Why did Viper report a net loss in the fourth quarter despite strong production?

The consolidated net loss of $246 million was primarily driven by a non-cash impairment of $408 million, recorded because properties acquired from Diamondback in the May 1, 2025 drop down were booked at Diamondback's historical carrying value. Excluding the impairment and other adjustments, consolidated adjusted net income was $121 million, or $0.72 per Class A share.

How much cash is being returned to shareholders, and how is the dividend set?

Viper declared a Q4 2025 base dividend of $0.38 and a variable dividend of $0.14 per Class A share, totaling $0.52, and returned $131 million, or $0.77 per share, including share repurchases, equal to 90% of cash available for distribution. The annual base dividend rises 15% to $1.52 per share, which the company says is approximately 50% of cash available for distribution at $50 WTI, and management said it believes the company can increase return of capital upwards of 100% of cash available for distribution.

How does the balance sheet look after the non-Permian divestiture?

As of December 31, 2025, total debt excluding issuance costs was $2.2 billion against $13 million of cash, for net debt of $2.2 billion. The February 9, 2026 divestiture generated net proceeds of approximately $617 million, which fully repaid the $500 million term loan and the revolver balance. Management said the company enters 2026 with a balance sheet very near its long-term net debt target of $1.5 billion.

What production and operating outlook did Viper provide for 2026?

Viper initiated Q1 2026 average daily production guidance of 62,500 to 64,500 bo/d (124,000 to 128,000 boe/d) and full-year 2026 guidance of 61,000 to 67,000 bo/d (120,000 to 132,000 boe/d), both giving effect to the non-Permian divestiture. Guidance also includes depletion of $17.50 to $19.50 per boe and cash G&A of $0.70 to $0.90 per boe.

VNOM 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 23, 2026. Cited figures are marked; the original filing is the authoritative source.

Viper Energy, Inc., a subsidiary of Diamondback Energy, Inc., reported fourth quarter and full year 2025 results in a press release furnished under Item 2.02 of this Form 8-K.

For Q4 2025, average production was 66,413 bo/d (134,000 boe/d), and the company posted a consolidated net loss of $246 million^a, driven primarily by a non-cash impairment of $408 million tied to properties acquired from Diamondback in the 2025 Drop Down. Consolidated adjusted net income was $121 million, or $0.72 per Class A share, and cash available for distribution to Class A shares was $145 million, or $0.85 per share. The Board declared a Q4 2025 base dividend of $0.38 and a variable dividend of $0.14 per Class A share, payable March 12, 2026, and Q4 return of capital equaled 90% of cash available for distribution.

The filing also announces a 15% increase in the annual base dividend to $1.52^b per share, which the company says represents approximately 50% of cash available for distribution at $50 WTI, and a $1.0 billion increase in the share repurchase authorization, leaving approximately $1.2 billion remaining. On February 9, 2026, Viper closed the divestiture of its non-Permian assets for net proceeds of approximately $617 million (subject to customary post-closing adjustments), which were used to fully repay the $500 million term loan and the revolver balance. As of December 31, 2025, total debt excluding issuance costs was $2.2 billion against $13 million of cash, and the company guided full-year 2026 production to 61,000 to 67,000 bo/d (120,000 to 132,000 boe/d).

For full year 2025, Viper reported a consolidated net loss of $206 million^c, a net loss attributable to Viper of $68 million, and consolidated adjusted EBITDA of $1.3 billion. Proved reserves at year-end 2025 were 406,035 Mboe, up 107% year over year, with a PV-10 of approximately $7.4 billion. Management described the company as entering 2026 with a balance sheet near its long-term net debt target of $1.5 billion.

02—Key points

Key Highlights

Q4 2025 net loss of $246 million (consolidated), including a $408 million non-cash impairment; adjusted net income of $121 million, or $0.72 per Class A share
Q4 2025 cash available for distribution of $145 million, or $0.85 per Class A share; total return of capital of $131 million, or 90% of cash available for distribution
Declared Q4 2025 base dividend of $0.38 and variable dividend of $0.14 per Class A share, payable March 12, 2026
Annual base dividend increased 15% to $1.52 per share; share repurchase authorization increased by $1.0 billion, with approximately $1.2 billion remaining
Non-Permian divestiture closed February 9, 2026 for net proceeds of approximately $617 million, used to repay the $500 million term loan and the revolver balance
2026 guidance: full-year production of 61,000 to 67,000 bo/d (120,000 to 132,000 boe/d); Q1 2026 production of 62,500 to 64,500 bo/d
Year-end 2025 proved reserves of 406,035 Mboe, up 107% year over year, with a PV-10 of approximately $7.4 billion

03—Questions

Frequently Asked Questions

Why did Viper report a net loss in the fourth quarter despite strong production?
The consolidated net loss of $246 million was primarily driven by a non-cash impairment of $408 million, recorded because properties acquired from Diamondback in the May 1, 2025 drop down were booked at Diamondback's historical carrying value. Excluding the impairment and other adjustments, consolidated adjusted net income was $121 million, or $0.72 per Class A share.
How much cash is being returned to shareholders, and how is the dividend set?
Viper declared a Q4 2025 base dividend of $0.38 and a variable dividend of $0.14 per Class A share, totaling $0.52, and returned $131 million, or $0.77 per share, including share repurchases, equal to 90% of cash available for distribution. The annual base dividend rises 15% to $1.52 per share, which the company says is approximately 50% of cash available for distribution at $50 WTI, and management said it believes the company can increase return of capital upwards of 100% of cash available for distribution.
How does the balance sheet look after the non-Permian divestiture?
As of December 31, 2025, total debt excluding issuance costs was $2.2 billion against $13 million of cash, for net debt of $2.2 billion. The February 9, 2026 divestiture generated net proceeds of approximately $617 million, which fully repaid the $500 million term loan and the revolver balance. Management said the company enters 2026 with a balance sheet very near its long-term net debt target of $1.5 billion.
What production and operating outlook did Viper provide for 2026?
Viper initiated Q1 2026 average daily production guidance of 62,500 to 64,500 bo/d (124,000 to 128,000 boe/d) and full-year 2026 guidance of 61,000 to 67,000 bo/d (120,000 to 132,000 boe/d), both giving effect to the non-Permian divestiture. Guidance also includes depletion of $17.50 to $19.50 per boe and cash G&A of $0.70 to $0.90 per boe.

04—Continue

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