VNOM

Viper Energy’s second quarter was marked by robust revenue growth and operational progress. Management attributed performance to strong organic production growth and the impact of recent acquisitions, with CEO Kaes Van't Hof emphasizing continued steady development activity across Viper’s asset base. Additionally, a substantial increase in oil production was driven by both Diamondback and third-party operators, contributing to the company’s record operational performance. However, management also acknowledged challenges in market valuation and the need for a refreshed approach to capital allocation. Is now the time to buy VNOM? Find out in our full research report (it’s free). Revenue: $677 million vs analyst estimates of $644.9 million (128% year-on-year growth, 5% beat) Adjusted EPS: $0.76 vs analyst expectations of $0.80 (5.4% miss) Adjusted EBITDA: $642 million vs analyst estimates of $588.2 million (94.8% margin, 9.1% beat) Operating Margin: 63.2%, up from 45.5% in the same quarter last year Oil production: up 56.4% year on year Market Capitalization: $7.94 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Wei Jiang (Barclays) asked about the rationale for changing the cash return strategy and how it reflects Viper’s long-term value proposition. CEO Kaes Van't Hof explained the shift aimed to better highlight the company’s durable dividend yield and provide flexibility for capital allocation. Wei Jiang (Barclays) inquired about the evolution of M&A financing under the new framework. Van't Hof detailed that flexibility from the new policy allows more self-funded deals, reducing reliance on equity markets. Neal Dingmann (William Blair) questioned the appropriate percentage of cash available for distribution going forward and future strategic priorities. Van't Hof reiterated the company’s willingness to distribute all free cash via dividends and buybacks if market valuation remains low. Paul Diamond (Citi) asked if the more concrete dividend policy would alter Viper’s hedging approach. Van't Hof said the company will continue to use put options for downside protection, maintaining flexibility for dividend growth. Derrick Whitfield (Texas Capital) asked about the production outlook and the implications of near-term inventory and line of sight wells for underlying business growth. President Austen Gilfillian provided details on ongoing organic growth, the contribution from Riverbend assets, and expectations for continued production increases into the second half of the year. In the coming quarters, the StockStory team will be monitoring (1) the impact of Viper’s new capital return policy on investor sentiment and dividend sustainability, (2) organic production growth from active development and acquisitions, and (3) trends in third-party operator activity within the Permian Basin. Execution on strategic acquisitions and the effectiveness of share repurchases will also be important indicators of management’s ability to drive long-term value. Viper Energy currently trades at $40.79, down from $43.69 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

This article first appeared on GuruFocus. Production Growth: Third-quarter guidance implies roughly 4.5% growth relative to the second quarter. Oil Production Growth: Midpoint of third-quarter guidance implies an approximate 15% annualized growth rate in oil production per share relative to Q4 2025. Return of Capital: Returning 75% of available cash for distribution to stockholders for Q2. Share Repurchases: $132 million in share repurchases completed during the quarter. Dividend: Combined base plus variable dividend of $0.67 per share for Q2. Base Dividend Increase: Board approved a 32% increase to the base dividend, now up to $2 per Class A share on an annual basis, effective Q3. Dividend Yield: Increased base dividend implies an annualized yield of approximately 4.5% at current share price. Free Cash Flow Allocation: Increased base dividend represents approximately 50% of free cash flow at $70 per barrel WTI. Warning! GuruFocus has detected 6 Warning Signs with VNOM. List of 52-Week Lows List of 3-Year Lows List of 5-Year Lows Is VNOM fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Viper Energy Inc (NASDAQ:VNOM) reported strong Q2 2026 execution with 691 gross horizontal wells turned to production, driving a 4.5% sequential production growth guidance for Q3. The company increased its base dividend by 32% to $2 per share annually, implying a ~4.5% yield, which is protected down to $30 oil, showcasing a durable and secure payout. Viper Energy Inc (NASDAQ:VNOM) is committed to opportunistic share repurchases, having completed $132 million in buybacks in Q2 and continuing at a similar pace, reflecting confidence in undervaluation. The company sees a robust M&A opportunity set, with a successful ground game and larger deals like Riverbend, and now has greater flexibility to self-fund acquisitions without relying on equity markets. Viper Energy Inc (NASDAQ:VNOM) is experiencing strong organic growth, with high single-digit growth in 2026 and potential for continued growth beyond 2027, driven by Diamondback's Barnett development and third-party activity. The company's new capital allocation framework, with a high base dividend and flexibility for buybacks or M&A, is designed to better highlight its value proposition and attract a broader investor base, including potential S&P 500 inclusion. Viper Energy Inc (NASDAQ:VNOM) removed its previous quarterly commitment to return at least 75% of cash available for distribution, which may reduce the predictability of total shareholder returns. The company expressed frustration that its valuation does not reflect its growth and dividend durability, trading at a lower multiple compared to other royalty-like models in the basin. The shift to a more flexible capital allocation could lead to variable total returns, as excess cash may be retained or used for buybacks/deals rather than distributed, potentially disappointing income-focused investors. The company acknowledged that stock buybacks may not be a 'silver bullet' to move the stock price, indicating a lack of immediate market recognition despite aggressive repurchases. The M&A market is described as volatile, with commodity price fluctuations creating uncertainty, which could impact the timing and attractiveness of potential deals. The company's growth outlook is partly dependent on third-party operator activity and the conversion of permits to production, which can be unpredictable and may not always align with Viper's expectations. Q: Clearly, today's big news is the change in the cash return strategy. Can you unpack the rationale for the change and how it reflects Viper's long-term value proposition and competitive advantage against an E&P?A: Kaes Van't Hof (CEO) explained that the Board decided the market was not rewarding the variable dividend yield. They shifted to a high base dividend (a 32% increase to $2 per share annually) that is protected down to $30 oil, which they believe is more secure than utilities and the most secure in oil and gas. He emphasized that Viper has a 17% CAGR in per-share production growth and is growing 15% in 2026, yet the valuation does not reflect this. The new framework allows for opportunistic share repurchases at current levels, or if the multiple expands, they can pivot to using cash for deals or fortifying the balance sheet. Q: Given the shift to a higher base dividend and more flexibility, how has your M&A financing strategy changed, particularly regarding self-funding deals versus tapping the public market?A: Kaes Van't Hof (CEO) stated that Viper is "growing up" into a real company that should be valued relative to S&P 500 comps. The evolution away from distributing all cash quarterly means they no longer need to rely on equity financing for every deal. The new flexibility allows them to allocate retained cash to either M&A, share repurchases, or the balance sheet, depending on which creates the most value. He noted the A&D market is very active and that this flexibility allows them to put more cash into deals without tapping equity markets. Q: What percentage of cash available for distribution do you believe is most appropriate on a go-forward basis? And how will you use your dominant size and balance sheet for future opportunities?A: Kaes Van't Hof (CEO) said there will be quarters where they distribute all free cash flow via buybacks plus the base dividend if the market doesn't reward their growth. He expressed frustration that Viper trades at a discount to other royalty models in the basin, calling it "flummoxing." Their mindset is to put a big base dividend in place and buy back shares aggressively if the market doesn't realize the value. He also noted that Diamondback, as a large shareholder, could also buy more Viper shares, as they believe it is the best value proposition in E&P land. Q: Does the new, more concrete base dividend change your hedging framework at all? Would you ramp up hedging given the fixed nature of the distribution?A: Kaes Van't Hof (CEO) said they generally like buying $50 puts to protect extreme downside, but there is a huge gap between $50 and $30 oil where the base dividend is protected. The base dividend is set to grow meaningfully as production grows, share count shrinks, or debt is reduced. He confirmed they still like the puts in place to protect against extreme downside scenarios. Q: Is there any update on the opportunity set from new and emerging benches like the Woodford or Barnett on your acreage?A: Austen Gilfillian (President) noted the big emergence has been on the Woodford in the Delaware Basin, with leasing activity picking up significantly over the last couple of quarters. They have spent roughly $25 million to $30 million on lease bonuses for deep rights there, about a third of their total leasing effort. This upfront money typically starts a three-year clock for operators to develop those minerals, which should equate to more production growth over that period. Q: When comparing your near-term inventory and line-of-sight wells to the amount needed to hold production flat, what does that suggest about the underlying growth rate into 2027?A: Austen Gilfillian (President) said the growth is strong. Q3 guidance incorporates 2,000 barrels a day from Riverbend, but still implies 1,000 barrels a day of purely organic quarter-over-quarter growth. He pointed to slide 5, which shows high single-digit organic growth in 2026. While they may not maintain that percentage into next year, the line of sight on activity supports modest growth off the exit rate this year. Q: You noted a four-well pad targeting the Barnett at Spanish Trail with a high NRI. How much activity does Diamondback have planned there or in other high-NRI areas?A: Austen Gilfillian (President) explained the equation has three parts: Diamondback's gross activity, Viper's exposure to it, and the average NRI. They have consistently captured 75% to 80% of Diamondback's gross activity with around a 6% average NRI, which is skewed higher by wells where they own the full royalty. Kaes Van't Hof (CEO) added that if the Spanish Trail-Barnett pad produces as expected, it will move to the top decile of their combined inventory in terms of rate of return, and they will develop it very quickly. Q: Given your comments on the market not rewarding Viper, how should we view the near-term outlook for opportunistic repurchases relative to Q2?A: Kaes Van't Hof (CEO) said they did a little under $150 million in Q2 and have continued at a similar daily pace. They fundamentally disagree that Viper should have a low double-digit yield. Even in a normalized price environment, the value proposition is obvious. He confirmed they will be back in the market aggressively once the blackout window opens. Q: Beyond 2027, do you see potential for continued organic growth, or could the structure shift to a higher returns/higher yield scenario?A: Kaes Van't Hof (CEO) said there is certainly organic growth potential beyond 2027, particularly led by Diamondback's development of the Barnett. The bet on the rest of the basin is that it continues to grow, and Viper grows relatively higher. When underwriting third-party acquisitions, the quality of their inventory is a key factor, and they have generally outperformed basin growth by buying minerals in areas that get developed first. Q: Your line-of-sight wells stepped up nicely, with a lot of third-party operated activity. What are you seeing there? Is it just an uptick in rig activity aligning with your acreage?A: Austen Gilfillian (President) confirmed that third-party activity has been consistent from a gross perspective, moving around quarter-to-quarter on a net basis. They spend significant time thinking from an operator's perspective about the For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Viper Energy (VNOM) is back in focus after reporting second quarter 2026 results, updating production guidance, completing a sizeable share buyback tranche, and affirming its latest base and variable dividend payouts. See our latest analysis for Viper Energy. Despite strong second quarter production and earnings, Viper Energy’s share price fell 3.09% on the day and is down 9.88% over 90 days, although the year-to-date share price return of 9.18% and 1-year total shareholder return of 16.76% still point to positive longer-term momentum. If you want to see how other energy related plays are trading around similar themes, it could be a useful moment to scan 89 nuclear energy infrastructure stocks. Viper Energy now trades at a clear discount to both analyst targets and one implied intrinsic value range. After the post earnings pullback, where does fair value really sit within that spread, and how wide is the margin of safety? At a last close of $42.34, Viper Energy screens above the $32.00 fair value implied by the most followed narrative, which frames the current price as rich versus its long term assumptions. Read the complete narrative. Want to see how this high margin, low cost Permian royalty story translates into that fair value line? The narrative leans heavily on production upside, resilient margins and a future earnings multiple that assumes investors keep paying up for this profile. Curious which specific growth and profitability assumptions sit underneath that $32.00 per share figure and how they balance commodity risk with long term cash flow potential? The full breakdown lays out the numbers and the reasoning behind them. Result: Fair Value of $32.00 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Viper Energy’s narrative can be tested if Permian infrastructure build out lags production growth or if commodity prices weaken and pressure royalty cash flows. Find out about the key risks to this Viper Energy narrative. The community narrative pegs Viper Energy at $32.00 per share, which points to an overvalued stock at $42.34. Our DCF model presents a very different picture. It suggests fair value sits much higher at $141.50, which implies Viper Energy trades very far below that estimate. This kind of gap can reflect different views on future cash flows, discount rates, or how repeatable current earnings are. It raises a key question for you: Is the market correctly discounting risk here, or is the SWS DCF model flagging a potential mispricing that others are ignoring? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Viper Energy for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 52 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. The mix of risks and rewards around Viper Energy will not stay off the market’s radar for long. Consider moving quickly, review the underlying data, and weigh whether the current setup fits your own risk tolerance by starting with these 3 key rewards and 4 important warning signs. If Viper Energy has your attention, do not stop here. Fresh ideas from quality screeners can help you compare opportunities and sharpen your overall portfolio view. Target resilient income by reviewing proven high yield candidates in the 7 dividend fortresses that could complement more growth focused holdings. Hunt for mispriced quality by scanning the 52 high quality undervalued stocks and see which stocks currently trade below their implied worth based on fundamentals. Reduce portfolio stress by focusing on stability first and checking the 82 resilient stocks with low risk scores for companies with lower risk scores that still offer meaningful upside potential. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include VNOM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Viper Energy Inc.? Here are five stocks we like better. Viper Energy raised its annual base dividend 32% to $2 per Class A share while ending its requirement to return at least 75% of quarterly distributable cash, giving management more flexibility for buybacks, acquisitions and debt reduction. Steady Permian development supported a third-quarter production outlook implying roughly 4.5% sequential growth and high-single-digit organic growth for 2026, with 691 gross horizontal wells brought online during the second quarter. Viper completed about $103 million of acquisitions and announced a roughly $160 million dropdown from Diamondback Energy; management also highlighted continued share repurchases and potential growth from Barnett and Woodford acreage. 3 Dividend Stocks Defying the Market Downturn Amid the Iran Conflict Viper Energy (NASDAQ:VNOM) said steady development activity across its mineral and royalty acreage supported second-quarter execution and prompted the company to initiate third-quarter average production guidance implying roughly 4.5% growth from the second quarter. Chief Executive Officer Kaes Van’t Hof said operators brought 691 gross horizontal wells online during the quarter on Viper’s acreage, where the company held an average 3% net revenue interest. The midpoint of third-quarter guidance implies an approximately 15% annualized increase in oil production per share compared with the fourth quarter of 2025, he said. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control MarketBeat ‘Stock of the Week’: Viper winds up as oil prices sink The company also announced a revised capital-return framework centered on a higher fixed dividend and more discretion over the use of remaining cash flow. Viper raised its annual base dividend by 32% to $2 per Class A share, effective in the third quarter, while ending its prior commitment to return at least 75% of quarterly cash available for distribution. For the second quarter, Viper returned 75% of cash available for distribution to stockholders, including $132 million of share repurchases and a combined base and variable dividend of $0.67 per share. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Under the new framework, the company intends to prioritize a larger and more durable base dividend rather than a variable distribution tied to commodity prices. At the company’s current share price, Van’t Hof said the new annualized base dividend represents an approximately 4.5% yield. “The base dividend is sacrosanct,” Van’t Hof said, adding that management is committed to steadily growing it over time. He said the increased dividend represents about 50% of free cash flow at $70 per barrel West Texas Intermediate crude. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Viper said it will retain flexibility to use cash beyond the dividend for share repurchases, debt reduction and acquisitions. Van’t Hof told analysts the company had concluded that the market was not adequately valuing its former variable-dividend approach. “We do not believe the market is currently valuing the variable dividend framework,” Van’t Hof said. “In its place, we believe our new capital allocation framework will better highlight the attractiveness of Viper’s dividend and enable a more compelling growth outlook to be paired with the existing yield.” Management emphasized buybacks as a key use of capital while Viper believes its shares are undervalued. Van’t Hof said Viper repurchased slightly less than $150 million of stock during the second quarter and had continued buying shares at a similar daily pace before its blackout period. He said there could be quarters in which the company returns all of its free cash flow through a combination of the base dividend and stock repurchases. If the market does not recognize Viper’s growth prospects, “we’re going to keep buying back and shrink the share count,” he said. The updated framework also gives Viper more capacity to self-fund acquisitions rather than relying on equity markets for every transaction, Van’t Hof said. He described the larger asset-and-development market as unusually active, noting that Viper recently completed the Riverbend transaction and sees a broad set of potential opportunities. President Austen Gilfillian said the company completed about $103 million of acquisitions during the quarter and announced an approximately $160 million dropdown from Diamondback Energy. He said Viper has gained traction in smaller “ground game” transactions while also evaluating larger packages. Viper sees a constructive acquisitions-and-divestitures market despite commodity-price volatility. Management said buying back Viper shares currently appears attractive relative to some acquisition opportunities. The company intends to allocate capital among deals, repurchases and balance-sheet management based on relative value. Gilfillian said the third-quarter production outlook incorporates approximately 2,000 barrels per day from Riverbend assets but still implies about 1,000 barrels per day of quarter-over-quarter organic growth. He characterized Viper’s overall 2026 organic growth outlook as high single digits after excluding effects from a non-Permian divestiture. While he did not project a specific growth rate for 2027, Gilfillian said the company’s visible activity supports “some modest growth” from this year’s exit rate. Van’t Hof said Viper sees organic growth potential beyond 2027, particularly from Diamondback’s development of the Barnett formation. Viper has historically captured roughly 75% to 80% of Diamondback’s gross activity, with an average net revenue interest of about 6%, Gilfillian said. Certain areas can carry substantially higher interests; he noted that some wells can have a 25% net revenue interest where Viper owns the full royalty. Management highlighted Diamondback’s planned full-well-pad development targeting the Barnett formation in the Spanish Trail area. Van’t Hof said that if well performance and costs meet expectations, full-section Barnett development at Spanish Trail could rank in the top decile of Diamondback’s combined inventory based on returns and net present value. Gilfillian said third-party operator activity has remained generally consistent on a gross basis, though quarterly net results can vary. The company is focused on acquiring exposure to high-returning undeveloped Permian acreage regardless of operator, he said. He added that rising Permian rig activity can accelerate the conversion of permits and drilled-but-uncompleted wells into production, bringing volumes forward for Viper. Management said the company benefits both from Diamondback’s development of Viper’s concentrated mineral interests and from broad exposure to other operators across the basin. Viper has also seen increased leasing activity for deep rights in the Woodford formation in the Delaware Basin. Gilfillian said the company had spent approximately $25 million to $30 million on lease bonuses for deep rights, representing about one-third of its total leasing effort since early 2025. Such leases typically provide operators with a three-year development window, which management said could support future production growth. Viper Energy Partners LP is a publicly traded master limited partnership that owns and intends to acquire mineral and royalty interests in oil and natural gas properties. As a pass-through entity, Viper Energy Partners does not engage in drilling or production operations directly; instead, it generates revenues by holding overriding royalty interests, mineral fee interests and royalty fee interests. These interests entitle the partnership to receive a percentage of the proceeds from hydrocarbons produced and sold by third-party operators. The partnership's assets are concentrated in the Permian Basin, with a primary focus on the Delaware Basin region of West Texas and southeastern New Mexico. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Viper Energy Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes strong Q2 performance to steady development activity from Diamondback and third-party operators, resulting in 691 gross horizontal wells turned to production. The company is shifting its capital allocation framework to a high base dividend model, arguing that the previous variable dividend mechanism was not being rewarded by the market. Management believes the new 4.5% base dividend yield offers utility-like protection, underpinned by a dividend breakeven at approximately $30 per barrel WTI. Strategic positioning is focused on highlighting Viper's 17% CAGR in per-share production growth, which management claims is currently ignored by the market's valuation. The transition from a distribution-focused vehicle to a 'real company' model allows for greater flexibility to allocate excess cash toward share repurchases, debt reduction, or M&A. Operational growth is increasingly driven by deep rights leasing in the Woodford and Delaware basins, creating a three-year development clock for operators. Management views Viper as a pure-play bet on Permian technology and productivity, expressing frustration that it trades at a significant discount to non-commodity royalty peers. Third quarter production guidance implies a 4.5% increase over Q2, supported by organic growth and the integration of Riverbend assets. Management noted that the midpoint of third quarter guidance implies an approximate 15% annualized growth rate in oil production per share relative to the fourth quarter of 2025. The new capital framework assumes the base dividend will represent approximately 50% of free cash flow at $70 WTI, providing a floor for shareholder returns. Future growth beyond 2027 is expected to be led by Diamondback's development of the Barnett formation, particularly in high-NRI areas like Spanish Trail. The company aims for S&P 500 inclusion as a long-term goal to broaden the investor base and improve valuation multiples. Viper completed $132 million in share repurchases during Q2 and intends to remain aggressive in the market if the valuation gap persists. The company is moving away from its previous commitment to return at least 75% of cash available for distribution to gain cyclical capital allocation flexibility. Management maintains a hedging strategy using $50 puts to protect against extreme downside, despite the base dividend being secure down to $30 oil. Recent M&A includes the $103 million in quarterly deals and a $160 million drop-down from Diamondback, reflecting a robust but selective acquisition environment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated the market failed to reward the variable yield, so they pivoted to a high base dividend to showcase the durability of the business model. The new framework allows the company to 'freely allocate' capital to share buybacks when the stock is perceived as mispriced relative to its 15% growth profile. Viper is evolving away from relying on equity markets for every deal, intending to use retained excess cash flow to fund acquisitions. Management noted the current A&D market is the most available they have seen, particularly for larger packages like the Riverbend deal. Leasing activity for deep rights has picked up significantly, with $25 million to $30 million in lease bonuses collected recently. These deep rights typically have a three-year development window, which management expects will contribute to production growth in the coming years. Growth is expected to persist through Diamondback's development of the Barnett, which moves to the 'top decile' of inventory if initial results hold. Management emphasized that their underwriting process for third-party deals specifically targets acreage that operators will develop first.

For the quarter ended June 2026, Viper Energy Partners (VNOM) reported revenue of $677 million, up 128% over the same period last year. EPS came in at $0.76, compared to $0.41 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $633.9 million, representing a surprise of +6.8%. The company delivered an EPS surprise of +4.11%, with the consensus EPS estimate being $0.73. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Viper Energy performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Average daily combined volumes: 134,363.00 BOE/D versus 126,490.30 BOE/D estimated by eight analysts on average. Average sales prices - Natural gas liquids: $23.83 compared to the $21.24 average estimate based on five analysts. Production - Crude Oil: 5,922.00 MBBL compared to the 5,879.96 MBBL average estimate based on four analysts. Average sales prices - Oil, hedged: $96.42 versus the four-analyst average estimate of $90.05. Average sales prices - Natural gas, hedged: $1.48 versus $1.30 estimated by four analysts on average. Production - Natural Gas: 18,949.00 MMcf versus the four-analyst average estimate of 16,979.81 MMcf. Production - NGL: 3,147.00 MBBL compared to the 2,805.34 MBBL average estimate based on four analysts. Royalty income: $658 million versus $604.29 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +129.3% change. Lease bonus income: $11 million versus $8.18 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +10% change. Oil income: $582 million compared to the $521.6 million average estimate based on four analysts. The reported number represents a change of +141.5% year over year. Natural Gas Liquids Income: $75 million versus the four-analyst average estimate of $57.89 million. The reported number represents a year-over-year change of +108.3%. Natural Gas Income: $1 million versus $23.3 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -90% change. View all Key Company Metrics for Viper Energy here>>> Shares of Viper Energy have returned +9.5% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Viper Energy Inc. (VNOM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MIDLAND, Texas, Aug. 03, 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 second quarter ended June 30, 2026. The Company today also announced that effective Q3 2026 the Board of Directors of Viper has approved a 32% increase to its base dividend, or an amount equal to $2.00 per Class A share annually. This increased base dividend, which would imply a 4.5% annualized yield at today’s stock price, is expected to be fully protected down to approximately $30 per barrel WTI and will represent approximately 50% of cash available for distribution at $70 per barrel WTI. With today’s announced increase to the base dividend and a further commitment to prioritize steady growth of the dividend, the Company additionally announced that it will be removing its quarterly commitment to return at least 75% of cash available for distribution. Increased flexibility in this revised return of capital framework is expected to allow the Company to continue to focus on opportunistic share repurchases while also supporting the further execution on accretive M&A. SECOND QUARTER HIGHLIGHTS Q2 2026 average production of 65,077 bo/d (134,363 boe/d) Q2 2026 lease bonus income of $15 million Q2 2026 consolidated net income (including non-controlling interest) of $331 million; net income attributable to Viper of $142 million, or $0.73 per Class A common share; consolidated adjusted net income of $345 million, or $1.78 per Class A common share Q2 2026 cash available for distribution to Viper’s Class A common shares (as defined and reconciled below) of $262 million, or $1.37 per Class A common share Declared Q2 2026 base cash dividend of $0.38 per Class A common share; implies a 3.4% annualized yield based on the July 31, 2026 Class A common share closing price of $44.61 Declared Q2 2026 variable cash dividend of $0.29 per Class A common share; total base-plus-variable dividend of $0.67 per Class A common share implies a 6.0% annualized yield based on the July 31, 2026 Class A common share closing price of $44.61 During Q2 2026, repurchased approximately 3.0 million shares of the Company’s Class A common stock for an aggregate purchase price of approximately $132 million, excluding excise tax (average price of $44.34 per share) Total Q2 2026 return of capital to Class A stockholders of $197 million, or $1.03 per Class A common share, represents 75% of cash available for distribution 691 total gross (19.8 net 100% royalty interest) horizontal wells, normalized to lateral length of 10,000 feet, turned to production on Viper’s Permian Basin acreage during Q2 2026 RECENT EVENTS AND FORWARD OUTLOOK As previously announced, on July 1, 2026, completed the acquisition of all of the equity interests of Riverbend Oil & Gas IX, L.L.C., an entity owning certain mineral and royalty interests, from Riverbend Oil & Gas IX (AIV), L.L.C. and ROG IX, L.L.C. (the “Riverbend Acquisition”) On August 3, 2026, the Company’s subsidiary Viper Energy Partners LP entered into a definitive agreement to acquire certain mineral and royalty interests representing approximately 933 net royalty acres from Diamondback and related subsidiaries in exchange for approximately 3.7 million units in the Company’s operating subsidiary, VNOM Holding Company LLC (“OpCo Units”) (along with an accompanying equal amount of Class B common stock of the Company); acquisition is expected to close late Q3 2026 and is subject to customary closing conditions As of July 1, 2026, giving effect to the Riverbend Acquisition, there were approximately 1,798 gross horizontal wells, normalized to lateral length of 10,000 feet, in the process of active development on Viper’s acreage in which Viper expects to own an average 2.2% net royalty interest (39.1 net 100% royalty interest wells) Giving effect to the Riverbend Acquisition, approximately 1,589 gross (32.9 net 100% royalty interest) line-of-sight wells, normalized to lateral length of 10,000 feet, on Viper’s acreage that are not currently in the process of development, but for which Viper has visibility to the potential of future development in coming quarters, based on Diamondback’s current planned drilling schedule and third-party operators’ permits Initiating average daily production guidance for Q3 2026 of 67,500 to 68,500 bo/d (133,500 to 135,500 boe/d) Increasing average daily production guidance for full year 2026 to 66,000 to 67,250 bo/d (132,500 to 135,000 boe/d) During Q3 2026 through July 31, 2026, repurchased approximately 0.7 million shares of the Company’s Class A common stock for an aggregate purchase price of approximately $29 million, excluding excise tax (average price of $42.82 per Class A Common share) “The second quarter continued the trend of strong execution for Viper, highlighted by steady development activity from both Diamondback and our third-party operators across our high-quality asset base, as well as a continuation of our differentiated acquisition strategy. Reflecting this momentum, we are increasing our full year 2026 production guidance while initiating third quarter guidance that implies continued growth in oil production per share driven by both organic and inorganic growth,” said Kaes Van’t Hof, Chief Executive Officer of Viper. Mr. Van’t Hof continued, “Separately, today we announced an important evolution of our return of capital strategy. Our Board approved a 32% increase to our base dividend to $2.00 per Class A share annually, a level we expect to be fully protected down to approximately $30 per barrel WTI and which represents approximately 50% of cash available for distribution at $70 per barrel WTI. With this increase, and a commitment to grow the base dividend steadily over time, we are moving away from our commitment to return at least 75% of cash available for distribution each quarter. We believe a single, durable and growing base dividend, rather than a variable payout that fluctuates with commodity prices, best showcases what differentiates Viper: an industry-leading, low-breakeven yield paired with consistent per-share growth. The flexibility created by retaining excess cash flow will allow us to continue to opportunistically repurchase shares, reduce debt and pursue a disciplined M&A strategy, all of which we expect to compound value for our stockholders over the long term.” FINANCIAL UPDATE Viper’s second quarter 2026 average unhedged realized prices were $98.28 per barrel of oil, $0.05 per Mcf of natural gas and $23.83 per barrel of natural gas liquids, resulting in a total equivalent realized price of $53.82/boe. Viper’s second quarter 2026 average hedged realized prices were $96.42 per barrel of oil, $1.48 per Mcf of natural gas and $23.83 per barrel of natural gas liquids, resulting in a total equivalent realized price of $55.12/boe. During the second quarter of 2026, the Company recorded total operating income of $677 million and consolidated net income (including non-controlling interest) of $331 million. As of June 30, 2026, the Company had a cash balance of $77 million and total debt outstanding (excluding debt issuance costs, discounts and premiums) of $1.7 billion, resulting in net debt (as defined and reconciled below) of $1.6 billion. Viper’s outstanding long-term debt as of June 30, 2026 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 and $95 million of borrowings on its revolving credit facility, leaving approximately $1.9 billion available for future borrowings and approximately $2.0 billion of total liquidity. SECOND QUARTER 2026 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 second quarter of 2026, payable on August 20, 2026 to Class A common stockholders of record at the close of business on August 13, 2026. The Board also declared a variable cash dividend of $0.29 per Class A common share for the second quarter of 2026, payable on August 20, 2026 to Class A common stockholders of record at the close of business on August 13, 2026. During the second quarter of 2026, Viper repurchased approximately 3.0 million shares of the Company’s Class A common stock for an aggregate purchase price of approximately $132 million, excluding excise tax (average price of $44.34 per share). In total, since the initiation of Viper’s common stock repurchase program on November 9, 2020 through July 31, 2026, the Company has repurchased approximately 24.3 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 $766 million, excluding excise tax (average price of $31.50 per share) and has approximately $984 million remaining on its share buyback authorization. Future 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 second quarter of 2026, Viper estimates that 691 gross (19.8 net 100% royalty interest) horizontal wells, normalized to lateral length of 10,000 feet, with an average royalty interest of 2.9% were turned to production on its acreage position. Of these 691 gross wells, Diamondback is the operator of 146 gross wells, with an average royalty interest of 7.0%, and the remaining 545 gross wells, with an average royalty interest of 1.8%, are operated by third parties. As of July 1, 2026, after giving effect to the Riverbend Acquisition, Viper’s footprint of mineral and royalty interests was approximately 90,212 net royalty acres. Our gross well information as of July 1, 2026, after giving effect to the Riverbend Acquisition: (1)   Average lateral length normalized to 10,000 feet. The 1,798 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 106 gross rigs operating on Viper’s acreage, 12 of which are operated by Diamondback. The 1,589 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 2026, as well as average production guidance for Q3 2026. This guidance gives effect to the Riverbend Acquisition that closed on July 1, 2026. (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. CONFERENCE CALL Viper will host a conference call and webcast for investors and analysts to discuss its results for the second quarter of 2026 on Tuesday, August 4, 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 Riverbend Acquisition, 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 its non-OPEC allies (OPEC+) 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 and changing political and social perspectives on climate change and other environmental, social and governance factors; risks from our cash dividend policy and uncertainties over our future dividends; 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 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 limited number of operators and our ability to replace operators in time of bankruptcy or default; changes in availability or cost of rigs, equipment, raw materials, supplies and oilfield services impacting our operators; the inherent uncertainties over our estimated reserves, the development of our proved undeveloped reserves or the yield from project areas on our properties; the geographical concentration of our producing properties and reserves in the Permian Basin and in a small number of producing horizons; 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 electrical power, internet and telecommunication infrastructure, information and computer systems, transportation, processing, storage and other facilities impacting our operators; severe weather conditions and natural disasters; geopolitics, regional conflicts, acts of war or terrorist acts and the governmental or military response thereto; changes in the financial strength of counterparties to the revolving credit facility and hedging contracts of our operating subsidiary; our substantial indebtedness and changes in our credit rating; failure to develop or acquire additional reserves and identify, complete or integrate acquisitions; our operational dependence on, and control by, Diamondback and potential conflicts of interest thereof; and other risks and factors discussed in Viper’s Annual Report on Form 10-K for the year ended December 31, 2025 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. (1)   Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.(2)   Realized price net of all deducts for gathering, transportation and processing.(3)   Hedged prices reflect the impact of cash settlements of our matured commodity derivative transactions on our average sales prices. NON-GAAP FINANCIAL MEASURES Adjusted EBITDA is a supplemental non-GAAP (as defined below) financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. Viper defines Adjusted EBITDA as net income (loss) attributable to the Company, plus net income (loss) attributable to non-controlling interest (“net income (loss)”) before interest expense, net, non-cash share-based compensation expense, depreciation, depletion and amortization, non-cash (gain) loss on derivative instruments, provision for (benefit from) income taxes and other non-cash or non-recurring operating expenses. Adjusted EBITDA is not a measure of net income as determined by United States’ generally accepted accounting principles (“GAAP”). Management believes Adjusted EBITDA is useful because it allows them to evaluate Viper’s operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income, royalty income, cash flow from operating activities or any other measure of financial performance or liquidity presented as determined in accordance with GAAP. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Viper defines cash available for distribution to the Company’s stockholders generally as an amount equal to its Adjusted EBITDA for the applicable period less cash needed for income taxes payable by Viper for the current period, debt service, contractual obligations, fixed charges and reserves for future operating or capital needs that the Board may deem appropriate, lease bonus income, net of tax, dividend equivalent rights payments, if any, preferred dividends, if any, and further adjusted for the tax impact from divestitures. Management believes cash available for distribution is useful because it allows them to more effectively evaluate Viper’s ability to return capital to stockholders by excluding the impact of non-cash financial items and short-term changes in working capital. Viper’s computations of Adjusted EBITDA and cash available for distribution may not be comparable to other similarly titled measures of other companies or to such measure in its credit facility or any of its other contracts. Through the payment of the dividend for the second quarter of 2026, Viper’s dividend policy also requires the Company to distribute, as variable dividends, at least seventy-five percent (75%) of cash available for distribution less base dividends declared and repurchased shares as part of its share buyback program for the applicable quarter. The following tables present a reconciliation of the GAAP financial measure of net income (loss) to the non-GAAP financial measures of Adjusted EBITDA and cash available for distribution: (1)   Reflects amounts attributable to the common stockholders’ ownership interest in Viper Energy, Inc. The following table presents a reconciliation of the GAAP financial measure of income (loss) before income taxes to the non-GAAP financial measure of pre-tax income attributable to the Company. Management believes this measure is useful to investors given it provides the basis for income taxes payable by Viper, which is an adjustment to reconcile Adjusted EBITDA to cash available for distribution to holders of the Company’s Class A common stock. Adjusted net income (loss) is a non-GAAP financial measure equal to net income (loss) attributable to the Company plus net income (loss) attributable to non-controlling interest, further adjusted for non-cash (gain) loss on derivative instruments, net, other non-cash or non-recurring operating expenses, if any, and related income tax adjustments. The Company’s computation of adjusted net income may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. Management believes adjusted net income helps investors in the oil and natural gas industry to measure and compare the Company’s performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors. The following table presents a reconciliation of the GAAP financial measure of net income (loss) attributable to the Company to the non-GAAP financial measure of adjusted net income (loss): (1)   The Company’s earnings (loss) per diluted share amount has been computed using the two-class method in accordance with GAAP. The two-class method is an earnings allocation which reflects the respective ownership among holders of Class A common shares and participating securities. Diluted earnings per share using the two-class method is calculated as (i) net income attributable to the Company, (ii) less reallocation of earnings attributable to participating securities, if any, and (iii) divided by diluted weighted average Class A common shares outstanding. NET DEBT The Company defines the non-GAAP measure of net debt as debt (excluding debt issuance costs, discounts and premiums) less cash and cash equivalents. Net debt should not be considered an alternative to, or more meaningful than, total debt, the most directly comparable GAAP measure. Management uses net debt to determine the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. The Company believes this metric is useful to analysts and investors in determining the Company’s leverage position because the Company has the ability to, and may decide to, use a portion of its cash and cash equivalents to reduce debt. (1) Excludes debt issuance costs, discounts & premiums. Derivatives As of the date of this news release, the Company had the following outstanding derivative contracts. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and Crude Oil Brent. When aggregating multiple contracts, the weighted average contract price is disclosed. (1) Q3 2026 Deferred Premium Put Options include the impact of 15,000 Bbl/d of WTI put spreads with a floor price of $50 per Bbl and short put price of $55 per Bbl. Investor Contact: Chip Seale+1 [email protected] Source: Viper Energy, Inc.; Diamondback Energy, Inc.

It has been about a month since the last earnings report for Viper Energy Partners (VNOM). Shares have lost about 7.9% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Viper Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Viper Energy reported first-quarter 2026 adjusted earnings per share of 55 cents, which beat the Zacks Consensus Estimate of 43 cents by 27.9%. The bottom line improved from the year-ago level of 54 cents. The company, with mineral and royalty interests in North America’s oil and gas resources, generated operating income of $511 million, beating the Zacks Consensus Estimate of $506.33 million by 0.9%. The metric also surged 108.6% year over year from the year-ago quarter’s figure of $245 million. The strong quarterly results are driven by a significant increase in oil-equivalent production and sharply higher royalty income. Production momentum was the key operating highlight of the quarter. VNOM reported oil volumes of 5,850 thousand barrels (MBbls), natural gas volumes of 18,088 million cubic feet (MMcf), natural gas liquids (NGL) volumes of 2,899 MBbls and combined production of 11,764 thousand oil-equivalent barrels (MBoe) compared with 2,818 MBbls, 7,221 MMcf, 1,142 MBbls and 5,164 MBoe, respectively, in the year-ago period. Oil production, natural gas production, NGL production and combined production surpassed our estimate of 5,702 MBbls, 17,060 MMcf, 2,632 MBbls and 11,178 MBoe, respectively. VNOM’s activity across the Permian Basin remained robust, with 655 gross horizontal wells turned to production during the quarter. Of these, Diamondback-operated wells represented 114 gross wells, while third-party operators contributed the balance, underscoring the broad operator exposure embedded in VNOM’s mineral and royalty portfolio. The overall average realized price per barrel of oil equivalent was $42.16 compared with $47.25 in the first quarter of 2025. Our estimate for the same was $43.04 per barrel. The average realized oil price during the quarter under review was $73.16 per barrel, up from $71.33 in the year-ago quarter. However, the figure surpassed our estimate of $63.17. The price of natural gas was 88 cents per thousand cubic feet, down from $2.08 in the year-ago quarter. Our estimate for the same was $3.28. The price for natural gas liquids was $17.94 a barrel, lower than $24.52 a year ago. Our estimate for the same was $24.62 per barrel. Viper’s operating income expansion was primarily driven by growth in royalty income. Royalty income totaled $496 million in the quarter, more than doubling from $244 million in the prior-year period. The strong performance reflected both higher production volumes and the scale of the asset base following recent portfolio evolution. The company also benefited from lease bonus income, which totaled $14 million, along with an additional $1 million in lease bonus income from related parties. These items added incremental support to total operating income, which reached $511 million versus $245 million a year ago. Costs rose materially as the asset base and production expanded. In the first quarter, total costs and expenses were $258 million, up from $90 million in the year-ago quarter. Depletion was the largest line item at $206 million compared with the year-ago quarter’s figure of $67 million, reflecting the larger producing property base and the accounting impact of higher production. Production and ad valorem taxes were $35 million, up from $17 million in the year-ago quarter. General and administrative expenses increased from the year-ago figure of $2 million to $8 million, with an additional $5 million in related-party G&A compared with $4 million in the year-ago period, as VNOM operated at a much larger scale than the prior-year period. VNOM reported consolidated net income of $215 million for the first quarter of 2026, with net income attributable to Viper of $97 million compared with $153 million and $75 million, respectively, in the year-ago period. The company also emphasized capital returns, with cash available for distribution to Class A shareholders of $204 million, or $1.05 per Class A share. VNOM declared a base dividend of 38 cents per Class A share and a variable dividend of 30 cents per share, bringing the total dividend to 68 cents per share. VNOM also repurchased 2.2 million shares for approximately $96 million during the quarter, contributing to a total return of capital of $183 million, or 94 cents per Class A share. Net cash provided by operating activities was $328 million, up from $201 million in the first quarter of 2025. As of March 31, 2026, Viper Energy’s cash and cash equivalents were $28 million. The company reported net long-term debt of $1,603 million. Management pointed to continued strength in underlying activity and provided updated production guidance. For the second quarter of 2026, VNOM expects net oil production to be in the range of 64.0-65.0 thousand barrels of oil per day (Mbo/d) and net total production to be in the range of 124.0-126.0 thousand oil-equivalent barrels per day (MBoe/d). For full-year 2026, the company expects net oil production to be between 64.5 Mbo/d and 66.5 Mbo/d and net total production to be in the range of 126.0-130.0 MBoe/d. The company announced a definitive agreement to acquire Riverbend Oil & Gas IX mineral and royalty interests for $337 million in cash and approximately 3.7 million shares of VNOM Class A stock, subject to closing adjustments. The transaction is expected to close in early third-quarter 2026 and is projected to add roughly 1,000 barrels of oil per day to the midpoint of standalone 2026 production guidance, while maintaining a leverage profile management characterized as modest on a pro forma basis. Since the earnings release, investors have witnessed a upward trend in estimates review. The consensus estimate has shifted 14.94% due to these changes. At this time, Viper Energy has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a score of F on the value side, putting it in the lowest quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Viper Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Viper Energy Inc. (VNOM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Viper Energy’s first quarter results met Wall Street’s revenue expectations and modestly exceeded adjusted profit forecasts. Management attributed the company’s performance to higher production volumes, driven by a significant increase in gross wells turned to production and continued development across the Midland and Delaware Basins. CEO Kaes Van't Hof pointed to the Riverbend acquisition as a strategic move to expand the company’s royalty acreage and production, while also emphasizing the disciplined capital allocation that led to a high return of capital for shareholders this quarter. Is now the time to buy VNOM? Find out in our full research report (it’s free). Revenue: $511 million vs analyst estimates of $508.8 million (109% year-on-year growth, in line) Adjusted EPS: $0.55 vs analyst estimates of $0.53 (3.3% beat) Adjusted EBITDA: $485 million vs analyst estimates of $460.6 million (94.9% margin, 5.3% beat) Operating Margin: 49.5%, down from 63.3% in the same quarter last year Market Capitalization: $9.09 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Greta Drefke (Goldman Sachs) asked about the scale of remaining Permian pure-play packages for consolidation. CEO Kaes Van't Hof described both mid-sized and larger opportunities and cited Viper’s positioning as the buyer of choice, while cautioning it remains challenging to close deals in the current market. Barclays Analyst questioned the capital allocation framework, particularly the mix between variable dividends and buybacks. Van't Hof explained the company’s primary focus on distributions, with stock repurchases used more selectively when valuation or seller profiles justify it. Neal Dingmann (William Blair) inquired about the level of third-party production acceleration factored into guidance and the current status of non-core assets. Management replied that little third-party acceleration is modeled, but upside is likely if oil prices remain high, and confirmed recent non-Permian asset sales have streamlined the portfolio. Paul Diamond (Citi) sought clarity on M&A pricing amid market volatility and expected steady cash tax rates. Management noted the Riverbend deal as a unique case where price expectations converged due to backwardated oil prices and outlined a stable ongoing tax rate. Derrick Whitfield (Texas Capital) asked about flexibility in Diamondback’s development plan to prioritize high-interest areas and the cadence of production growth. Van't Hof stated high-interest areas are moved forward in the plan, particularly in the Barnett near Spanish Trail, with further acceleration possible pending test results. In the coming quarters, the StockStory team will monitor (1) the pace of production growth from both Diamondback and third-party operators, (2) the successful integration and performance of Riverbend’s assets, and (3) the evolution of Viper Energy’s capital return strategy in response to M&A activity and oil price trends. Execution on additional acquisitions and the realization of operational synergies from new acreage will also be critical indicators. Viper Energy currently trades at $46.85, down from $50.95 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.