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]

Management repeatedly stressed that the play’s next step is driving costs down as development shifts from delineation to full-field execution. Van’t Hof said Barnett wells are currently around “$1,000 a foot,” and he framed a target of roughly “$800 a foot” as the threshold for returns to become competitive, particularly when paired with higher oil productivity.Chief Engineer Al Barkmann highlighted performance shown in the company’s investor materials, saying Barnett well results stood out versus the core ...

Diamondback Energy (NasdaqGS:FANG) Q4 2025 Earnings call February 24, 2026 09:00 AM ET Company ParticipantsAdam Lawlis - VP of Investor RelationsDanny Wesson - COODerrick Whitfield - Managing Director and Head of Energy Equity ResearchGabrielle Cerny - Equity Research AssociateJeoffrey Lambujon - Managing Director of Equity ResearchJere Thompson - CFOKaes Van't Hof - CEOKevin MacCurdy - Managing Director and Director of ResearchNeil Mehta - Managing Director and Head of Americas Natural Resources Equity Res ...

Diamondback Energy (NasdaqGS:FANG) Q4 2025 Earnings call February 24, 2026 09:00 AM ET Company ParticipantsAdam Lawlis - VP of Investor RelationsDanny Wesson - COODerrick Whitfield - Managing Director and Head of Energy Equity ResearchGabrielle Cerny - Equity Research AssociateJeoffrey Lambujon - Managing Director of Equity ResearchJere Thompson - CFOKaes Van't Hof - CEOKevin MacCurdy - Managing Director and Director of ResearchNeil Mehta - Managing Director and Head of Americas Natural Resources Equity Res ...

Diamondback Energy (NasdaqGS:FANG) Q4 2025 Earnings call February 24, 2026 09:00 AM ET Speaker16Good day, and thank you for standing by. Welcome to the Diamondback Energy's fourth quarter 2025 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To with ...

Q42025 Investor Presentation February 2026 1 Forward-Looking Statements & Non-GAAP Financial Measures Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, that Diamondback Energy, Inc. ("Diamondback," the "Company" or "we") makes, including statements regarding future performan ...

Core Insights - Diamondback Energy (FANG) reported a revenue of $3.38 billion for the quarter ended December 2025, reflecting a 9% decrease year-over-year, while EPS was $1.74, down from $3.64 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $3.15 billion by 7.01%, but the EPS fell short of the consensus estimate of $1.88 by 7.2% [1] Financial Performance - The average daily production was 969,120 BOE/D, surpassing the analyst estimate of 951,118.10 BOE/D [4] - Total production volumes included 21,684 MBBL of natural gas liquids, 121,805 MMcf of natural gas, and 47,174 MBBL of oil, all exceeding analyst estimates [4] - Revenue from oil, natural gas, and natural gas liquids was reported at $3.03 billion, slightly above the $3.02 billion estimate, but represented a 12.6% decline year-over-year [4] Price Metrics - Average prices for oil were reported at $58, compared to the analyst estimate of $56.62, while natural gas liquids were priced at $13.51, below the estimate of $14.14 [4] - Average price for hedged natural gas was $1.03 per thousand cubic feet, lower than the estimated $1.12 [4] Stock Performance - Diamondback's shares have returned +14.3% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Diamondback Energy (FANG) came out with quarterly earnings of $1.74 per share, missing the Zacks Consensus Estimate of $1.88 per share. This compares to earnings of $3.64 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.20%. A quarter ago, it was expected that this energy exploration and production company would post earnings of $2.85 per share when it actually produced earnings of $3.08, delivering a surprise of +8.07%.Over ...

Here's a look at the details from the quarter.   FANG stock is moving. Watch the price action here.The Details: Diamondback Energy reported quarterly earnings of $1.74 per share, which missed the consensus estimate of $2.08.Quarterly revenue came in at $3.38 billion, which beat the Street estimate of $3.31 billion and was down from $3.71 billion in the same period last year.The company reported the following fourth quarter highlights:Average oil production of 512.8 MBO/d (969.1 MBOE/d)Net cash provided by o ...