01—Abstract
Summary
Summary of the 8-K filed August 3, 2026. Cited figures are marked; the original filing is the authoritative source.
Viper Energy, Inc., a subsidiary of Diamondback Energy, Inc., reported second quarter 2026 results on August 3, 2026, with total operating income of $677 milliona, consolidated net income of $331 million, and net income attributable to Viper of $142 million, or $0.73 per Class A common share.
Average daily production was 134,363 boe/d (65,077 bo/d) in the quarter. Cash available for distribution to Class A stockholders was $262 millionb, or $1.37 per share. The company declared a base dividend of $0.38 and a variable dividend of $0.29 per Class A share, both payable August 20, 2026.
Total return of capital was $197 millionc, or 75% of cash available for distribution. Consolidated net debt was $1.6 billion as of June 30, 2026, with a cash balance of $77 million. The most significant change is a strategic shift in capital return policy.
Effective Q3 2026, the Board approved a 32% increase in the base dividend to $2.00d per Class A share annually, which the company says would be fully protected down to approximately $30 per barrel WTI and would represent about 50% of cash available for distribution at $70 per barrel WTI. Viper is also removing its quarterly commitment to return at least 75% of cash available for distribution, which the company says will provide flexibility for share repurchases, debt reduction, and M&A.
On the operating side, Viper initiated Q3 2026 production guidance of 67,500 to 68,500 bo/d and raised full-year 2026 guidance to 66,000 to 67,250 bo/d. The Riverbend Acquisition closed July 1, 2026, and on August 3, 2026, a subsidiary agreed to acquire about 933 net royalty acres from Diamondback in exchange for approximately 3.7 million OpCo Units, with closing expected in late Q3 2026.
02—Key points
Key Highlights
- Q2 2026 total operating income of $677 million and net income attributable to Viper of $142 million, or $0.73 per Class A common share
- Base dividend increased 32% to $2.00 per Class A share annually beginning Q3 2026, with the company stating it is expected to be fully protected down to approximately $30 per barrel WTI
- Removal of the commitment to return at least 75% of cash available for distribution each quarter, replaced by a steady-growth base dividend framework
- Q2 2026 declared base dividend of $0.38 and variable dividend of $0.29 per Class A share, total $0.67, implying a 6.0% annualized yield at the July 31, 2026 closing price of $44.61
- Q3 2026 production guidance initiated at 67,500 to 68,500 bo/d; full-year 2026 guidance raised to 66,000 to 67,250 bo/d
- Repurchased approximately 3.0 million Class A shares for about $132 million in Q2 2026, and approximately $984 million remains on the buyback authorization
- Agreement to acquire about 933 net royalty acres from Diamondback for approximately 3.7 million OpCo Units, expected to close late Q3 2026
03—Questions
Frequently Asked Questions
What is changing about Viper's dividend policy?
Beginning Q3 2026, the base dividend increases 32% to $2.00 per Class A share annually. The company is also removing its quarterly commitment to return at least 75% of cash available for distribution, and says it will prioritize steady growth of the base dividend over a variable payout tied to commodity prices.
How much did Viper pay out for Q2 2026?
The Board declared a Q2 2026 base cash dividend of $0.38 and a variable cash dividend of $0.29 per Class A share, both payable August 20, 2026 to holders of record on August 13, 2026. Total return of capital to Class A stockholders was $197 million, or $1.03 per share, equal to 75% of cash available for distribution.
What were Viper's production levels and outlook?
Q2 2026 average production was 65,077 bo/d (134,363 boe/d). Q3 2026 guidance is 67,500 to 68,500 bo/d (133,500 to 135,500 boe/d), and full-year 2026 guidance was raised to 66,000 to 67,250 bo/d (132,500 to 135,000 boe/d).
What is Viper's financial position?
As of June 30, 2026, Viper had cash of $77 million and total debt of $1.7 billion, resulting in net debt of $1.6 billion. Long-term debt consisted of $500 million of 4.900% Senior Notes due 2030, $1.1 billion of 5.700% Senior Notes due 2035, and $95 million of revolver borrowings, with approximately $2.0 billion of total liquidity.
What acquisitions has Viper recently announced or completed?
The Riverbend Acquisition closed July 1, 2026. On August 3, 2026, Viper Energy Partners LP agreed to acquire about 933 net royalty acres from Diamondback and related subsidiaries in exchange for approximately 3.7 million OpCo Units, with closing expected in late Q3 2026 subject to customary conditions.
04—Continue