01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Viper Energy, Inc. reported first-quarter 2026 total operating income of $511 milliona, up from $245 million in the first quarter of 2025, with royalty income of $496 million and net income of $215 million (net income attributable to Viper Energy, Inc. of $97 million, or $0.53 diluted EPS).
Production averaged 130,711 BOE/d, with oil income of $428 millionb. The company's first-quarter 2026 results reflect the full-quarter contribution of the Sitio Acquisition and 2025 Drop Down, as the filing attributes most of the 128% production growth year over year to those transactions. During the quarter, Viper divested its non-Permian assets for net cash proceeds of approximately $610 million, which were used to repay the $500 million Term Loan in full and fully repay $90 million of Revolving Credit Facility borrowings.
Total debt fell to $1.60 billionc at March 31, 2026, from $2.19 billion at December 31, 2025, and liquidity stood at $1.51 billion. The company also completed a secondary offering in March 2026 in which it received no proceeds, increased its repurchase authorization to $1.75 billion, and repurchased $96 million of securities during the quarter.
Subsequent to quarter end, Viper agreed on May 1, 2026 to acquire Riverbend Oil & Gas IX for approximately $337 milliond in cash and 3,689,865 Class A shares, expected to close in the third quarter of 2026. Management estimates full-year 2026 production, excluding this acquisition, at approximately 126 to 130 MBOE/d, and a $0.68 per share first-quarter dividend was declared, payable May 21, 2026.
02—Key points
Key Highlights
- Total operating income of $511 million for Q1 2026, versus $245 million in Q1 2025; royalty income of $496 million versus $244 million.
- Net income of $215 million; net income attributable to Viper Energy, Inc. of $97 million, or $0.53 per diluted share, versus $0.62 in Q1 2025.
- Average combined production of 130,711 BOE/d, compared with 57,378 BOE/d in Q1 2025; the filing attributes about 54% of the 128% production growth to the Sitio Acquisition and 45% to the 2025 Drop Down.
- Non-Permian divestiture on February 9, 2026 generated net cash proceeds of approximately $610 million, used to repay the $500 million Term Loan and $90 million of revolver borrowings.
- Long-term debt decreased to $1.60 billion at March 31, 2026, from $2.19 billion at December 31, 2025; liquidity of $1.51 billion including $1.48 billion of revolver availability.
- Pending Riverbend Acquisition (signed May 1, 2026) for approximately $337 million in cash plus 3,689,865 Class A shares, adding about 3,064 net royalty acres, expected to close in Q3 2026.
- Repurchase authorization increased to $1.75 billion; approximately $1.14 billion remained available as of May 1, 2026; a $0.68 per share Q1 2026 dividend was declared, payable May 21, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 6, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $496.00M$245.00M | +102.4% |
| Operating Expenses | $258.00M$90.00M | +186.7% |
| Operating Income | $253.00M$155.00M | +63.2% |
| Net Income | $97.00M$75.00M | +29.3% |
| EPS (Basic) | $0.54$0.62 | −12.9% |
| EPS (Diluted) | $0.53$0.62 | −14.5% |
| Shares Outstanding (Basic) | 181.30M120.93M | +49.9% |
| Shares Outstanding (Diluted) | 181.42M121.03M | +49.9% |
05—Questions
Frequently Asked Questions
What drove the large year-over-year increase in royalty income?
Royalty income rose $252 million to $496 million, primarily due to an additional $282 million from 128% production growth, partially offset by a $30 million decrease from lower natural gas and natural gas liquids prices. The filing attributes the production growth mainly to the Sitio Acquisition and the 2025 Drop Down.
Why did net income attributable to Viper Energy, Inc. differ from total net income?
Total net income was $215 million, of which $118 million was attributable to non-controlling interest, mainly Diamondback and other holders of OpCo Units, leaving $97 million attributable to Viper Energy, Inc.
Did Viper receive any proceeds from the March 2026 secondary offering?
No. The filing states that Viper did not receive any proceeds from the 2026 Secondary Offering or the Shoe Exercise; the selling stockholders, including Diamondback and EnCap, received the proceeds.
How is the Riverbend acquisition expected to be funded and what will it add?
The cash portion of approximately $337 million is expected to be funded through cash on hand and Revolving Credit Facility borrowings, plus 3,689,865 Class A shares issued to Riverbend. The acquired interests are expected to produce about 2,000 BO/d over the next 12 months and add approximately 1,000 BO/d to the midpoint of standalone full-year production guidance.
What is the outlook for 2026 production?
Excluding the Pending Riverbend Acquisition, management estimates full-year 2026 production may range between approximately 126 MBOE/d and 130 MBOE/d, and states it expects first-quarter production to have exceeded expectations.
06—Continue