Results
VIPER ENERGY, INC., A SUBSIDIARY OF DIAMONDBACK ENERGY, INC., REPORTS THIRD QUARTER 2026 FINANCIAL AND OPERATING RESULTS
MIDLAND, Texas, November 2, 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 third quarter ended September 30, 2026.
THIRD QUARTER FINANCIAL HIGHLIGHTS
Net income of $300 million; Net income margin of 45%
Adjusted EBITDA 1 of $596 million; Adjusted EBITDA margin 1 of 90%
Cash flows from operating activities of $447 million; Operating cash flow margin of 68%
Free Cash Flow 1 of $520 million; Free Cash Flow margin 1 of 79%
Declared Q3 2026 base cash dividend of $0.50 per Class A common share
7Repurchased approximately 2.1 million Class A shares for approximately $90 million
Total debt of $2.4 billion as of September 30, 2026; Net debt 1 of $2.4 billion as of September 30, 2026
THIRD QUARTER OPERATIONAL HIGHLIGHTS
Average daily production of 69,076 bo/d (141,152 boe/d)
As previously announced, on July 1, 2026, completed the Riverbend Acquisition
8On September 1, 2026, closed the previously announced 2026 Drop Down of approximately 1,000 net
royalty acres in the Permian Basin from Diamondback and related subsidiaries in exchange for approximately 3.8 million OpCo units and an equivalent number of shares of Class B common stock (the “2026 Drop Down”)
Lease bonus income of $4 million from 21 executed leases
689 total gross (19.0 net) horizontal wells turned to production
As of September 30, 2026, Viper’s acreage had the following ongoing development activity:
104 active horizontal rigs, representing approximately 40% of the Permian Basin total
1,965 gross (38.9 net) horizontal wells 2 either being drilled or completed
1,404 gross (36.4 net) horizontal wells 2 with line-of-sight to near-term development
1 NON-GAAP DISCLOSURES - For a definition of Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, Free Cash Flow margin, Net Debt and reconciliations of such non-GAAP financial metrics to their respective most directly comparable GAAP metrics, please see “Non-GAAP Financial Measures” below.
2 Average lateral length of wells normalized to 10,000 feet.
MCELROY RANCH ACQUISITION
During the month of September, in two separate but related transactions, Viper acquired mineral and royalty interests from third-party sellers for an aggregate purchase price of approximately $529 million, subject to customary post-closing adjustments and including certain transaction costs and $49 million of deferred consideration payable in equal quarterly installments through June 2029 (collectively, the “McElroy Ranch Acquisition”).
Acquisition highlights are as follows:
Approximately 7,359 net royalty acres located in Upton and Crane Counties
Concentrated ownership of an approximately 12% net royalty interest across roughly 60,000 gross acres in an expected core geologic fairway of Barnett development in the western Midland Basin
Asset is 96% undeveloped with an expected 40.9 net inventory locations
Only 21 currently producing gross (1.7 net) horizontal locations across the entire Ranch
Chevron operates approximately 27% of the total net inventory, including approximately 50% of net undeveloped Barnett inventory
Diamondback operates approximately 15% of the total net inventory
Concentrated nature of mineral ownership will enable potential trades to accelerate development in the coming years
Offsetting Barnett wells that have at least 12 months of production data indicate an average estimated ultimate recovery of approximately 80 bo/ft
Stable production of approximately 400 bo/d from existing vertical wells
Forecasted peak production on the Ranch in the range of 5,000 bo/d over the next decade
PENDING BUCKHORN ACQUISITION
On September 14, 2026, Viper entered into a definitive purchase and sale agreement to acquire certain mineral and royalty interests from a group of entities collectively called Buckhorn Minerals (the “Pending Buckhorn Acquisition”) in exchange for $280 million cash and approximately 1.8 million shares of Viper’s Class A common stock, subject to customary closing adjustments.
The cash portion of the transaction is expected to be funded through a combination of cash on hand and borrowings under the Company’s revolving credit facility.
The transaction is expected to close in the fourth quarter of 2026, subject to the satisfaction of customary closing conditions.
Acquisition highlights are as follows:
1,552 net royalty acres, substantially all of which are in the Midland Basin; approximately 80% overlap with existing Viper acreage position
Midland Basin primary operators include ExxonMobil (47%) and Diamondback (29%)
Asset is 61% undeveloped with an expected 17.4 net inventory locations
Approximately 20% of Midland Basin acreage in units with zero producing horizontal wells; expected to support efficient full stack development in coming years
47% of net inventory in Viper’s estimation of remaining top quartile inventory in the Midland Basin, and 70% of net inventory within the top half of remaining inventory (as determined by expected internal rate of return for the respective operators)
Expected next 12 months’ average daily oil production of approximately 1,500 bo/d
Expect pro forma net debt at year end 2026 of approximately $2.4 billion, equating to pro forma leverage of approximately 1.0x last twelve months Adjusted EBITDA 3
3 NON-GAAP DISCLOSURES - For a definition of Adjusted EBITDA and Net Debt and reconciliations of such non-GAAP financial metrics to their respective most directly comparable GAAP metrics, please see “Non-GAAP Financial Measures” below.
OTHER RECENT EVENTS AND FORWARD OUTLOOK
Inclusive of the Pending Buckhorn Acquisition, initiating average daily production guidance for Q4 2026 of 70,000 to 71,000 bo/d (141,500 to 143,500 boe/d)
6Increasing average daily production guidance for full year 2026 to 67,250 to 67,750 bo/d (137,000 to 138,000 boe/d)
Repurchased approximately 0.4 million Class A shares in Q4 2026 (to date) for approximately $17 million
“Viper’s momentum carried through the third quarter, with average daily oil production growing more than six percent quarter over quarter on the strength of recent acquisitions and continued development activity from both Diamondback and our third-party operators.
4Reflecting this continued momentum, we are again increasing our full year 2026 production guidance to 67,500 barrels of oil per day at the midpoint.
5The quarter also marked the first under our new return of capital framework, through which we declared our increased base dividend of $0.50 per Class A share while continuing to opportunistically repurchase shares,” said Kaes Van’t Hof, Chief Executive Officer of Viper.
Mr. Van’t Hof continued, “The McElroy Ranch Acquisition and Pending Buckhorn Acquisition announced today represent the continued execution of our differentiated consolidation strategy.
1The acquisitions combine to extend the quality and duration of our inventory, adding nearly 60 net locations across two largely undeveloped assets.
2The McElroy Ranch asset brings concentrated mineral ownership in an expected core fairway of emerging Barnett development, while the Pending Buckhorn Acquisition adds high-quality Midland Basin inventory with approximately 80% overlap with our existing footprint.
Notably, we funded, or expect to fund, these acquisitions primarily with cash, delivering on the commitment we made when we revised our return of capital framework to pursue accretive M&A with minimal reliance on equity.
These acquisitions add years of visible development to Viper’s portfolio and reinforce the durability of our long-term per-share growth outlook.”
FINANCIAL UPDATE
Viper’s third quarter 2026 average unhedged realized prices were $87.65 per barrel of oil, $0.96 per Mcf of natural gas and $24.02 per barrel of natural gas liquids, resulting in a total equivalent realized price of $50.52/boe.
Viper’s third quarter 2026 average hedged realized prices were $86.55 per barrel of oil, $0.66 per Mcf of natural gas and $24.02 per barrel of natural gas liquids, resulting in a total equivalent realized price of $49.51/boe.
During the third quarter of 2026, the Company recorded total operating income of $661 million and consolidated net income (including non-controlling interest) of $300 million.
As of September 30, 2026, the Company had a cash balance of $10 million and total debt outstanding (excluding debt issuance costs, discounts and premiums) of $2.4 billion, resulting in net debt (as defined and reconciled below) of $2.4 billion.
Viper’s outstanding long-term debt as of September 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 $810 million of borrowings on its revolving credit facility, leaving approximately $1.2 billion available for future borrowings and approximately $1.2 billion of total liquidity.
THIRD 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 $0.50 per Class A common share for the third quarter of 2026, payable on November 19, 2026 to Class A common stockholders of record at the close of business on November 12, 2026.
During the third quarter of 2026, Viper repurchased approximately 2.1 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 $43.01 per share).
In total, since the initiation of Viper’s common stock repurchase program on November 9, 2020 through October 30, 2026, the Company has repurchased approximately 26.1 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 $844 million, excluding excise tax (average price of $32.30 per share) and has approximately $906 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 third quarter of 2026, Viper estimates that 689 gross (19.0 net 100% royalty interest) horizontal wells, normalized to lateral length of 10,000 feet, with an average royalty interest of 2.8% were turned to production on its acreage position.
Of these 689 gross wells, Diamondback is the operator of 123 gross wells, with an average royalty interest of 9.4%, and the remaining 566 gross wells, with an average royalty interest of 1.3%, are operated by third parties.
As of September 30, 2026, Viper’s footprint of mineral and royalty interests was approximately 98,098 net royalty acres.
Our gross well information for the third quarter ended September 30, 2026:
(1) Average lateral length normalized to 10,000 feet.
The 1,965 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, 11 of which are operated by Diamondback.
The 1,404 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 Q4 2026.
This guidance gives effect to the 2026 Drop Down and the McElroy Ranch Acquisition that closed during September 2026 as well as the Pending Buckhorn Acquisition that is expected to close in the fourth quarter of 2026.
Viper Energy, Inc.
Q4 2026 Net Production - Mbo/d70.00 - 71.00
Q4 2026 Net Production - Mboe/d141.50 - 143.50
Full Year 2026 Net Production - Mbo/d67.25 - 67.75
Full Year 2026 Net Production - Mboe/d137.00 - 138.00
Unit costs ($/boe)
Depreciation, Depletion and Amortization$14.75 - $17.25
Cash G&A$0.70 - $0.90
Non-Cash Share-Based Compensation$0.10 - $0.20
Net Interest Expense$1.90 - $2.40
Production and Ad Valorem Taxes (% of Revenue)~7%
Cash Tax Rate (% of Pre-Tax Income Attributable to the Company) (1)27% - 30%
(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.
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.
The information we post through our
investor relations website may be deemed material.
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.
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,
3including 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 such as the Riverbend Acquisition, McElroy Ranch Acquisition or Pending Buckhorn Acquisition; 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.
Moreover, new risks emerge from time to time.
(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.
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
Adjusted EBITDA and Adjusted EBITDA margin are supplemental non-GAAP (as defined below) financial measures that are used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies.
The Company 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, impairment, non-cash (gain) loss on derivative instruments, provision for (benefit from) income taxes and other non-cash or non-recurring operating expenses.
The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by total operating income.
Adjusted EBITDA and Adjusted EBITDA margin are not measures of net income as determined by United States’ generally accepted accounting principles (“GAAP”).
Management believes Adjusted EBITDA and Adjusted EBITDA margin are useful because they allow them to evaluate the Company’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.
Adjusted EBITDA margin should not be considered as an alternative to, or more meaningful than, net income margin, gross margin, or any other measure of financial performance or liquidity presented as determined in accordance with GAAP.
Certain items excluded from Adjusted EBITDA and Adjusted EBITDA margin 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 or Adjusted EBITDA margin.
The following table presents a reconciliation of the GAAP financial measure of net income (loss) to the non-GAAP financial measure of Adjusted EBITDA and a reconciliation of the GAAP ratio of net income margin to the non-GAAP ratio of Adjusted EBITDA margin:
(1) Net income margin is calculated as net income (loss) divided by total operating income of $661 million for the three months ended September 30, 2026 and $2.28 billion for the twelve months ended September 30, 2026.
Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total operating income.
OPERATING CASH FLOW BEFORE WORKING CAPITAL CHANGES, FREE CASH FLOW AND FREE CASH FLOW MARGIN
Operating cash flow before working capital changes, which is a non-GAAP financial measure, represents net cash provided by operating activities as determined under GAAP without regard to changes in operating assets and liabilities.
The Company believes operating cash flow before working capital changes is a useful measure of the Company’s ability to generate cash to fund acquisition activities, service debt or pay dividends.
The Company also uses this measure because changes in operating assets and liabilities relate to the timing of cash receipts and disbursements that the Company may not control and may not relate to the period in which the operating activities occurred.
The Company defines Free Cash Flow, which is a non-GAAP financial measure, as operating cash flow before working capital changes in excess of capital expenditures.
The Company defines Free Cash Flow margin as Free Cash Flow divided by total operating income.
The Company believes that Free Cash Flow and Free Cash Flow margin are useful to investors as they provide a measure to compare cash flow from operating activities across periods on a consistent basis.
These measures should not be considered as alternatives to, or more meaningful than, net cash provided by operating activities as an indicator of liquidity.
The Company's computations of Free Cash Flow and Free Cash Flow margin may not be comparable to other similarly titled measures of other companies.
The following table presents a reconciliation of the GAAP financial measure of net cash provided by operating activities to the non-GAAP measure of operating cash flow before working capital changes and to the non-GAAP measure of Free Cash Flow and a reconciliation of the GAAP ratio of operating cash flow margin to the non-GAAP ratio of Free Cash Flow margin:
Viper Energy, Inc.
Operating cash flow before working capital changes, Free Cash Flow and Free Cash Flow margin
(unaudited, in millions)
Three Months Ended September 30, 2026
Net cash provided by operating activities$447
21 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.