Viper tops Q3 revenue estimate and raises 2026 output forecast

Viper Energy (VNOM) reported total operating income of $661 million for the third quarter of 2026, topping the $614.63 million revenue estimate, and said it raised its full-year production guidance. Diluted earnings per share were 72 cents, slightly below the 73-cent consensus estimate.

Viper is a corporation formed by Diamondback Energy to own and acquire mineral and royalty interests, mainly in the Permian Basin in West Texas.

Here’s how the company did:

• Total operating income: $661 million vs. $418 million a year earlier, topping the $614.63 million estimate
• Diluted EPS: 72 cents vs. a loss of 52 cents a year earlier, below the 73-cent estimate
• Net income: $300 million vs. a loss of $197 million a year earlier
• Average daily oil production: 69,076 barrels, up from 56,087 a year earlier

CEO Kaes Van’t Hof said the quarter showed continued momentum.

"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."

Production and guidance

Viper expects fourth-quarter 2026 average daily production of 70,000 to 71,000 barrels of oil per day, or 141,500 to 143,500 barrels of oil equivalent per day, including the pending Buckhorn acquisition.

The company increased its full-year 2026 production guidance to 67,250 to 67,750 barrels of oil per day, or 137,000 to 138,000 barrels of oil equivalent per day. The guidance includes the McElroy Ranch Acquisition, which closed during September 2026.

According to its SEC filings, revenue rose in each of the last three quarters, from $418.0 million in the third quarter of 2025 to $677.0 million in the second quarter of 2026.

Acquisitions and dividend

In September, Viper acquired mineral and royalty interests in two related transactions, the McElroy Ranch Acquisition, for an aggregate purchase price of approximately $529 million, subject to customary post-closing adjustments. The purchase includes $49 million of deferred consideration payable in equal quarterly installments through June 2029.

The company also has a pending purchase of Buckhorn Minerals interests for $280 million in cash and about 1.8 million Class A shares. The transaction is expected to close in the fourth quarter of 2026, and the cash portion is expected to be funded through cash on hand and borrowings under the revolving credit facility.

The board declared a base cash dividend of 50 cents per Class A common share, payable Nov. 19 to holders of record at the close of business on Nov. 12.

Cash, debt and buybacks

Net cash provided by operating activities was $447 million. Free cash flow, a non-GAAP measure the company defines as operating cash flow before working capital changes less capital expenditures, was $520 million.

Viper repurchased about 2.1 million Class A shares for $90 million, at an average price of $43.01 per share. Total debt was $2.4 billion as of Sept. 30, with net debt also at $2.4 billion and cash of $10 million.