Viper Energy Swings to Q3 Profit of $0.72 a Share, Raises Production Outlook
Viper Energy swung to a third-quarter profit and raised its production outlook as acquisitions expanded the mineral and royalty company's footprint in the Permian Basin. Net income attributable to Viper was $140 million, or $0.72 a diluted Class A share, compared with a loss of $77 million, or $0.52 a share, a year earlier, according to its 8-K.
The year-ago loss included a $360 million impairment. Total operating income rose 58.1% to $661 million from $418 million, and consolidated net income was $300 million.
Oil production averaged 69,076 barrels a day, or 141,152 barrels of oil equivalent a day. Adjusted EBITDA was $596 million and operating cash flow rose to $447 million from $281 million, the company said.
"Viper's momentum carried through the third quarter, with average daily oil production growing more than six percent quarter over quarter," Chief Executive Officer Kaes Van't Hof said in the release.
Outlook raised again
Viper raised its full-year 2026 oil production guidance to 67,250 to 67,750 barrels a day, or 137,000 to 138,000 barrels of oil equivalent a day. For the fourth quarter, it expects 70,000 to 71,000 barrels of oil a day, or 141,500 to 143,500 barrels of oil equivalent a day.
Deals add acreage
The company closed its Riverbend transaction on July 1 and its 2026 drop-down deal on Sept. 1. It also agreed to buy mineral and royalty interests on the McElroy Ranch in Upton and Crane counties, Texas, covering 7,359 net royalty acres, for an aggregate $529 million including $49 million of deferred payments.
A separate pending acquisition, Buckhorn, would add 1,552 net royalty acres for $280 million in cash plus Class A shares. Viper expects it to close in the fourth quarter.
"These acquisitions add years of visible development to Viper's portfolio," Van't Hof said.
Returning cash
The board declared a base quarterly dividend of $0.50 per Class A share, payable Nov. 19 to holders of record on Nov. 12. Viper repurchased an estimated 2.1 million shares during the quarter for an estimated $90 million, the company said, at an average price of $43.01, and it has $906 million of buyback authorization remaining. Free cash flow was $520 million.
Total debt stood at $2.4 billion at quarter-end.
By the numbers
- Total operating income: $661 million, up 58.1%
- Diluted EPS: $0.72 vs. a loss of $0.52
- Adjusted EBITDA: $596 million
- Oil production: 69,076 barrels a day
- Base dividend: $0.50 a Class A share
Sources
- Viper Energy Form 8-K with third-quarter 2026 earnings release, filed Nov. 2, 2026 (accession 0002074176-26-000062)
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