Viper Energy raises production guidance and increases base dividend
Cash available for distribution rose to $262 million in the second quarter.
Viper Energy (VNOM), the mineral and royalty company, increased its full-year production outlook and raised its base dividend following a rise in quarterly net income.
The company shifted its capital allocation strategy this quarter, removing a previous commitment to return at least 75% of cash available for distribution to shareholders. This change provides more flexibility for mergers and acquisitions and share repurchases.
Consolidated net income attributable to Viper rose to $142 million in the second quarter, up from $97 million in the first quarter. Cash available for distribution to Class A common shares increased to $262 million, or $1.37 a share, compared with $204 million, or $1.05 a share, in the prior quarter.
Average daily production for the second quarter was 65,077 bo/d (134,363 boe/d), a slight sequential increase from 65,000 bo/d (130,711 boe/d) in the first quarter. The company initiated average daily oil production guidance for the third quarter at 67,500 to 68,500 bo/d.
Full-year 2026 average daily production guidance was raised to 66,000 - 67,250 bo/d (132,500 - 135,000 boe/d) from the previous range of 64,500 - 66,500 bo/d.
Viper expanded its asset base through the acquisition of Riverbend Oil & Gas IX, L.L.C., which closed on July 1, 2026. On August 3, 2026, the company entered into a definitive agreement to acquire approximately 933 net royalty acres from Diamondback in exchange for approximately 3.7 million OpCo Units and Class B common stock.
The board approved a 32% increase to the base dividend to $2.00 a Class A share annually, effective in the third quarter. Share repurchases in the second quarter totaled approximately 3.0 million shares for $132 million, up from 2.2 million shares for $96 million in the first quarter.