Viper Energy, Inc. (NASDAQ:VNOM) reported a consolidated net loss of $246 million for the fourth quarter of 2025 and a full‑year 2025 net loss of $206 million, driven largely by a $408 million non‑cash impairment related to the 2025 Drop Down acquisition. Operating income for the quarter reached $435 million, while cash on hand was $13 million and total debt stood at $2.2 billion, leaving net debt unchanged at $2.2 billion. The company declared a base cash dividend of $0.38 per Class A share for the quarter, payable March 12, 2026, and a variable dividend of $0.14 per share. During the quarter, Viper repurchased 2.4 million shares for approximately $94 million.
In contrast to the $272.8 million net income reported in Q4 2024, the Q4 2025 loss represents a sharp reversal, and the full‑year 2025 loss of $206 million is a decline from the $603.6 million net income recorded in 2024. Earnings per share for the quarter were $0.31, beating the consensus estimate of $0.27 by $0.04, while revenue of $435 million surpassed the Zacks consensus estimate of $426.49 million by about 2%. The company’s revenue growth was supported by a 107 % year‑over‑year increase in proved reserves to 406,035 Mboe and a rise in average production to 48,973 bo/d for the year, up from 27,156 bo/d in 2024.
The year‑long net loss is largely attributable to the $408 million impairment of the 2025 Drop Down acquisition, which offset gains from higher production and reserve growth. Despite the impairment, operating income remained robust at $435 million, reflecting strong core‑segment performance and effective cost management. The company’s cash balance of $13 million and debt level of $2.2 billion indicate a conservative liquidity position, while the dividend and share‑repurchase program demonstrate confidence in future cash flows.
CEO Kaes Van’t Hof said, "The successful integration of the 2025 Drop Down and Sitio assets has further enhanced the scale, duration, and overall quality of our portfolio while reinforcing the durability of our growth outlook." He added, "We also remained disciplined in our capital allocation, opportunistically repurchasing shares amid market dislocation while continuing to pay an above‑market dividend."
Investors reacted positively to the earnings release. The EPS beat, the 15 % increase in the base dividend, and the company’s record reserve growth and production gains were cited as key drivers of the favorable market response. The announcement reinforced confidence in Viper’s long‑term strategy to focus on the Permian Basin and to maintain disciplined capital allocation while pursuing growth opportunities.
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