Viper Energy, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $300 million for the quarter ended September 30, 2026, with a net income margin of 45%.
• Adjusted EBITDA reached $596 million, representing an Adjusted EBITDA margin of 90%.
• Cash flows from operating activities totaled $447 million, yielding an operating cash flow margin of 68%.
• Generated Free Cash Flow of $520 million, with a Free Cash Flow margin of 79%.
• Total debt stood at $2.4 billion as of September 30, 2026, with net debt also at $2.4 billion.
• Cash balance was $10 million as of September 30, 2026.
• Total operating income was $661 million, up from $418 million in the same period in 2025.
• Average unhedged realized prices were $87.65 per barrel of oil, $0.96 per Mcf of natural gas, and $24.02 per barrel of natural gas liquids, resulting in a total equivalent realized price of $50.52/boe.
• Average hedged realized prices were $86.55 per barrel of oil, $0.66 per Mcf of natural gas, and $24.02 per barrel of natural gas liquids, resulting in a total equivalent realized price of $49.51/boe.

Guidance and Future Outlook:

• Increased full-year 2026 average daily production guidance to 67,250 to 67,750 bo/d (137,000 to 138,000 boe/d).
• Initiated Q4 2026 average daily production guidance of 70,000 to 71,000 bo/d (141,500 to 143,500 boe/d), inclusive of the Pending Buckhorn Acquisition.
• Forecasted pro forma net debt at year-end 2026 of approximately $2.4 billion, equating to a pro forma leverage of approximately 1.0x last twelve months Adjusted EBITDA.
• Forecasted peak production on the McElroy Ranch asset in the range of 5,000 bo/d over the next decade.
• Expected next 12 months' average daily oil production from the Pending Buckhorn Acquisition to be approximately 1,500 bo/d.
• Full-year 2026 unit cost guidance includes: D&A of $14.75-$17.25/boe, Cash G&A of $0.70-$0.90/boe, Non-Cash Share-Based Compensation of $0.10-$0.20/boe, and Net Interest Expense of $1.90-$2.40/boe.
• Production and Ad Valorem Taxes guidance is approximately 7% of revenue, with a Cash Tax Rate of 27%-30% of pre-tax income attributable to the Company.

Business Segments and Product Lines:

• Completed the Riverbend Acquisition on July 1, 2026.
• Closed the 2026 Drop Down on September 1, 2026, acquiring approximately 1,000 net royalty acres in the Permian Basin from Diamondback in exchange for 3.8 million OpCo units and equivalent Class B shares.
• Acquired the McElroy Ranch for approximately $529 million, including $49 million in deferred consideration, adding 7,359 net royalty acres in Upton and Crane Counties.
• Entered a definitive agreement for the Pending Buckhorn Acquisition, acquiring 1,552 net royalty acres in the Midland Basin for $280 million cash and 1.8 million Class A shares, expected to close in Q4 2026.
• Turned 689 gross (19.0 net) horizontal wells to production in Q3 2026.
• As of September 30, 2026, maintained 104 active horizontal rigs, representing approximately 40% of the Permian Basin total.
• Had 1,965 gross (38.9 net) horizontal wells in active development and 1,404 gross (36.4 net) line-of-sight wells.
• Total acreage position reached approximately 98,098 net royalty acres.
• Lease bonus income was $4 million from 21 executed leases.

Market and Competitive Landscape:

• The McElroy Ranch asset features concentrated mineral ownership with a 12% net royalty interest across roughly 60,000 gross acres in the western Midland Basin.
• Chevron operates approximately 27% of the McElroy Ranch inventory, including 50% of the net undeveloped Barnett inventory; Diamondback operates approximately 15%.
• The Pending Buckhorn Acquisition includes primary operators ExxonMobil (47%) and Diamondback (29%).
• Approximately 80% of the Pending Buckhorn acreage overlaps with Viper's existing footprint.
• 47% of the Pending Buckhorn net inventory is estimated to be in the top quartile of remaining Midland Basin inventory.
• Offset Barnett wells with at least 12 months of production data indicate an average estimated ultimate recovery of approximately 80 bo/ft.

Risks and Challenges:

• Forward-looking statements involve risks including commodity price volatility, supply and demand changes, and OPEC+ actions.
• Risks include regulatory changes regarding hydraulic fracturing, environmental regulations, and climate change policies.
• Operational dependence on Diamondback and potential conflicts of interest are noted risks.
• Risks include delays in permitting, curtailment of production, and the inability to replace operators in the event of bankruptcy.
• Significant indebtedness and changes in credit ratings could impact the business.
• Potential for impairment charges due to significant declines in oil, natural gas, or NGL prices.

Management Commentary and Tone:

• CEO Kaes Van't Hof stated that momentum carried through the third quarter with average daily oil production growing more than six percent quarter over quarter.
• Management highlighted the execution of a "differentiated consolidation strategy" through recent acquisitions, extending the quality and duration of inventory.
• The company emphasized funding acquisitions primarily with cash to deliver on commitments made under the revised return of capital framework, minimizing reliance on equity.
• Management expressed confidence in the durability of the long-term per-share growth outlook due to the added years of visible development.

Other Key Points:

• Declared a Q3 2026 base cash dividend of $0.50 per Class A common share, payable November 19, 2026.
• Repurchased approximately 2.1 million Class A shares for approximately $90 million in Q3 2026 (average price of $43.01 per share).
• Repurchased approximately 0.4 million Class A shares for approximately $17 million in Q4 2026 (to date).
• Total share repurchases since November 9, 2020, amount to approximately 26.1 million shares for $844 million, with $906 million remaining on the authorization.
• Outstanding long-term debt consists of $500 million in 4.900% Senior Notes due 2030, $1.1 billion in 5.700% Senior Notes due 2035, and $810 million in revolving credit facility borrowings.
• Approximately $1.2 billion remains available for future borrowings under the revolving credit facility, providing total liquidity of approximately $1.2 billion.
• The Pending Buckhorn Acquisition cash portion is expected to be funded through cash on hand and borrowings under the revolving credit facility.