Viper Energy (VNOM) Q1 2026 Earnings Transcript

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DATE

Tuesday, May 5, 2026 astatine 11 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Kaes Van't Hof

• President — Austen Gilfillian

• Chief Financial Officer — Chip Seale

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Full Conference Call Transcript

Kaes Van't Hof: Thank you, Chip. Welcome everyone, and convey you for listening to Viper Energy, Inc.’s archetypal 4th 2026 league call. The archetypal 4th marked a beardown commencement to the twelvemonth arsenic accumulation exceeded our expectations and that momentum is carrying into an accrued maturation outlook for the remainder of 2026. During the quarter, operators successful our acreage turned much than 650 gross horizontal wells to production, led by Diamondback’s 114 gross wells successful the Midland Basin, with meaningful contributions from starring third-party operators crossed some the Midland and Delaware Basins.

Based connected archetypal 4th results and continued beardown enactment crossed our acreage, we are expanding the midpoint of our full-year lipid accumulation guidance by astir 2.5% and expect maturation to beryllium driven chiefly by Diamondback’s acceleration successful near-term enactment and continued improvement of Viper Energy, Inc.’s precocious attraction royalty involvement passim the basin. Importantly, this accrued accumulation outlook represents implicit 5% integrated maturation comparative to our pro forma 2025 exit rate. In summation to this integrated growth, Viper Energy, Inc. besides continues to execute connected our differentiated inorganic maturation strategy.

Yesterday, we announced the Riverbend acquisition, successful which Viper Energy, Inc. volition get implicit 3,000 nett royalty acres and astir 2,000 barrels of lipid accumulation per time for $337 cardinal successful currency and 3.7 cardinal Class A shares. These assets are highly complementary to our portfolio, with astir 75% overlap connected our existing acreage and further summation our vulnerability to high-quality third-party nationalist operators. Turning to superior allocation, our archetypal 4th instrumentality of superior of $0.94 represents 90% of our currency disposable for distribution, and this is comprised of a $0.68 per stock dividend and $0.28 per stock of banal repurchases executed successful the quarter.

As we person outlined, we are committed to returning astatine slightest 75% of currency disposable for distribution, and our instrumentality of superior model is designed to beryllium some disciplined and flexible to acceptable the needs of our business. Prior to the Riverbend acquisition, we had a further committedness to instrumentality 100% of currency disposable for organisation if we were astatine oregon beneath $1.5 cardinal of nett debt. On that point, it is important to enactment that $1.5 cardinal nett indebtedness is not a static amount, but alternatively represents a capitalization premix designed to germinate with the continued maturation of the business.