Viper Energy, Inc., a Subsidiary of Diamondback Energy, Inc., Reports Second Quarter 2025 Financial and Operating Results

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]