01—Abstract
Summary
Summary of the 10-Q filed August 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Viper Energy, Inc. reported second-quarter 2026 total operating income of $677 milliona, up from $297 million in the second quarter of 2025, and net income attributable to Viper Energy, Inc. of $142 million, or $0.73 per diluted share, versus $37 million, or $0.28 per share, a year earlier.
Royalty income was $658 millionb, with oil income of $582 million. Production averaged 134,363 BOE/d in the quarter, and the company is raising its full-year 2026 production guidance to a range of approximately 132.5 MBOE/d to 135 MBOE/d. Average realized oil price was $98.28 per Bbl in the quarter versus $73.16 per Bbl in the first quarter of 2026.
For the six months ended June 30, 2026, net cash provided by operating activities was $815 millionc. Balance sheet activity was significant in 2026. The company sold its non-Permian assets for net cash proceeds of approximately $610 million and used the proceeds to repay the $500 million Term Loan in full.
Long-term debt, net, declined to $1.678 billiond from $2.186 billion at year-end 2025. The Revolving Credit Facility was upsized to $2.00 billion and extended to June 2031, with $95 million outstanding and $1.91 billion available at June 30, 2026. Total liquidity was $1.99 billion.
Subsequent to quarter end, the company closed the Riverbend Acquisition on July 1, 2026, for approximately $339 million in cash and 3,691,796 Class A shares, and agreed on August 3, 2026 to the Pending 2026 Drop Down, an exchange for 3,654,979 OpCo Units and Class B shares covering approximately 933 net royalty acres. Shareholder returns are changing. On July 30, 2026, the board approved a second-quarter 2026 dividend of $0.67 per Class A share, consisting of a $0.38 base and a $0.29 variable component, and raised the annual base dividend to $2.00 per share, payable in quarterly installments of $0.50 beginning with the third quarter of 2026.
The company will no longer commit to returning at least 75% of cash available for distribution each quarter. As of June 30, 2026, approximately $1.01 billion remained under the repurchase program.
02—Key points
Key Highlights
- Second-quarter 2026 total operating income of $677 million and net income attributable to Viper Energy, Inc. of $142 million, or $0.73 per diluted share, compared with $297 million and $37 million, or $0.28 per share, in the second quarter of 2025.
- Average second-quarter 2026 production of 134,363 BOE/d, with full-year 2026 production guidance raised to approximately 132.5 MBOE/d to 135 MBOE/d.
- Average realized oil price of $98.28 per Bbl in the second quarter of 2026, compared with $73.16 per Bbl in the first quarter of 2026.
- Non-Permian divestiture for net cash proceeds of approximately $610 million, used to fully repay the $500 million Term Loan and $90 million of revolver borrowings.
- Revolving Credit Facility increased to $2.00 billion from $1.50 billion and extended to June 12, 2031; total liquidity of $1.99 billion at June 30, 2026.
- Annual base dividend raised to $2.00 per Class A share, paid in $0.50 quarterly installments beginning with the third quarter of 2026, and the commitment to return at least 75% of cash available for distribution each quarter is being removed.
- Riverbend Acquisition closed July 1, 2026 for approximately $339 million in cash and 3,691,796 Class A shares, adding about 2,772 net royalty acres and expected to add approximately 1,000 BO/d to midpoint standalone production guidance.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 5, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $658.00M$297.00M | +121.5% |
| Operating Expenses | $249.00M$162.00M | +53.7% |
| Operating Income | $428.00M$135.00M | +217.0% |
| Net Income | $142.00M$37.00M | +283.8% |
| EPS (Basic) | $0.73$0.28 | +160.7% |
| EPS (Diluted) | $0.73$0.28 | +160.7% |
| Shares Outstanding (Basic) | 193.73M131.11M | +47.8% |
| Shares Outstanding (Diluted) | 193.73M131.16M | +47.7% |
05—Questions
Frequently Asked Questions
How did Viper's earnings and revenue change in the second quarter of 2026?
Total operating income was $677 million in the second quarter of 2026, compared with $297 million in the second quarter of 2025. Net income attributable to Viper Energy, Inc. was $142 million, or $0.73 per diluted share, compared with $37 million, or $0.28 per share. Royalty income rose to $658 million from $287 million, driven by higher oil income of $582 million versus $241 million.
What is changing about Viper's dividend policy?
On July 30, 2026, the board raised the annual base dividend to $2.00 per Class A share, payable in quarterly installments of $0.50 beginning with the third quarter of 2026. The company intends to stop committing to return at least 75% of cash available for distribution each quarter. The second-quarter 2026 dividend is $0.67 per share, made up of a $0.38 base dividend and a $0.29 variable dividend, payable August 20, 2026. The filing states that future dividends are at the board's discretion.
What major transactions did Viper complete in 2026?
In February 2026, Viper sold its non-Permian assets for net cash proceeds of approximately $610 million, which were used to repay the $500 million Term Loan and $90 million of revolver borrowings. In March 2026, a secondary offering by selling stockholders occurred, and Viper did not receive proceeds from it. On July 1, 2026, Viper closed the Riverbend Acquisition for about $339 million in cash and 3,691,796 Class A shares. On August 3, 2026, it entered into a definitive agreement for the Pending 2026 Drop Down, covering about 933 net royalty acres in exchange for 3,654,979 OpCo Units and equivalent Class B shares.
How is Viper's balance sheet and liquidity position?
At June 30, 2026, cash and cash equivalents were $77 million and long-term debt, net, was $1.678 billion, down from $2.186 billion at December 31, 2025. Outstanding revolver borrowings were $95 million, with $1.91 billion available, for total liquidity of $1.99 billion. The company stated it was in compliance with all financial maintenance covenants under the Revolving Credit Agreement.
How much capital remains for share repurchases?
As of June 30, 2026, approximately $1.01 billion remained available under the repurchase program, excluding excise tax. The board increased the authorization to $1.75 billion on February 18, 2026. Since the program's inception through July 31, 2026, Viper has repurchased 22,315,760 Class A shares and 2,000,000 Class B shares and OpCo Units for a total cost of $766 million, leaving approximately $984 million for future repurchases.
06—Continue