Viper Energy Partners (VNOM) Q4 2025 earnings summary

Executive summary

• Completed over $8 billion in mineral acquisitions in 2025, nearly 2.5x increase in Permian Basin acreage, and 7% year-over-year oil production per share growth.

• Q4 2025 average production reached 66,413 bo/d (134,000 boe/d), with full-year 2025 averaging 48,973 bo/d (95,126 boe/d).

• Strategic relationship with Diamondback Energy remains central, with increased exposure to other leading Permian operators.

• Non-Permian divestiture enabled full repayment of $500 million term loan and revolver, reducing pro forma net debt to $1.6 billion.

• Board approved a 15% increase in base dividend to $1.52/share annually and expanded share repurchase authorization by $1 billion.

Financial highlights

• Q4 2025 cash available for distribution was $145 million ($0.85/share), with a 90% payout ratio to Class A stockholders.

• Proved reserves at year-end 2025 reached 406.0 MMBoe, a 107% increase over year-end 2024, with a reserve replacement ratio of 705%.

• Net debt as of 12/31/2025 was $2.2 billion, reduced to $1.6 billion pro forma for the non-Permian divestiture.

• Liquidity stood at $1.4 billion at year-end 2025, increasing to $1.5 billion pro forma.

• Achieved investment grade rating, providing unique access to capital.

Outlook and guidance

• 2026 production guidance: Q1 62,500–64,500 bo/d (124,000–128,000 boe/d); full year 61,000–67,000 bo/d (120,000–132,000 boe/d).

• Expect mid-single digit organic production growth in 2026, driven by Diamondback's development of concentrated royalty interests.

• Wide 2026 oil production guidance reflects strong near-term visibility but less certainty in the second half due to reliance on DUCs and permits.

• Lease bonus income expected to remain strong in 2026, supported by proactive management and deep rights leasing.

• At $65 WTI and midpoint production, distributable cash flow per share is projected at $3.65, or an 8.0% yield.