Viper Energy, Inc., a Subsidiary of Diamondback Energy, Inc., Reports Third Quarter 2026 Financial and Operating Results
Key Highlights
- ➤Viper Energy (VNOM) Q3 net income $300 million; adjusted EBITDA $596 million
- ➤Q3 free cash flow reached $520 million; base dividend declared at $0.50
- ➤McElroy Ranch acquisition totals approximately $529 million for 7,359 net royalty acres
- ➤Pending Buckhorn deal includes $280 million cash and approximately 1.8 million shares
- ➤Full-year 2026 oil production guidance raised to 67,250–67,750 bo/d
Expert Statements
Kaes Van’t Hof, Chief Executive Officer of Viper Energy
“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. Reflecting this continued momentum, we are again increasing our full year 2026 production guidance to 67,500 barrels of oil per day at the midpoint. The 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.”
Kaes Van’t Hof, Chief Executive Officer of Viper Energy
“The McElroy Ranch Acquisition and Pending Buckhorn Acquisition announced today represent the continued execution of our differentiated consolidation strategy. The acquisitions combine to extend the quality and duration of our inventory, adding nearly 60 net locations across two largely undeveloped assets. The 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.”
MIDLAND, Texas, Nov. 02, 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 * Repurchased 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 * On 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.
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