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Jun 30
Viper Energy Q2 2025 Earnings Report
Viper Energy reported its second quarter 2025 financial and operating results, highlighting increased production and strategic acquisitions.
Key Takeaways
Viper Energy, Inc. announced strong second quarter 2025 results, with significant increases in oil and combined production volumes. The company reported a net income of $84 million and an EPS of $0.28. Strategic moves included the closing of a drop-down transaction and an offering of senior notes, alongside ongoing plans for the Sitio Royalties Corp. acquisition, which is expected to further boost production and solidify its market position.
Q2 2025 average oil production increased to 41,615 bo/d, and combined production reached 79,286 boe/d.
Net income attributable to Viper Energy, Inc. was $37 million, resulting in an EPS of $0.28 per Class A common share.
The company closed a $1.0 billion drop-down transaction with Diamondback and completed a $1.6 billion senior notes offering.
Viper Energy is progressing with the acquisition of Sitio Royalties Corp., valued at approximately $4.1 billion, which is expected to significantly increase future production.
Viper Energy
Viper Energy
Viper Energy Revenue by Segment
Revenue by Segment
Royalty Income Revenue
CapyFin.comLease Bonus Income Revenue
CapyFin.comOil Income Revenue
CapyFin.comNatural Gas Income Revenue
CapyFin.comNatural Gas Liquids Income Revenue
CapyFin.com Forward Guidance
Viper Energy provided production guidance for Q3 2025 and maintained full-year 2025 guidance, with expectations for significant growth in 2026, especially after the Sitio Acquisition.
Positive Outlook
- Initiating Q3 2025 average daily production guidance of 46,000 to 49,000 bo/d (86,000 to 92,000 boe/d).
- Maintaining average daily production guidance for the balance of 2025 (pro forma Sitio Acquisition) of 64,000 to 68,000 bo/d (122,000 to 130,000 boe/d).
- Expect full year 2026 average production to increase by a mid-single digit percentage from 2025 pro forma levels.
- Organic growth trajectory is expected to continue into 2026, with over 15% expected year-over-year growth in Diamondback-operated net oil production.
- Commitment to maintaining a strong balance sheet with a long-term net debt target of $1.5 billion, representing approximately 1.0x leverage at $50 WTI.
Challenges Ahead
- The Sitio Acquisition is subject to approval by Sitio’s shareholders and other customary closing conditions, introducing uncertainty.
- Oil price volatility, as experienced in Q2 2025, could impact future realized prices and revenue.
- The guidance for Q3 2025 and full year 2025 does not account for the pending Sitio Acquisition, meaning actual results could differ significantly post-acquisition.
- The expected timing of line-of-sight wells is based on permitting and completion schedules, which do not guarantee production.
- Future base and variable cash dividends and stock repurchases are at the discretion of the Board and subject to various factors, implying no guarantee of consistent returns.