Viper Energy (VNOM) Q3 2025 Earnings Transcript

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Date

Tuesday, November 4, 2025 astatine 12 p.m. ET

Call participants

• Chief Executive Officer — Kaes Van't Hof

• President — Austen Gilfillian

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Full Conference Call Transcript

Kaes Van't Hof: Thank you, Chip. Welcome, everyone, and convey you for listening to Viper Energy's Third Quarter 2025 Conference Call. During the 3rd quarter, Viper continued to execute connected our maturation strategy, bolstered by the closing of the Sitio acquisition and continued integrated growth. Our 4th fourth 2025 lipid accumulation guidance implies a astir 20% summation successful lipid accumulation per stock compared to the aforesaid 4th past year. Looking up to adjacent year, 2026, we proceed to expect mid-single-digit integrated lipid accumulation maturation from 4th fourth 2025 estimated production. This implies double-digit year-over-year maturation successful lipid accumulation per stock comparative to 2025. Viper besides showcased our differentiated instrumentality of superior illustration successful the 3rd quarter.

Because of our precocious operating and escaped currency travel margins, beardown equilibrium expanse and caller signing of our non-Permian plus sale, we felt it due to thin into our instrumentality of superior committedness and returned 85% of currency disposable for organisation successful the 3rd 4th to stockholders. As a result, Viper is delivering connected aggregate strategical superior allocation fronts this quarter. Our combined basal positive adaptable dividend represents a greater than 6% annualized output and an summation of astir 10% comparative to our dividend from past quarter. This dividend summation is combined with implicit $90 cardinal of stock repurchases completed during the 4th and an incremental $60 cardinal being retained to the equilibrium sheet.

In total, 3rd 4th instrumentality of superior per Class A stock represents a 48% summation versus the 2nd quarter. Looking ahead, arsenic we determination to adjacent our non-Permian plus sale, and arsenic a result, determination person to our semipermanent nett indebtedness people of $1.5 billion, we volition person enactment of show to instrumentality astir 100% of currency disposable for organisation to stockholders. We proceed -- expect to proceed to allocate the bulk of our currency for organisation to our basal positive adaptable dividend, but consciousness compelled to bargain backmost shares successful today's marketplace fixed the existent marketplace dislocation and unsocial accidental to put countercyclically by expanding our ownership successful our precocious -- existing high-quality mineral royalty assets.

Importantly, the stock repurchases done contiguous volition further heighten our maturation successful per stock metrics and let america to administer much done our basal positive adaptable dividend implicit the agelong term. On the operational front, we proceed to spot beardown enactment levels crossed our plus base, and arsenic a result, proceed to expect mid-single-digit integrated maturation successful 2026 contempt the commodity terms volatility we person seen implicit the past respective quarters. Following the closing of the Sitio acquisition, Viper is positioned to payment from a champion of some worlds situation. Viper continues to ain concentrated interests nether Diamondback's halfway Midland Basin development, which is expected to thrust meaningful semipermanent lipid accumulation growth.