MIDLAND, Texas, May 05, 2025 (GLOBE NEWSWIRE) -- Viper Energy, Inc., (NASDAQ:VNOM) (“Viper” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback”), today announced financial and operating results for the first quarter ended March 31, 2025. FIRST QUARTER HIGHLIGHTS As previously announced, Q1 2025 average production of 31,311 bo/d (57,378 boe/d)Q1 2025 consolidated net income (including non-controlling interest) of $153 million; net income attributable to Viper of $75 milli ...

MIDLAND, Texas, May 01, 2025 (GLOBE NEWSWIRE) -- Viper Energy, Inc. (NASDAQ: VNOM) (“Viper” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), today announced that it and its operating subsidiary, Viper Energy Partners LLC (the “Operating Company”), have closed their previously announced acquisition of all of the equity interests in certain mineral and royalty interest-owning subsidiaries of Diamondback (the “Drop Down”). The total consideration for the Drop Down con ...

Form 8-K Current Report [Item 2.02 Results of Operations and Financial Condition](index=3&type=section&id=Item%202.02.%20Results%20of%20Operations%20and%20Financial%20Condition.) Viper Energy, Inc. announced first-quarter 2025 financial and operational results, including production, prices, hedging, and share repurchases - Viper Energy issued a press release updating **Q1 2025** financial and operational results[4](index=4&type=chunk) - Key metrics included **average daily production**, **realized prices**, **hedging gains**, and **common stock repurchases**[4](index=4&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=3&type=section&id=Item%209.01.%20Financial%20Statements%20and%20Exhibits.) This section details the exhibits filed with the Form 8-K, primarily the press release on Q1 2025 financial and operating updates Exhibits Filed | Exhibit Number | Description | | :--- | :--- | | 99.1 | Press release dated April 16, 2025, entitled "Viper Energy, Inc. Provides Financial and Operating Update for the First Quarter of 2025." | | 104 | Cover Page Interactive Data File (formatted as Inline XBRL). |

Group 1 - Viper Energy (VNOM) is a fast-growing subsidiary of Diamondback Energy (FANG) and continues to show growth trends despite market fluctuations [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] - The analysis provided in the article focuses on identifying undervalued companies within the oil and gas sector, including balance sheet evaluations and competitive positioning [1] Group 2 - The article emphasizes the importance of thorough research and analysis for investors in the oil and gas industry, suggesting that members of Oil & Gas Value Research receive exclusive insights [1] - The author has a beneficial long position in VNOM and FANG, indicating a personal investment interest in these companies [3]

Investors looking for stocks in the Oil and Gas - Exploration and Production - United States sector might want to consider either Range Resources (RRC) or Viper Energy Partners (VNOM) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revisio ...

Company Overview - Viper Energy Partners (VNOM) shares have increased by approximately 0.3% since the last earnings report, outperforming the S&P 500 [1] - The most recent earnings report is essential for understanding the catalysts affecting the stock [1] Earnings Estimates - Estimates for Viper Energy have trended downward over the past month, indicating a negative outlook [2][4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return in the coming months [4] VGM Scores - Viper Energy has a poor Growth Score of F, a Momentum Score of F, and a Value Score of F, placing it in the fifth quintile for investment strategy [3] - The aggregate VGM Score for Viper Energy is F, which is significant for investors not focused on a single strategy [3] Industry Comparison - Viper Energy is part of the Zacks Oil and Gas - Exploration and Production - United States industry [5] - Comstock Resources (CRK), another player in the same industry, has seen a 9.2% increase in shares over the past month [5] - Comstock reported revenues of $366.51 million for the last quarter, reflecting a year-over-year decline of 10.7% [6] - Comstock's expected earnings for the current quarter are $0.14 per share, indicating a significant year-over-year increase of 566.7% [6] - Comstock has a Zacks Rank 1 (Strong Buy) and a VGM Score of D, contrasting with Viper Energy's performance [7]

Group 1 - Viper Energy, Inc. plans to release its first quarter 2025 financial results on May 5, 2025, after market close [1] - A conference call and webcast will be held on May 6, 2025, at 10:00 a.m. CT to discuss the financial results [1] - The live webcast and replay will be accessible on Viper's website under the "Investor Relations" section [1] Group 2 - Viper Energy is a subsidiary of Diamondback Energy, focused on owning, acquiring, and exploiting oil and natural gas properties in North America, particularly in the Permian Basin [2] - Diamondback Energy is an independent oil and natural gas company headquartered in Midland, Texas, concentrating on unconventional, onshore oil and natural gas reserves in the Permian Basin [3]

Core Viewpoint - Viper Energy Inc. reported fourth-quarter 2024 adjusted earnings per share of 42 cents, exceeding the Zacks Consensus Estimate of 41 cents, but down from 67 cents year-over-year. Following the earnings release, shares fell approximately 3.7% to close at $45.54 [1]. Financial Performance - The company generated an operating income of $228.7 million, surpassing the Zacks Consensus Estimate of $223 million and increasing from $204.7 million in the same quarter last year [2]. - Net cash provided by operating activities was $157.9 million, up from $145.8 million in the fourth quarter of 2023 [9]. Production Metrics - Viper Energy produced 5,162 thousand oil-equivalent barrels (MBoe) in Q4 2024, an increase from 4,208 MBoe a year ago, and exceeding the estimate of 4,850 MBoe. Oil accounted for 53.2% of total production, with oil production rising to 2,747 MBbls from 2,257 MBbls year-over-year, also beating the estimate of 2,711 MBbls [4][5]. Pricing Analysis - The average realized price per barrel of oil equivalent was $43.56, down from $50.20 in Q4 2023, but above the estimate of $43.04. The average realized oil price was $69.91 per barrel, down from $77.65 year-over-year, yet surpassing the estimate of $67.52 [6]. - The price of natural gas was 84 cents per thousand cubic feet, down from $1.50 in the prior year, missing the estimate of $1.11. Natural gas liquids were priced at $22.15 per barrel, higher than $21.47 a year ago, exceeding the estimate of $17.38 [7]. Cost Structure - Total expenses in Q4 were $85.3 million, higher than $61.7 million in the prior-year quarter and above the estimate of $80.8 million. On a per barrel of oil-equivalent basis, total operating expenses were $3.85, compared to $4.03 in the year-ago quarter, lagging the estimate of $4.32 [8]. Future Guidance - The company projects production for Q1 2025 to be in the range of 54-56 Mboe/d. Additionally, Viper Energy announced the acquisition of certain mineral and royalty interest subsidiaries from Diamondback Energy, expected to close in Q2 2025, with projected production for the remainder of 2025 between 85 and 88 Mboe/d [11].

Financial Performance and Strategy - The company aims to generate the highest value proposition for stockholders by focusing on long-term per share growth and robust free cash flow, while reducing debt and protecting the balance sheet [48]. - The company maintains a conservative capital structure, allowing for opportunistic purchases of accretive mineral interests and intends to repay debt using free cash flow [50]. - The company increased production on its acreage during 2024 while exercising capital discipline by prioritizing debt repayment and stockholder returns [111]. - The company’s cash available for dividends may vary significantly each quarter, and the board of directors has the discretion to modify or revoke the cash dividend policy [127]. - The company may face substantial liquidity problems if it cannot generate sufficient cash flow from operations to service its debt [156]. Production and Reserves - As of December 31, 2024, the company reported net production of 9,939 MBbls of oil, 24,606 MMcf of natural gas, and 4,181 MBbls of natural gas liquids, totaling 18,221 MBOE [60]. - The estimated proved reserves as of December 31, 2024, were audited by Ryder Scott, covering 100% of total proved reserves for the year [52]. - The company owned an average 2.7% net revenue interest in 14,707 gross productive wells as of December 31, 2024 [63]. - Approximately 16% of the company's total estimated proved reserves as of December 31, 2024, are proved undeveloped reserves, which may require significant capital expenditures for development [132]. - The company’s estimated reserves are based on subjective assumptions that may lead to inaccuracies affecting future production and cash flows [144]. Market Conditions and Pricing - Average sales price of oil decreased to $75.48 per barrel in 2024 from $77.13 in 2023, a decline of 2.1% [61]. - Average sales price of natural gas fell significantly to $0.60 per Mcf in 2024, down 63.0% from $1.62 in 2023 [61]. - The combined average sales price per BOE decreased to $46.85 in 2024 from $50.06 in 2023, a decline of 4.4% [61]. - NYMEX WTI prices ranged from $65.75 to $123.70 per Bbl from early 2022 to the end of 2024, with natural gas prices ranging from $1.58 to $9.68 per MMBtu [110]. Regulatory and Environmental Challenges - Regulatory compliance costs are increasing due to stringent environmental laws and regulations affecting oil and natural gas operations [71]. - The company faces potential liabilities under the Comprehensive Environmental Response, Compensation and Liability Act for hazardous substance releases [74]. - The Infrastructure Investment and Jobs Act of 2021 and the Inflation Reduction Act of 2022 include billions in incentives for renewable energy and clean technologies, which may decrease demand for oil and natural gas [82]. - The methane emissions charge starts at $900 per ton in 2024, increasing to $1,200 in 2025 and $1,500 in 2026, potentially raising operating costs for the company [83]. - The EPA's new rules aim for a 95% reduction in volatile organic compounds from oil and natural gas operations, requiring the use of "green completions" for hydraulically-fractured wells [89]. Competitive Landscape - The oil and natural gas industry remains highly competitive, with larger companies having greater resources to acquire properties [66]. - The company faces risks from potential future government regulations that may impose production limits and affect pipeline capacity in the Permian Basin [113]. - The company relies on a small number of operators for a substantial portion of development and production, and any reduction in expected drilling could adversely affect growth and results [130]. Financial Risks and Liabilities - The company may face liquidity concerns that could lead to a downgrade in its debt ratings, restricting access to financing [157]. - A significant reduction in the borrowing base under the revolving credit facility could negatively impact the company's ability to fund operations and may have a material adverse effect on its financial position [155]. - The company is subject to evolving privacy-related laws that could result in liabilities and impact its business operations [150]. - The company may be required to curtail capital expenditures if it cannot secure financing for its capital programs [151]. Corporate Governance and Shareholder Matters - Diamondback beneficially owned approximately 39% of the outstanding voting power of the company's capital stock, expected to increase to about 52% following the Pending 2025 Drop Down [159]. - The ability to pay dividends is limited by various factors, including financial condition, operating results, and contractual obligations [175]. - Anti-takeover provisions in the company's organizational documents may discourage or delay favorable acquisition attempts [172]. - Stockholder actions by written consent are prohibited unless consented to by the board of directors [172].

Financial Data and Key Metrics Changes - Viper Energy reported strong organic production growth for the full year, with average daily production guidance for Q1 2025 set at 30,000 to 31,000 barrels of oil per day, and an expected run rate of 48,000 barrels per day post-drop down in Q2 2025 [9][11] - The company anticipates production growth to approximately 31,000 barrels per day in 2026, up from around 27,000 barrels per day in 2025 [9] Business Line Data and Key Metrics Changes - The drop-down transaction with Diamondback is expected to significantly enhance Viper's alignment with Diamondback's development, allowing Viper to own an interest in about 75% of Diamondback's expected completions over the next five years [8] - The Quinn Ranch acquisition was successfully closed, contributing to Viper's differentiated acquisition strategy [7] Market Data and Key Metrics Changes - Viper is positioned to be a consolidator in a fragmented minerals market, particularly in the Permian Basin, with a current size of scale that ranks it among the largest U.S. independent E&Ps post-drop down [11] Company Strategy and Development Direction - The company aims to maintain a flexible business model, balancing between returning capital to shareholders and pursuing growth opportunities through acquisitions [25][66] - Viper is focused on owning high-quality mineral assets and leveraging its relationship with Diamondback to drive organic growth [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate significant cash flow, with a target of reaching $1 per share of distributable cash flow each quarter in the near term [81] - The management team highlighted the importance of maintaining a strong balance sheet while being opportunistic in pursuing acquisitions in a fragmented market [66][70] Other Important Information - The company has a repurchase plan in place, with over $400 million of capacity, which may be activated if stock prices decline further [63][64] - Viper's mineral business is expected to have the capacity to take on more leverage, although the company plans to maintain a low leverage profile [44] Q&A Session Summary Question: Potential upside from the Carty plan with Double Eagle - Management expects at least $50 million of upside to Viper from cash flow at $70 oil in 2026, with further clarity on timing to be provided as details are finalized [14] Question: Future opportunities for Viper - Management believes the opportunities remain strong, with a talented team and a clear vision for growth [19] Question: Payout perspective and balance sheet strength - The company plans to maintain a payout of 75% to 100% of free cash flow, with flexibility to adjust based on market conditions [22][25] Question: Opportunities for drop-downs from Double Eagle - Management indicated that while drop-down opportunities from Double Eagle may be limited, there are exciting prospects in Reagan County for accelerated development [28] Question: Thoughts on surface rights and data center development - Management believes that surface rights are better managed by operators, and Viper will remain a pure-play royalty company [35] Question: Balance between FANG and other operators - The company aims to grow its business while maintaining a strong relationship with Diamondback for development support [41] Question: Thoughts on leverage and balance sheet management - Management intends to keep leverage low while being open to taking on more if market conditions allow [44] Question: Opportunities in the mineral landscape - Viper sees significant opportunities for consolidation in the fragmented mineral market, with a strong balance sheet to pursue these opportunities [76][78]