Viper Energy, Inc. Class A press release
Viper Energy, Inc., a Subsidiary of Diamondback Energy, Inc., Reports Third Quarter 2025 Financial and Operating Results; Announces Divestiture of Non-Permian Assets
NASDAQ - Nasdaq Stock Market · Oil · Natural Gas · Natural Gas Liquids · United States
MIDLAND, Texas, Nov. 03, 2025 (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 third quarter ended September 30, 2025.
THIRD QUARTER HIGHLIGHTS
Q3 2025 average production of 56,087 bo/d (108,859 boe/d) Q3 2025 consolidated net loss (including non-controlling interest) of $197 million; net loss attributable to Viper of $77 million, or $0.52 per Class A common share; consolidated adjusted net income of $156 million, or $1.04 per Class A common share Q3 2025 pro forma cash available for distribution to Viper’s Class A common shares (as defined and reconciled below) of $165 million, or $0.97 per Class A common share Declared Q3 2025 base cash dividend of $0.33 per Class A common share; implies a 3.5% annualized yield based on the October 31, 2025 Class A common share closing price of $37.56 Declared Q3 2025 variable cash dividend of $0.25 per Class A common share; total base-plus-variable dividend of $0.58 per Class A common share implies a 6.2% annualized yield based on the October 31, 2025 Class A common share closing price of $37.56 During Q3 2025, repurchased 2.4 million shares of the Company’s Class A common stock for an aggregate purchase price of approximately $90 million, excluding excise tax (average price of $38.42 per Class A common share) Total Q3 2025 return of capital to Class A stockholders of $140 million, or $0.83 per Class A common share, represents 85% of pro forma cash available for distribution 739 total gross (15.2 net 100% royalty interest) horizontal wells turned to production on Viper’s acreage during Q3 2025 with an average lateral length of 10,947 feet As previously announced, on August 19, 2025, completed its acquisition of Sitio Royalties Corp. (“Sitio”) in an all-equity transaction valued at approximately $4.0 billion (the “Sitio Acquisition”)
RECENT EVENTS AND FORWARD OUTLOOK
Entered into a definitive agreement to sell Viper’s non-Permian assets for $670 million to an affiliate of GRP Energy Capital and Warwick Capital Partners (the “Non-Permian Divestiture”); the Non-Permian Divestiture is expected to close in Q1 2026 with an effective date of September 1, 2025; expected FY 2026 average daily production from the assets of approximately 4,500 to 5,000 bo/d (9,000 to 10,000 boe/d) During Q4 2025 through October 31, 2025, repurchased approximately 860 thousand shares of the Company’s Class A common stock for an aggregate purchase price of approximately $32 million, excluding excise tax (average price of $37.34 per Class A Common Share) Initiating average daily production guidance for Q4 2025 of 65,000 to 67,000 bo/d (124,000 to 128,000 boe/d)
“During the third quarter, Viper continued to execute on our growth strategy, bolstered by the closing of the Sitio Acquisition and continued organic growth. Our Q4 2025 oil production guidance implies a ~20% increase in oil production per share compared to Q4 2024. Looking ahead to 2026, we continue to anticipate mid-single digit organic oil production growth from Q4 2025 estimated production, which implies double digit year over year growth in oil production per share relative to 2025,” stated Kaes Van’t Hof, Chief Executive Officer of Viper.
Mr. Van’t Hof continued, “Viper also showcased our differentiated return of capital profile in the third quarter. Because of our high operating and free cash flow margin, strong balance sheet, and recent signing of our non-Permian asset sale, we felt it appropriate to lean into our return of capital commitment and return 85% of pro forma cash available for distribution in the third quarter to stockholders. As we move to close this divestiture, and, as a result, move closer to our net debt target of $1.5 billion, we will have line of sight to return nearly 100% of cash available for distribution to stockholders. We expect to continue to allocate the majority of our cash available for distribution to our base plus variable dividend but feel compelled to buy back shares in today's market given the current market dislocation.”
FINANCIAL UPDATE
Viper’s third quarter 2025 average unhedged realized prices were $64.34 per barrel of oil, $1.02 per Mcf of natural gas and $19.07 per barrel of natural gas liquids, resulting in a total equivalent realized price of $39.24/boe.
Viper’s third quarter 2025 average hedged realized prices were $63.76 per barrel of oil, $1.77 per Mcf of natural gas and $19.07 per barrel of natural gas liquids, resulting in a total equivalent realized price of $40.04/boe.
During the third quarter of 2025, the Company recorded total operating income of $418 million and a consolidated net loss (including non-controlling interest) of $197 million, which was primarily driven by a non-cash impairment of $360 million due to recording properties acquired from Diamondback in the drop down transaction closed on May 1, 2025 (the "2025 Drop Down") at Diamondback’s historical carrying value.
As of September 30, 2025, the Company had a cash balance of $443 million, including restricted cash of $390 million, and total debt outstanding (excluding debt issuance costs, discounts and premiums) of $2.6 billion, resulting in net debt (as defined and reconciled below) of $2.2 billion. Viper’s outstanding short-term debt as of September 30, 2025 consisted of $380 million in aggregate principal amount of its 5.375% Senior Notes due 2027, which the Company fully redeemed on November 1, 2025 at a redemption price equal to 100% of the principal amount. Viper’s outstanding long-term debt as of September 30, 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 $160 million of borrowings on its revolving credit facility, leaving approximately $1.3 billion available for future borrowings and approximately $1.4 billion of total liquidity.
THIRD 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 $0.33 per Class A common share for the third quarter of 2025, payable on November 20, 2025 to Class A common stockholders of record at the close of business on November 13, 2025.
The Board also declared a variable cash dividend of $0.25 per Class A common share for the third quarter of 2025, payable on November 20, 2025 to Class A common stockholders of record at the close of business on November 13, 2025.
During the third quarter of 2025, Viper repurchased 2.4 million shares of Class A common stock for an aggregate purchase price of approximately $90 million, excluding excise tax (average price of $38.42 per Class A common share). In total, since the initiation of Viper’s common stock repurchase program on November 9, 2020 through October 31, 2025, the Company had repurchased approximately 16.9 million shares of Class A common stock for an aggregate purchase price of approximately $448 million, excluding excise tax (average price of $26.50 per Class A common share) and has approximately $302 million remaining on its current share buyback authorization. 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 third quarter of 2025, Viper estimates that, including activity on the acquired Sitio assets, 739 gross (15.2 net 100% royalty interest) horizontal wells with an average royalty interest of 2.1% were turned to production on its acreage position with an average lateral length of 10,947 feet. Of these 739 gross wells, Diamondback is the operator of 124 gross wells, with an average royalty interest of 5.6%, and the remaining 615 gross wells, with an average royalty interest of 1.3%, are operated by third parties.
As of September 30, 2025, Viper’s footprint of mineral and royalty interests was approximately 95,846 net royalty acres.
Our gross well information as of September 30, 2025 is as follows, unless otherwise specified:
| | Diamondback Operated | | Third-Party Operated | | Total | | | | | Q3 2025 horizontal wells turned to production (1) : | | | | | | | | | | Gross wells | 124 | | | 615 | | | 739 | | | Net 100% royalty interest wells | 6.9 | | | 8.3 | | | 15.2 | | | Average percent net royalty interest | 5.6 | % | | 1.3 | % | | 2.1 | % | | | | | | | | | | | | Horizontal producing well count: | | | | | | | | | | Gross wells | 4,047 | | | 30,635 | | | 34,682 | | | Net 100% royalty interest wells | 255.3 | | | 377.2 | | | 632.5 | | | Average percent net royalty interest | 6.3 | % | | 1.2 | % | | 1.8 | % | | | | | | | | | | | | Horizontal active development well count: | | | | | | | | | | Gross wells | 286 | | | 1,661 | | | 1,947 | | | Net 100% royalty interest wells | 18.5 | | | 20.3 | | | 38.8 | | | Average percent net royalty interest | 6.5 | % | | 1.2 | % | | 2.0 | % | | | | | | | | | | | | Line of sight wells: | | | | | | | | | | Gross wells | 263 | | | 1,401 | | | 1,664 | | | Net 100% royalty interest wells | 18.2 | | | 18.1 | | | 36.3 | | | Average percent net royalty interest | 6.9 | % | | 1.3 | % | | 2.2 | % |
(1) Pro forma for acquired Sitio assets; average lateral length of 10,947 feet.
The 1,947 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 104 gross rigs operating on Viper’s acreage, nine of which are operated by Diamondback. The 1,664 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.
GUIDANCE UPDATE
Below is Viper’s guidance for the full year 2025, as well as average production guidance for Q4 2025.
| | | | | Viper Energy, Inc. | | | | | Q4 2025 Net Production - Mbo/d | 65.00 - 67.00 | | Q4 2025 Net Production - Mboe/d | 124.00 - 128.00 | | Full Year 2025 Net Production - Mbo/d | 48.75 - 49.00 | | Full Year 2025 Net Production - Mboe/d | 92.75 - 93.50 | | | | | Unit costs ($/boe) | | | Depletion | $16.75 - $17.25 | | Cash G&A | $0.80 - $1.00 | | Non-Cash Share-Based Compensation | $0.10 - $0.20 | | Net Interest Expense | $2.50 - $3.00 | | | | | Production and Ad Valorem Taxes (% of Revenue) | ~7% | | Cash Tax Rate (% of Pre-Tax Income Attributable to the Company) (1) | 21% - 23% | | Q4 2025 Cash Taxes ($ - million) (2) | $13 - $18 |
(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 Viper Energy Partners LLC such as repurchases of our Class A common shares or conversions of our Class B common shares and/or Viper Energy Partners LLC’s units to Class A common shares. (2) Attributable to the Company.
CONFERENCE CALL
Viper will host a conference call and webcast for investors and analysts to discuss its results for the third quarter of 2025 on Tuesday, November 4, 2025 at 11:00 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.
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.
Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas and natural gas liquids and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases and any related company or government policies or actions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments; changes in general economic, business or industry conditions, including changes in foreign currency exchange rates, interest rates, inflation rates, or instability in the financial sector; regional supply and demand factors, including delays, curtailment delays or interruptions of production on our mineral and royalty acreage, or governmental orders, rules or regulations that impose production limits on such acreage; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change; restrictions on the use of water, including limits on the use of produced water by our operators and a moratorium on new produced water well permits recently imposed by the Texas Railroad Commission in an effort to control induced seismicity in the Permian Basin; significant declines in prices for oil, natural gas, or natural gas liquids, which could require recognition of significant impairment charges; changes in U.S. energy, environmental, monetary and trade policies, including with respect to tariffs or other trade barriers and any resulting trade tensions; conditions in the capital, financial and credit markets, including the availability and pricing of capital for drilling and development by our operators and environmental and social responsibility projects undertaken by Diamondback and our other operators; changes in availability or cost of rigs, equipment, raw materials, supplies and oilfield services impacting our operators; changes in safety, health, environmental, tax and other regulations or requirements impacting us or our operators (including those addressing air emissions, water management, or the impact of global climate change); security threats, including cybersecurity threats and disruptions to our business from breaches of Diamondback’s information technology systems, or from breaches of information technology systems of our operators or third parties with whom we transact business; lack of, or disruption in, access to adequate and reliable transportation, processing, storage and other facilities impacting our operators; severe weather conditions and natural disasters; acts of war or terrorist acts and the governmental or military response thereto; changes in the financial strength of counterparties to the credit facility and hedging contracts of our operating subsidiary; changes in our credit rating; failure to realize anticipated benefits from the recently completed Sitio Acquisition and 2025 Drop Down or our other recent acquisitions discussed in Viper’s Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent periodic filings with the SEC, including its Forms 10-K, 10-Q and 8-K, and other filings Viper makes with the SEC, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov.
In light of these factors, the events anticipated by Viper’s forward-looking statements may not occur at the time anticipated or at all. Moreover, new risks emerge from time to time. Viper cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements made in this news release. All forward-looking statements speak only as of the date of this news release or, if earlier, as of the date they were made. Viper does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.
| Viper Energy, Inc. | | | | | | | | | Condensed Consolidated Balance Sheets | | | | | | | | | (unaudited, in millions, except par values and share data) | | | | | | | | | | | | | | | | | | | September 30, | | December 31, | | | | | | | | 2025 | | | | 2024 | | | Assets | | | | | | | | | Current assets: | | | | | | | | | Cash and cash equivalents | $ | 53 | | | $ | 27 | | | Restricted cash | | 390 | | | | — | | | Royalty income receivable (net of allowance for credit losses) | | 277 | | | | 149 | | | Royalty income receivable—related party | | 107 | | | | 31 | | | Income tax receivable | | 2 | | | | 2 | | | Derivative instruments | | 22 | | | | 18 | | | Prepaid expenses and other current assets | | 36 | | | | 11 | | | Total current assets | | 887 | | | | 238 | | | Property: | | | | | | | | | Oil and natural gas interests, full cost method of accounting ($5,275 million and $2,180 million excluded from depletion at September 30, 2025 and December 31, 2024, respectively) | | 14,589 | | | | 5,713 | | | Other property, equipment and land | | 8 | | | | 6 | | | Accumulated depletion and impairment | | (1,814 | ) | | | (1,081 | ) | | Property, net | | 12,783 | | | | 4,638 | | | Deferred income taxes (net of allowances) | | — | | | | 185 | | | Other assets | | 18 | | | | 8 | | | Total assets | $ | 13,688 | | | $ | 5,069 | | | Liabilities and Stockholders’ Equity | | | | | | | | | Current liabilities: | | | | | | | | | Accounts payable—related party | $ | — | | | $ | 2 | | | Current maturities of debt | | 380 | | | | — | | | Accrued liabilities | | 91 | | | | 43 | | | Derivative instruments | | — | | | | 2 | | | Income taxes payable | | 1 | | | | 2 | | | Total current liabilities | | 472 | | | | 49 | | | Long-term debt, net | | 2,241 | | | | 1,083 | | | Derivative instruments | | 11 | | | | — | | | Deferred income taxes | | 18 | | | | — | | | Other long-term liabilities | | 5 | | | | 30 | | | Total liabilities | | 2,747 | | | | 1,162 | | | Stockholders’ equity: | | | | | | | | | Class A Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 169,261,023 shares issued and outstanding as of September 30, 2025 and 102,977,142 shares issued and outstanding as of December 31, 2024 | | — | | | | — | | | Class B Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 191,078,341 shares issued and outstanding as of September 30, 2025 and 85,431,453 shares issued and outstanding as of December 31, 2024 | | — | | | | — | | | Additional paid-in capital | | 4,696 | | | | 1,569 | | | Retained earnings (accumulated deficit) | | (76 | ) | | | 118 | | | Total Viper Energy, Inc. stockholders’ equity | | 4,620 | | | | 1,687 | | | Non-controlling interest | | 6,321 | | | | 2,220 | | | Total equity | | 10,941 | | | | 3,907 | | | Total liabilities and stockholders’ equity | $ | 13,688 | | | $ | 5,069 | |