Viper Energy, Inc.

Viper Energy, Inc. (Nasdaq: VNOM) owns mineral and royalty interests in oil and gas properties, mainly in the Permian Basin. Operators drill and run the wells; Viper receives income from production on its interests. Diamondback Energy controls the company.

The current listed holding company succeeded the former Viper entity in August 2025 as part of the Sitio transaction. Public Class A shareholders' earnings are reported separately from income attributable to other owners of the operating business.

A changed dividend policy

In August 2026, Viper raised its quarterly base dividend from $0.38 to $0.50 per Class A share, effective Q3, and removed its commitment to return at least 75% of quarterly cash available for distribution. The previous Q2 declaration totaled $0.67, including a $0.29 variable dividend.

The first Q3 declaration under the new policy is $0.50, payable November 19 to holders of record November 12. The base rose about 32%, while the total dividend declined about 25%. Viper also spent $90 million on Q3 Class A buybacks, excluding excise tax.

Quarterly financial results

Amounts are USD millions, except diluted earnings per Class A share. Q3 covers July through September 2026; Q2 covers April through June.

Adjusted EBITDA adds back interest, taxes, depreciation, depletion and amortization, share-based compensation, noncash derivative changes and specified other items. The Q3 group figure includes $284 million attributable to noncontrolling owners, leaving $312 million attributable to Viper.

A year earlier, Viper reported a $77 million attributable net loss, while the consolidated group recorded a $360 million impairment. The Sitio acquisition closed on August 19, 2025, so the year-earlier quarter contains only part of that business's results.

Cash flow and debt

The Q3 company-defined free-cash-flow figure of $520 million excludes $73 million of working-capital outflow. It also excludes acquisition spending of $843 million. Operating cash flow was $447 million.

At September 30, debt principal was $2.410 billion, up from $1.695 billion at June 30. Cash and equivalents declined to $10 million from $77 million. Company-defined net debt was $2.400 billion, versus $1.618 billion. The balance-sheet carrying amount of long-term debt was $2.394 billion.

Revolver borrowings rose to $810 million from $95 million, with about $1.2 billion still available. For year-end, Viper forecasts approximately $2.4 billion of net debt and leverage of about 1.0 times trailing adjusted EBITDA, including the pending Buckhorn deal.

Completed and pending acquisitions

Riverbend closed on July 1, 2026, for approximately $339 million in cash, including $25 million already held in escrow, plus 3,691,796 Class A shares, subject to adjustments. On September 1, Viper completed a Diamondback royalty acquisition using approximately 3.8 million operating-company units and an equal number of Class B shares.

The September McElroy Ranch purchases totaled approximately $529 million, including transaction costs and $49 million deferred in equal quarterly installments through June 2029, subject to adjustments. The asset is 96% undeveloped. Viper expects peak production of about 5,000 barrels of oil a day over the next decade.

The pending Buckhorn purchase requires $280 million in cash and approximately 1.8 million Class A shares, subject to adjustments. Viper expects a Q4 closing. The acquired interests are 61% undeveloped.

Production against the earlier forecast

Q3 oil production averaged 69,076 barrels a day, compared with 65,077 in Q2 and the August Q3 forecast of 67,500 to 68,500. The comparison includes acquisitions.

The November full-year forecast is 67,250 to 67,750 barrels a day, up from 66,000 to 67,250 in August. Q4 guidance is 70,000 to 71,000, including the pending Buckhorn purchase.