Core Insights - Viper Energy Inc. (VNOM) reported second-quarter 2025 adjusted earnings per share of 41 cents, exceeding the Zacks Consensus Estimate of 34 cents, but down from 61 cents a year ago [1][9] - The company generated operating income of $297 million, surpassing the Zacks Consensus Estimate of $294 million, and increased from $217 million in the same quarter last year [1][9] Production - The company produced 7,215 thousand oil-equivalent barrels (MBoe), up from 4,320 MBoe a year ago, exceeding the estimate of 6,940 MBoe [3] - Oil accounted for approximately 52.5% of total production, with oil production rising to 3,787 thousand barrels (MBbls) from 2,398 MBbls a year ago, surpassing the estimate of 3,748 MBbls [3][9] - Natural gas production increased to 10,132 million cubic feet (MMcf) in Q2 2025, compared to 5,631 MMcf in Q2 2024 [4] Realized Prices - The average realized price per barrel of oil equivalent was $39.78, down from $49.88 in Q2 2024, and below the estimate of $41.75 [5] - The average realized oil price was $63.64 per barrel, down from $81.04 a year ago, and missed the estimate of $64.22 [5] - The price of natural gas was $0.99 per thousand cubic feet, up from $0.20 in the prior year, but below the estimate of $2.12 [6] Costs and Expenses - Total expenses in Q2 were $162 million, significantly higher than $68 million in the prior-year quarter and above the estimate of $151.8 million [7] - On a per barrel of oil-equivalent (Boe) basis, total operating expenses were $3.60, down from $4.36 in the year-ago quarter, and below the estimate of $4.35 [7] Cash Flow - Net cash provided by operating activities was $172 million, an increase from $144 million in Q2 2024 [8] Balance Sheet - As of June 30, 2025, Viper Energy's cash and cash equivalents were $28 million, with net long-term debt reported at $1,098 million [10] Guidance - The company projects production for Q3 2025 to be in the range of 86-92 Mboe/d, with full-year 2025 net production projected to be in the 76.5-81.5 Mboe/d range [11]

Core Insights - Viper Energy Partners reported $297 million in revenue for Q2 2025, a 37.1% year-over-year increase, with an EPS of $0.41 compared to $0.61 a year ago, indicating a positive revenue surprise of +0.94% over estimates and a +20.59% EPS surprise [1] Financial Performance - Average daily combined volumes were 79,286.00 BOE/D, exceeding the average estimate of 76,642.98 BOE/D [4] - Average sales prices for Natural Gas Liquids were $20.70, above the estimate of $20.04, while Natural Gas prices were $0.99, below the estimate of $1.88 [4] - Crude Oil production was reported at 3,787.00 MBBL, slightly below the estimate of 3,823.16 MBBL, with average sales prices at $63.64, close to the estimate of $63.83 [4] - Total production reached 7,215.00 MBOE, surpassing the estimate of 6,980.37 MBOE [4] Income Breakdown - Natural Gas Income was reported at $10 million, significantly lower than the estimate of $20.61 million, but showed a year-over-year increase of +774.9% [4] - Natural Gas Liquids Income was $36 million, exceeding the estimate of $29.34 million, with a year-over-year increase of +79.9% [4] - Oil income was $241 million, slightly below the estimate of $242.18 million, reflecting a +24% year-over-year change [4] - Lease bonus income was reported at $10 million, significantly higher than the estimate of $1.2 million [4] - Royalty income was $287 million, slightly below the estimate of $292.64 million, with a year-over-year increase of +33.2% [4] Stock Performance - Viper Energy's shares have returned -3.8% over the past month, while the Zacks S&P 500 composite increased by +0.6%, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3]

[Q2 2025 Financial and Operating Results](index=1&type=section&id=Q2%202025%20Financial%20and%20Operating%20Results) [Second Quarter Highlights](index=1&type=section&id=Second%20Quarter%20Highlights) Viper Energy reported strong Q2 2025 results with average production of 79,286 boe/d, consolidated net income of $84 million, and a total declared dividend of $0.53 per share. The company returned $73 million to shareholders through dividends and a $10 million share repurchase, representing 75% of cash available for distribution Q2 2025 Key Financial and Operating Metrics | Metric | Value | | :--- | :--- | | Average Production | 41,615 bo/d (79,286 boe/d) | | Consolidated Net Income | $84 million | | Net Income Attributable to Viper | $37 million, or $0.28/share | | Cash Available for Distribution | $97 million, or $0.74/share | | Base Dividend per Share | $0.33 | | Variable Dividend per Share | $0.20 | | Total Dividend per Share | $0.53 | | Shares Repurchased | 255,843 shares for ~$10 million | | Total Return of Capital | $73 million (75% of cash available for distribution) | - During Q2 2025, **302 total gross horizontal wells (6.5 net)** were turned to production on Viper's acreage, with an average lateral length of **12,846 feet**[4](index=4&type=chunk) [Recent Events and Forward Outlook](index=1&type=section&id=Recent%20Events%20and%20Forward%20Outlook) Viper is advancing its all-equity acquisition of Sitio Royalties, valued at approximately $4.1 billion, with a shareholder vote scheduled for August 18, 2025. The company completed a $1.0 billion drop-down transaction with Diamondback and issued new senior notes. Management expressed confidence in continued organic growth into 2026 and established a long-term net debt target of $1.5 billion, signaling a potential increase in cash returns to shareholders once this target is met - Entered a definitive agreement on June 3, 2025, to acquire Sitio Royalties Corp. in an all-equity transaction valued at approximately **$4.1 billion**. The deal is subject to approval by Sitio's shareholders, with a vote scheduled for **August 18, 2025**[3](index=3&type=chunk)[5](index=5&type=chunk) - On May 1, 2025, Viper closed a drop-down transaction, acquiring mineral and royalty subsidiaries from its parent company, Diamondback, for **$1.0 billion** in cash and **69.6 million OpCo units**[4](index=4&type=chunk) - CEO Kaes Van't Hof highlighted strong oil production growth and expects the organic growth trajectory to continue into **2026**, supported by the company's relationship with Diamondback[6](index=6&type=chunk) - The company has set a pro forma long-term net debt target of **$1.5 billion**. Once net debt is at or below this level, Viper intends to return up to **100% of cash available for distribution** to stockholders[6](index=6&type=chunk) - On July 23, 2025, Viper closed an offering of **$500 million** in **4.900% senior notes due 2030** and **$1.1 billion** in **5.700% senior notes due 2035**[10](index=10&type=chunk)[12](index=12&type=chunk) [Financial Update](index=2&type=section&id=Financial%20Update) In Q2 2025, Viper's total equivalent realized price was $41.03/boe on a hedged basis. The company generated $297 million in total operating income. As of June 30, 2025, Viper had net debt of $1.1 billion with approximately $1.2 billion of available liquidity Q2 2025 Average Realized Prices | Price Type | Oil ($/bbl) | Natural Gas ($/Mcf) | NGLs ($/bbl) | Total ($/boe) | | :--- | :--- | :--- | :--- | :--- | | Unhedged | $63.64 | $0.99 | $20.70 | $39.78 | | Hedged | $62.85 | $1.58 | $20.70 | $41.03 | - For the second quarter of 2025, the company recorded total operating income of **$297 million** and consolidated net income of **$84 million**[8](index=8&type=chunk) - As of June 30, 2025, the company had a cash balance of **$28 million** and total long-term debt of **$1.1 billion**, resulting in net debt of **$1.1 billion**. Approximately **$1.2 billion** was available for borrowing under its revolving credit facility[9](index=9&type=chunk) [Shareholder Returns](index=3&type=section&id=Shareholder%20Returns) Viper's board declared a total cash dividend of $0.53 per Class A common share for Q2 2025, comprising a $0.33 base and a $0.20 variable dividend. Additionally, the company repurchased approximately $10 million of its Class A common stock during the quarter Q2 2025 Dividends per Class A Common Share | Dividend Type | Amount per Share | | :--- | :--- | | Base Cash Dividend | $0.33 | | Variable Cash Dividend | $0.20 | | **Total Dividend** | **$0.53** | - In Q2 2025, Viper repurchased **255,843 shares** of Class A common stock for approximately **$10 million**. Since November 2020, the company has repurchased a total of **13.7 million shares** for approximately **$326 million**[15](index=15&type=chunk) [Operations Update](index=3&type=section&id=Operations%20Update) During Q2 2025, 302 gross horizontal wells were turned to production on Viper's acreage, with 76 operated by Diamondback and 226 by third parties. As of June 30, 2025, the company held approximately 61,275 net royalty acres and had 1,101 gross wells in active development - In Q2 2025, **302 gross wells** were turned to production on Viper's acreage. Of these, **76** were operated by Diamondback (average **5.5% royalty interest**) and **226** by third parties (average **1.0% royalty interest**)[16](index=16&type=chunk) - As of June 30, 2025, Viper's mineral and royalty interests footprint was approximately **61,275 net royalty acres**[17](index=17&type=chunk) Well Count Summary as of June 30, 2025 | Well Category | Diamondback Operated | Third-Party Operated | Total | | :--- | :--- | :--- | :--- | | **Horizontal Producing Wells (Gross)** | 3,795 | 11,100 | 14,895 | | **Horizontal Active Development (Gross)** | 284 | 817 | 1,101 | | **Line of Sight Wells (Gross)** | 295 | 589 | 884 | [Guidance Update](index=5&type=section&id=Guidance%20Update) Viper has issued Q3 2025 production guidance of 86,000 to 92,000 boe/d and full-year 2025 guidance of 76,500 to 81,500 boe/d. The company also provided estimates for unit costs, including depletion at $16.50-$17.50 per boe. This guidance does not incorporate the pending Sitio acquisition - The provided guidance for Q3 and full-year 2025 does not take into account the pending Sitio Acquisition[20](index=20&type=chunk) Q3 and Full Year 2025 Guidance | Metric | Q3 2025 Guidance | Full Year 2025 Guidance | | :--- | :--- | :--- | | Net Production (Mbo/d) | 46.0 - 49.0 | 41.0 - 43.5 | | Net Production (Mboe/d) | 86.0 - 92.0 | 76.5 - 81.5 | | Depletion ($/boe) | - | $16.50 - $17.50 | | Cash G&A ($/boe) | - | $0.80 - $1.00 | | Production & Ad Valorem Taxes | - | ~7% of Revenue | [Financial Statements](index=10&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Viper's total assets grew significantly to $9.79 billion as of June 30, 2025, from $5.07 billion at year-end 2024, primarily driven by an increase in oil and natural gas properties. Total liabilities remained relatively stable at $1.18 billion, leading to a substantial increase in total equity to $8.61 billion Balance Sheet Summary (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $443 | $238 | | Property, net | $9,294 | $4,638 | | **Total Assets** | **$9,788** | **$5,069** | | Total Current Liabilities | $72 | $49 | | Long-term debt, net | $1,098 | $1,083 | | **Total Liabilities** | **$1,177** | **$1,162** | | **Total Equity** | **$8,611** | **$3,907** | [Condensed Consolidated Statements of Operations](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, Viper reported total operating income of $297 million, up from $216 million in Q2 2024, driven by higher royalty income. However, due to increased costs, particularly depletion and transaction expenses, and a net loss on derivatives, net income attributable to Viper decreased to $37 million ($0.28/share) from $57 million ($0.62/share) in the prior-year quarter Statement of Operations Summary (in millions, except per share data) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Operating Income | $297 | $216 | | Total Costs and Expenses | $162 | $68 | | Income from Operations | $135 | $148 | | Net Income | $84 | $123 | | Net Income Attributable to Viper | $37 | $57 | | Diluted EPS | $0.28 | $0.62 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities was $373 million. The company used $1.26 billion in investing activities, primarily for acquisitions of oil and gas interests. Financing activities provided $888 million, largely from a public offering and credit facility borrowings, which were used to fund acquisitions and shareholder returns Cash Flow Summary (in millions) | Cash Flow Category | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $373 | $259 | | Net Cash from Investing Activities | $(1,260) | $61 | | Net Cash from Financing Activities | $888 | $(311) | | **Net Change in Cash** | **$1** | **$9** | [Selected Operating Data](index=13&type=section&id=Selected%20Operating%20Data) Viper's average daily production increased significantly to 79,286 boe/d in Q2 2025, up from 57,378 boe/d in Q1 2025 and 47,473 boe/d in Q2 2024. The average realized price per boe was $39.78, a decrease from both the prior quarter and the year-ago period, reflecting lower commodity prices Quarterly Production Data | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Avg. Daily Oil (bo/d) | 41,615 | 31,311 | 26,352 | | Avg. Daily Combined (boe/d) | 79,286 | 57,378 | 47,473 | Quarterly Average Sales Prices | Price ($/unit) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Oil ($/Bbl) | $63.64 | $71.33 | $81.04 | | Combined ($/boe) | $39.78 | $47.25 | $49.88 | [Non-GAAP Financial Measures and Reconciliations](index=14&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution](index=14&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA%20and%20Cash%20Available%20for%20Distribution) For Q2 2025, Viper reported a consolidated Adjusted EBITDA of $274 million. After accounting for non-controlling interests and other adjustments, the Adjusted EBITDA attributable to Viper was $120 million, which resulted in $97 million of cash available for distribution to shareholders Q2 2025 Reconciliation (in millions) | Metric | Amount | | :--- | :--- | | Net Income (Consolidated) | $84 | | Adjustments (Depletion, Interest, etc.) | +$190 | | **Consolidated Adjusted EBITDA** | **$274** | | Less: Attributable to Non-controlling Interest | $(154) | | **Adjusted EBITDA Attributable to Viper** | **$120** | | Adjustments (Taxes, Debt Service, etc.) | $(23) | | **Cash Available for Distribution** | **$97** | [Reconciliation of Net Income to Adjusted Net Income](index=16&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) After adjusting for non-cash derivative losses and transaction expenses, Viper's adjusted net income attributable to the company for Q2 2025 was $54 million, or $0.41 per diluted share. This compares to a GAAP net income of $37 million, or $0.28 per diluted share Q2 2025 Adjusted Net Income Reconciliation (in millions, except per share) | Metric | Amount | Per Diluted Share | | :--- | :--- | :--- | | Net Income Attributable to Viper (GAAP) | $37 | $0.28 | | Adjustments (Derivatives, Transaction Costs, etc.) | +$17 | +$0.13 | | **Adjusted Net Income Attributable to Viper** | **$54** | **$0.41** | [Reconciliation of Long-Term Debt to Net Debt](index=17&type=section&id=Reconciliation%20of%20Long-Term%20Debt%20to%20Net%20Debt) As of June 30, 2025, Viper's total long-term debt was $1.105 billion. After subtracting cash and cash equivalents of $28 million, the company's net debt stood at $1.077 billion Net Debt Calculation as of June 30, 2025 (in millions) | Component | Amount | | :--- | :--- | | Total long-term debt | $1,105 | | Less: Cash and cash equivalents | $(28) | | **Net debt** | **$1,077** | [Other Information](index=6&type=section&id=Other%20Information) [Derivatives](index=18&type=section&id=Derivatives) Viper maintains a portfolio of derivative contracts to manage commodity price risk. As of the release date, this includes deferred premium puts for crude oil through Q1 2026 and costless collars and basis swaps for natural gas extending into 2027 Outstanding Derivative Contracts Summary | Commodity | Contract Type | Period | Volume | Price/Strike Range | | :--- | :--- | :--- | :--- | :--- | | Crude Oil | Deferred Premium Puts | Q3 2025 - Q1 2026 | 18,000 - 40,000 Bbls/day | $55.00 Strike | | Natural Gas | Costless Collars | Q3 2025 - Q4 2026 | 60,000 Mmbtu/day | $2.50 - $6.64 | | Natural Gas | Basis Swaps | Q3 2025 - FY 2027 | 40,000 - 80,000 Mmbtu/day | $(1.00) - $(1.61) | [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section provides a standard safe harbor statement, cautioning investors that the report contains forward-looking statements involving risks and uncertainties. It lists various factors that could cause actual results to differ materially from projections, such as the Sitio acquisition risks, commodity price volatility, and regulatory changes - The earnings release contains forward-looking statements concerning future performance, business strategy, the Sitio Acquisition, dividend policy, and share repurchase programs[25](index=25&type=chunk) - Key risks that could cause actual results to differ include the ability to close and integrate the Sitio Acquisition, commodity price volatility, actions by OPEC and Russia, interest rate changes, and legislative or regulatory initiatives[26](index=26&type=chunk)

Core Viewpoint - Viper Energy, Inc. reported strong financial and operational results for Q2 2025, highlighting significant oil production growth and a positive outlook driven by the anticipated merger with Sitio Royalties Corp. [1][4][5] Financial Highlights - Q2 2025 average production reached 41,615 barrels of oil per day (bo/d) and 79,286 barrels of oil equivalent per day (boe/d) [6] - Consolidated net income for Q2 2025 was $84 million, with net income attributable to Viper at $37 million, equating to $0.28 per Class A common share [6][8] - Cash available for distribution to Class A common shares was $97 million, or $0.74 per share, with a declared base cash dividend of $0.33 per share, implying a 3.6% annualized yield [6][12][13] - The company repurchased 255,843 shares of Class A common stock for approximately $10 million during Q2 2025 [6][14] Operational Updates - A total of 302 gross horizontal wells were turned to production during Q2 2025, with an average lateral length of 12,846 feet [6][16] - The company maintains a footprint of approximately 61,275 net royalty acres as of June 30, 2025 [17] Recent Events and Future Outlook - The merger with Sitio is set for a shareholder vote on August 18, 2025, with expectations to close shortly after if approved [4] - Viper anticipates a year-over-year growth of over 15% in Diamondback-operated net oil production, projecting average daily production guidance for Q3 2025 between 46,000 to 49,000 bo/d [5][19] Debt and Capital Management - As of June 30, 2025, Viper had total long-term debt of $1.1 billion, with a target of maintaining net debt at or below $1.5 billion [9][11] - The company completed a public offering of $500 million in senior notes maturing in 2030 and $1.1 billion in senior notes maturing in 2035, with net proceeds used for debt redemption and general corporate purposes [11][10] Production and Pricing - Average unhedged realized prices for Q2 2025 were $63.64 per barrel of oil, $0.99 per Mcf of natural gas, and $20.70 per barrel of natural gas liquids, resulting in a total equivalent realized price of $39.78 per boe [7][8] - The company reported a total operating income of $297 million for Q2 2025 [8]

Group 1 - Viper Energy (NYSE: VNOM) is presented as a low-risk investment option in the U.S. oil and gas sector, contrasting with traditional integrated majors and exploration and production (E&P) companies [1] - The analysis provided by Energess Resources focuses on company-level insights, emphasizing valuation, capital and operational efficiency, asset quality, and shareholder alignment [1] - The initial coverage will concentrate on E&P companies in the U.S. and Canada, with plans to expand to midstream and royalty companies for a comprehensive view of the energy value chain [1] Group 2 - Investments in the energy sector are highlighted as capable of delivering strong total returns and providing diversification for long-term portfolios when approached with discipline and a value-oriented strategy [1] - The cyclical nature of commodity prices is acknowledged, but it is noted that quality companies with experienced management can still create shareholder value during challenging pricing periods [1]

Core Viewpoint - Viper Energy, Inc. has announced a significant Notes Offering totaling $1.6 billion, which includes two series of senior notes with different maturities and interest rates, aimed at refinancing existing debt and supporting potential acquisitions [1][3]. Group 1: Notes Offering Details - The offering consists of $500 million in 4.900% senior notes maturing on August 1, 2030, and $1.1 billion in 5.700% senior notes maturing on August 1, 2035 [1]. - The public pricing for the 2030 Notes is set at 99.902% of the principal amount, while the 2035 Notes are priced at 99.636% [1]. - The expected closing date for the Notes Offering is July 23, 2025, pending customary closing conditions [2]. Group 2: Use of Proceeds - The net proceeds from the Notes Offering will be utilized for general corporate purposes, including redeeming existing senior notes and potentially repaying borrowings related to the acquisition of Sitio Royalties Corp. [3]. - Specifically, the proceeds will be used to redeem Viper Energy's 7.375% senior notes due 2031 and 5.375% senior notes due 2027, as well as Sitio's 7.875% senior notes due 2028 if the acquisition closes [3]. Group 3: Company Overview - Viper Energy, Inc. is focused on owning and acquiring mineral and royalty interests in oil and natural gas properties, primarily in the Permian Basin [7].

Company Overview - Viper Energy, Inc. is a subsidiary of Diamondback Energy, Inc. focused on owning, acquiring, and exploiting oil and natural gas properties in North America, particularly in the Permian Basin in West Texas [3] - Diamondback Energy, Inc. is an independent oil and natural gas company headquartered in Midland, Texas, specializing in the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin [4] Upcoming Financial Results - Viper Energy plans to release its second quarter 2025 financial results on August 4, 2025, after the market closes [1] - A conference call and webcast will be held on August 5, 2025, at 10:00 a.m. CT to discuss the second quarter results [2]

Core Insights - Viper Energy, Inc. (VNOM) is acquiring Sitio Royalties for $4.1 billion, highlighting the ongoing profitability of operations in the Permian Basin despite declining crude prices [3][5][6] - The acquisition will increase VNOM's net royalty acres in the Permian to 85,700, with expected production of 122,000-130,000 barrels of oil equivalent per day by Q4 2025 [3][4][9] - The deal reflects the enduring attractiveness of the Permian Basin, where break-even costs are significantly low, making operations profitable even with current WTI prices below $65 per barrel [6][10] Company and Industry Analysis - The acquisition by VNOM indicates a positive outlook for midstream players like Enterprise Products Partners LP (EPD) and producers like Occidental Petroleum (OXY), as increased activity in the Permian is anticipated [2][9] - Occidental holds 2.9 million net acres in the Permian, with break-even costs below $50 per barrel, ensuring profitability in the current pricing environment [10] - EPD has a strong presence in the Permian and has connected over 1,000 new oil and gas wells to its infrastructure, with expectations for similar growth in the second half of 2025 [12][13]

Core Insights - Viper Energy, Inc. (VNOM) has announced an agreement to acquire Sitio Royalties (STR) in an all-stock transaction valued at $4.1 billion, which includes Sitio's net debt of $1.1 billion as of Q1 2025 [1][9] - The acquisition is expected to enhance Viper's scale and inventory, supporting sustainable production growth for the next decade and improving free cash flow generation [4] - Viper Energy plans to increase its base dividend by 10% to $1.32 per share annually, or 33 cents quarterly [1] Acquisition Details - Sitio shareholders will receive 0.4855 shares of Viper for each share of Sitio Class A common stock, implying a share price of $19.41 for Sitio's stockholders based on Viper's share price as of June 2, 2025 [2] - The deal is anticipated to close in Q3 2025, with Viper's shares rising nearly 1% and Sitio's shares gaining approximately 12% following the announcement [3] Financial and Operational Synergies - The transaction is expected to generate over $50 million in annual synergies, primarily from reduced general and administrative costs and cost of capital savings [5] - Post-acquisition, Viper Energy aims to maintain an Investment Grade rating and keep its net debt target at $1.5 billion in the near term [5] - The acquisition will lower Viper's pro forma base dividend breakeven to below $20 WTI, approximately $2 per barrel lower than previous estimates [5] Portfolio Expansion - Sitio Royalties has approximately 34,300 net royalty acres, with nearly 25,300 acres in the Permian Basin, which will increase Viper's footprint in the Permian by 42% [6][9] - The combined entity will own around 85,700 net royalty acres in the Permian Basin, with 43% operated by Diamondback [6] Production Expectations - Following the acquisition, Viper Energy's pro forma average production in Q4 is expected to be between 122,000 and 130,000 barrels of oil equivalent per day (mboe/d) [7] - Diamondback Energy will own approximately 41% of the pro forma Viper's outstanding common stock post-transaction [7]

Core Viewpoint - Viper Energy Partners has seen a 3.7% increase in shares over the past month, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Estimates Movement - Estimates for Viper Energy have remained flat over the past month, with a consensus estimate shift of -10.25% [2] VGM Scores - Viper Energy has an average Growth Score of C, a Momentum Score of B, and a Value Score of F, resulting in an aggregate VGM Score of D, indicating a poor performance in the value investment strategy [3] Outlook - Viper Energy holds a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the upcoming months [4] Industry Performance - Viper Energy is part of the Zacks Oil and Gas - Exploration and Production - United States industry, where EOG Resources has gained 3.8% over the past month, reporting revenues of $5.67 billion with a year-over-year change of -7.4% [5] - EOG Resources is expected to post earnings of $2.12 per share for the current quarter, reflecting a year-over-year change of -32.9%, with a Zacks Consensus Estimate change of -8.7% over the last 30 days [6]