01—Abstract
Summary
Summary of the 10-K filed February 25, 2026. Cited figures are marked; the original filing is the authoritative source.
Viper Energy, Inc. (Nasdaq: VNOM) reported a 2025 net loss attributable to Viper Energy, Inc. of $68 milliona, 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 millionb 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 billionc 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 billiond 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.
02—Key points
Key Highlights
- 2025 net loss attributable to Viper Energy, Inc. of $68 million, versus net income of $359 million in 2024, primarily due to $768 million in non-cash ceiling test impairments
- Total operating income of $1,395 million in 2025 versus $861 million in 2024; royalty income of $1,346 million, up from $854 million
- Average production of 95,126 BOE/d in 2025 versus 49,784 BOE/d in 2024; 2026 full-year production estimated at 120 to 132 MBOE/d
- Proved reserves of 406,035 MBOE at December 31, 2025, approximately 48% oil, 26% natural gas and 26% natural gas liquids; 78% proved developed producing
- Non-Permian Divestiture closed February 9, 2026 for net cash proceeds of approximately $617 million, used to repay the $500 million Term Loan in full
- Repurchase authorization increased to $1.75 billion from $750 million on February 18, 2026, with approximately $1.2 billion remaining
- Q4 2025 dividend of $0.52 per Class A share ($0.38 base plus $0.14 variable), with annual base dividend raised to $1.52 per share; Diamondback owns approximately 42.1% of voting power
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 25, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $1.40B$861.00M | +62.0% |
| Operating Expenses | $1.53B$294.00M | +422.1% |
| Operating Income | -$140.00M$567.00M | −124.7% |
| Net Income | -$206.00M$604.00M | −134.1% |
| EPS (Basic) | $-0.48$3.82 | −112.6% |
| EPS (Diluted) | $-0.48$3.82 | −112.6% |
| Shares Outstanding (Basic) | 142.53M93.93M | +51.7% |
| Shares Outstanding (Diluted) | 142.53M93.93M | +51.7% |
05—Questions
Frequently Asked Questions
Why did Viper report a net loss in 2025 after a profitable 2024?
The company recorded non-cash ceiling test impairments of $768 million in 2025 because the carrying value of its proved reserves exceeded estimated future net cash flows at SEC prices, largely due to properties acquired in the 2025 Drop Down being recorded at Diamondback's historical carrying value. Income (loss) from operations was $(140) million in 2025 compared with $567 million in 2024. Impairments do not reduce cash flow, and operating cash flow was $1,053 million in 2025.
How did the Sitio Acquisition and other 2025 deals affect the company?
The all-equity Sitio Acquisition, completed August 19, 2025, was valued at approximately $4.0 billion including the partial retirement of Sitio's net debt of approximately $1.2 billion and added about 34,300 net royalty acres. The 2025 Drop Down added about 24,446 net royalty acres for $873 million in cash plus 69,626,640 OpCo Units and Class B shares. Total net royalty acreage reached approximately 96,003 acres at year-end 2025, and the filing attributes about 46% of the production growth to the 2025 Drop Down and 32% to the Sitio Acquisition.
What is the company's capital return outlook?
The board's dividend policy calls for quarterly variable dividends of at least 75% of available cash less the base dividend and repurchases. Management said it returned 90% of cash available for distribution for Q4 2025 and is positioned to increase return of capital to upwards of 100% of future cash available for distribution. Dividends paid totaled $745 million in 2025, and repurchases under the program totaled $194 million during 2025.
How leveraged is the company and what debt changed in 2025?
Long-term debt, net, was $2,186 million at December 31, 2025, versus $1,083 million a year earlier. The company issued $1.6 billion of 4.900% Senior Notes due 2030 and 5.700% Senior Notes due 2035 in July 2025, and had a $500 million Term Loan (repaid in full in February 2026). The 2025 Revolving Credit Facility had $105 million outstanding at year-end, which was fully repaid in the first quarter of 2026. Credit ratings are BBB- from S&P and Fitch and Ba1 from Moody's, and management described the net debt target as $1.5 billion.
What risks should investors weigh most heavily?
Key risks include commodity price volatility, with WTI ranging from $55.27 to $93.68 per Bbl from 2023 through 2025; further impairments, with management stating an additional material impairment is reasonably likely in Q1 2026; geographic concentration in the Permian Basin; and dependence on Diamondback, which controls approximately 42.1% of voting power, provides all personnel and services, and operates about 35% of net royalty acreage. Approximately 22% of proved reserves are proved undeveloped.
06—Continue