Financial Data and Key Metrics Changes - Viper Energy reported a 20% increase in oil production per share for Q4 2025 compared to the same quarter last year [3] - The combined base plus variable dividend represents a greater than 6% annualized yield, with a nearly 10% increase relative to the previous quarter [4] - Return of capital per Class A share increased by 48% compared to Q2 [4] Business Line Data and Key Metrics Changes - The company anticipates mid-single-digit organic oil production growth in 2026, implying double-digit year-over-year growth in oil production per share relative to 2025 [3] - Viper's asset base captured almost half of all third-party activity in the Permian Basin over the past three years [29] Market Data and Key Metrics Changes - The company has seen strong activity levels across its asset base despite commodity price volatility [6] - The non-Permian asset sale is expected to provide approximately $610 million in net proceeds, which will be used to pay down debt and enhance the balance sheet [21] Company Strategy and Development Direction - Viper Energy is focused on returning nearly 100% of cash available for distribution to stockholders, with a commitment to buy back shares in the current market environment [5][11] - The company aims to leverage its strong balance sheet and high operating margins to enhance shareholder returns through dividends and share repurchases [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustained per share growth with limited operating costs, even during market volatility [8] - The relationship with Diamondback is expected to drive growth for at least the next few years, with a projected interest of 5% to 7% in all of Diamondback's wells [30] Other Important Information - The integration of AI and automation is expected to enhance operational efficiency and data utilization within the company [18][36] - The company is positioned to capitalize on potential acquisition opportunities in the future, despite current market conditions [24] Q&A Session Summary Question: Near-term and 2026 capital allocation following the asset sale - Management indicated that they plan to return nearly 100% of free cash to shareholders and will be aggressive with buybacks due to market dislocation [11] Question: Activity outside of Diamondback - Management confirmed strong activity levels outside of Diamondback, with Viper capturing almost half of all activity in the Permian Basin [13] Question: Contribution of CTO to backlog increase - Management stated that the increase in backlog is evenly mixed between CTO contributions and legacy Viper's performance [17] Question: Tax considerations on asset sale proceeds - Management highlighted a tax hit, estimating net proceeds from the asset sale to be about $610 million, which will be used to pay down debt [21] Question: A&D market outlook - Management noted that while larger strategic acquisitions may be challenging, smaller ground game acquisitions are still viable [24] Question: Growth sustainability in the Permian - Management believes the relationship with Diamondback will support growth for the next few years, despite overall market conditions [30] Question: Valuation of Viper and potential share purchases - Management is open to using free cash to purchase more interest in Viper shares, emphasizing the importance of reducing share count [31] Question: Guidance for 2026 and price sensitivity - Management indicated that guidance for 2026 is based on maintaining current activity levels, with flexibility to adjust based on market conditions [35] Question: Synergies from CTO team and AI integration - Management discussed the benefits of cost savings and automation from the CTO integration, which will enhance operational efficiency [36] Question: Future of variable dividend growth - Management stated that the growth of the variable dividend will depend on market conditions, but they aim to balance buybacks and cash distributions [44]

Financial Highlights - Viper reported a pro forma cash available for distribution of $0.97 per share in Q3 2025, with a total return of capital to Class A stockholders of $0.83 per share, representing an 85% payout ratio[7] - The company repurchased 2.4 million shares in Q3 2025 for $90 million at an average price of $38.42 per share[7] - As of October 31, 2025, Viper had repurchased 16.9 million shares for an aggregate of $448 million, with $302 million remaining in the $750 million share repurchase program[7] - The base dividend for Q3 2025 was $0.33 per share, implying a 3.5% annualized yield, representing approximately 40% of estimated cash available for distribution assuming $50 realized oil pricing[7] - The total base-plus-variable dividend for Q3 2025 was $0.58 per share, implying a 6.2% annualized yield[7] Operational Performance - Average production in Q3 2025 was 56,087 barrels of oil per day (bo/d) or 108,859 barrels of oil equivalent per day (boe/d)[7] - Viper's Q4 2025 average production guidance is 65,000 - 67,000 bo/d (124,000 - 128,000 boe/d)[7] - There were 739 total gross (15.2 net 100% royalty interest) horizontal wells turned to production during Q3 2025, with an average lateral length of 10,947 feet[7] Strategic Initiatives - Viper closed the acquisition of Sitio Royalties Corp on August 19, 2025, in an all-equity transaction[7] - The company refinanced senior notes and all legacy Sitio debt, lowering the weighted average interest rate by approximately 150 basis points and extending the weighted average maturity by about 3 years[7] - Viper entered into a definitive agreement to sell its non-Permian Basin assets (2026E production of approximately 5,000 bo/d) for roughly $670 million, with the deal expected to close in Q1 2026[7] - Pro forma for the non-Permian asset sale, Viper expects mid-single digit percentage organic production growth in 2026 relative to Q4 2025, driven by Diamondback development[7]

Core Viewpoint - Viper Energy, Inc. (NASDAQ:VNOM) is recognized as one of the best high-yield energy stocks to consider for investment, despite some concerns regarding valuation and oil price risks [1][2][3]. Company Overview - Viper Energy, Inc. is a publicly traded corporation based in Delaware, focusing on owning and acquiring mineral and royalty interests, primarily in the Permian Basin [2]. Analyst Coverage - Jefferies analyst John Edelman initiated coverage of Viper Energy with a price target of $38 and a 'Hold' rating, citing high valuation and oil price risks as factors for caution [3]. Recent Acquisitions - The company completed the acquisition of Sitio Royalties in August, which is expected to be approximately 15% accretive to cash flow per share and 13% accretive to earnings per share [4]. Dividend Information - Viper Energy increased its quarterly dividend by 10% to $0.33 per share in August and announced a variable cash dividend of $0.20 per share, resulting in a dividend yield of 6.28% [5].

Core Insights - Viper Energy, Inc. reported financial and operational results for Q3 2025, highlighting a continued growth strategy supported by the Sitio Acquisition and organic growth [1][4] - The company anticipates a ~20% increase in oil production per share for Q4 2025 compared to Q4 2024, with mid-single digit organic growth expected in 2026 [4] - Viper returned 85% of pro forma cash available for distribution to stockholders in Q3 2025, with plans to approach nearly 100% following the divestiture of non-Permian assets [5] Financial Update - Q3 2025 average production was 56,087 barrels of oil per day (bo/d) and 108,859 barrels of oil equivalent per day (boe/d) [7] - The consolidated net loss for Q3 2025 was $197 million, with a net loss attributable to Viper of $77 million, or $0.52 per Class A common share [7][9] - Pro forma cash available for distribution was $165 million, or $0.97 per Class A common share [7] - The declared base cash dividend was $0.33 per Class A common share, yielding 3.5% annualized based on the closing price of $37.56 [7][11] - A variable cash dividend of $0.25 per Class A common share was also declared, leading to a total dividend yield of 6.2% [7][12] Recent Events and Forward Outlook - The Sitio Acquisition was completed on August 19, 2025, valued at approximately $4.0 billion [7] - A definitive agreement was made to sell non-Permian assets for $670 million, expected to close in Q1 2026 [7] - Q4 2025 production guidance is set at 65,000 to 67,000 bo/d, with full-year 2025 production guidance of 48.75 to 49.00 million barrels [19] Operational Update - During Q3 2025, 739 horizontal wells were turned to production, with an average lateral length of 10,947 feet [14] - The company had a total of 95,846 net royalty acres as of September 30, 2025 [15] - As of September 30, 2025, Viper's cash balance was $443 million, with total debt outstanding of $2.6 billion [10] Selected Operating Data - Average realized prices for Q3 2025 were $64.34 per barrel of oil, $1.02 per Mcf of natural gas, and $19.07 per barrel of natural gas liquids, leading to a total equivalent realized price of $39.24/boe [8][39] - The company repurchased 2.4 million shares of Class A common stock for approximately $90 million during Q3 2025 [7][13]

Core Insights - The article discusses the analysis of oil and gas companies, focusing on identifying undervalued entities within the sector [1] - It emphasizes the cyclical nature of the oil and gas industry, highlighting the need for patience and experience in navigating this market [2] Company Analysis - The service provided includes a comprehensive breakdown of companies' balance sheets, competitive positions, and development prospects [1] - Members of the Oil & Gas Value Research service receive exclusive analysis on certain companies not available on the free site [1] Industry Perspective - The oil and gas sector is characterized as a boom-bust industry, indicating significant fluctuations in performance over time [2] - The importance of having a long-term perspective and experience in the industry is underscored [2]

Core Insights - Viper Energy, Inc. (NASDAQ:VNOM) is identified as one of the most oversold large-cap stocks in 2025, with a price target adjustment from TD Securities analyst Aaron Bilkoski, lowering it to $54 from $58 while maintaining a Buy rating [1][2] Company Overview - Viper Energy, Inc. is headquartered in Midland, TX, and focuses on acquiring, owning, and exploiting natural gas and oil properties in North America [3] Market Analysis - TD Securities noted that energy equities have demonstrated resilience despite broader commodity weakness, leading to higher valuations [3] - The firm updated its commodity price deck to reflect Q3 trends and introduced financial estimates for 2027, maintaining relatively unchanged oil price assumptions while increasing crack spreads and revising natural gas estimates negatively [2]

Group 1 - Viper Energy (NASDAQ: VNOM) focuses on owning and acquiring mineral and royalty interests in oil and natural gas properties, primarily in the Permian Basin, which includes Midland and Delaware assets [1] - The company has made a recent acquisition that is expected to enhance its asset portfolio significantly [1] Group 2 - The analyst has over 10 years of experience researching various companies across multiple sectors, including commodities and technology [1] - The analyst has transitioned from writing a blog to creating a value investing-focused YouTube channel, where extensive research on numerous companies has been conducted [1]

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 [3][4] - Diamondback Energy 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 third quarter 2025 financial results on November 3, 2025, after the market closes [1] - A conference call and webcast will be held on November 4, 2025, at 11:00 a.m. CT to discuss the third quarter results [2]

Group 1 - Viper Energy, Inc. (NASDAQ:VNOM) is considered one of the best safe stocks to buy, with an 'Outperform' rating and a revised price target of $51.00, indicating a potential upside of nearly 34.7% [1] - The research firm anticipates a rise in gas prices over the next 12 months, positioning Viper Energy for long-term growth, as gas stocks are currently trading at a 10% to 15% discount compared to implied commodity prices [2] - Viper Energy's $4.1 billion acquisition of Sitio Royalties is expected to provide synergies across the Permian region and enhance oil and gas production, making it an attractive investment for those seeking limited operational downside risks [3] Group 2 - Viper Energy, Inc. is a Texas-based company specializing in oil and natural gas properties in North America, founded in 2013, with a commitment to maximizing long-term returns [4]

Core Viewpoint - Viper Energy Partners reported a mixed performance in its latest earnings report, with a notable increase in production but a decline in earnings per share compared to the previous year [3][4]. Financial Performance - The company reported Q2 2025 adjusted earnings per share of 41 cents, exceeding the Zacks Consensus Estimate of 34 cents, but down from 61 cents in the same quarter last year [3]. - Operating income reached $297 million, surpassing the Zacks Consensus Estimate of $294 million, and increased from $217 million year-over-year [4]. - Net cash provided by operating activities was $172 million, up from $144 million in Q2 2024 [10]. Production Metrics - Viper Energy produced 7,215 thousand oil-equivalent barrels (MBoe) in Q2 2025, a significant increase from 4,320 MBoe a year ago, and above the estimate of 6,940 MBoe [5]. - Oil production rose to 3,787 thousand barrels (MBbls) from 2,398 MBbls year-over-year, exceeding the estimate of 3,748 MBbls [5]. - Natural gas production increased to 10,132 million cubic feet (MMcf) compared to 5,631 MMcf in the same period of 2024 [6]. Pricing Information - 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 [7]. - The average realized oil price was $63.64 per barrel, down from $81.04 year-over-year, and missed the estimate of $64.22 [7]. - 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 [8]. Cost and Expenses - Total expenses for Q2 were $162 million, significantly higher than $68 million in the prior-year quarter and above the estimate of $151.8 million [9]. - On a per barrel of oil-equivalent basis, total operating expenses were $3.60, down from $4.36 year-over-year, and slightly below the estimate of $4.35 [9]. Guidance - The company projects production for Q3 2025 to be in the range of 86-92 Mboe/d, with full-year 2025 net production expected to be between 76.5-81.5 Mboe/d [12]. Market Position - Viper Energy has a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return in the coming months [15]. - The stock has a poor Growth Score of F and a Momentum Score of C, with an overall VGM Score of F, placing it in the bottom 20% for value investors [14].