Viper Energy, Inc. Q3 FY2025 earnings call

• Viper continued to execute on growth strategy with Sitio acquisition and organic growth. • 4Q 2025 oil production guidance implies ~20% increase in oil production per share y-o-y. • 2026 expected mid-single-digit organic oil production growth from 4Q 2025, implying double-digit y-o-y growth per share. • Returned 85% of cash available for distribution in Q3, with combined base plus variable dividend >6% annualized yield, $90M share repurchases, and $60M to balance sheet. • Strong operational activity levels across asset base, with mid-single-digit organic growth expected in 2026 despite commodity price volatility. • Positioned to benefit from Diamondback's core Midland Basin development and broad exposure to third-party operators in Permian, with 25,000 horizontal wells in Permian providing info advantage.

No specific product segment financial performance with absolute terms and revenue contribution % provided in the transcript.

• 4Q 2025 oil production guidance implies ~20% increase in oil production per share compared to same quarter last year. • 2026 anticipates mid-single-digit organic oil production growth from 4Q 2025 estimated production, implying double-digit y-o-y growth in oil production per share relative to 2025. • Moving to close non-Permian asset sale to reach long-term net debt target of $1.5B and have line of sight to return nearly 100% of cash available for distribution to stockholders.

Q: Given nearly $700 million asset sale and over $1.5 billion of free cash flow next year, speak to near term and '26 capital allocation.

A: With asset sale proceeds, have line of sight to return almost 100% of free cash to shareholders, leaning into buybacks given market dislocation.

Q: How is activity outside of Diamondback trending?

A: Very strong, with Viper capturing almost half of all third-party activity in Permian over time.

Q: How do tools like AI impact operations and M&A?

A: AI can make business more efficient on back end, move from manual to automated, and Sitio team brought big data and automation synergies.

Q: Considerations on cash inflows from non-Permian divestitures?

A: Net proceeds ~$610M, will pay down revolver and term loan.

Q: How long can Permian volumes continue to grow despite oil price uncertainty?

A: Advantage of Diamondback-Viper relationship likely drives growth for next couple of years, with ~5%-7% interest expected in Diamondback's wells.

Q: Consider using free cash to purchase more VNOM shares?

A: On the table, trying to pound the table on VNOM's valuation and reduce Viper per share count.

Q: Price sensitivity associated with 2026 guidance from Diamondback operating perspective?

A: Contemplates base case of Diamondback's current activity levels, insulated in gross reductions in Diamondback activity.

Q: Synergy opportunity from AI processes and ground game?

A: Synergies include cost of capital savings, automation benefits, and good deal flow.

Q: Thoughts on repurchase news and potential for bigger repurchases?

A: Depends on market, but Viper has flexibility with high margins, can lean in further if market dislocates.

Q: Dialogue with unnatural holders following Sitio closing?

A: Prepared to address if they sell, but many merged knowing long-term upside.