01—Abstract
Summary
Summary of the 8-K filed November 2, 2026. Cited figures are marked; the original filing is the authoritative source.
Viper Energy, Inc., a subsidiary of Diamondback Energy, Inc., reported third quarter 2026 results for the period ended September 30, 2026.
Net income was $300 milliona, a 45% net income margin, and Adjusted EBITDA was $596 million, a 90% margin. Cash flow from operating activities was $447 million and Free Cash Flow was $520 million, a 79% margin. Average daily production was 69,076 bo/d (141,152 boe/d), and total operating income was $661 million.
Total debt and net debt were each $2.4 billionb at September 30, 2026. The company declared a base dividend of $0.50 per Class A share, payable November 19, 2026, and repurchased approximately 2.1 million Class A shares for approximately $90 million during the quarter. The company also announced two acquisitions.
The McElroy Ranch Acquisition, completed in September 2026 for an aggregate purchase price of approximately $529 millionc including $49 million of deferred consideration, added approximately 7,359 net royalty acres in Upton and Crane Counties. The Pending Buckhorn Acquisition, agreed on September 14, 2026, is expected to close in the fourth quarter of 2026 for $280 million in cash and approximately 1.8 million Class A shares. It adds 1,552 net royalty acres, mostly in the Midland Basin, and is expected to lift pro forma net debt to approximately $2.4 billion at year-end 2026, or about 1.0x pro forma leverage based on last twelve months Adjusted EBITDA.
Viper raised its full year 2026 production guidance to 67.25 to 67.75 Mbo/d (137.0 to 138.0 Mboe/d) and initiated fourth quarter 2026 guidance of 70.00 to 71.00 Mbo/d (141.50 to 143.50 Mboe/d), both including the Pending Buckhorn Acquisition. Guidance also covers unit costs, including depreciation, depletion and amortization of $14.75 to $17.25d per boe, and a cash tax rate of 27% to 30%. The company will hold a conference call on November 3, 2026.
02—Key points
Key Highlights
- Q3 2026 net income of $300 million (45% net income margin), Adjusted EBITDA of $596 million (90% margin), and Free Cash Flow of $520 million (79% margin).
- Average daily production of 69,076 bo/d (141,152 boe/d) in Q3 2026, with average daily oil production growing more than six percent quarter over quarter according to management.
- Declared a base cash dividend of $0.50 per Class A share for Q3 2026, payable November 19, 2026 to holders of record on November 12, 2026.
- Repurchased approximately 2.1 million Class A shares for approximately $90 million in Q3 2026; approximately $906 million remains on the buyback authorization as of October 30, 2026.
- McElroy Ranch Acquisition (approximately $529 million, including $49 million deferred) closed in September 2026, adding about 7,359 net royalty acres in Upton and Crane Counties.
- Pending Buckhorn Acquisition ($280 million cash plus approximately 1.8 million Class A shares, adding 1,552 net royalty acres) is expected to close in Q4 2026 and is projected to bring pro forma leverage to about 1.0x.
- Full year 2026 production guidance raised to 67.25 to 67.75 Mbo/d, and Q4 2026 guidance of 70.00 to 71.00 Mbo/d initiated, both including the Pending Buckhorn Acquisition.
03—Questions
Frequently Asked Questions
How strong was Viper's Q3 2026 profitability and cash generation?
Viper reported Q3 2026 net income of $300 million on total operating income of $661 million, Adjusted EBITDA of $596 million, cash flow from operating activities of $447 million, and Free Cash Flow of $520 million. Net income attributable to Viper Energy, Inc. was $140 million, with the remainder attributable to non-controlling interest.
How is Viper funding its acquisitions and what is its leverage position?
Management said the McElroy Ranch Acquisition was funded primarily with cash, and the cash portion of the Pending Buckhorn Acquisition is expected to come from cash on hand and borrowings under the revolving credit facility. As of September 30, 2026, total debt was $2.4 billion, cash was $10 million, and approximately $1.2 billion was available for future borrowings. Pro forma net debt at year-end 2026 is expected to be approximately $2.4 billion, or about 1.0x last twelve months Adjusted EBITDA.
What is the outlook for production and key costs?
Viper raised full year 2026 production guidance to 67.25 to 67.75 Mbo/d (137.0 to 138.0 Mboe/d) and expects Q4 2026 production of 70.00 to 71.00 Mbo/d (141.50 to 143.50 Mboe/d), both including the Pending Buckhorn Acquisition. Guidance also includes depreciation, depletion and amortization of $14.75 to $17.25 per boe, cash G&A of $0.70 to $0.90 per boe, net interest expense of $1.90 to $2.40 per boe, and a cash tax rate of 27% to 30%.
What does the Pending Buckhorn Acquisition add to Viper's inventory?
The Pending Buckhorn Acquisition covers 1,552 net royalty acres, substantially all in the Midland Basin, with about 80% overlap with existing Viper acreage. The asset is 61% undeveloped with an expected 17.4 net inventory locations. Management expects it to produce approximately 1,500 bo/d over the next twelve months, and the transaction is expected to close in the fourth quarter of 2026.
What is the company's capital return activity?
Viper declared a Q3 2026 base dividend of $0.50 per Class A share and repurchased approximately 2.1 million Class A shares for approximately $90 million during the quarter at an average price of $43.01 per share. Since the repurchase program began in November 2020 through October 30, 2026, the company has repurchased approximately 26.1 million shares for approximately $844 million, with approximately $906 million remaining under the authorization.
04—Continue