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Viper Energy offers a compelling royalty model, strong cash flow, and shareholder-friendly capital returns, but current valuation limits its appeal. VNOM trades at 17x forward earnings with a 5%+ yield, but peers like Black Stone Minerals and Dorchester Minerals offer higher yields and cheaper multiples. Recent asset sales improved VNOM's balance sheet, enabling debt reduction, dividend hikes, and aggressive buybacks, but production growth appears well priced in.

June 30, 2026 18:01 ET  | Source: Viper Energy, Inc.

MIDLAND, Texas, June 30, 2026 (GLOBE NEWSWIRE) -- Viper Energy, Inc. (NASDAQ: VNOM) (“Viper”), a subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), today announced that it plans to release second quarter 2026 financial results on August 3, 2026 after the market closes.

In connection with the earnings release, 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 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. For more information, please visit www.viperenergy.com.

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 in the Permian Basin in West Texas.  For more information, please visit www.diamondbackenergy.com.

Investor Contact:
Chip Seale
+1 432.247.6218
[email protected]

Viper Energy Partners (VNOM - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for Viper Energy basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Viper Energy imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Viper EnergyThis oil and gas company is expected to earn $2.26 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Viper Energy. Over the past three months, the Zacks Consensus Estimate for the company has increased 75.7%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Viper Energy to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

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Viper Energy, Inc. (NASDAQ:VNOM | VNOM Price Prediction) collects royalty income from Permian Basin oil and gas production without spending a dollar on drilling, and its dividend splits into a fixed base and a variable piece that moves directly with oil prices.

Royalties Without Drilling Costs: Viper’s Income Model Viper owns mineral and royalty interests, receiving a percentage of revenue from every barrel produced on its acreage without bearing drilling costs. The company is majority-owned by Diamondback Energy (NASDAQ:FANG), which operates a significant portion of the wells on Viper’s land. When operators drill and produce, Viper collects a royalty check. Royalty income rises and falls with oil prices, feeding directly into the variable dividend.

The base dividend has held steady at $0.30–$0.33 per share across recent quarters. The variable piece has moved considerably: $0.35 in Q4 2024, $0.27 in Q1 2025, and $0.20 in Q2 2025. That compression tracks directly with oil price declines, as realized oil prices fell from about $81 per barrel in Q2 2024 to about $64 per barrel in Q2 2025.

The Oil Price Cushion Is Real, But Volatile WTI crude has rebounded sharply in 2026, trading near $100 per barrel, well above the $50 WTI level where Viper’s CEO says leverage stays below 1.0x. That is a meaningful cushion. The CEO committed to returning up to 100% of cash available for distribution once net debt reaches its $1.5 billion target. At current prices, that policy supports a larger variable payout than investors saw during the 2025 oil price trough.

The risk is that oil moved from a low of about $55 in December 2025 to a high of nearly $115 in early April 2026, a swing of nearly $60 per barrel inside four months. That volatility is the baseline operating environment, meaning the variable dividend can compress quickly when prices pull back.

Cash Flow Covers the Base, But Acquisitions Complicate the Picture Operating cash flow reached $1.053 billion in FY 2025 against a dividend payout of $328 million, implying coverage of roughly 3x on an operating basis. The problem is that FY 2025 capital expenditures totaled $2.424 billion, almost entirely acquisition-related, pushing free cash flow deeply negative. Viper bridged that gap with $1.357 billion in financing inflows.

The acquisitions are designed to grow the royalty base that funds future dividends, not to drain cash permanently. The Drop Down from Diamondback closed May 1, 2025, expanding net royalty acres from 37,573 to 60,725, and the all-equity Sitio Royalties deal added further scale. These transactions added $96 million in annual interest expense in FY 2025, up from $74 million in FY 2024, and contributed to a net loss of $68 million for the full year.

Production Growth Supports the Long-Term Case Daily oil production reached 41,615 bo/d in Q2 2025, up from 26,352 bo/d in Q2 2024, and Q3 2025 guidance pointed to 46,000–49,000 bo/d. The Sitio deal pushes pro forma production toward 64,000–68,000 bo/d. More production at any given oil price means more royalty income, the structural argument for dividend growth over time.

The share count has grown alongside production, rising from 102.98 million in FY 2024 to 142.53 million in FY 2025, a 38% increase driven by equity-funded acquisitions. Per-share dividend sustainability depends on production growing faster than the share count, which is the bet management is making.

Base Dividend Looks Safe; Variable Payout Moves With Oil The base dividend of roughly $0.30–$0.33 per quarter looks safe. Operating cash flow covers it by a wide margin, the balance sheet carries an investment-grade rating, and the royalty model requires no ongoing capital expenditure to sustain production. The variable dividend will fluctuate with oil prices. Shares have returned nearly 28% over the past year, so total return investors have fared well even as the variable payout compressed.

At nearly $47 per share, Viper suits investors who want royalty-style income exposure to the Permian Basin and can accept that the total quarterly payout will move with oil. Investors who need predictable, fixed income should look elsewhere.

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Viper Energy (NASDAQ:VNOM | VNOM Price Prediction) owns mineral and royalty interests across the Permian Basin, which means it collects a slice of every barrel pumped on its acreage without spending a dollar on drilling. That setup gives it a roughly 4.6 percent dividend yield and a true “zero‑CapEx” model. With West Texas Intermediate back below the $100 mark and sitting around $91, the natural question is whether that payout can hold up. This article walks through how Viper actually generates cash, what the numbers say about the durability of its dividend, and where the pressure points could show up as we move toward late 2026.

How Viper Turns Acreage Into Income Viper is essentially a royalty collector. Operators, including Diamondback and ExxonMobil, handle all the drilling and completion work across their roughly 85,700 net royalty acres. About three‑quarters of that footprint sits in the Midland Basin, and as of December 31, 2025, there were around 1,388 gross horizontal wells in active development on Viper‑owned acreage. Because Viper takes a cut of revenue off the top and doesn’t spend on drilling, it has averaged 100 percent gross margins over the past five years and is running at about a 93 percent adjusted EBITDA margin on a trailing twelve‑month basis.

The dividend breaks into two parts: a steady base payout that has hovered between $0.30 and $0.33 per share, and a variable layer that rises and falls with realized oil prices. That variable piece slipped from $0.35 in Q4 2024 to $0.27 in Q1 2025, then to $0.20 in Q2 2025, as crude prices eased. The most recent quarterly distribution was $0.52, paid on March 12, 2026.

Coverage, Leverage, and the Commodity Tether On an operating basis, the dividend looks well covered. Full-year 2025 operating cash flow of $1.053 billion covered the $328 million common dividend payout by roughly 3x. Q2 2025 revenue grew 38% year over year to $297 million, with reported EPS of $0.41. Production reached 41,615 bo/d, and management has guided to 61,000 to 67,000 bo/d of oil and 120,000 to 132,000 boe/d of total production in 2026 following the Sitio deal.

Free cash flow ran negative in 2025. FY 2025 capital outlays totaled $2.42 billion, resulting in a negative free cash flow of $1.37 billion. The dividend gap was filled by $1.36 billion of financing inflows. The spike reflects the $4.10 billion all-equity Sitio Royalties acquisition, plus the earlier Drop Down from Diamondback, not ongoing drilling costs.

CEO Kaes Van’t Hof has framed the balance sheet around a pro forma net debt target of $1.5 billion, roughly 1.0x leverage at $50 WTI, stating: “Should net debt be at or below $1.5 billion, stockholders should expect us to return all excess cash up to 100% of cash available for distribution generated in a quarter.”

What the Oil Curve Implies WTI has whipsawed between a 12-month low of $55.44 on December 16, 2025, and a high of $114.58 on April 7, 2026. Polymarket contracts show the $80 downside level has already been resolved, yes, on April 17, 2026, while the probability of WTI touching $70 or below is 3%. During the 2023 oil swoon, quarterly payouts fell to $0.33 to $0.36, and in the 2020 crash, they collapsed to $0.03 to $0.10.

Total Return and Dividend Durability Shares trade near $47, up 24% year to date and 275% over five years. The average analyst target of $56.24 implies 19% upside, with 18 buy ratings against one hold.

The base dividend looks secure at current strip prices, given 3x operating coverage and sub-1x leverage at $50 WTI. The variable layer is mechanically tied to realized oil, and the 2023 drop from $0.65 to $0.33 is the template for what a sustained sub-$70 environment would do. Viper fits a portfolio seeking Permian royalty exposure with a trade-off: a reliable base stream plus a kicker that swings with crude. The headline 4.6% yield reflects both the steady base and a variable component that has historically swung with oil price drawdowns.

Key Takeaways VNOM heads into Q1 after beating estimates for four straight quarters, with solid production gains.WMB shows earnings beat potential with positive ESP and pipeline scale supporting steady growth outlook.RIG stands out with strong ESP and expected triple-digit earnings growth despite sector headwinds. The oil and energy sector enters the first-quarter 2026 earnings season following a period marked by sharp volatility and shifting market dynamics. A major geopolitical disruption, including the effective closure of a key global oil transit route, significantly tightened supply and drove a rebound in crude prices after an earlier downtrend. This sudden shift impacted global inventories and created varied outcomes across subsectors. While some companies benefited from higher prices and improved volumes, others faced operational challenges due to regional exposure. Against this backdrop of uncertainty, investors are closely watching how companies have navigated these disruptions. With so many moving pieces, the key question remains: Could certain energy stocks outperform expectations and deliver results stronger than anticipated? Let’s take a closer look.

Year-Over-Year Commodity Price ComparisonIn the first quarter of 2026, West Texas Intermediate crude averaged $71.98 per barrel, slightly up from $71.84 a year earlier. Given crude oil’s sensitivity to geopolitical tensions, supply disruptions and economic cycles, this rise points to a broader shift in global supply caused by military action in the Middle East and the subsequent closure of the Strait of Hormuz.

However, the Brent price increased more sharply than the WTI price due to exposure to higher shipping costs and the U.S. plan to release crude oil from the Strategic Petroleum Reserve, which helped limit WTI price increases.

Meanwhile, natural gas prices also trended higher in the first quarter of 2026, with Henry Hub averaging $4.79 per million British thermal units (MMBtu) compared with $4.15 a year ago. The uptick was driven by a combination of geopolitical tensions, resilient demand and an early-season cold snap. A colder-than-usual and early winter significantly lifted heating demand, tightening supply-demand balances and supporting prices. Additional upside came from rising LNG feed gas demand and stronger power consumption, particularly from rapidly expanding AI-driven data centers.

How Rising Oil Prices Are Affecting the Energy Sector's Q1 EarningsApproximately 32% of S&P 500 oil and energy companies have released their first-quarter results so far. Per the latest Earnings Trends report, the oil/energy sector is emerging as one of the most dynamic and pivotal segments in the current earnings cycle, though its near-term performance contrasts sharply with its forward outlook. The early reporters within the sector have shown resilience, with 100% beating EPS estimates and 87.5% surpassing revenue expectations, indicating stronger-than-anticipated operational execution.

When looking at the full sector-wide blended outlook for first-quarter 2026, which combines both reported and estimated results, the picture is different. In the updated blended estimate, the sector is expected to post an 8.4% year-over-year earnings decline, making it one of the few sectors in negative territory despite modest revenue growth of 1.4%. This weakness largely reflects tough prior-year comparisons and margin normalization after a volatile period.

Oil/Energy Companies’ Earnings in FocusIn light of this context, let’s explore how the following oil and energy companies are shaping up ahead of their first-quarter earnings reports on May 4 and how they’re poised to tackle the challenges they face.

Our proprietary model indicates that a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Let’s explore four prominent companies and evaluate how they are positioned before their first-quarter earnings release.

Viper Energy, Inc. (VNOM - Free Report) is slated to report first-quarter results after the closing bell. In the last reported quarter, this Midland, TX-based oil & gas exploration and production company’s earnings beat the Zacks Consensus Estimate by 14.8% on a significant increase in oil-equivalent production. VNOM beat the earnings estimates in each of the trailing four quarters, delivering an average surprise of 15.2%. This is depicted in the chart below:

Our proven model does not conclusively predict an earnings beat for Viper Energy this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for VNOM’s first-quarter earnings and revenues is pegged at 45 cents per share and $507.4 million, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.

On the other hand, The Williams Companies, Inc. (WMB - Free Report) is scheduled to report quarterly earnings following the market's close. Our proven model predicts an earnings beat for Williams Companies this time around. This is because it has an Earnings ESP of +1.56% and a Zacks Rank #3 at present.

Williams Companies is a premier energy infrastructure provider in North America that has a widespread pipeline system of more than 32,000 miles of pipelines, including the Transco and Northwest Pipeline systems.

The Zacks Consensus Estimate for Williams Companies’ first-quarter earnings is pegged at 64 cents per share, indicating 6.7% growth from the prior-year reported figure. WMB’s earnings beat the Zacks Consensus Estimate once in the last four quarters and missed thrice, delivering an average negative surprise of 1.5%.

This is depicted in the chart below:

Diamondback Energy, Inc. (FANG - Free Report) is scheduled to report quarterly earnings following the market's close. Our proven model does not conclusively predict an earnings beat for Diamondback Energy this time around. This is because it has an Earnings ESP of 0.00% and a Zacks Rank #1 at present.

Diamondback Energy is an independent oil and gas exploration and production company with its primary focus on the Permian Basin, where it has approximately 869,000 net acres.

The Zacks Consensus Estimate for Diamondback Energy’s first-quarter earnings is pegged at $3.33 per share, indicating a 26.6% decline from the prior-year reported figure. FANG’s earnings beat the Zacks Consensus Estimate thrice in the last four quarters and missed once, delivering an average surprise of 3.3%.

This is depicted in the chart below:

Finally, Transocean Ltd. (RIG - Free Report) is scheduled to report quarterly earnings after the closing bell. Our proven model predicts an earnings beat for Transocean this time around. This is because it has an Earnings ESP of +14.87% and a Zacks Rank #3 at present.

Transocean is the world’s largest offshore drilling contractor and leading provider of drilling management services.

The Zacks Consensus Estimate for RIG’s first-quarter earnings is pegged at 7 cents per share, indicating 170% growth from the prior-year reported figure. RIG’s earnings beat the Zacks Consensus Estimate thrice in the last four quarters while missing once, delivering an average surprise of 22.2%.

This is depicted in the chart below:

MIDLAND, Texas, May 04, 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 first quarter ended March 31, 2026.

FIRST QUARTER HIGHLIGHTS

Q1 2026 average production of 65,000 bo/d (130,711 boe/d)Q1 2026 lease bonus income of $15 millionQ1 2026 consolidated net income (including non-controlling interest) of $215 million; net income attributable to Viper of $97 million, or $0.53 per Class A common share; consolidated adjusted net income of $221 million, or $1.22 per Class A common shareQ1 2026 cash available for distribution to Viper’s Class A common shares (as defined and reconciled below) of $204 million, or $1.05 per Class A common shareDeclared Q1 2026 base cash dividend of $0.38 per Class A common share; implies a 3.0% annualized yield based on the May 1, 2026 Class A common share closing price of $49.90Declared Q1 2026 variable cash dividend of $0.30 per Class A common share; total base-plus-variable dividend of $0.68 per Class A common share implies a 5.5% annualized yield based on the May 1, 2026 Class A common share closing price of $49.90During Q1 2026, repurchased 2.2 million shares of the Company’s common stock (including both Class A shares and Class B shares paired with OpCo units) for an aggregate purchase price of approximately $96 million, excluding excise tax (average price of $43.59 per share)Total Q1 2026 return of capital to Class A stockholders of $183 million, or $0.94 per Class A common share, represents 90% of cash available for distribution655 total gross (15.3 net 100% royalty interest) horizontal wells turned to production on Viper’s Permian Basin acreage during Q1 2026 with an average lateral length of 11,583 feetOn February 9, 2026, closed the divestiture of Viper’s non-Permian assets to an affiliate of GRP Energy Capital LLC and Warwick Capital Partners LLP for net proceeds of approximately $610 million (including transaction costs and customary post-closing adjustments)As of March 31, 2026, the Company had $28 million in cash and total debt outstanding (excluding debt issuance costs, discounts and premiums) of $1.62 billion, resulting in net debt (as defined and reconciled below) of $1.59 billion, or a decrease of $600 million in net debt from December 31, 2025 MAY 2026 ACQUISITION
On May 1, 2026, the Company and Viper Energy Partners LP, an indirect wholly owned subsidiary of the Company, entered into a definitive purchase and sale agreement to acquire 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. (collectively, “Riverbend”) (the “Riverbend Acquisition”) in exchange for $337 million in cash and approximately 3.7 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 credit facility. This transaction is expected to close in early Q3 2026, subject to customary closing adjustments. Acquisition highlights are as follows:

3,064 net royalty acres, roughly evenly split between the Midland and Delaware Basins; approximately 75% overlap with existing Viper acreage positionMidland Basin primary operators include ExxonMobil and Diamondback; Delaware Basin primary operators include ConocoPhillips, EOG Resources, Occidental Petroleum and Permian ResourcesExpected next 12 months’ average production of approximately 2,000 bo/d (~4,000 boe/d)Expected to add approximately 1,000 bo/d of production to the midpoint of standalone Viper’s full year 2026 production guidance range of 64,500 - 66,500 bo/dExpected to be immediately accretive to key financial and operational metricsExpect pro forma net debt upon closing of approximately $1.8 billion, equating to pro forma leverage of approximately 1.1x at $55 per barrel WTI “Viper delivered a strong start to 2026 as we continued to differentially execute on all aspects of our business. Production during the quarter exceeded expectations, and that momentum is carrying into an increased growth outlook for the remainder of 2026,” said Kaes Van’t Hof, Chief Executive Officer of Viper.

Mr. Van’t Hof continued, “Viper further delivered on our comprehensive capital allocation strategy, which we are uniquely positioned to execute given our capital-light business model and high free cash flow margins. During the quarter, we paid down nearly $600 million in debt, repurchased almost $100 million in shares and are now set to pay a dividend providing an approximate 5.5% annualized yield. We also today announced the Riverbend Acquisition, which is a continuation of our strategy to consolidate the highly fragmented minerals and royalty sector in an accretive, yet disciplined, manner.”

FINANCIAL UPDATE

Viper’s first quarter 2026 average unhedged realized prices were $73.16 per barrel of oil, $0.88 per Mcf of natural gas and $17.94 per barrel of natural gas liquids, resulting in a total equivalent realized price of $42.16/boe.

Viper’s first quarter 2026 average hedged realized prices were $72.31 per barrel of oil, $2.27 per Mcf of natural gas and $17.94 per barrel of natural gas liquids, resulting in a total equivalent realized price of $43.86/boe.

During the first quarter of 2026, the Company recorded total operating income of $511 million and a consolidated net income (including non-controlling interest) of $215 million.

As of March 31, 2026, the Company had a cash balance of $28 million and total debt outstanding (excluding debt issuance costs, discounts and premiums) of $1.62 billion, resulting in net debt (as defined and reconciled below) of $1.59 billion. Viper’s outstanding long-term debt as of March 31, 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 $20 million of borrowings on its revolving credit facility, leaving approximately $1.48 billion available for future borrowings and approximately $1.51 billion of total liquidity.

On February 9, 2026, the Company closed the Non-Permian Divestiture for net proceeds of approximately $610 million (including transaction costs and customary post-closing adjustments), which were utilized to (i) fully repay $500 million of borrowings on its term loan, (ii) fully repay $90 million of then-outstanding borrowings under its revolving credit facility and (iii) for general corporate purposes.

FIRST 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 first quarter of 2026, payable on May 21, 2026 to Class A common stockholders of record at the close of business on May 14, 2026.

The Board also declared a variable cash dividend of $0.30 per Class A common share for the first quarter of 2026, payable on May 21, 2026 to Class A common stockholders of record at the close of business on May 14, 2026.

During the first quarter of 2026, Viper repurchased 2.2 million shares of the Company’s common stock (including both Class A shares and Class B shares paired with OpCo units) for an aggregate purchase price of approximately $96 million, excluding excise tax (average price of $43.59 per share).

In total, since the initiation of Viper’s common stock repurchase program on November 9, 2020 through May 1, 2026, the Company has repurchased approximately 20.8 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 $610 million, excluding excise tax (average price of $29.36 per share) and has approximately $1.14 billion remaining on its share buyback authorization. Future base and variable 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 first quarter of 2026, Viper estimates that 655 gross (15.3 net 100% royalty interest) horizontal wells with an average royalty interest of 2.3% were turned to production on its acreage position with an average lateral length of 11,583 feet. Of these 655 gross wells, Diamondback is the operator of 114 gross wells, with an average royalty interest of 7.5%, and the remaining 541 gross wells, with an average royalty interest of 1.2%, are operated by third parties.

As of March 31, 2026, Viper’s footprint of mineral and royalty interests was approximately 86,639 net royalty acres.

Our gross well information as of March 31, 2026 is as follows, unless otherwise specified:

 Diamondback Operated Third-Party Operated TotalQ12026horizontal wells turned to production(1):     Gross wells114 541 655 Net 100% royalty interest wells8.6 6.7 15.3 Average percent net royalty interest7.5% 1.2% 2.3%       Horizontal producing well count:     Gross wells4,209 20,413 24,622 Net 100% royalty interest wells267.2 317.2 584.4 Average percent net royalty interest6.3% 1.6% 2.4%       Horizontal active development well count:     Gross wells272 1,098 1,370 Net 100% royalty interest wells20.3 17.1 37.4 Average percent net royalty interest7.5% 1.6% 2.7%       Line of sight wells:     Gross wells298 1,053 1,351 Net 100% royalty interest wells13.6 15.4 29.0 Average percent net royalty interest4.6% 1.5% 2.1%  (1)   Average lateral length of 11,583 feet.

The 1,370 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 88 gross rigs operating on Viper’s acreage, 13 of which are operated by Diamondback. The 1,351 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 Q2 2026. This guidance does not give effect to the pending Riverbend Acquisition announced today.

 Viper Energy, Inc.  Q2 2026 Net Production - Mbo/d64.0 - 65.0Q2 2026 Net Production - Mboe/d124.0 - 126.0Full Year 2026 Net Production - Mbo/d64.5 - 66.5Full Year 2026 Net Production - Mboe/d126.0 - 130.0  Unit costs ($/boe) Depletion$16.25 - $18.25Cash G&A$0.70 - $0.90Non-Cash Share-Based Compensation$0.10 - $0.20Net Interest Expense$1.90 - $2.40  Production and Ad Valorem Taxes (% of Revenue)~7%Cash Tax Rate (% of Pre-Tax Income Attributable to the Company)(1)27% - 30%Q2 2026 Cash Taxes ($ - million)(2)$40 - $48 (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.(2)Attributable to the Company.
CONFERENCE CALL

Viper will host a conference call and webcast for investors and analysts to discuss its results for the first quarter of 2026 on Tuesday, May 5, 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.

 Viper Energy, Inc.Condensed Consolidated Statements of Operations(unaudited, in millions, except per share amounts, shares in thousands)     Three Months Ended March 31,  2026   2025 Operating income:   Oil income$428  $201 Natural gas income 16   15 Natural gas liquids income 52   28 Royalty income 496   244 Lease bonus income 14   1 Lease bonus income—related party 1   — Total operating income 511   245 Costs and expenses:   Production and ad valorem taxes 35   17 Depletion 206   67 General and administrative expenses 8   2 General and administrative expenses—related party 5   4 Other operating expenses 4   — Total costs and expenses 258   90 Income (loss) from operations 253   155 Other income (expense):   Interest expense, net (27)  (13)Gain (loss) on derivative instruments, net 18   32 Gain (loss) on early extinguishment of debt (1)  — Total other income (expense), net (10)  19 Income (loss) before income taxes 243   174 Provision for (benefit from) income taxes 28   21 Net income (loss) 215   153 Net income (loss) attributable to non-controlling interest 118   78 Net income (loss) attributable to Viper Energy, Inc.$97  $75     Net income (loss) attributable to common shares:   Basic$0.54  $0.62 Diluted$0.53  $0.62 Weighted average number of common shares outstanding:   Basic 181,304   120,926 Diluted 181,419   121,030   Viper Energy, Inc.Condensed Consolidated Balance Sheets(unaudited, in millions, except par values and share data)     March 31, December 31,  2026   2025 Assets   Current assets:   Cash and cash equivalents$28  $13 Royalty income receivable (net of allowance for credit losses) 383   262 Royalty income receivable—related party 17   88 Prepaid expenses and other current assets 41   50 Total current assets 469   413 Property:   Oil and natural gas properties:   Proved properties 9,514   9,746 Unproved properties 4,562   4,910 Other property, equipment and land 8   8 Accumulated depletion and impairment (2,662)  (2,455)Property, net 11,422   12,209 Deferred income taxes (net of allowances) 142   33 Other assets 15   16 Total assets$12,048  $12,671 Liabilities and Stockholders’ Equity   Current liabilities:   Accrued liabilities$36  $107 Other current liabilities 40   4 Total current liabilities 76   111 Long-term debt, net 1,603   2,186 Other long-term liabilities 4   11 Total liabilities 1,683   2,308 Stockholders’ equity:   Class A Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 194,311,958 shares issued and outstanding at March 31, 2026, and 170,942,687 shares issued and outstanding at December 31, 2025 —   — Class B Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 164,810,547 shares issued and outstanding at March 31, 2026, and 187,023,698 shares issued and outstanding at December 31, 2025 —   — Additional paid-in capital 5,395   4,726 Retained earnings (accumulated deficit) (281)  (278)Total Viper Energy, Inc. stockholders’ equity 5,114   4,448 Non-controlling interest 5,251   5,915 Total equity 10,365   10,363 Total liabilities and stockholders’ equity$12,048  $12,671   Viper Energy, Inc.Condensed Consolidated Statements of Cash Flows(unaudited, in millions)     Three Months Ended March 31,  2026   2025 Cash flows from operating activities:   Net income (loss)$215  $153 Adjustments to reconcile net income (loss) to net cash provided by operating activities:   Provision for (benefit from) deferred income taxes (13)  (1)Depletion 206   67 (Gain) loss on derivative instruments, net (18)  (32)Net cash receipts (payments) on derivatives 20   9 Other 2   1 Changes in operating assets and liabilities:   Royalty income receivable (121)  3 Royalty income receivable—related party 71   (10)Accounts payable and accrued liabilities (71)  (4)Other 37   15 Net cash provided by (used in) operating activities 328   201 Cash flows from investing activities:   Acquisitions of oil and natural gas properties (18)  (263)Acquisitions of oil and natural gas properties—related party (12)  (223)Proceeds from sale of oil and natural gas properties 611   — Net cash provided by (used in) investing activities 581   (486)Cash flows from financing activities:   Proceeds from debt 175   295 Repayments of debt (760)  (556)Net proceeds from public offering —   1,232 Repurchases of shares of Class A Common Stock as part of the repurchase program (50)  — Repurchases of OpCo Units as part of the repurchase program (46)  — Dividends to stockholders (100)  (85)Dividends to Diamondback (93)  (59)Dividends to other non-controlling interest (20)  (9)Net cash provided by (used in) financing activities (894)  818 Net increase (decrease) in cash and cash equivalents 15   533 Cash and cash equivalents at beginning of period 13   27 Cash and cash equivalents at end of period$28  $560   Viper Energy, Inc.Selected Operating Data(unaudited)       Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025Production Data:     Oil (MBbls) 5,850  6,110  2,818Natural gas (MMcf) 18,088  19,668  7,221Natural gas liquids (MBbls) 2,899  2,940  1,142Combined volumes (Mboe)(1) 11,764  12,328  5,164      Average daily oil volumes (bo/d) 65,000  66,413  31,311Average daily combined volumes (boe/d) 130,711  134,000  57,378      Average sales prices:     Oil ($/Bbl)$73.16 $58.43 $71.33Natural gas ($/Mcf)$0.88 $0.81 $2.08Natural gas liquids ($/Bbl)$17.94 $16.67 $24.52Combined ($/boe)(2)$42.16 $34.23 $47.25      Oil, hedged ($/Bbl)(3)$72.31 $57.28 $70.26Natural gas, hedged ($/Mcf)(3)$2.27 $1.53 $3.74Natural gas liquids ($/Bbl)(3)$17.94 $16.67 $24.52Combined price, hedged ($/boe)(3)$43.86 $34.80 $48.99      Average Costs ($/boe):     Production and ad valorem taxes$2.98 $2.35 $3.29General and administrative - cash component 0.94  0.81  0.97Total operating expense - cash$3.92 $3.16 $4.26      General and administrative - non-cash stock compensation expense$0.17 $0.16 $0.19Interest expense, net$2.30 $2.92 $2.52Depletion$17.51 $18.98 $12.97 (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, depletion, 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, 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. 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:

Viper Energy, Inc.(unaudited, in millions, except per share amounts, shares in thousands)   Three Months Ended March 31, 2026Net income (loss) attributable to Viper Energy, Inc.$97 Net income (loss) attributable to non-controlling interest 118 Net income (loss) 215 Interest expense, net 27 Non-cash share-based compensation expense 2 Depletion 206 Non-cash (gain) loss on derivative instruments 2 Provision for (benefit from) income taxes 28 Other non-cash or non-recurring expenses 5 Consolidated Adjusted EBITDA 485 Less: Adjusted EBITDA attributable to non-controlling interest 227 Adjusted EBITDA attributable to Viper Energy, Inc.$258   Adjustments to reconcile Adjusted EBITDA to cash available for distribution: Income taxes payable by Viper Energy, Inc. for the current period$(40)Debt service, contractual obligations, fixed charges and reserves (14)Lease bonus income, net of tax (6)Tax impact of divestiture 6 Cash available for distribution to Viper Energy, Inc. stockholders$204     Three Months Ended March 31, 2026 Amounts Amounts Per Common ShareReturn of Capital Reconciliation:   Cash available for distribution to Viper Energy, Inc. stockholders$204 $1.05     Base dividend$74 $0.38 Repurchased common stock and OpCo Units as part of repurchase program(1) 51  0.26 Variable dividend 58  0.30 Return of Capital$183 $0.94     Percent return of capital   90%    Class A common stock outstanding   194,312  (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.

 Viper Energy, Inc.Pre-tax income attributable to Viper Energy, Inc.(unaudited, in millions)   Three Months Ended March 31, 2026 Income (loss) before income taxes$243 Less: Net income (loss) attributable to non-controlling interest 118 Pre-tax income (loss) attributable to Viper Energy, Inc.$125   Income taxes payable by Viper Energy, Inc. for the current period$40 Effective cash tax rate attributable to Viper Energy, Inc. 32.0%
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):

Viper Energy, Inc.Adjusted Net Income (Loss)(unaudited, in millions, except per share amounts, shares in thousands)   Three Months Ended March 31, 2026 Amounts Amounts Per Diluted ShareNet income (loss) attributable to Viper Energy, Inc.(1)$97  $0.53Net income (loss) attributable to non-controlling interest 118   0.66Net income (loss)(1) 215   1.19Non-cash (gain) loss on derivative instruments, net 2   0.01Other non-cash or non-recurring expenses 5   0.02Adjusted income excluding above items(1) 222   1.22Income tax adjustment for above items (1)  —Adjusted net income (loss)(1) 221   1.22Less: Adjusted net income (loss) attributed to non-controlling interests 121   0.67Adjusted net income (loss) attributable to Viper Energy, Inc.(1)$100  $0.55    Weighted average number of common shares outstanding:   Basic   181,304Diluted   181,419 (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.

 March 31, 2026 Net Q1Principal Borrowings / (Repayments) December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 (in millions)Total debt(1)$1,620  $(585) $2,205  $2,640  $1,105  $830 Cash and cash equivalents (28)    (13)  (443)  (28)  (560)Net debt$1,592    $2,192  $2,197  $1,077  $270  (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.

   Q2 2026 Q3 2026 Q4 2026 Q1 2027 Q2 2027Deferred Premium Puts - WTI (Cushing)(1) 55,000   55,000   45,000   30,000   10,000 Strike$52.05  $53.86  $50.00  $50.00  $50.00 Premium$(1.35) $(1.11) $(1.34) $(1.38) $(1.36)Deferred Premium Puts - WTI / Brent Basis 20,110   30,000   —   —   — Strike$(45.00) $(45.00)  —   —   — Premium$(1.30) $(1.30)  —   —   — Roll Swaps - WTI (Cushing) 15,000   15,000   15,000   —   — Swap Price$3.97  $3.97  $3.97   —   —  (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.    Q2 2026 Q3 2026 Q4 2026Costless Collars - Henry Hub 60,000  60,000  60,000Floor$2.75 $2.75 $2.75Ceiling$6.64 $6.64 $6.64    Q2 2026 Q3 2026 Q4 2026 FY 2027Natural Gas Basis Swaps - Waha Hub 80,000   80,000   80,000   40,000 Swap Price$(1.99) $(1.99) $(1.74) $(1.40) Investor Contact:

Chip Seale
+1 432.247.6218
[email protected]

Source: Viper Energy, Inc.; Diamondback Energy, Inc.

Viper Energy (VNOM) remains a Buy, supported by robust Permian assets, strong cash generation, and an attractive risk-adjusted valuation despite recent market volatility. VNOM's Q1 featured solid production, a $15M lease bonus, and a transformative Riverbend acquisition, funded by non-core asset sales and prudent balance sheet management. VNOM benefits from high oil prices driven by the Iran conflict, but it's important to recognize the temporary nature of this boost and the risks of a post-conflict downturn.

Key Takeaways Viper Energy beat Q1 earnings estimates, with operating income surging 108.6% y/y.Viper Energy's production increased to 11,764 MBoe, driven by strong activity in the Permian Basin.VNOM's Q1 royalty income rose to $496M, more than doubling y/y, boosting cash flow and dividend. Viper Energy Inc. (VNOM - Free Report) 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.

VNOM Posts Strong Volumes on Permian ActivityProduction 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.

VNOM’s Realized PricesThe 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 Royalty Income Growth Drives Operating LineViper’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.

VNOM Sees Higher Depletion & Taxes Alongside ScaleCosts 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.

Viper Highlights Capital ReturnsVNOM 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.

Cash Flow of VNOMNet cash provided by operating activities was $328 million, up from $201 million in the first quarter of 2025.

VNOM’s Balance SheetAs 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.

VNOM Lifts 2026 Outlook & Details Riverbend DealManagement 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.

VNOM’s Zacks Rank & Other Key PicksVNOM currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the energy sector are Chevron Corporation (CVX - Free Report) , BP plc (BP - Free Report) and Eni S.p.A. (E - Free Report) . CVX and E each currently sport a Zacks Rank #1 (Strong Buy), while BP has a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chevronreported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.

As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.

BP reported first-quarter 2026 earnings of $1.24 per American Depositary Share, which beat the Zacks Consensus Estimate of 91 cents.

As of March 31, 2026, BP reported $35.7 million in cash and cash equivalents. At the quarter's end, its long-term debt totaled $25.3 billion.

Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.

As of March 31, 2026, E had a long-term debt of €21.7 billion, and cash and cash equivalents of €8.3 billion.

Investors might want to bet on Viper Energy Partners (VNOM - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.

The upward trend in estimate revisions for this oil and gas company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Viper Energy Partners, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate RevisionsThe company is expected to earn $0.64 per share for the current quarter, which represents a year-over-year change of +56.1%.

Over the last 30 days, the Zacks Consensus Estimate for Viper Energy has increased 12.89% because four estimates have moved higher while one has gone lower.

Current-Year Estimate RevisionsFor the full year, the earnings estimate of $2.41 per share represents a change of +70.9% from the year-ago number.

The revisions trend for the current year also appears quite promising for Viper Energy, with five estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 9.31%.

Favorable Zacks RankThe promising estimate revisions have helped Viper Energy earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom LineInvestors have been betting on Viper Energy because of its solid estimate revisions, as evident from the stock's 6.7% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.