VNOM Sub (VNOM) Company Report

Viper Energy reported a 48% increase in total third-quarter return of capital per class A share versus the second quarter, returning 85% of cash available for distribution to stockholders, including over $90 million in share repurchases and an almost 10% increase in its dividend.
The company anticipates mid-single-digit organic oil production growth in 2026 from its fourth-quarter 2025 estimated production, implying double-digit year-over-year growth in oil production per share relative to 2025.
Following the non-Permian asset sale, which is expected to yield approximately $610 million in net proceeds, Viper aims to reduce its net debt closer to its $1.5 billion target, with line of sight to return nearly 100% of cash available for distribution to stockholders.
The CTO acquisition has bolstered Viper's position, providing broad exposure to third-party operators across the Midland and Delaware basins, with its current acreage capturing almost half of all third-party activity in the Permian.

Nov 4, 2025, 5:00 PM

VNOM Reports Strong Q3 2025 Performance and Outlines Capital Allocation Strategy

VNOM

Earnings

Guidance Update

Share Buyback

Viper Energy reported strong Q3 2025 performance, bolstered by the CTO acquisition and organic growth, with Q4 2025 oil production guidance implying a roughly 20% increase in oil production per share compared to the same quarter last year.
The company anticipates mid-single-digit organic oil production growth in 2026 from Q4 2025 estimated production, which implies double-digit year-over-year growth in oil production per share relative to 2025.
In Q3 2025, Viper returned 85% of cash available for distribution to stockholders, including a dividend increase of almost 10% relative to the prior quarter and over $90 million in share repurchases.
Following the non-Permian asset sale, which is expected to generate $610 million in net proceeds, Viper aims to reach its long-term net debt target of $1.5 billion and return nearly 100% of cash available for distribution to stockholders, with aggressive buybacks planned towards year-end.

Nov 4, 2025, 5:00 PM

Viper Energy Reports Q3 2025 Results and Strategic Updates

VNOM

Earnings

Guidance Update

M&A

Viper Energy reported Q3 2025 pro forma cash available for distribution of $0.97/share and a total return of capital to Class A stockholders of $0.83/share, representing an 85% payout ratio. This included a total base-plus-variable dividend of $0.58/share and the repurchase of 2.4 million shares for $90 million.
Average production for Q3 2025 was 56,087 bo/d. The company provided Q4 2025 average production guidance of 65,000 - 67,000 bo/d (net oil) and 124,000 - 128,000 boe/d (net total).
Viper Energy closed the acquisition of Sitio Royalties Corp. on August 19, 2025, and subsequently refinanced senior notes and legacy Sitio debt, lowering the weighted average interest rate by approximately 150 basis points. The company also entered into an agreement to sell its non-Permian Basin assets for approximately $670 million, with the sale expected to close in Q1 2026.
As of September 30, 2025, pro forma net debt was $1.6 billion and pro forma liquidity was $1.5 billion. Additionally, $302 million remained on the $750 million share repurchase program.

Nov 4, 2025, 5:00 PM

Viper Energy, Inc. Reports Q3 2025 Results, Announces Divestiture, and Provides Q4 Guidance

VNOM

Earnings

M&A

Dividends

Viper Energy, Inc. reported a net loss attributable to Viper of $77 million, or $0.52 per Class A common share, for Q3 2025, primarily due to a $360 million non-cash impairment. Consolidated adjusted net income for the quarter was $156 million, or $1.04 per Class A common share.
The company declared a total Q3 2025 base-plus-variable cash dividend of $0.58 per Class A common share and repurchased 2.4 million shares for approximately $90 million. This represents a total return of capital of $140 million, or 85% of pro forma cash available for distribution.
Viper completed the $4.0 billion Sitio Royalties Corp. acquisition on August 19, 2025, and entered into a definitive agreement to sell its non-Permian assets for $670 million, with the divestiture expected to close in Q1 2026.
Q3 2025 average production was 56,087 bo/d (oil) and 108,859 boe/d (total), with Q4 2025 average daily production guidance initiated at 65,000 to 67,000 bo/d (oil) and 124,000 to 128,000 boe/d (total).

Nov 3, 2025, 9:04 PM

Viper Energy Considers Sale of Non-Permian Assets

VNOM

M&A

Dividends

Viper Energy is exploring the sale of assets acquired through its $4.1 billion purchase of Sitio Royalties Corp., specifically those located outside the core Permian Basin.
This potential divestiture aligns with a broader industry trend of shale companies pruning portfolios to reduce debt and prepare for lower oil prices.
Viper Energy maintains a strong liquidity position with a current ratio of 6.15 and a manageable debt-to-equity ratio of 0.32, though it has a negative free cash flow yield of -18.71%.
A Beneish M-Score of -1.51 for Viper Energy raises caution about potential financial manipulation, and its high dividend payout ratio of 0.73 could affect dividend sustainability.
Parent company Diamondback Energy faces financial caution signals, including an Altman Z-Score of 1.4 (indicating potential distress) and recent insider selling of 20,400 shares.

Oct 9, 2025, 10:06 PM

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