01—Abstract
Summary
Summary of the 8-K filed November 3, 2025. Cited figures are marked; the original filing is the authoritative source.
Viper Energy, Inc., a subsidiary of Diamondback Energy, Inc., reported financial and operating results for the third quarter ended September 30, 2025, and announced a definitive agreement to sell its non-Permian assets for $670 milliona to an affiliate of GRP Energy Capital and Warwick Capital Partners.
The divestiture is expected to close in Q1 2026 with an effective date of September 1, 2025, and the filing projects FY 2026 average daily production from those assets of approximately 4,500 to 5,000 bo/d (9,000 to 10,000 boe/d). For Q3 2025, Viper reported average production of 56,087 bo/d (108,859 boe/d), a consolidated net loss of $197 millionb (including non-controlling interest), and a net loss attributable to Viper of $77 million, or $0.52 per Class A share. Consolidated adjusted net income was $156 million, or $1.04 per Class A share, and pro forma cash available for distribution was $165 million, or $0.97 per Class A share.
The net loss was primarily driven by a $360 millionc non-cash impairment tied to properties acquired from Diamondback in the May 1, 2025 drop down. The company closed its Sitio Royalties acquisition on August 19, 2025, in an all-equity transaction valued at approximately $4.0 billion. Viper declared a Q3 2025 base dividend of $0.33 and a variable dividend of $0.25 per Class A share, both payable November 20, 2025.
Total return of capital for the quarter was $140 milliond, or $0.83 per share, representing 85% of pro forma cash available for distribution. Net debt was $2.2 billion at September 30, 2025, and the company initiated Q4 2025 production guidance of 65,000 to 67,000 bo/d. Management also said that, after the divestiture closes and net debt approaches its $1.5 billion target, it expects to return nearly 100% of cash available for distribution.
02—Key points
Key Highlights
- Q3 2025 average production of 56,087 bo/d (108,859 boe/d); Q4 2025 guidance of 65,000 to 67,000 bo/d (124,000 to 128,000 boe/d)
- Q3 2025 consolidated net loss of $197 million, driven primarily by a $360 million non-cash impairment; net loss attributable to Viper of $77 million, or $0.52 per Class A share
- Consolidated adjusted net income of $156 million, or $1.04 per Class A share; pro forma cash available for distribution of $165 million, or $0.97 per share
- Agreed to sell non-Permian assets for $670 million, expected to close in Q1 2026 with an effective date of September 1, 2025
- Declared Q3 2025 base dividend of $0.33 and variable dividend of $0.25 per Class A share (total $0.58), payable November 20, 2025; total return of capital of $140 million, or 85% of pro forma cash available for distribution
- Repurchased 2.4 million Class A shares in Q3 2025 for about $90 million; approximately $32 million more repurchased from October 1 through October 31, 2025
- Net debt of $2.2 billion at September 30, 2025, with a stated target of $1.5 billion; $380 million 5.375% notes redeemed November 1, 2025
03—Questions
Frequently Asked Questions
Why did Viper report a net loss in Q3 2025?
The consolidated net loss of $197 million was primarily driven by a non-cash impairment of $360 million, recorded because properties acquired from Diamondback in the May 1, 2025 drop down were recorded at Diamondback's historical carrying value. Adjusted net income, which excludes this and other items, was $156 million.
What is the status of the non-Permian asset sale?
Viper entered a definitive agreement to sell its non-Permian assets for $670 million to an affiliate of GRP Energy Capital and Warwick Capital Partners. The sale is expected to close in Q1 2026 with an effective date of September 1, 2025, and expected FY 2026 average daily production from the assets is approximately 4,500 to 5,000 bo/d.
How much is Viper returning to shareholders?
Total Q3 2025 return of capital was $140 million, or $0.83 per Class A share, which represents 85% of pro forma cash available for distribution. This included a base dividend of $0.33, a variable dividend of $0.25, and $0.25 per share in repurchased shares as part of the share buyback.
What is Viper's production outlook?
Viper initiated Q4 2025 average daily production guidance of 65,000 to 67,000 bo/d (124,000 to 128,000 boe/d). Full-year 2025 net production guidance is 48.75 to 49.00 Mbo/d (92.75 to 93.50 Mboe/d). Management expects mid-single digit organic oil production growth in 2026 from Q4 2025 estimated production.
What is Viper's debt position?
As of September 30, 2025, total debt was $2.6 billion and net debt was $2.2 billion. The company fully redeemed its $380 million 5.375% Senior Notes due 2027 on November 1, 2025, using restricted cash of $390 million deposited in July 2025. Approximately $1.4 billion of total liquidity was reported.
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