- 5 Insightful Analyst Questions From Viper Energy’s Q1 Earnings Call
May 14, 2026
Viper Energy’s first quarter results met Wall Street’s revenue expectations and modestly exceeded adjusted profit forecasts. Management attributed the company’s performance to higher production volumes, driven by a significant increase in gross wells turned to production and continued development across the Midland and Delaware Basins. CEO Kaes Van't Hof pointed to the Riverbend acquisition as a strategic move to expand the company’s royalty acreage and production, while also emphasizing the disciplined capital allocation that led to a high return of capital for shareholders this quarter.
Is now the time to buy VNOM? Find out in our full research report (it’s free).
Viper Energy (VNOM) Q1 CY2026 Highlights:
Revenue: $511 million vs analyst estimates of $508.8 million (109% year-on-year growth, in line) Adjusted EPS: $0.55 vs analyst estimates of $0.53 (3.3% beat) Adjusted EBITDA: $485 million vs analyst estimates of $460.6 million (94.9% margin, 5.3% beat) Operating Margin: 49.5%, down from 63.3% in the same quarter last year Market Capitalization: $9.09 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Viper Energy’s Q1 Earnings Call
Greta Drefke (Goldman Sachs) asked about the scale of remaining Permian pure-play packages for consolidation. CEO Kaes Van't Hof described both mid-sized and larger opportunities and cited Viper’s positioning as the buyer of choice, while cautioning it remains challenging to close deals in the current market. Barclays Analyst questioned the capital allocation framework, particularly the mix between variable dividends and buybacks. Van't Hof explained the company’s primary focus on distributions, with stock repurchases used more selectively when valuation or seller profiles justify it. Neal Dingmann (William Blair) inquired about the level of third-party production acceleration factored into guidance and the current status of non-core assets. Management replied that little third-party acceleration is modeled, but upside is likely if oil prices remain high, and confirmed recent non-Permian asset sales have streamlined the portfolio. Paul Diamond (Citi) sought clarity on M&A pricing amid market volatility and expected steady cash tax rates. Management noted the Riverbend deal as a unique case where price expectations converged due to backwardated oil prices and outlined a stable ongoing tax rate. Derrick Whitfield (Texas Capital) asked about flexibility in Diamondback’s development plan to prioritize high-interest areas and the cadence of production growth. Van't Hof stated high-interest areas are moved forward in the plan, particularly in the Barnett near Spanish Trail, with further acceleration possible pending test results.
Story Continues
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace of production growth from both Diamondback and third-party operators, (2) the successful integration and performance of Riverbend’s assets, and (3) the evolution of Viper Energy’s capital return strategy in response to M&A activity and oil price trends. Execution on additional acquisitions and the realization of operational synergies from new acreage will also be critical indicators.
Viper Energy currently trades at $46.85, down from $50.95 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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- Earnings Estimates Moving Higher for Viper Energy (VNOM): Time to Buy?
May 13, 2026
Investors might want to bet on Viper Energy Partners (VNOM), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The upward trend in estimate revisions for this oil and gas company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Viper Energy Partners, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
The company is expected to earn $0.64 per share for the current quarter, which represents a year-over-year change of +56.1%.
Over the last 30 days, the Zacks Consensus Estimate for Viper Energy has increased 12.89% because four estimates have moved higher while one has gone lower.
Current-Year Estimate Revisions
For the full year, the earnings estimate of $2.41 per share represents a change of +70.9% from the year-ago number.
The revisions trend for the current year also appears quite promising for Viper Energy, with five estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 9.31%.
Favorable Zacks Rank
The promising estimate revisions have helped Viper Energy earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Investors have been betting on Viper Energy because of its solid estimate revisions, as evident from the stock's 6.7% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
Story Continues
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Viper Energy Inc. (VNOM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- Earnings Estimates Moving Higher for Viper Energy (VNOM): Time to Buy?
May 13, 2026 · zacks.com
Viper Energy Partners (VNOM) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
- One Yields 8.8%. One Is Up 83% in a Year.
May 13, 2026 · 247wallst.com
Crude oil is back in the headlines for the same reason it usually is: geopolitics.
- Here is Why Growth Investors Should Buy Viper Energy (VNOM) Now
May 11, 2026
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Viper Energy Partners (VNOM) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
Here are three of the most important factors that make the stock of this oil and gas company a great growth pick right now.
Earnings Growth
Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Viper Energy is 39.6%, investors should actually focus on the projected growth. The company's EPS is expected to grow 69.5% this year, crushing the industry average, which calls for EPS growth of 45%.
Cash Flow Growth
While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Viper Energy is 58.4%, which is higher than many of its peers. In fact, the rate compares to the industry average of -0.1%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 46.5% over the past 3-5 years versus the industry average of 19.6%.
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Promising Earnings Estimate Revisions
Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Viper Energy. The Zacks Consensus Estimate for the current year has surged 8.6% over the past month.
Bottom Line
Viper Energy has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Viper Energy well for outperformance, so growth investors may want to bet on it.
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This article originally published on Zacks Investment Research (zacks.com).
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- Here is Why Growth Investors Should Buy Viper Energy (VNOM) Now
May 11, 2026 · zacks.com
Viper Energy (VNOM) is well positioned to outperform the market, as it exhibits above-average growth in financials.
- VNOM Q1 Earnings Beat Estimates on Higher Production Volume
May 6, 2026
Viper Energy Inc. VNOM reported first-quarter 2026 adjusted earnings per share of 55 cents, which beat the Zacks Consensus Estimate of 43 cents by 27.9%. The bottom line improved from the year-ago level of 54 cents.
The company, with mineral and royalty interests in North America’s oil and gas resources, generated operating income of $511 million, beating the Zacks Consensus Estimate of $506.33 million by 0.9%. The metric also surged 108.6% year over year from the year-ago quarter’s figure of $245 million.
The strong quarterly results are driven by a significant increase in oil-equivalent production and sharply higher royalty income.
Viper Energy Inc. Price, Consensus and EPS SurpriseViper Energy Inc. Price, Consensus and EPS Surprise
Viper Energy Inc. price-consensus-eps-surprise-chart | Viper Energy Inc. Quote
VNOM Posts Strong Volumes on Permian Activity
Production momentum was the key operating highlight of the quarter. VNOM reported oil volumes of 5,850 thousand barrels (MBbls), natural gas volumes of 18,088 million cubic feet (MMcf), natural gas liquids (NGL) volumes of 2,899 MBbls and combined production of 11,764 thousand oil-equivalent barrels (MBoe) compared with 2,818 MBbls, 7,221 MMcf, 1,142 MBbls and 5,164 MBoe, respectively, in the year-ago period. Oil production, natural gas production, NGL production and combined production surpassed our estimate of 5,702 MBbls, 17,060 MMcf, 2,632 MBbls and 11,178 MBoe, respectively.
VNOM’s activity across the Permian Basin remained robust, with 655 gross horizontal wells turned to production during the quarter. Of these, Diamondback-operated wells represented 114 gross wells, while third-party operators contributed the balance, underscoring the broad operator exposure embedded in VNOM’s mineral and royalty portfolio.
VNOM’s Realized Prices
The overall average realized price per barrel of oil equivalent was $42.16 compared with $47.25 in the first quarter of 2025. Our estimate for the same was $43.04 per barrel.
The average realized oil price during the quarter under review was $73.16 per barrel, up from $71.33 in the year-ago quarter. However, the figure surpassed our estimate of $63.17.
The price of natural gas was 88 cents per thousand cubic feet, down from $2.08 in the year-ago quarter. Our estimate for the same was $3.28.
The price for natural gas liquids was $17.94 a barrel, lower than $24.52 a year ago. Our estimate for the same was $24.62 per barrel.
Viper’s Royalty Income Growth Drives Operating Line
Viper’s operating income expansion was primarily driven by growth in royalty income. Royalty income totaled $496 million in the quarter, more than doubling from $244 million in the prior-year period. The strong performance reflected both higher production volumes and the scale of the asset base following recent portfolio evolution.
Story Continues
The company also benefited from lease bonus income, which totaled $14 million, along with an additional $1 million in lease bonus income from related parties. These items added incremental support to total operating income, which reached $511 million versus $245 million a year ago.
VNOM Sees Higher Depletion & Taxes Alongside Scale
Costs rose materially as the asset base and production expanded. In the first quarter, total costs and expenses were $258 million, up from $90 million in the year-ago quarter. Depletion was the largest line item at $206 million compared with the year-ago quarter’s figure of $67 million, reflecting the larger producing property base and the accounting impact of higher production.
Production and ad valorem taxes were $35 million, up from $17 million in the year-ago quarter. General and administrative expenses increased from the year-ago figure of $2 million to $8 million, with an additional $5 million in related-party G&A compared with $4 million in the year-ago period, as VNOM operated at a much larger scale than the prior-year period.
Viper Highlights Capital Returns
VNOM reported consolidated net income of $215 million for the first quarter of 2026, with net income attributable to Viper of $97 million compared with $153 million and $75 million, respectively, in the year-ago period. The company also emphasized capital returns, with cash available for distribution to Class A shareholders of $204 million, or $1.05 per Class A share.
VNOM declared a base dividend of 38 cents per Class A share and a variable dividend of 30 cents per share, bringing the total dividend to 68 cents per share. VNOM also repurchased 2.2 million shares for approximately $96 million during the quarter, contributing to a total return of capital of $183 million, or 94 cents per Class A share.
Cash Flow of VNOM
Net cash provided by operating activities was $328 million, up from $201 million in the first quarter of 2025.
VNOM’s Balance Sheet
As of March 31, 2026, Viper Energy’s cash and cash equivalents were $28 million. The company reported net long-term debt of $1,603 million.
VNOM Lifts 2026 Outlook & Details Riverbend Deal
Management pointed to continued strength in underlying activity and provided updated production guidance. For the second quarter of 2026, VNOM expects net oil production to be in the range of 64.0-65.0 thousand barrels of oil per day (Mbo/d) and net total production to be in the range of 124.0-126.0 thousand oil-equivalent barrels per day (MBoe/d). For full-year 2026, the company expects net oil production to be between 64.5 Mbo/d and 66.5 Mbo/d and net total production to be in the range of 126.0-130.0 MBoe/d.
The company announced a definitive agreement to acquire Riverbend Oil & Gas IX mineral and royalty interests for $337 million in cash and approximately 3.7 million shares of VNOM Class A stock, subject to closing adjustments. The transaction is expected to close in early third-quarter 2026 and is projected to add roughly 1,000 barrels of oil per day to the midpoint of standalone 2026 production guidance, while maintaining a leverage profile management characterized as modest on a pro forma basis.
VNOM’s Zacks Rank & Other Key Picks
VNOM currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the energy sector are Chevron Corporation CVX, BP plc BP and Eni S.p.A. E. CVX and E each currently sport a Zacks Rank #1 (Strong Buy), while BP has a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevronreported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.
As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.
BP reported first-quarter 2026 earnings of $1.24 per American Depositary Share, which beat the Zacks Consensus Estimate of 91 cents.
As of March 31, 2026, BP reported $35.7 million in cash and cash equivalents. At the quarter's end, its long-term debt totaled $25.3 billion.
Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.
As of March 31, 2026, E had a long-term debt of €21.7 billion, and cash and cash equivalents of €8.3 billion.
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- VNOM Q1 Earnings Beat Estimates on Higher Production Volume
May 6, 2026 · zacks.com
Viper Energy beats Q1 earnings estimates on higher production volume and surging royalty income, driving operating income growth and strong shareholder returns.
- Viper Energy Reshapes Portfolio With Acquisitions And Capital Return Focus
May 6, 2026
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Viper Energy (NasdaqGS:VNOM) announced record Q1 2026 production and revenue, alongside accelerated capital returns to shareholders. The company agreed to acquire Riverbend assets and entered a definitive deal to combine with Sitio Royalties, which are expected to increase its production base. Viper Energy reported material asset sales and reductions in debt as part of a broader portfolio reshaping.
Viper Energy focuses on oil and gas mineral and royalty interests, so scale and asset quality sit at the center of its business model. The latest Riverbend acquisition and the pending Sitio Royalties combination point to a larger footprint in producing acreage at a time when investors are paying close attention to cash flow resilience and payout policies across the energy sector.
For shareholders, the mix of record Q1 2026 results, higher production exposure, portfolio pruning, and lower debt creates a different risk and reward profile than in prior periods. Understanding how the expanded asset base, the new capital return framework, and the balance sheet changes work together will be important for anyone assessing NasdaqGS:VNOM as an income oriented or total return holding.
Stay updated on the most important news stories for Viper Energy by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Viper Energy.NasdaqGS:VNOM Earnings & Revenue Growth as at May 2026
We've flagged 3 risks for Viper Energy. See which could impact your investment.
Investor Checklist
Quick Assessment
⚖️ Price vs Analyst Target: At US$49.97 versus a US$57.00 consensus target, the stock sits about 12% below analyst expectations. ✅ Simply Wall St Valuation: Simply Wall St estimates the stock is trading 56.8% below its fair value, which is a sizable discount. ✅ Recent Momentum: The 30 day return of 7.53% shows positive short term price momentum into these acquisition announcements.
There is only one way to know the right time to buy, sell or hold Viper Energy. Head to Simply Wall St's company report for the latest analysis of Viper Energy's Fair Value.
Key Considerations
📊 The Riverbend and pending Sitio Royalties deals, combined with record Q1 2026 results, reshape Viper Energy into a larger, more production heavy royalty company. 📊 Keep an eye on integration progress, realized production from the new assets, and how the accelerated capital returns interact with debt reduction and future investment needs. ⚠️ Forecast earnings declines and a dividend that is not covered by earnings or free cash flow highlight the need to monitor payout sustainability as the portfolio changes.
Story Continues
Dig Deeper
For the full picture including more risks and rewards, check out the complete Viper Energy analysis. Alternatively, you can check out the community page for Viper Energy to see how other investors believe this latest news will impact the company's narrative.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include VNOM.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Viper Energy Q1 Earnings Call Highlights
May 5, 2026
Viper Energy logo
Key Points
Raised full-year oil production guidance: Q1 production topped expectations with more than 650 gross horizontal wells turned to production, prompting management to lift the midpoint of 2026 oil guidance by ~2.5%, implying >5% organic growth versus pro forma 2025 exit rates driven largely by Diamondback activity. Riverbend acquisition expands footprint: Viper agreed to buy >3,000 net royalty acres and ~2,000 bopd for $337 million cash plus 3.7 million Class A shares, adding New Mexico exposure while overlapping roughly 75% with its Midland/Delaware holdings. Dividend-first capital returns: Viper returned $0.94 per share in Q1 (90% of cash available for distribution), reiterated a minimum 75% CAD return framework with opportunistic buybacks, and plans to use excess free cash to pay down the Riverbend purchase. Interested in Viper Energy Inc.? Here are five stocks we like better.
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Viper Energy (NASDAQ:VNOM) opened 2026 with production that exceeded management’s expectations, prompting the company to raise the midpoint of its full-year oil production guidance by roughly 2.5% as strong operator activity continued across its Permian Basin acreage.
First-quarter activity and higher full-year outlook
On the call, CEO Kaes Van’t Hof said the first quarter “marked a strong start to the year,” with more than 650 gross horizontal wells turned to production across Viper’s acreage. He highlighted Diamondback’s 114 gross wells in the Midland Basin and said other “leading third-party operators” also contributed across both the Midland and Delaware basins.
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Van’t Hof said the updated outlook is expected to be driven primarily by Diamondback accelerating near-term activity and continued development across Viper’s “high concentration royalty interest throughout the basin.” He added that the higher production outlook represents more than 5% organic growth versus Viper’s pro forma 2025 exit rate.
Asked about potential additional upside from third-party operators, Van’t Hof said the company has not “booked a ton of third-party acceleration” in its guidance yet, though he indicated it could materialize. Management pointed to monitoring drilled-but-uncompleted wells (DUCs) and permits as leading indicators, while noting it is more difficult to forecast the pace at which those indicators convert into production.
Riverbend acquisition expands footprint, adds New Mexico exposure
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Story Continues
Viper also emphasized its inorganic growth strategy, centering discussion on the Riverbend acquisition announced the day before the call. Van’t Hof said Viper will acquire more than 3,000 net royalty acres and approximately 2,000 barrels of oil production per day for $337 million in cash and 3.7 million Class A shares.
Management described the assets as highly complementary, with roughly 75% overlap with Viper’s existing acreage and increased exposure to third-party public operators. In response to questions about the remaining 25% of the position, Van’t Hof said much of the overlap is in the Midland Basin, including areas in Midland, Glasscock, Upton, and Reagan counties, and he characterized the Delaware portion as similar to Viper’s existing footprint, including Reeves County assets operated by Permian Resources.
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The primary difference, according to Van’t Hof, is added exposure in New Mexico under operators including ConocoPhillips, Occidental, and EOG Resources. “It gets a lot of what we like in the Midland Basin and gets kind of some new exciting exposure in New Mexico that Viper historically hasn’t had a huge presence in,” he said.
On inventory quality, Van’t Hof told analysts that most of the value is expected to come from “core zones being undeveloped,” particularly in New Mexico and the Midland portion. He cited a “big chunk” of legacy Pioneer acreage now held by Exxon Mobil that he described as “completely undeveloped acreage” and said it could support the production profile in coming years. He also referenced emerging zones, including the Barnett in the Midland and the Woodford in the Delaware, as upside “we didn’t have to pay for.”
Looking at the Riverbend production trajectory, Van’t Hof said 2027 “probably grows” and could show “a couple years of slight growth,” while he described the longer-term 5- to 10-year view as “pretty flat.”
Capital returns: dividend-first approach with flexibility
Viper returned $0.94 per share in the first quarter, which Van’t Hof said represented 90% of cash available for distribution. That return included a $0.68 per share dividend and $0.28 per share of stock repurchases executed during the quarter.
Management reiterated its commitment to returning at least 75% of cash available for distribution and described the framework as “disciplined and flexible.” Van’t Hof said that prior to the Riverbend acquisition, the company had also committed to returning 100% of cash available for distribution when net debt was at or below $1.5 billion, while emphasizing that the $1.5 billion figure “is not a static amount” and is intended to evolve with the business.
In response to questions about buybacks versus variable dividends, Van’t Hof said Viper remains “primarily a distribution vehicle” given its low- or zero-capital-expenditure model, with repurchases used opportunistically in certain situations. He said the company could return between 75% and 90% of free cash flow depending on conditions, noting that “the excess free cash flow is gonna pay down the Riverbend deal very quickly.”
Management also suggested the decision-making is more straightforward at Viper than at an upstream operator, with one speaker adding the company’s “90% free cash flow margins” allow it to pursue multiple priorities, including dividends, opportunistic investment (buybacks or acquisitions), and targeted debt reduction.
M&A pipeline and market volatility
Analysts pressed management on the scale of potential mineral and royalty consolidation opportunities in the Permian and whether market volatility is affecting dealmaking. Van’t Hof said he sees opportunity across both “mid-sized to larger deals,” while acknowledging it remains “tough to get deals done in this market.” He said Riverbend is the first deal in that size range for Viper at its current pro forma scale, describing it as a tuck-in acquisition that can be executed “very seamlessly.”
Discussing market conditions, Van’t Hof said Viper’s underwriting on Riverbend used a “moderate” flat oil price scenario of roughly $65 to $70 per barrel for NAV purposes, noting that backwardation in the strip allowed the company to avoid “breaking our pick on NAV.” He characterized the transaction as a “win-win” for both sides, citing the equity component received by the seller.
When asked about deal flow more broadly, management said the phones are active, with more inbound activity on both smaller “ground game” deals and mid-to-larger packages, but they could not yet predict how volatility would impact the ability to close transactions. Van’t Hof also said Viper has already “cleaned up all the non-Permian assets,” adding that he expects private equity-backed mineral companies to test the market over the next several quarters.
Operational themes: development prioritization and recovery technology
Van’t Hof also addressed how development could shift within Diamondback’s inventory to areas where Viper has higher net revenue interests, saying Diamondback evaluates inventory on a consolidated basis and that this can move higher-interest areas forward. He pointed specifically to the Barnett near Spanish Trail, where he said the company has seen strong well results and where Diamondback has tests planned later this year. He suggested those results could lead to accelerated development over the next 18 to 24 months.
On longer-term productivity and recovery improvements, Van’t Hof said Diamondback has tested surfactants and advanced chemicals in areas where Viper has interests. While he called the impact “immaterial today,” he said it could become meaningful “4, 5, 6 years down the road” if adopted more broadly in capital plans.
Viper also provided a brief update on cash taxes, with Van’t Hof saying the company expects a fairly steady 27% to 30% of pre-tax income as a go-forward rate, adding that first-quarter taxes were higher in absolute dollars because income was higher.
In closing remarks, Van’t Hof said Viper’s royalty model, inventory position, and alignment with Diamondback support organic growth and free cash flow generation, and he told listeners the company remains positioned to pursue acquisitions while maintaining its shareholder return framework.
About Viper Energy (NASDAQ:VNOM)
Viper Energy Partners LP is a publicly traded master limited partnership that owns and intends to acquire mineral and royalty interests in oil and natural gas properties. As a pass-through entity, Viper Energy Partners does not engage in drilling or production operations directly; instead, it generates revenues by holding overriding royalty interests, mineral fee interests and royalty fee interests. These interests entitle the partnership to receive a percentage of the proceeds from hydrocarbons produced and sold by third-party operators.
The partnership's assets are concentrated in the Permian Basin, with a primary focus on the Delaware Basin region of West Texas and southeastern New Mexico.
The article "Viper Energy Q1 Earnings Call Highlights" was originally published by MarketBeat.
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