$VNOM · Viper Energy, Inc.
Viper Energy reported Q3 2026 results with net income of $300 million, Adjusted EBITDA of $596 million, and Free Cash Flow of $520 million. The company declared a $0.50/share base dividend and repurchased 2.1 million shares for ~$90 million. Viper also announced the closed McElroy Ranch Acquisition (~$529M) and the pending Buckhorn Acquisition ($280M cash + 1.8M shares), while raising full-year 2026 production guidance to 67,250–67,750 bo/d.
- Q3 net income of $300 million with 45% net income margin; Adjusted EBITDA of $596 million at 90% margin
- Free Cash Flow of $520 million (79% FCF margin); declared $0.50/share base cash dividend
- McElroy Ranch Acquisition closed for ~$529M, adding 7,359 net royalty acres and ~40.9 net inventory locations
- Pending Buckhorn Acquisition for $280M cash + 1.8M Class A shares, adding 1,552 net royalty acres and ~17.4 net locations
- FY2026 production guidance raised to 67,250–67,750 bo/d; Q4 2026 guided at 70,000–71,000 bo/d
Stock down 4.11% in regular session to $45.72; extended-hours flat at $45.72. The selloff likely reflects broader energy-sector weakness or profit-taking rather than the results, given strong FCF, raised guidance, and accretive M&A.
Viper delivered high-margin results while executing two major Permian acquisitions that extend inventory duration and raised guidance — all while funding deals primarily with cash, validating the revised capital-return framework.
Viper's 104 active rigs represent ~40% of all Permian Basin rigs, underscoring its dominant mineral-acreage position. The McElroy and Buckhorn deals extend the consolidation strategy among Permian royalty players, with Chevron and ExxonMobil as key operators on acquired acreage.
Total debt of $2.4 billion with net debt also at $2.4 billion; pro forma leverage ~1.0x LTM Adjusted EBITDA post-Buckhorn. Commodity price exposure remains the core risk given unhedged realized oil price of $87.65/bbl.