Viper Energy Reports Q3 2026 Results, Boosts Guidance & Details Key Permian Acquisitions

Executive Summary

On November 2, 2026, Viper Energy, Inc. (NASDAQ: VNOM), a subsidiary of Diamondback Energy, Inc., filed a Current Report on Form 8-K under Item 2.02 reporting financial and operational results for the third quarter ended September 30, 2026, along with key acquisition and guidance updates.

Key Financial Highlights

• Net Income: $300 million (45% net margin).
• Adjusted EBITDA: $596 million (90% Adjusted EBITDA margin).
• Cash Flows from Operations: $447 million (68% operating cash flow margin).
• Free Cash Flow: $520 million (79% Free Cash Flow margin).
• Liquidity & Leverage: Total debt outstanding stood at $2.4 billion with $10 million in cash, resulting in net debt of $2.4 billion. Viper maintains approximately $1.2 billion in borrowing capacity and liquidity.
• Realized Pricing (Hedged): Average realized prices were $86.55/bbl of oil, $0.66/Mcf of natural gas, and $24.02/bbl of NGLs ($49.51/boe total equivalent).

Capital Return Framework

• Base Cash Dividend: Declared a Q3 2026 base dividend of $0.50 per Class A share, payable on November 19, 2026 to stockholders of record as of November 12, 2026.
• Share Repurchases: Repurchased approximately 2.1 million Class A common shares during Q3 2026 for $90 million (~$43.01/share). An additional ~0.4 million shares were repurchased early in Q4 2026 for ~$17 million, leaving roughly $906 million remaining under its authorization.

Strategic Acquisitions

1. McElroy Ranch Acquisition: Closed in September 2026 for ~$529 million aggregate consideration ($49 million deferred through June 2029). The deal adds ~7,359 net royalty acres in Upton and Crane Counties across roughly 60,000 gross acres with 40.9 net inventory locations (96% undeveloped) in the Barnett fairway.
2. Pending Buckhorn Acquisition: Definitive agreement entered on September 14, 2026 to acquire 1,552 net royalty acres in the Midland Basin for $280 million cash and ~1.8 million Class A shares. Expected closing in Q4 2026.

Guidance Update

• Q4 2026 Production: Initiated guidance of 70,000 to 71,000 bo/d (141,500 to 143,500 boe/d).
• Full Year 2026 Production: Raised to 67,250 to 67,750 bo/d (137,000 to 138,000 boe/d), driven by acquisition contributions and strong development activity from Diamondback and third-party operators.