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]