Viper Energy, Inc. Q4 FY2025 earnings call

Kaes Van't Hof mentioned the fourth quarter capped a transformational year with over $8 billion of mineral acquisitions, nearly 2.5x growth in Permian Basin acreage, 7% growth in oil production per share. Activity in Permian acreage is strong. They initiated 2026 production guidance with mid-single-digit organic growth from Q4 2025 exit rate. Balance sheet was strengthened with full repayment of $500 million term loan and revolver balance, resulting in pro forma net debt of ~$1.6 billion. Board approved 15% increase in base dividend and $1 billion increase in share repurchase authorization. Returned 90% of available cash in Q4 and expect to return upwards of 100% of cash available for distribution. Austen Gilfillian talked about still early stages of leasing program in Midland Basin with only 10%-15% of acreage leased, and Viper's operator hat when buying minerals, focusing on well-capitalized operators in coveted acreage.

Initiated average daily production guidance for full year 2026 implying mid-single-digit organic production growth from Q4 2025 exit rate. Board approved 15% increase to base dividend and $1 billion increase to share repurchase authorization. Expect to execute on return of capital strategy while continuing to deliver on differentiated growth in per share metrics.

Q: Neal Dingmann asked about Venom's ownership across [FANG's] Barnett position and return of capital.

A: Kaes Van't Hof and Austen Gilfillian responded on Barnett leasing progress and return of capital structure.

Q: Wei Jiang asked on third-party activity outlook and lease bonus.

A: Kaes Van't Hof and Austen Gilfillian talked about third-party activity strength and lease bonus benefits.

Q: Neil Mehta asked on bid ask for royalty assets and geography.

A: Kaes Van't Hof and Austen Gilfillian discussed royalty asset market and Delaware Basin position.

Q: Kalei Akamine asked on 2026 oil guide and gas contracts.

A: Austen Gilfillian and Kaes Van't Hof answered on oil guide visibility and gas contract benefits.

Q: Derrick Whitfield asked on Barnett coverage and M&A growth.

A: Kaes Van't Hof and Austen Gilfillian responded on Barnett coverage and M&A growth.

Q: Paul Diamond asked on M&A and hedge plan.

A: Kaes Van't Hof and Austen Gilfillian talked about M&A leverage and hedge plan.

Q: Leo Mariani asked on lease bonus income and oil cut.

A: Kaes Van't Hof and Austen Gilfillian discussed lease bonus and oil cut factors.

Q: Tim Rezvan asked on repurchase comments and Permian oil growth.

A: Kaes Van't Hof answered on repurchase and Permian oil growth