Viper Energy Partners (VNOM) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 2026 operational and financial results, with average production of 65,077 bo/d (134,363 boe/d) and 691 gross horizontal wells turned to production, driven by robust development from Diamondback and third-party operators.

• Increased full-year 2026 production guidance to 66,000–67,250 bo/d (132,500–135,000 boe/d), supported by the Riverbend Acquisition, which closed July 1, 2026, expanding net royalty acreage and production base.

• Announced a 32% increase in the annual base dividend to $2.00 per Class A share, transitioning from a variable payout model to a more durable, flexible capital return framework.

• Completed $132 million in share repurchases in Q2 2026, with total repurchases since inception reaching $766 million.

• Divested non-Permian assets for $610 million, using proceeds to repay debt and strengthen the balance sheet.

Financial highlights

• Q2 2026 net income attributable to common shares was $142 million, with consolidated net income of $331 million and adjusted EBITDA of $339 million.

• Q2 2026 base plus variable dividend of $0.67/share, implying a 6.0% yield at $44.61 share price; board approved a 32% increase in the base dividend to $2.00 per Class A share annually.

• Cash available for distribution in Q2 2026 was $262 million, or $1.37 per share.

• Net debt as of June 30, 2026, was $1.6 billion ($1.9 billion pro forma for Riverbend Acquisition), with $2.0 billion in liquidity.

• Repurchased 3.0 million shares for $132 million in Q2 2026; total capital return to shareholders was $197 million, or 75% of cash available for distribution.

Outlook and guidance

• Q3 2026 production guidance: 67,500–68,500 bo/d (133,500–135,500 boe/d); full-year 2026 guidance raised to 66,000–67,250 bo/d.

• Dividend fully protected down to $30/bbl WTI; at $80 WTI, distributable cash flow per Class A share expected at $4.45, or 9.9% yield.

• High single-digit organic growth expected for 2026, with continued growth potential beyond 2027, especially from Barnett development and targeted acquisitions.

• Unit cost guidance for 2026: depreciation $14.75–$17.25/boe, cash G&A $0.70–$0.90/boe, interest expense $1.90–$2.40/boe, production taxes ~7% of revenue, cash tax rate 27–30%.

• Transitioning to a stable, growing base dividend policy, with quarterly installments of $0.50 per share starting Q3 2026.