VNOM 10-K Annual Reports

Viper Energy Annual Report, Year Ended Dec 31, 2025

Viper Energy, Inc. (Nasdaq: VNOM) reported a 2025 net loss attributable to Viper Energy, Inc. of $68 million, compared with net income of $359 million in 2024, driven primarily by a $768 million non-cash ceiling test impairment. Total operating income rose to $1,395 million from $861 million, with royalty income of $1,346 million versus $854 million, reflecting production growth of 91% (average 95,126 BOE/d in 2025 versus 49,784 BOE/d in 2024). Depletion increased to $607 million, and the company's proved reserves totaled 406,035 MBOE at year-end 2025, approximately 48% oil. The growth was largely acquisition-driven, including the all-equity Sitio Acquisition valued at approximately $4.0 billion and the 2025 Drop Down from Diamondback subsidiaries. The company's balance sheet expanded significantly, with total assets of $12.67 billion and total long-term debt of $2.19 billion at December 31, 2025, versus $1.08 billion a year earlier. Cash from operations was $1,053 million in 2025. Subsequent to year-end, Viper completed the Non-Permian Divestiture on February 9, 2026 for net cash proceeds of approximately $617 million, which was used to repay the $500 million Term Loan in full. Management stated that an additional material non-cash impairment is reasonably likely in the first quarter of 2026, though the amount could not be estimated. Shareholder returns remained a central focus. The board raised the repurchase authorization from $750 million to $1.75 billion on February 18, 2026, with approximately $1.2 billion available, and approved a $0.52 per Class A share dividend for the fourth quarter of 2025 (base $0.38 plus variable $0.14), with an annual base dividend increased to $1.52 per share. Management said it returned 90% of cash available for distribution for the fourth quarter of 2025 and expects to increase returns to upwards of 100% of future cash available for distribution.