Viper Energy Partners (VNOM) Q3 2025 earnings summary

Executive summary

• Q3 2025 marked a transformative period with the closing of the $4.0 billion all-equity Sitio Royalties acquisition, adding 34,300 net royalty acres and driving record production of 56,087 bo/d, alongside the announced $670 million divestiture of all non-Permian assets expected to close in Q1 2026.

• Achieved 71% year-over-year production growth for the nine months ended September 30, 2025, driven by acquisitions and organic growth.

• Reported a consolidated net loss of $197 million in Q3 2025, primarily due to a $360 million non-cash impairment from acquisition accounting and lower SEC prices.

• Returned $140 million to shareholders in Q3 2025 via dividends and share repurchases, representing 85% of pro forma cash available for distribution.

• Issued $1.6 billion in Guaranteed Senior Notes and entered a $500 million Term Loan to fund acquisitions and retire Sitio's debt.

Financial highlights

• Q3 2025 total operating income was $418 million, up 98% year-over-year, with adjusted EBITDA of $181 million.

• Q3 2025 net loss attributable to common stockholders was $(77) million, driven by a $360 million impairment.

• Q3 2025 pro forma cash available for distribution was $0.97/share; total return of capital to Class A stockholders was $0.83/share, an 85% payout ratio.

• Repurchased 2.4 million shares for $90 million in Q3 2025; $302 million remains under the $750 million share repurchase program.

• Net debt as of September 30, 2025, was $2.2 billion, with liquidity of $1.4 billion and pro forma net debt of $1.6 billion after the non-Permian divestiture.

Outlook and guidance

• Q4 2025 production guidance: 65,000–67,000 bo/d (124,000–128,000 boe/d); full-year 2025 guidance: 48,750–49,000 bo/d (92,750–93,500 boe/d).

• Anticipates mid-single digit organic oil production growth in 2026 from Q4 2025 levels, resulting in double-digit year-over-year growth in oil production per share.

• Plans to return nearly 100% of cash available for distribution to shareholders as net debt approaches $1.5 billion post-divestiture.

• Guidance for 2026 assumes maintenance activity levels from Diamondback, with flexibility to adjust based on commodity prices.

• Q4 2025 cash taxes expected at $13–$18 million; depletion cost guidance of $16.75–$17.25/BOE.