Viper Energy, Inc 10-Q for FY2026 Q1

Viper Energy, Inc. (VNOM)

10-Q 2026-05-06 For: 2026-03-31

Added on May 06, 2026

About this 10-Q

Viper Energy, Inc filed this 10-Q on May 6, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $511M; up 108.6% from $245M a year earlier
Net income: $97M; up 29.3% from net income of $75M a year earlier
Diluted EPS: $0.53; down 14.5% from $0.62 a year earlier

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			Page
Glossary of Oil and Natural Gas Terms			ii
Glossary of Certain Other Terms			iv
Cautionary Statement Regarding Forward-Looking Statements			v

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)			1
Condensed Consolidated Statements of Operations			1
Condensed Consolidated Balance Sheets			2
Condensed Consolidated Statements of Cash Flows			3
Condensed Consolidated Statements of Stockholders’ Equity			4
Notes to the Condensed Consolidated Financial Statements			5
1. Organization and Basis of Presentation			5
2. Summary of Significant Accounting Policies			6
3. Revenue from Contracts with Customers			7
4. Acquisitions and Divestitures			8
5. Oil and Natural Gas Properties			9
6. Debt			10
7. Stockholders’ Equity			10
8. Earnings Per Common Share			13
9. Income Taxes			14
10. Derivatives			14
11. Fair Value Measurements			16
12. Commitments and Contingencies			17
13. Subsequent Events			18
14. Segment Information			18

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			19

Item 3. Quantitative and Qualitative Disclosures about Market Risk			29

Item 4. Controls and Procedures			30

PART II. OTHER INFORMATION
Item 1. Legal Proceedings			30

Item 1A. Risk Factors			30

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			31

Item 5. Other Information			31

Item 6. Exhibits			32

Signatures			33




Basin			A large depression on the earth’s surface in which sediments accumulate.
Bbl or barrel			One stock tank barrel, or 42 U.S. gallons liquid volume, used in this report in reference to crude oil or other liquid hydrocarbons.


BO/d			One barrel of crude oil per day.
BOE			One barrel of crude oil equivalent, with six thousand cubic feet of natural gas being equivalent to one barrel of oil.
BOE/d			One BOE per day.

Completion			The process of treating a drilled well followed by the installation of permanent equipment for the production of natural gas or oil, or in the case of a dry hole, the reporting of abandonment to the appropriate agency.

Crude oil			Liquid hydrocarbons retrieved from geological structures underground to be refined into fuel sources.




Development well			A well drilled within the proved area of a natural gas or oil reservoir to the depth of a stratigraphic horizon known to be productive.
Differential			An adjustment to the price of oil or natural gas from an established spot market price to reflect differences in the quality and/or location of oil or natural gas.






Fracturing			The process of creating and preserving a fracture or system of fractures in a reservoir rock typically by injecting a fluid under pressure through a wellbore and into the targeted formation.
Gross royalty acres or gross wells			The total acres or wells in which a mineral interest is owned.
Henry Hub			Natural gas gathering point that serves as a benchmark price for natural gas futures on the NYMEX.

Horizontal wells			Wells drilled directionally horizontal to allow for development of structures not reachable through traditional vertical drilling mechanisms.
MBbls			One thousand barrels of crude oil and other liquid hydrocarbons.


MBOE			One thousand BOE, determined using a ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or natural gas liquids.
MBOE/d			One thousand BOE per day.
Mcf			One thousand cubic feet of natural gas.

Mineral interests			The interests in ownership of the resource and mineral rights, giving an owner the right to profit from the extracted resources.

MMBtu			One million British Thermal Units.
MMcf			Million cubic feet of natural gas.




Net royalty acres			Net mineral acres multiplied by the average lease royalty interest and other burdens.
Oil and natural gas properties			Tracts of land consisting of properties to be developed for oil and natural gas resource extraction.
Operator			The individual or company responsible for the exploration and/or production of an oil or natural gas well or lease.








Proved reserves			The estimated quantities of oil, natural gas and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be commercially recoverable in future years from known reservoirs under existing economic and operating conditions.





Reserves			Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and natural gas or related substances to the market and all permits and financing required to implement the project. Reserves should not be assigned to adjacent reservoirs isolated by major, potentially sealing, faults until those reservoirs are penetrated and evaluated as economically producible. Reserves should not be assigned to areas that are clearly separated from a known accumulation by a non-productive reservoir (i.e., absence of reservoir, structurally low reservoir or negative test results). Such areas may contain prospective resources (i.e., potentially recoverable resources from undiscovered accumulations).

Royalty interest			An interest that gives an owner the right to receive a portion of the resources or revenues without having to carry any costs of development, which may be subject to expiration.
Spud			Commencement of actual drilling operations.




Waha Hub			Natural gas gathering point that serves as a benchmark price for natural gas at western Texas and New Mexico.


WTI			West Texas Intermediate, a light sweet blend of oil produced from fields in western Texas and is a grade of oil that serves as a benchmark for oil on the NYMEX.
WTI Cushing			Grade of oil that serves as a benchmark price for oil at Cushing, Oklahoma.



Adjusted EBITDA			Consolidated Adjusted EBITDA, a non-GAAP measure, generally equals net income (loss) attributable to Viper Energy, Inc. plus net income (loss) attributable to non-controlling interest 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.
ASU			Accounting Standards Update.
Class A Common Stock			After August 19, 2025, Class A common stock, $0.000001 par value per share of New Viper (as defined below), and before August 19, 2025, Class A common stock, $0.000001 par value per share of Former Viper (as defined below).
Class B Common Stock			After August 19, 2025, Class B common stock, $0.000001 par value per share of New Viper, and before August 19, 2025, Class B common stock, $0.000001 par value per share of Former Viper.
Common Stock			Collectively, Class A Common Stock and Class B Common Stock.
Diamondback			Diamondback Energy, Inc., a Delaware corporation.

Exchange Act			The Securities Exchange Act of 1934, as amended.
FASB			Financial Accounting Standards Board.
GAAP			Accounting principles generally accepted in the United States.

Guaranteed Senior Notes			The outstanding senior notes of Viper Energy Partners LP (f/k/a Viper Energy Partners LLC), issued under indentures where Viper Energy, Inc. and VNOM Sub, Inc., a wholly owned subsidiary of Viper Energy, Inc., are the guarantors, consisting of the 4.900% Senior Notes due 2030 and the 5.700% Senior Notes due 2035.
LTIP			Viper Energy, Inc. Amended and Restated 2014 Long-Term Incentive Plan, as amended and restated by Viper Energy, Inc. 2024 Amended and Restated Long-Term Incentive Plan, and as may be further amended or restated from time to time.

Net debt			Net debt, a non-GAAP measure, is debt (excluding debt issuance costs, discounts and premiums) less cash and cash equivalents.
Notes			Those senior notes of Viper Energy, Inc. that were issued under indentures where Viper Energy Partners LLC and other subsidiaries were guarantors, consisting of the 5.375% Senior Notes due 2027 and the 7.375% Senior Notes due 2031, and which were redeemed on November 1, 2025 and July 23, 2025, respectively.
NYMEX			New York Mercantile Exchange.
OpCo Unit			Limited liability company membership interest in the Operating Company.
OPEC			Organization of the Petroleum Exporting Countries.
Operating Company or OpCo			Prior to December 23, 2025, Viper Energy Partners LLC, a Delaware limited liability company and a consolidated subsidiary of Viper Energy, Inc., and after December 23, 2025, VNOM Holding Company LLC, a Delaware limited liability company and a consolidated subsidiary of Viper Energy, Inc.

SEC			United States Securities and Exchange Commission.
SEC Prices			Unweighted arithmetic average of the first-day-of-the-month price for each month during the 12-month period prior to the ending date of the period covered by this report.
Securities Act			The Securities Act of 1933, as amended.


	Three Months Ended March 31,
	2026		2025
	(In millions, except per share amounts, shares in thousands)
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


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	March 31,		December 31,
	2026		2025
	(In millions, except par values and share data)
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
Commitments and contingencies (Note 12)

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


	Common Stock(1)
			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Non-Controlling Interest		Total
	Class A Shares	Class B Shares


	(In millions, shares in thousands)
Balance at December 31, 2025	170,943	187,024	$	4,726	$	(278)	$	5,915	$	10,363





Repurchases of shares of Class A Common Stock under repurchase program	(1,210)	—	(50)		—		—		(50)
Repurchases of OpCo Units and cancellation of Class B Common Stock under repurchase program	—	(1,000)	—		—		(46)		(46)
Exchange of Class B Common Stock and OpCo Units to Class A Common Stock	24,560	(21,213)	786		—		(786)		—

Dividends to stockholders	—	—	—		(100)		—		(100)
Dividends to Diamondback	—	—	—		—		(93)		(93)
Dividends to other non-controlling interest	—	—	—		—		(20)		(20)

Equity-based compensation	—	—	2		—		—		2
Issuance of shares upon vesting of equity awards	19	—	—		—		—		—
Cash paid for tax withholding on vested equity awards	—	—	(1)		—		—		(1)
Change in ownership of consolidated subsidiaries, net	—	—	(68)		—		163		95
Net income (loss)	—	—	—		97		118		215
Balance at March 31, 2026	194,312	164,811	$	5,395	$	(281)	$	5,251	$	10,365


	As of March 31, 2026
	Shares of Common Stock Beneficially Owned	Percentage Ownership(1)		OpCo Units Beneficially Owned	Percentage Ownership
Public equity holders of Class A Common Stock	194,311,958	53.1	%	—	—	%
Viper and subsidiaries	—	—		194,311,958	53.1
Diamondback and subsidiaries	142,156,718	38.9		142,156,718	38.9
Sitio OpCo Former Equity Holders	21,338,299	5.8		21,338,299	5.8
TWR IV(1)	6,746,384	1.8		6,746,384	1.8
EnCap	1,315,530	0.4		1,315,530	0.4
Total Ownership(1)	365,868,889	100.0	%	365,868,889	100.0	%


	Distributions
Period	Amount per OpCo Unit		Operating Company Distributions to Non-Controlling Interests		Amount per Class A Common Share		Class A Common Stockholders		Declaration Date	Class A Common Stockholder Record Date	Payment Date
2026
Q4 2025	$	0.65	$	113	$	0.52	$	100	February 18, 2026	March 5, 2026	March 12, 2026


2025
Q4 2024	$	0.69	$	68	$	0.65	$	85	January 30, 2025	March 6, 2025	March 13, 2025


					Swaps	Collars				Puts			Put Spread
Settlement Month	Settlement Year	Type of Contract	Bbls/MMBtu Per Day	Index	Weighted Average Differential	Weighted Average Floor Price		Weighted Average Ceiling Price		Average Strike Price	Average Deferred Premium		Floor Price		Short Put Price
OIL
Apr. - Jun.	2026	Puts	55,000	WTI Cushing	$—	$	—	$	—	$52.05	$	(1.35)	$	—	$	—
Jul. - Sep.	2026	Puts	55,000	WTI Cushing	$—	$	—	$	—	$55.23	$	(1.11)	$	—	$	—
Oct. - Dec.	2026	Puts	40,000	WTI Cushing	$—	$	—	$	—	$50.00	$	(1.34)	$	—	$	—
Jan. - Mar.	2027	Puts	25,000	WTI Cushing	$—	$	—	$	—	$50.00	$	(1.38)	$	—	$	—
Apr. - Jun.	2027	Puts	5,000	WTI Cushing	$—	$	—	$	—	$50.00	$	(1.35)	$	—	$	—
Jul. - Sep.	2026	Put Spread	15,000	WTI Cushing	$—	$	—	$	—	$—	$	—	$	50.00	$	55.00
Apr. - Dec.	2026	Roll Swap	15,000	WTI Cushing	$3.97	$	—	$	—	$—	$	—	$	—	$	—
NATURAL GAS
Apr. - Sep.	2026	Basis Swaps(1)	80,000	Waha Hub	$(1.99)	$	—	$	—	$—	$	—	$	—	$	—
Oct. - Dec.	2026	Basis Swaps(1)	80,000	Waha Hub	$(1.74)	$	—	$	—	$—	$	—	$	—	$	—
Jan. - Dec.	2027	Basis Swaps(1)	40,000	Waha Hub	$(1.40)	$	—	$	—	$—	$	—	$	—	$	—
Apr. - Dec.	2026	Costless Collar	60,000	Henry Hub	$—	$	2.75	$	6.64	$—	$	—	$	—	$	—


	As of March 31, 2026
Balance Sheet Classification	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(In millions)
Assets:
Prepaid expenses and other current assets	$	—	$	48	$	—	$	48	$	(25)	$	23
Other assets	$	—	$	3	$	—	$	3	$	(3)	$	—
Liabilities:
Other current liabilities	$	—	$	30	$	—	$	30	$	(25)	$	5

Other long-term liabilities	$	—	$	3	$	—	$	3	$	(3)	$	—


	As of December 31, 2025
Balance Sheet Classification	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(In millions)
Assets:
Prepaid expenses and other current assets	$	—	$	37	$	—	$	37	$	(9)	$	28



Liabilities:
Other current liabilities	$	—	$	9	$	—	$	9	$	(9)	$	—

Accrued liabilities (2026 WTI Contingent Liability)	$	—	$	20	$	—	$	20	$	—	$	20
Other long-term liabilities	$	—	$	7	$	—	$	7	$	—	$	7


	March 31, 2026				December 31, 2025
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(In millions)
Debt	$	1,603	$	1,630	$	2,186	$	2,233


	Diamondback Operated		Third-Party Operated		Total
Q1 2026 horizontal wells turned to production(1):
Gross wells	114		541		655
Net 100% royalty interest wells	8.6		6.7		15.3
Average percent net royalty interest	7.5	%	1.2	%	2.3	%

Horizontal producing well count:
Gross wells	4,209		20,413		24,622
Net 100% royalty interest wells	267.2		317.2		584.4
Average percent net royalty interest	6.3	%	1.6	%	2.4	%

Horizontal active development well count(2):
Gross wells	272		1,098		1,370
Net 100% royalty interest wells	20.3		17.1		37.4
Average percent net royalty interest	7.5	%	1.6	%	2.7	%

Line of sight wells(3):
Gross wells	298		1,053		1,351
Net 100% royalty interest wells	13.6		15.4		29.0
Average percent net royalty interest	4.6	%	1.5	%	2.1	%


	Three Months Ended
	March 31, 2026		December 31, 2025
Production data:
Oil (MBbls)	5,850		6,110
Natural gas (MMcf)	18,088		19,668
Natural gas liquids (MBbls)	2,899		2,940
Combined volumes (MBOE)(1)	11,764		12,328

Average daily oil volumes (BO/d)	65,000		66,413
Average daily combined volumes (BOE/d)	130,711		134,000

Average sales price:
Oil ($/Bbl)	$	73.16	$	58.43
Natural gas ($/Mcf)	$	0.88	$	0.81
Natural gas liquids ($/Bbl)	$	17.94	$	16.67
Combined ($/BOE)(2)	$	42.16	$	34.23

Oil, hedged ($/Bbl)(3)	$	72.31	$	57.28
Natural gas, hedged ($/Mcf)(3)	$	2.27	$	1.53
Natural gas liquids ($/Bbl)(3)	$	17.94	$	16.67
Combined price, hedged ($/BOE)(3)	$	43.86	$	34.80

Average costs ($/BOE):
Production and ad valorem taxes	$	2.98	$	2.35
General and administrative - cash component	0.94		0.81
Total operating expense - cash	$	3.92	$	3.16

General and administrative - non-cash stock compensation expense	$	0.17	$	0.16
Interest expense, net	$	2.30	$	2.92
Depletion	$	17.51	$	18.98


	Three Months Ended March 31,
	2026		2025
Production data:
Oil (MBbls)	5,850		2,818
Natural gas (MMcf)	18,088		7,221
Natural gas liquids (MBbls)	2,899		1,142
Combined volumes (MBOE)(1)	11,764		5,164

Average daily oil volumes (BO/d)	65,000		31,311
Average daily combined volumes (BOE/d)	130,711		57,378

Average sales prices:
Oil ($/Bbl)	$	73.16	$	71.33
Natural gas ($/Mcf)	$	0.88	$	2.08
Natural gas liquids ($/Bbl)	$	17.94	$	24.52
Combined ($/BOE)(2)	$	42.16	$	47.25

Oil, hedged ($/Bbl)(3)	$	72.31	$	70.26
Natural gas, hedged ($/Mcf)(3)	$	2.27	$	3.74
Natural gas liquids ($/Bbl)(3)	$	17.94	$	24.52
Combined price, hedged ($/BOE)(3)	$	43.86	$	48.99

Average costs ($/BOE):
Production and ad valorem taxes	$	2.98	$	3.29
General and administrative - cash component	0.94		0.97
Total operating expense - cash	$	3.92	$	4.26

General and administrative - non-cash stock compensation expense	$	0.17	$	0.19
Interest expense, net	$	2.30	$	2.52
Depletion	$	17.51	$	12.97


Period	Total Number of Shares Purchased(1)	Average Price Paid Per Share(2)		Total Number of Shares Purchased as Part of Publicly Announced Plan	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan(1)(3)
	(In millions, except per share amounts and shares in ones)
January 1, 2026 - January 31, 2026	417,516	$	37.44	417,516	$	1,225
February 1, 2026 - February 28, 2026	—	$	—	—	$	1,225
March 1, 2026 - March 31, 2026	804,061	$	44.20	792,845	$	1,145
Total	1,221,577	$	41.89	1,210,361


Exhibit Number						Description
3.1						Amended and Restated Certificate of Incorporation of New Viper (incorporated by reference to Exhibit 3.1 of New Viper’s Current Report on Form 8-K12B (File No. 001-42807), filed on August 19, 2025).
3.2						Certificate of Amendment to the Certificate of Incorporation of New Viper (incorporated by reference to Exhibit 3.2 of New Viper’s Current Report on Form 8-K12B (File No. 001-42807), filed on August 19, 2025).
3.3						Second Amended and Restated Bylaws of New Viper (incorporated by reference to Exhibit 3.3 of New Viper’s Quarterly Report on Form 10-Q (File No. 001-42807), filed on November 5, 2025).
22.1						List of Issuers and Subsidiary Guarantors (incorporated by reference to Exhibit 22.1 of New Viper’s Annual Report on Form 10-K (File No. 001-42807), filed on February 25, 2026.
31.1*						Certification of Chief Executive Officer pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
31.2*						Certification of Chief Financial Officer pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
32.1**						Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code.
101						The following financial information from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in Inline XBRL: (i) Condensed Consolidated Statements of Operations, (ii) Condensed Consolidated Balance Sheets, (iii) Condensed Consolidated Statements of Cash Flows, (iv) Condensed Consolidated Statements of Stockholders’ Equity, and (v) Notes to the Condensed Consolidated Financial Statements.
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).



*			Filed herewith.
**			The certifications attached as Exhibit 32.1 accompany this Quarterly Report on Form 10-Q pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.


		VIPER ENERGY, INC.

		By:	VIPER ENERGY, INC.

Date:	May 6, 2026	By:	/s/ Kaes Van’t Hof
			Kaes Van’t Hof
			Chief Executive Officer

Date:	May 6, 2026	By:	/s/ Teresa L. Dick
			Teresa L. Dick
			Chief Financial Officer