Viper Energy Inc. reported a consolidated net loss of $246 million for the fourth quarter of 2025, compared with a $206 million loss for the full year. The loss was driven largely by a $408 million non‑cash impairment related to the 2025 Drop Down acquisition. Revenue for the quarter was $435 million, a slight miss of $6 million against the consensus estimate of $441 million, while earnings per share came in at $0.31 versus the $0.3182 estimate, a miss of $0.0082.
The company reported cash on hand of $13 million and total debt of $2.2 billion, leaving net debt unchanged at $2.2 billion. The cash balance is modest compared with the company’s $1.4 billion liquidity reported earlier in the year. The release did not provide operating income; revenue was $435 million.
Viper declared a base cash dividend of $0.38 per Class A common share for the fourth quarter, payable on March 12 2026 to shareholders of record on March 5 2026. The company also repurchased 2.4 million shares during the quarter for an aggregate purchase price of approximately $94 million, averaging $38.69 per share. These actions are part of a broader strategy to return capital to shareholders as the company moves closer to its $1.5 billion net‑debt target.
CEO Kaes Van't Hof highlighted the company’s transformational year, noting that "Year-over-year, we grew our Permian Basin acreage by nearly two and a half times and our oil production per share by 7%." He added that "Following our non‑Permian divestiture, we fully repaid our $500 million term loan and outstanding revolver balance, resulting in pro forma net debt of roughly $1.6 billion, just over 1 turn of leverage." Van't Hof also said, "Our Board approved a 15% increase to our base dividend and a $1 billion increase to our share repurchase authorization, reflecting confidence in our long‑term cash‑generating ability and disciplined capital allocation approach." He further explained, "This base dividend represents approximately 50% of estimated 2026 free cash flow at $50 WTI and is fully covered below $30 WTI." Finally, he noted, "Given the strength of our balance sheet, we returned 90% of available cash during the fourth quarter, and now, following the closing of our non‑Permian divestiture, we are well positioned to increase our return of capital upwards of 100% of cash available for distribution."
Investors responded favorably, citing the company’s aggressive acquisition strategy, significant deleveraging from the non‑Permian divestiture, and an enhanced shareholder return framework. The market reaction was driven by the company’s ability to maintain a strong balance sheet while expanding its asset base and by the confidence expressed in the new dividend and buyback authorization.
Management guided for average daily production in 2026, projecting mid‑single‑digit organic growth from the Q4 2025 exit rate. The guidance reflects confidence in the company’s production pipeline and the expectation that the newly acquired assets will contribute to sustained growth. The company’s focus on capital efficiency and debt reduction positions it to support the guidance and continue delivering shareholder value.
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