differentiated growth in per share metrics [7][8] - The outlook for the Permian Basin remains positive, with expectations for production growth and continued activity from major operators [78][79] Other Important Information - The company is enhancing its operational efficiency through automation and AI to manage a large number of leases and production data effectively [68] - Viper Energy is positioned to explore new development areas as gas takeaway improves, which could enhance lease bonus income [66] Q&A Session Summary Question: Insights on Barnett and Viper's ownership - Management highlighted the benefits of mineral ownership and the ongoing leasing program, with about 10%-15% of potential acreage leased in the Midland Basin [10][11] Question: Return of capital strategy - The board's decision to increase the base dividend reflects confidence in the company's cash-generating ability, with a focus on maintaining flexibility in capital allocation [14][15] Question: Third-party activity outlook - Management confirmed strong third-party activity, with no significant slowdown observed, and emphasized the importance of acquiring high-quality royalty interests [19][20] Question: M&A environment and royalty assets - Management noted a lack of large deals recently, with a focus on integrating previous acquisitions and being ready for future opportunities as market conditions improve [27][28] Question: 2026 oil guidance and visibility - The wide guidance range reflects limited visibility on future activity, with confidence in the first half of the year but uncertainty in the second half [38][40] Question: Lease bonus income outlook - Management indicated that lease bonus income could remain similar in 2026, driven by proactive management and the larger asset base [66][68] Question: Oil cut trends - The decrease in oil cut from mid-50s to low 50s is attributed to various factors, including improved gas system efficiency and the overall performance of the basin [69] Question: Share repurchase strategy - Management discussed the flexibility in capital allocation, balancing between distributions and share repurchases, particularly in light of market conditions [75][76]

Financial Data and Key Metrics Changes - In Q4 2025, Viper Energy achieved over $8 billion in mineral acquisitions and significant growth in both absolute and per share metrics, with a 7% increase in oil production per share year-over-year [5][6] - The company reported a pro forma net debt of approximately $1.6 billion, representing just over one turn of leverage after fully repaying a $500 million term loan and outstanding revolver balance [8][10] - The board approved a 15% increase in the base dividend, which now represents about 50% of estimated 2026 free cash flow at $50 WTI [9][10] Business Line Data and Key Metrics Changes - Viper Energy's Permian Basin acreage grew nearly two and a half times, indicating strong operational activity supported by Diamondback Energy and third-party operators [5][6] - The company initiated average daily production guidance for 2026, implying mid-single digit organic production growth from the Q4 2025 exit rate [6] Market Data and Key Metrics Changes - The company has maintained strong third-party activity, capturing about 50% of all third-party operations across the entire basin, despite rig count declines in the Permian [22][23] - The lease bonus income has been strong in 2025, with expectations that 2026 may see similar performance due to proactive management of the asset base [65][66] Company Strategy and Development Direction - Viper Energy is focused on generating strong free cash flow and delivering attractive shareholder returns while pursuing accretive Permian consolidation opportunities [11] - The company emphasizes the importance of mineral ownership, which allows it to benefit from operators' new techniques without incurring capital risk [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position, stating that Viper is better positioned than ever in terms of asset quality and future inventory [6][10] - The management noted that while the first half of 2026 looks promising, the second half may present challenges due to limited visibility on new permits and activity [40][41] Other Important Information - The company returned 90% of available cash during Q4 and is positioned to increase returns to upwards of 100% of cash available for distribution [10] - The relationship with Diamondback Energy remains strategic, with ongoing leasing activities and development plans that align with Viper's interests [14][51] Q&A Session Summary Question: Insights on Viper Energy's ownership in FANG's Barnett position - Management highlighted the benefits of mineral ownership, which allows Viper to accrue benefits from operators' activities without capital risk [13] Question: Outlook on third-party activity and production growth - Management confirmed strong third-party activity with no significant slowdown observed, which supports production growth [22][23] Question: Bid-ask environment for royalty assets - Management noted that while there haven't been many large deals recently, they are ready to pursue larger opportunities when market conditions improve [30][31] Question: 2026 oil guidance and visibility - Management indicated that visibility is better in the first half of 2026, with uncertainty in the second half due to reliance on existing DUCs and permits [40][41] Question: Lease bonus income outlook - Management expressed optimism that 2026 lease bonus income could be similar to 2025, driven by a larger asset base and proactive management [65][66] Question: Repurchase strategy and market conditions - Management discussed the flexibility in capital allocation, balancing between distributions and repurchases based on market conditions [72][73]

Financial Data and Key Metrics Changes - Viper Energy reported over $8 billion in mineral acquisitions during 2025, leading to significant growth in both absolute and per share metrics [3] - The company grew its Permian Basin acreage by nearly 2.5 times year-over-year and increased oil production per share by 7% [3] - Pro forma net debt was approximately $1.6 billion, representing just over 1 turn of leverage after repaying a $500 million term loan and outstanding revolver balance [4] Business Line Data and Key Metrics Changes - The company initiated average daily production guidance for 2026, implying mid-single digit organic production growth from the Q4 2025 exit rate [3] - Viper Energy returned 90% of available cash during Q4 2025 and is positioned to increase returns to upwards of 100% of cash available for distribution [5] Market Data and Key Metrics Changes - The company has not observed a slowdown in third-party activity, capturing about 50% of all activity across the entire basin [20] - The guidance for production growth is based on existing DUCs and permits, with visibility expected to improve as new wells are permitted [38] Company Strategy and Development Direction - Viper Energy is focused on generating strong free cash flow and delivering attractive shareholder returns while pursuing accretive Permian consolidation opportunities [6] - The company has approved a 15% increase in its base dividend and a $1 billion increase in share repurchase authorization, reflecting confidence in long-term cash generation [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strength of the Permian Basin, indicating that larger operators continue to grow and that concerns about reductions in activity have quieted [75] - The company is well-positioned to benefit from the ongoing development of deeper zones and the resilience of third-party operators [20][21] Other Important Information - The company is leveraging technology and automation to manage a large number of leases and production data effectively, which is expected to enhance shareholder value [65] - The relationship with Diamondback Energy remains strategic, with ongoing leasing activities and development plans that align with Viper's interests [10][50] Q&A Session Summary Question: How does Viper Energy's ownership translate across FANG's Barnett position? - Management highlighted the benefits of mineral ownership, stating that operators' new techniques and zones accrue benefits to mineral owners without additional capital risk [9] Question: Will the return of capital strategy remain consistent? - Management indicated that the base dividend will remain a priority, with flexibility to adjust based on market conditions and stock price [12][14] Question: What is the outlook for third-party activity? - Management confirmed that third-party activity remains strong, with no significant slowdown observed [20] Question: How does the company view the current market for royalty assets? - Management noted that while there haven't been many large deals recently, they are ready to pursue larger opportunities when market conditions improve [26][28] Question: What is the outlook for lease bonus income in 2026? - Management suggested that lease bonus income could remain similar to 2025 levels, driven by proactive management and the larger asset base [64] Question: How does the company view its oil cut trend? - Management attributed the trend towards lower oil cut to various factors, including improved efficiency in gas systems and the overall performance of the basin [66]

Adjusted EBITDA is a supplemental non-GAAP (as defined below) financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. Viper defines Adjusted EBITDA as net income (loss) attributable to the Company, plus net income (loss) attributable to non-controlling interest ("net income (loss)") before interest expense, net, non-cash share-based compensation expense, depletion, impairment, non-cash (gain) loss on deri ...

Core Insights - Viper Energy Partners reported $435 million in revenue for Q4 2025, marking a 90.2% year-over-year increase, with an EPS of $0.31 compared to $0.42 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $426.49 million by 2%, and the EPS surpassed the consensus estimate of $0.27 by 14.39% [1] Financial Performance Metrics - Average daily combined volumes were 134,000 BOE/D, exceeding the average estimate of 126,597 BOE/D [4] - Total production reached 12,328 MBOE, surpassing the estimated 11,670.99 MBOE [4] - Natural gas production was 19,668 MMcf, compared to the average estimate of 17,048.17 MMcf [4] - Crude oil production was 6,110 MBBL, slightly above the estimated 6,066.66 MBBL [4] Income Breakdown - Natural Gas Income was reported at $16 million, significantly lower than the average estimate of $23.5 million, but showed a year-over-year increase of 164.5% [4] - Natural Gas Liquids Income was $49 million, slightly above the average estimate of $47.99 million, with an 83% year-over-year increase [4] - Oil income was $357 million, close to the estimated $359.92 million, reflecting an 85.9% year-over-year increase [4] - Royalty income was $422 million, slightly below the average estimate of $423.28 million, with an 87.7% year-over-year increase [4] Stock Performance - Viper Energy's shares returned +15.2% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

MIDLAND, Texas, Feb. 23, 2026 (GLOBE NEWSWIRE) -- Viper Energy, Inc. (NASDAQ:VNOM) (“Viper,” “we,” “our” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback”), today announced financial and operating results for the fourth quarter and full year ended December 31, 2025. FOURTH QUARTER HIGHLIGHTS Q4 2025 average production of 66,413 bo/d (134,000 boe/d)Q4 2025 consolidated net loss (including non-controlling interest) of $246 million; net loss attributable to Viper of $103 ...

Core Viewpoint - Viper Energy, Inc. has seen a significant decline in its consensus price target over the past year, reflecting a more cautious outlook from analysts regarding the company's future performance [2][6]. Company Overview - Viper Energy, Inc. focuses on acquiring and exploiting oil and natural gas properties in North America, primarily in the Permian Basin, and is a subsidiary of Diamondback Energy, Inc. [1]. Price Target Changes - The average price target for Viper Energy has decreased from $54.57 a year ago to $44, and further down from $50 in the previous quarter, indicating a shift in analysts' optimism [2][6]. - Raymond James has set a price target of $40 for Viper Energy, reflecting a cautious outlook aligned with the company's strategic divestiture of non-core assets [4]. Strategic Moves - Viper Energy is divesting its non-Permian assets for $670 million, which is expected to produce 9,500 barrels of oil equivalent per day in 2026, but has limited associated inventory [3][6]. - This divestiture is seen as a factor influencing analysts' perspectives on the company's future performance [6]. Market Context - Broader market conditions, including the U.S. government's reliance on short-term debt and Federal Reserve policy, add complexity to the investment landscape for Viper Energy [4]. - Despite perceived market expensiveness, there is a consensus expectation of 15% growth in S&P 500 earnings driven by AI advancements, which may impact investment sentiment [5]. Competitive Analysis - Viper Energy is compared with Osage Exploration and Development to assess investment potential, considering factors like earnings strength, valuation, and dividends [5].

Analysts on Wall Street project that Viper Energy Partners (VNOM) will announce quarterly earnings of $0.27 per share in its forthcoming report, representing a decline of 35.7% year over year. Revenues are projected to reach $426.49 million, increasing 86.5% from the same quarter last year.Over the last 30 days, there has been a downward revision of 5.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their init ...

Core Viewpoint - Viper Energy, Inc. (NASDAQ:VNOM) is recognized as one of the best crude oil stocks to invest in amid rising tensions in the market [1]. Company Overview - Viper Energy, Inc. is a publicly traded Delaware corporation that focuses on owning and acquiring mineral and royalty interests, primarily in the Permian Basin [2]. Analyst Ratings and Price Targets - Morgan Stanley analyst Devin McDermott has slightly lowered the price target for Viper Energy from $45 to $44 while maintaining an 'Overweight' rating. This adjustment is based on updated oil price forecasts for 2026-27 and expectations of lower cash flow from price realizations [3]. - Barclays analyst Betty Jiang also reduced the price target for Viper Energy from $60 to $54 but kept an 'Overweight' rating. The firm believes the upstream sector's cash return model remains resilient despite market volatility and sees attractive investment opportunities in the US onshore [4]. Upcoming Financial Results - Viper Energy is scheduled to announce its Q4 2025 results on February 23 [5].

Core Viewpoint - Analysts project that Viper Energy Partners (VNOM) will report quarterly earnings of $0.27 per share, reflecting a year-over-year decline of 35.7%, while revenues are expected to reach $426.49 million, an increase of 86.5% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 5.9% in the past 30 days, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Metrics Projections - Analysts estimate 'Natural Gas Income' to be $23.50 million, representing a year-over-year increase of 288.5% [4]. - 'Natural Gas Liquids Income' is projected at $47.99 million, indicating a change of 79.3% from the previous year [5]. - 'Oil Income' is expected to reach $359.92 million, reflecting an 87.4% year-over-year increase [5]. - 'Lease Bonus Income' is forecasted to be $10.06 million, showing a year-over-year change of 175.2% [5]. Production and Sales Estimates - The consensus for 'Average Daily Combined Volumes' is 126,597 barrels of oil equivalent per day, compared to 56,109 barrels per day a year ago [6]. - 'Total Production' is estimated at 11,671 thousand barrels of oil equivalent, up from 5,162 thousand barrels a year prior [7]. - 'Production - NGL' is projected at 2,763 thousand barrels of oil, compared to 1,209 thousand barrels in the same quarter last year [7]. - 'Production - Natural Gas' is expected to be 17,048.17 million cubic feet, up from 7,236.00 million cubic feet year-over-year [8]. - 'Average Sales Prices - Oil, Hedged' is estimated at $58.59, down from $69.00 in the same quarter last year [9]. - 'Average Sales Prices - Crude Oil' is projected to be $58.46, compared to $69.91 a year ago [9]. Market Performance - Over the past month, Viper Energy shares have gained 18%, while the Zacks S&P 500 composite has decreased by 1.3% [9]. - Based on its Zacks Rank 4 (Sell), VNOM is expected to underperform the overall market in the upcoming period [10].