Viper Energy, Inc. Class A press release

Viper Energy, Inc., A Subsidiary of Diamondback Energy, Inc., Reports Fourth Quarter and Full Year 2025 Financial and Operating Results; Increases Base Dividend and Share Buyback Authorization

2026-02-23

NASDAQ - Nasdaq Stock Market · Oil · Natural Gas · Natural Gas Liquids · United States

MIDLAND, Texas, Feb. 23, 2026 (GLOBE NEWSWIRE) -- Viper Energy, Inc. (NASDAQ:VNOM) (“Viper,” “we,” “our” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback”), today announced financial and operating results for the fourth quarter and full year ended December 31, 2025.

FOURTH QUARTER HIGHLIGHTS

Q4 2025 average production of 66,413 bo/d (134,000 boe/d) Q4 2025 consolidated net loss (including non-controlling interest) of $246 million; net loss attributable to Viper of $103 million, or $0.61 per Class A common share; consolidated adjusted net income of $121 million, or $0.72 per Class A common share Q4 2025 cash available for distribution to Viper’s Class A common shares (as defined and reconciled below) of $145 million, or $0.85 per Class A common share Declared Q4 2025 base cash dividend of $0.38 per Class A common share; implies a 3.3% annualized yield based on the February 20, 2026 Class A common share closing price of $45.64 Declared Q4 2025 variable cash dividend of $0.14 per Class A common share; total base-plus-variable dividend of $0.52 per Class A common share implies a 4.6% annualized yield based on the February 20, 2026 Class A common share closing price of $45.64 During Q4 2025, repurchased 2.4 million shares of the Company’s common stock (including both Class A shares and Class B shares paired with OpCo units) for an aggregate purchase price of approximately $94 million, excluding excise tax (average price of $38.69 per share) Total Q4 2025 return of capital to Class A stockholders of $131 million, or $0.77 per Class A common share, represents 90% of cash available for distribution 739 total gross (13.0 net 100% royalty interest) horizontal wells turned to production on Viper’s Permian Basin acreage during Q4 2025 with an average lateral length of 11,283 feet

FULL YEAR 2025 HIGHLIGHTS

Full year 2025 average production of 48,973 bo/d (95,126 boe/d) Received $48 million in lease bonus income Full year 2025 consolidated net loss (including non-controlling interest) of $206 million; net loss attributable to Viper of $68 million, or $(0.48) per Class A common share Generated full year 2025 consolidated adjusted EBITDA (as defined and reconciled below) of $1.3 billion Declared dividends of $2.20 per Class A common share during the full year 2025 Repurchased approximately 5.0 million shares of the Company’s common stock for an aggregate purchase price of approximately $194 million, excluding excise tax (average price of $38.53 per share) Proved reserves as of December 31, 2025 of 406,035 Mboe (78% PDP, 48% oil), up 107% year over year with oil up 106% from year end 2024 2,085 total gross (42.0 net 100% royalty interest) horizontal wells turned to production on Viper’s Permian Basin acreage during 2025 with an average lateral length of 11,618 feet

2026 OUTLOOK

Increasing base dividend 15% to $1.52 per share annually; represents approximately 50% of cash available for distribution at $50 WTI Increasing share repurchase authorization by $1.0 billion; approximately $1.2 billion remains under the repurchase program On February 9, 2026, closed the divestiture of Viper’s non-Permian assets to an affiliate of GRP Energy Capital and Warwick Capital Partners (the “Non-Permian Divestiture”) for net proceeds of approximately $617 million (subject to customary post-closing adjustments) Initiating average daily production guidance for Q1 2026 in the range of 62,500 to 64,500 bo/d (124,000 to 128,000 boe/d) Initiating average daily production guidance for the full year 2026 in the range of 61,000 to 67,000 bo/d (120,000 to 132,000 boe/d) As of December 31, 2025, there were approximately 1,388 gross horizontal wells in the process of active development on Viper’s Permian Basin acreage in which Viper expects to own an average 2.8% net royalty interest (38.2 net 100% royalty interest wells) Approximately 1,370 gross (32.0 net 100% royalty interest) line-of-sight wells on Viper’s Permian Basin acreage that are not currently in the process of active development, but for which Viper has visibility to the potential of future development in coming quarters, based on Diamondback’s current completion schedule and third-party operators’ permits

“The fourth quarter capped a significant year for Viper. In addition to our continued organic growth, we leveraged our leading position in the minerals and royalty sector to advance our differentiated acquisition strategy. The successful integration of the 2025 Drop Down and Sitio assets has further enhanced the scale, duration, and overall quality of our portfolio while reinforcing the durability of our growth outlook,” stated Kaes Van’t Hof, Chief Executive Officer of Viper.

Mr. Van’t Hof continued, “We also remained disciplined in our capital allocation, opportunistically repurchasing shares amid market dislocation while continuing to pay an above market dividend. The announcement today to increase our base dividend by 15% and our share repurchase authorization by $1 billion further highlights our commitment to a comprehensive return of capital strategy. Following the closing of our non-Permian divestiture, we enter 2026 with a fortress balance sheet very near our long-term net debt target of $1.5 billion, and as such, believe Viper is well positioned to increase our return of capital upwards of 100% of cash available for distribution while also delivering sustainable per-share growth.”

FINANCIAL UPDATE

Viper’s fourth quarter 2025 average unhedged realized prices were $58.43 per barrel of oil, $0.81 per Mcf of natural gas and $16.67 per barrel of natural gas liquids, resulting in a total equivalent realized price of $34.23/boe.

Viper’s fourth quarter 2025 average hedged realized prices were $57.28 per barrel of oil, $1.53 per Mcf of natural gas and $16.67 per barrel of natural gas liquids, resulting in a total equivalent realized price of $34.80/boe.

During the fourth quarter of 2025, the Company recorded total operating income of $435 million and a consolidated net loss (including non-controlling interest) of $246 million, which was primarily driven by a non-cash impairment of $408 million due to recording properties acquired from Diamondback in the drop down transaction that closed on May 1, 2025 (the “2025 Drop Down”) at Diamondback’s historical carrying value.

As of December 31, 2025, the Company had a cash balance of $13 million and total debt outstanding (excluding debt issuance costs, discounts and premiums) of $2.2 billion, resulting in net debt (as defined and reconciled below) of $2.2 billion. Viper’s outstanding long-term debt as of December 31, 2025 consisted of $500 million in aggregate principal amount of its 4.900% Senior Notes due 2030, $1.1 billion in aggregate principal amount of its 5.700% Senior Notes due 2035, $500 million of borrowings on its term loan and $105 million of borrowings on its revolving credit facility, leaving approximately $1.4 billion available for future borrowings and approximately $1.4 billion of total liquidity.

On February 9, 2026, the Company closed the Non-Permian Divestiture for net proceeds of approximately $617 million (subject to customary post-closing adjustments), which were utilized to fully repay $500 million of borrowings on its term loan and fully repay the outstanding balance on its revolving credit facility.

FOURTH QUARTER 2025 CASH DIVIDEND & CAPITAL RETURN PROGRAM

Viper announced today that the Company’s Board of Directors (the “Board”) declared a base cash dividend of $0.38 per Class A common share for the fourth quarter of 2025, payable on March 12, 2026 to Class A common stockholders of record at the close of business on March 5, 2026.

The Board also declared a variable cash dividend of $0.14 per Class A common share for the fourth quarter of 2025, payable on March 12, 2026 to Class A common stockholders of record at the close of business on March 5, 2026.

During the fourth quarter of 2025, Viper repurchased 2.4 million shares of the Company’s common stock (including both Class A shares and Class B shares paired with OpCo units) for an aggregate purchase price of approximately $94 million, excluding excise tax (average price of $38.69 per share).

In total, since the initiation of Viper’s common stock repurchase program on November 9, 2020 through February 20, 2026, the Company has repurchased approximately 18.9 million shares of common stock (including both Class A shares and Class B shares paired with OpCo units) for an aggregate purchase price of approximately $525 million, excluding excise tax (average price of $27.80 per share) and has approximately $1.2 billion remaining on its share buyback authorization, including the $1 billion increase announced today. Future base and variable cash dividends and stock repurchases are at the discretion of the Board and are subject to a number of factors discussed in Viper’s reports filed with the U.S. Securities and Exchange Commission (“SEC”).

OPERATIONS UPDATE

During the fourth quarter of 2025, Viper estimates that, excluding the recently divested non-Permian assets, 739 gross (13.0 net 100% royalty interest) horizontal wells with an average royalty interest of 1.8% were turned to production on its acreage position with an average lateral length of 11,283 feet. Of these 739 gross wells, Diamondback is the operator of 107 gross wells, with an average royalty interest of 5.0%, and the remaining 632 gross wells, with an average royalty interest of 1.2%, are operated by third parties.

As of December 31, 2025, Viper’s footprint of mineral and royalty interests in the Permian Basin was approximately 86,599 net royalty acres.

Our gross well information as of December 31, 2025 in the Permian Basin is as follows, unless otherwise specified:

| | Diamondback Operated | | Third-Party Operated | | Total | | Q4 2025 Horizontal wells turned to production(1): | | | | | | | Gross wells | 107 | | 632 | | 739 | | Net 100% royalty interest wells | 5.3 | | 7.7 | | 13.0 | | Average percent net royalty interest | 5.0% | | 1.2% | | 1.8% | | | | | | | | | FY 2025 Horizontal wells turned to production(2): | | | | | | | Gross wells | 415 | | 1,670 | | 2,085 | | Net 100% royalty interest wells | 20.7 | | 21.3 | | 42.0 | | Average percent net royalty interest | 5.0% | | 1.3% | | 2.0% | | | | | | | | | Horizontal producing well count: | | | | | | | Gross wells | 4,092 | | 19,942 | | 24,034 | | Net 100% royalty interest wells | 258.3 | | 311.1 | | 569.4 | | Average percent net royalty interest | 6.3% | | 1.6% | | 2.4% | | | | | | | | | Horizontal active development well count: | | | | | | | Gross wells | 263 | | 1,125 | | 1,388 | | Net 100% royalty interest wells | 20.9 | | 17.3 | | 38.2 | | Average percent net royalty interest | 7.9% | | 1.5% | | 2.8% | | | | | | | | | Line of sight wells: | | | | | | | Gross wells | 304 | | 1,066 | | 1,370 | | Net 100% royalty interest wells | 16.9 | | 15.1 | | 32.0 | | Average percent net royalty interest | 5.6% | | 1.4% | | 2.3% |

(1) Average lateral length of 11,283 feet. (2) Average lateral length of 11,618 feet.

The 1,388 gross wells currently in the process of active development are those wells that have been spud and are expected to be turned to production within approximately the next six to eight months. Further in regard to the active development on Viper’s asset base, there are currently 98 gross rigs operating on Viper’s acreage, eight of which are operated by Diamondback. The 1,370 line-of-sight wells are those that are not currently in the process of active development, but for which Viper has reason to believe that they will be turned to production within approximately the next 15 to 18 months. The expected timing of these line-of-sight wells is based primarily on permitting by third-party operators or Diamondback’s current expected completion schedule. Existing permits or active development of Viper’s royalty acreage does not ensure that those wells will be turned to production.

YEAR END RESERVES UPDATE

Viper’s proved oil and natural gas reserve estimates and their associated future net cash flows were prepared by Viper’s internal reservoir engineers, and audited by Ryder Scott Company, L.P., independent petroleum engineers, as of December 31, 2025. Reference prices of $65.34 per barrel of oil and natural gas liquids and $3.39 per MMbtu of natural gas were used in accordance with applicable rules of the Securities and Exchange Commission. Realized prices with applicable differentials were $64.80 per barrel of oil, $1.31 per Mcf of natural gas and $18.95 per barrel of natural gas liquids.

Proved reserves at year-end 2025 of 406,035 Mboe (193,206 Mbo) represent a 107% increase over year-end 2024 reserves. The year-end 2025 proved reserves have a standardized measure of discounted future net cash flows of $6.6 billion and a PV-10 value (as defined below and reconciled below) of approximately $7.4 billion.

Proved developed reserves increased by 93% year over year to 316,702 Mboe (147,036 Mbo) as of December 31, 2025, reflecting recent acquisitions and continued horizontal development by the operators of Viper’s acreage.

Net proved reserve additions of 244,883 Mboe resulted in a reserve replacement ratio of 705% (defined as the sum of extensions, discoveries, revisions, purchases and divestitures, divided by annual production). The organic reserve replacement ratio was 126% (defined as the sum of extensions, discoveries and revisions, divided by annual production).

Extensions and discoveries of 62,170 Mboe are primarily attributable to the drilling of 1,497 new wells and from 1,071 new proved undeveloped locations added. The Company’s total downward revisions of previous estimated quantities of 18,570 Mboe consist of negative revisions of 11,481 Mboe associated with lower commodity prices, PUD downgrades of 4,722 Mboe and performance revisions of 2,367 Mboe. The purchase of reserves in place of 201,291 Mboe resulted primarily from the Sitio Acquisition, the 2025 Drop Down, the Morita Ranches Acquisition and other acquisitions of certain mineral and royalty interests.

| | Oil (MBbls) | | Gas (MMcf) | | Liquids (MBbls) | | Mboe(1) | | | | | | As of December 31, 2024 | 93,563 | | | 292,624 | | | 53,540 | | | 195,873 | | | Purchase of reserves in place | 90,168 | | | 336,127 | | | 55,102 | | | 201,291 | | | Extensions and discoveries | 31,305 | | | 90,973 | | | 15,702 | | | 62,170 | | | Revisions of previous estimates | (3,951 | ) | | (31,751 | ) | | (9,328 | ) | | (18,570 | ) | | Divestitures | (4 | ) | | (12 | ) | | (2 | ) | | (8 | ) | | Production | (17,875 | ) | | (51,676 | ) | | (8,233 | ) | | (34,721 | ) | | As of December 31, 2025 | 193,206 | | | 636,285 | | | 106,781 | | | 406,035 | |

(1) Includes total proved reserves of 219,259 MBOE and 94,019 MBOE as of December 31, 2025 and 2024, respectively, attributable to a non-controlling interest in the Operating Company.

As the owner of mineral and royalty interests, Viper incurred no exploration and development costs during the year ended December 31, 2025.

| | December 31, | | | | | | | | | | | 2025 | | | 2024 | | | 2023 | | | (in millions) | | | | | | | | | Acquisition costs: | | | | | | | | | | Proved properties | $ | 4,976 | | $ | 341 | | $ | 403 | | Unproved properties | | 3,968 | | | 830 | | | 758 | | Total | $ | 8,944 | | $ | 1,171 | | $ | 1,161 |

GUIDANCE UPDATE

Below is Viper’s guidance for the full year 2026, as well as average production guidance for Q1 2026. This guidance gives effect to the Non-Permian Divestiture, which closed on February 9, 2026.

| | | | | Viper Energy, Inc. | | | | | Q1 2026 Net Production - Mbo/d | 62.5 - 64.5 | | Q1 2026 Net Production - Mboe/d | 124.0 - 128.0 | | Full Year 2026 Net Production - Mbo/d | 61.0 - 67.0 | | Full Year 2026 Net Production - Mboe/d | 120.0 - 132.0 | | | | | Unit costs ($/boe) | | | Depletion | $17.50 - $19.50 | | Cash G&A | $0.70 - $0.90 | | Non-Cash Share-Based Compensation | $0.10 - $0.20 | | Net Interest Expense | $1.90 - $2.40 | | | | | Production and Ad Valorem Taxes (% of Revenue) | ~7% | | Cash Tax Rate (% of Pre-Tax Income Attributable to the Company)(1)(2) | 27% - 30% | | Q1 2026 Cash Taxes ($ - million)(2)(3) | $17 - $23 |

(1) Pre-tax income attributable to the Company is a non-GAAP measure. We are not able to forecast the most directly comparable GAAP measure – Income (loss) before income taxes – due to the high variability and difficulty in predicting certain items that affect Income (loss) before income taxes, such as future commodity prices, pace of development and production of our mineral interests, and factors impacting the Company’s ownership of the net assets of VNOM Holding Company LLC such as repurchases of our Class A common shares, Class B common shares or VNOM Holding Company LLC’s units (OpCo Units), or conversions of our Class B common shares and/or OpCo units to Class A common shares. (2) Excludes estimated taxable gain on Viper non-core assets divestiture. (3) Attributable to the Company.

CONFERENCE CALL

Viper will host a conference call and webcast for investors and analysts to discuss its results for the fourth quarter of 2025 on Tuesday, February 24, 2026 at 10:00 a.m. CT. Access to the live audio-only webcast, and replay which will be available following the call, may be found here. The live webcast of the earnings conference call will also be available via Viper’s website at www.viperenergy.com under the “Investor Relations” section of the site.

About Viper Energy, Inc.

Viper is a corporation formed by Diamondback to own, acquire and exploit oil and natural gas properties in North America, with a focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin in West Texas. For more information, please visit www.viperenergy.com.

Investors and others should note that Viper announces material financial and operational information to our investors using our investor relations website (https://www.viperenergy.com/investors/overview), press releases, SEC filings and public conference calls and webcasts. The information we post through our investor relations website may be deemed material. Accordingly, investors should monitor our investor relations website in addition to following our press releases, SEC filings and public conference calls and webcasts.

About Diamondback Energy, Inc.

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks, uncertainties, and assumptions that could cause the results to differ materially from such statements. All statements, other than statements of historical fact, including statements regarding Viper’s: future performance; business strategy; future operations; estimates and projections of operating income, losses, costs and expenses, returns, cash flow, and financial position; production levels on properties in which Viper has mineral and royalty interests, developmental activity by other operators; reserve estimates and Viper’s ability to replace or increase reserves; the anticipated benefits from the Sitio Acquisition or other strategic transactions (including the 2025 Drop Down, the Non-Permian Divestiture or any other acquisitions or divestitures); and plans and objectives (including Diamondback’s plans for developing Viper’s acreage and Viper’s cash dividend policy and common stock repurchase program) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Viper are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Viper believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond its control. Accordingly, forward-looking statements are not guarantees of Viper’s future performance and the actual outcomes could differ materially from what Viper expressed in its forward-looking statements.