VIPER ENERGY, INC., A SUBSIDIARY OF DIAMONDBACK ENERGY, INC., REPORTS THIRD QUARTER 2026 FINANCIAL AND OPERATING RESULTS
Viper Energy, Inc. (VNOM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 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 Dia
How this was made
The 30-second read
Why it matters
The company posted strong Q3 earnings, declared a dividend and repurchased shares, and announced two acquisitions that expand its acreage and production base.
Market read
Robust earnings and raised guidance could drive short‑term buying pressure in VNOM and potentially lift peer energy stocks.
What to watch
Future commodity price volatility could offset the benefits of increased production.
Viper reported third-quarter net income of $300 million and Adjusted EBITDA of $596 million, raised full-year 2026 production guidance and announced the McElroy Ranch Acquisition and Pending Buckhorn Acquisition.
Third-quarter operating income, net income, operating cash flow, Free Cash Flow and production were higher than the reported prior-year figures, while the company increased full-year production guidance and continued dividends and share repurchases.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total operating income, three months ended September 30GAAP | $661M | – | – |
| Oil income, three months ended September 30GAAP | $557M | – | – |
| Natural gas income, three months ended September 30GAAP | $19M | – | – |
| Natural gas liquids income, three months ended September 30GAAP | $80M | – | – |
| Royalty income, three months ended September 30GAAP | $656M | – | – |
| Lease bonus income, three months ended September 30GAAP | $4M | – | – |
| Lease bonus income, related party, three months ended September 30GAAP | — | – | – |
| Other operating income, three months ended September 30GAAP | $1M | – | – |
| Production and ad valorem taxes, three months ended September 30GAAP | $44M | – | – |
| Depreciation, depletion, and amortization, three months ended September 30GAAP | $206M | – | – |
| Impairment, three months ended September 30GAAP | — | – | – |
| General and administrative expenses, three months ended September 30GAAP | $5M | – | – |
| General and administrative expenses, related party, three months ended September 30GAAP | $7M | – | – |
| Total costs and expenses, three months ended September 30GAAP | $262M | – | – |
| Income (loss) from operations, three months ended September 30GAAP | $399M | – | – |
| Interest expense, net, three months ended September 30GAAP | −$30M | – | – |
| Gain (loss) on derivative instruments, net, three months ended September 30GAAP | −$31M | – | – |
| Income (loss) before income taxes, three months ended September 30GAAP | $339M | – | – |
| Provision for (benefit from) income taxes, three months ended September 30GAAP | $39M | – | – |
| Net income (loss), three months ended September 30GAAP | $300M | – | – |
| Net income (loss) attributable to Viper Energy, Inc., three months ended September 30GAAP | $140M | – | – |
| Diluted net income (loss) attributable to common shares, three months ended September 30GAAP | $0.72 | – | – |
| Basic net income (loss) attributable to common shares, three months ended September 30GAAP | $0.72 | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $596M | – | – |
| Adjusted EBITDA margin, three months ended September 30non-GAAP | 90% | – | – |
| Net income margin, three months ended September 30GAAP | 45% | – | – |
| Net cash provided by operating activities, three months ended September 30GAAP | $447M | – | – |
| Free Cash Flow, three months ended September 30non-GAAP | $520M | – | – |
| Free Cash Flow margin, three months ended September 30non-GAAP | 79% | – | – |
| Average daily oil volumes, three months ended September 30other | 69,076 bo/d | more than six percent quarter over quarter | – |
| Average daily combined volumes, three months ended September 30other | 141,152 boe/d | – | – |
| Combined price, three months ended September 30other | $50.52/boe | – | – |
| Combined price, hedged, three months ended September 30other | $49.51/boe | – | – |
| Cash and cash equivalents, September 30GAAP | $10M | – | – |
| Total debt, September 30other | $2.4B | – | – |
| Net debt, September 30non-GAAP | $2.4B | – | – |
| Total operating income, nine months ended September 30GAAP | $1.85B | – | – |
| Net income (loss), nine months ended September 30GAAP | $846M | – | – |
| Net income attributable to Viper Energy, Inc., nine months ended September 30GAAP | $379M | – | – |
| Diluted net income attributable to common shares, nine months ended September 30GAAP | $1.99 | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $1.26B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Oil incomeAverage daily oil volumes were 69,076 bo/d and average oil price was $87.65 per Bbl. | $557M | – | – |
| Natural gas incomeAverage natural gas price was $0.96 per Mcf. | $19M | – | – |
| Natural gas liquids incomeAverage natural gas liquids price was $24.02 per Bbl. | $80M | – | – |
| Royalty incomeThe company estimates that 689 gross (19.0 net 100% royalty interest) horizontal wells were turned to production on its acreage position. | $656M | – | – |
Q4 2026 and full year 2026 outlook
- Tax rate27% - 30% Cash Tax Rate (% of Pre-Tax Income Attributable to the Company)
- NoteQ4 2026 Net Production - Mbo/d: 70.00 - 71.00
- NoteQ4 2026 Net Production - Mboe/d: 141.50 - 143.50
- NoteFull Year 2026 Net Production - Mbo/d: 67.25 - 67.75
- NoteFull Year 2026 Net Production - Mboe/d: 137.00 - 138.00
- NoteDepreciation, Depletion and Amortization: $14.75 - $17.25
- NoteCash G&A: $0.70 - $0.90
- NoteNon-Cash Share-Based Compensation: $0.10 - $0.20
- NoteNet Interest Expense: $1.90 - $2.40
- NoteProduction and Ad Valorem Taxes (% of Revenue): ~7%
- NotePro forma net debt at year end 2026: approximately $2.4 billion
- NotePro forma leverage: approximately 1.0x last twelve months Adjusted EBITDA
Capital returns
- Declared Q3 2026 base cash dividend of $0.50 per Class A common share.
- The dividend is payable on November 19, 2026 to Class A common stockholders of record at the close of business on November 12, 2026.
- Repurchased approximately 2.1 million Class A shares for approximately $90 million during the third quarter of 2026, excluding excise tax, at an average price of $43.01 per share.
- Repurchased approximately 0.4 million Class A shares in Q4 2026 to date for approximately $17 million.
- Since November 9, 2020 through October 30, 2026, repurchased approximately 26.1 million shares for approximately $844 million, excluding excise tax, at an average price of $32.30 per share.
- Approximately $906 million remained on the share buyback authorization.
What drove it
- The Riverbend Acquisition was completed on July 1, 2026.
- The 2026 Drop Down closed on September 1, 2026 and included approximately 1,000 net royalty acres in the Permian Basin in exchange for approximately 3.8 million OpCo units and an equivalent number of Class B common shares.
- The McElroy Ranch Acquisition had an aggregate purchase price of approximately $529 million, including $49 million of deferred consideration payable in equal quarterly installments through June 2029.
- McElroy Ranch includes approximately 7,359 net royalty acres and is 96% undeveloped with an expected 40.9 net inventory locations.
- The Pending Buckhorn Acquisition consideration is $280 million cash and approximately 1.8 million shares of Class A common stock, subject to customary closing adjustments.
- Buckhorn includes 1,552 net royalty acres, is 61% undeveloped and has an expected 17.4 net inventory locations.
- Viper's acreage had 104 active horizontal rigs, 1,965 gross (38.9 net) horizontal wells being drilled or completed, and 1,404 gross (36.4 net) horizontal wells with line-of-sight to near-term development.
Concerns
- The Pending Buckhorn Acquisition is expected to close in the fourth quarter of 2026, subject to customary closing conditions.
- Net debt was $2.4 billion as of September 30, 2026.
- Combined price was $50.52/boe in the third quarter, compared with $53.82/boe in the second quarter of 2026.
- Existing permits or active development of Viper's royalty acreage does not ensure that wells will be turned to production.
- Future cash dividends and stock repurchases are at the discretion of the Board.
What to watch
- Closing and funding of the Pending Buckhorn Acquisition in the fourth quarter of 2026.
- Delivery against Q4 2026 net production guidance of 70.00 - 71.00 Mbo/d and 141.50 - 143.50 Mboe/d.
- Progression of 1,965 gross active-development wells and 1,404 gross line-of-sight wells.
- Use of cash on hand and revolving-credit borrowings to fund the cash portion of the Pending Buckhorn Acquisition.
- Further execution under the new return of capital framework, including dividends and opportunistic share repurchases.
Balance sheet and cash flow
- Cash and cash equivalents were $10 million as of September 30, 2026.
- Total debt outstanding, excluding debt issuance costs, discounts and premiums, was $2.4 billion as of September 30, 2026.
- Long-term debt, net was $2,394 million at September 30, 2026, compared with $2,186 million at December 31, 2025.
- The company had approximately $1.2 billion available for future borrowings and approximately $1.2 billion of total liquidity.
- Third-quarter net cash provided by operating activities was $447 million, compared with $281 million in the prior-year quarter.
- Third-quarter acquisitions of oil and natural gas properties were $(843) million, compared with $(1,205) million in the prior-year quarter.
- Third-quarter net cash provided by financing activities was $328 million, compared with $1,231 million in the prior-year quarter.
Analysis
Viper reported a substantial improvement in third-quarter profitability and cash generation versus the reported prior-year period. Total operating income was $661 million versus $418 million, income from operations was $399 million versus a loss from operations of $(176) million, and net income was $300 million versus a net loss of $(197) million. The prior-year period included $360 million of impairment, while the current quarter reported no impairment. Net income attributable to Viper Energy, Inc. was $140 million, or $0.72 per diluted common share, compared with a loss attributable to Viper of $(77) million, or $(0.52) per diluted common share.
Production growth was central to the quarter. Average daily oil volumes were 69,076 bo/d, compared with 65,077 bo/d in the second quarter of 2026 and 56,087 bo/d in the prior-year quarter. Average daily combined volumes were 141,152 boe/d, compared with 134,363 boe/d in the preceding quarter and 108,859 boe/d a year earlier. The company cited recent acquisitions and continued development activity by Diamondback and third-party operators. Commodity realization was lower sequentially, with combined price of $50.52/boe versus $53.82/boe in the second quarter, although it was above the $39.24/boe reported for the prior-year quarter.
Cash generation remained strong. Net cash provided by operating activities was $447 million, compared with $281 million in the prior-year quarter. Free Cash Flow was $520 million, with a Free Cash Flow margin of 79%, while Adjusted EBITDA was $596 million and Adjusted EBITDA margin was 90%. Viper committed capital to acquisitions, reporting $(843) million of third-quarter acquisitions of oil and natural gas properties. Cash was $10 million and total debt was $2.4 billion at September 30, 2026, producing reported net debt of $2.4 billion.
The company continued capital returns with a $0.50 per Class A common share base dividend and approximately $90 million of Class A share repurchases in the quarter. It also raised full-year production guidance to 67.25 - 67.75 Mbo/d and 137.00 - 138.00 Mboe/d, and initiated Q4 guidance of 70.00 - 71.00 Mbo/d and 141.50 - 143.50 Mboe/d. The outlook incorporates the 2026 Drop Down, the McElroy Ranch Acquisition and the expected Pending Buckhorn Acquisition. The key execution items are the expected fourth-quarter Buckhorn closing, development timing across the active and line-of-sight well inventory, and the planned funding of Buckhorn through cash on hand and revolving-credit borrowings.
The acquisition strategy expands the undeveloped inventory base. McElroy Ranch adds approximately 7,359 net royalty acres and an expected 40.9 net inventory locations, while Buckhorn is expected to add 1,552 net royalty acres and 17.4 net inventory locations. Viper expects pro forma net debt at year end 2026 of approximately $2.4 billion and pro forma leverage of approximately 1.0x last twelve months Adjusted EBITDA, inclusive of the Pending Buckhorn Acquisition.
Management, verbatim
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.
Kaes Van’t Hof, Chief Executive Officer of Viper
The McElroy Ranch Acquisition and Pending Buckhorn Acquisition announced today represent the continued execution of our differentiated consolidation strategy.
Kaes Van’t Hof, Chief Executive Officer of Viper
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
- Forward revenue guidance was not reported.
- Forward gross-margin guidance was not reported.
- Forward operating-expense guidance was not reported as a total operating-expenses figure.
- GAAP and non-GAAP gross margin were not reported.
- Non-GAAP EPS was not reported.
- A prior-year or prior-quarter comparison for Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow and Free Cash Flow margin was not reported.
- Quarterly segment reporting beyond operating-income line items was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is a SEC Form 8‑K quarterly report for Viper Energy, a subsidiary of Diamondback Energy.
Ticker impact
Viper Energy reported Q3 2026 net income of $300 million and raised full-year production guidance to 67,250‑67,750 bo/d.
likely upside as market prices in raised guidance
Strong profit margins, record cash flow and higher production guidance indicate improved fundamentals, prompting buying interest.
Market effects
Oil and gas sector may see bullish sentiment from Viper's strong results and higher guidance.
U.S. energy markets could benefit from increased Permian production outlook.
Higher U.S. output may modestly influence global oil supply dynamics.
Counterpoint
Investors might worry about Viper's $2.4 billion debt level despite higher guidance.
Key entities
- companyViper Energy, Inc.
U.S. oil and gas producer reporting Q3 2026 results.
- parent_companyDiamondback Energy, Inc.
Parent of Viper Energy, mentioned as a strategic partner.
