MIDLAND, Texas, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Viper Energy, Inc. (NASDAQ:VNOM) ("Viper," "we," "our" or the "Company"), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) ("Diamondback"), today announced financial and operating results for the second quarter ended June 30, 2026.

The Company today also announced that effective Q3 2026 the Board of Directors of Viper has approved a 32% increase to its base dividend, or an amount equal to $2.00 per Class A share annually. This increased base dividend, which would imply a 4.5% annualized yield at today's stock price, is expected to be fully protected down to approximately $30 per barrel WTI and will represent approximately 50% of cash available for distribution at $70 per barrel WTI. With today's announced increase to the base dividend and a further commitment to prioritize steady growth of the dividend, the Company additionally announced that it will be removing its quarterly commitment to return at least 75% of cash available for distribution. Increased flexibility in this revised return of capital framework is expected to allow the Company to continue to focus on opportunistic share repurchases while also supporting the further execution on accretive M&A.

SECOND QUARTER HIGHLIGHTS

   -- Q2 2026 average production of 65,077 bo/d (134,363 boe/d) 
 
   -- Q2 2026 lease bonus income of $15 million 
 
   -- Q2 2026 consolidated net income (including non-controlling interest) of 
      $331 million; net income attributable to Viper of $142 million, or $0.73 
      per Class A common share; consolidated adjusted net income of $345 
      million, or $1.78 per Class A common share 
 
   -- Q2 2026 cash available for distribution to Viper's Class A common shares 
      (as defined and reconciled below) of $262 million, or $1.37 per Class A 
      common share 
 
   -- Declared Q2 2026 base cash dividend of $0.38 per Class A common share; 
      implies a 3.4% annualized yield based on the July 31, 2026 Class A common 
      share closing price of $44.61 
 
   -- Declared Q2 2026 variable cash dividend of $0.29 per Class A common 
      share; total base-plus-variable dividend of $0.67 per Class A common 
      share implies a 6.0% annualized yield based on the July 31, 2026 Class A 
      common share closing price of $44.61 
 
   -- During Q2 2026, repurchased approximately 3.0 million shares of the 
      Company's Class A common stock for an aggregate purchase price of 
      approximately $132 million, excluding excise tax (average price of $44.34 
      per share) 
 
   -- Total Q2 2026 return of capital to Class A stockholders of $197 million, 
      or $1.03 per Class A common share, represents 75% of cash available for 
      distribution 
 
   -- 691 total gross (19.8 net 100% royalty interest) horizontal wells, 
      normalized to lateral length of 10,000 feet, turned to production on 
      Viper's Permian Basin acreage during Q2 2026 

RECENT EVENTS AND FORWARD OUTLOOK

   -- As previously announced, on July 1, 2026, completed the acquisition of 
      all of the equity interests of Riverbend Oil & Gas IX, L.L.C., an entity 
      owning certain mineral and royalty interests, from Riverbend Oil & Gas IX 
      $(AIV)$, L.L.C. and ROG IX, L.L.C. (the "Riverbend Acquisition") 
 
   -- On August 3, 2026, the Company's subsidiary Viper Energy Partners LP 
      entered into a definitive agreement to acquire certain mineral and 
      royalty interests representing approximately 933 net royalty acres from 
      Diamondback and related subsidiaries in exchange for approximately 3.7 
      million units in the Company's operating subsidiary, VNOM Holding Company 
      LLC ("OpCo Units") (along with an accompanying equal amount of Class B 
      common stock of the Company); acquisition is expected to close late Q3 
      2026 and is subject to customary closing conditions 
 
   -- As of July 1, 2026, giving effect to the Riverbend Acquisition, there 
      were approximately 1,798 gross horizontal wells, normalized to lateral 
      length of 10,000 feet, in the process of active development on Viper's 
      acreage in which Viper expects to own an average 2.2% net royalty 
      interest (39.1 net 100% royalty interest wells) 
 
   -- Giving effect to the Riverbend Acquisition, approximately 1,589 gross 
      (32.9 net 100% royalty interest) line-of-sight wells, normalized to 
      lateral length of 10,000 feet, on Viper's acreage that are not currently 
      in the process of development, but for which Viper has visibility to the 
      potential of future development in coming quarters, based on 
      Diamondback's current planned drilling schedule and third-party 
      operators' permits 
 
   -- Initiating average daily production guidance for Q3 2026 of 67,500 to 
      68,500 bo/d (133,500 to 135,500 boe/d) 
 
   -- Increasing average daily production guidance for full year 2026 to 66,000 
      to 67,250 bo/d (132,500 to 135,000 boe/d) 
 
   -- During Q3 2026 through July 31, 2026, repurchased approximately 0.7 
      million shares of the Company's Class A common stock for an aggregate 
      purchase price of approximately $29 million, excluding excise tax 
      (average price of $42.82 per Class A Common share) 

"The second quarter continued the trend of strong execution for Viper, highlighted by steady development activity from both Diamondback and our third-party operators across our high-quality asset base, as well as a continuation of our differentiated acquisition strategy. Reflecting this momentum, we are increasing our full year 2026 production guidance while initiating third quarter guidance that implies continued growth in oil production per share driven by both organic and inorganic growth," said Kaes Van't Hof, Chief Executive Officer of Viper.

Mr. Van't Hof continued, "Separately, today we announced an important evolution of our return of capital strategy. Our Board approved a 32% increase to our base dividend to $2.00 per Class A share annually, a level we expect to be fully protected down to approximately $30 per barrel WTI and which represents approximately 50% of cash available for distribution at $70 per barrel WTI. With this increase, and a commitment to grow the base dividend steadily over time, we are moving away from our commitment to return at least 75% of cash available for distribution each quarter. We believe a single, durable and growing base dividend, rather than a variable payout that fluctuates with commodity prices, best showcases what differentiates Viper: an industry-leading, low-breakeven yield paired with consistent per-share growth. The flexibility created by retaining excess cash flow will allow us to continue to opportunistically repurchase shares, reduce debt and pursue a disciplined M&A strategy, all of which we expect to compound value for our stockholders over the long term."

FINANCIAL UPDATE

Viper's second quarter 2026 average unhedged realized prices were $98.28 per barrel of oil, $0.05 per Mcf of natural gas and $23.83 per barrel of natural gas liquids, resulting in a total equivalent realized price of $53.82/boe.

Viper's second quarter 2026 average hedged realized prices were $96.42 per barrel of oil, $1.48 per Mcf of natural gas and $23.83 per barrel of natural gas liquids, resulting in a total equivalent realized price of $55.12/boe.

During the second quarter of 2026, the Company recorded total operating income of $677 million and consolidated net income (including non-controlling interest) of $331 million.

As of June 30, 2026, the Company had a cash balance of $77 million and total debt outstanding (excluding debt issuance costs, discounts and premiums) of $1.7 billion, resulting in net debt (as defined and reconciled below) of $1.6 billion. Viper's outstanding long-term debt as of June 30, 2026 consisted of $500 million in aggregate principal amount of its 4.900% Senior Notes due 2030, $1.1 billion in aggregate principal amount of its 5.700% Senior Notes due 2035 and $95 million of borrowings on its revolving credit facility, leaving approximately $1.9 billion available for future borrowings and approximately $2.0 billion of total liquidity.

SECOND QUARTER 2026 CASH DIVIDEND & CAPITAL RETURN PROGRAM

Viper announced today that the Company's Board of Directors (the "Board") declared a base cash dividend of $0.38 per Class A common share for the second quarter of 2026, payable on August 20, 2026 to Class A common stockholders of record at the close of business on August 13, 2026.

The Board also declared a variable cash dividend of $0.29 per Class A common share for the second quarter of 2026, payable on August 20, 2026 to Class A common stockholders of record at the close of business on August 13, 2026.

During the second quarter of 2026, Viper repurchased approximately 3.0 million shares of the Company's Class A common stock for an aggregate purchase price of approximately $132 million, excluding excise tax (average price of $44.34 per share).

In total, since the initiation of Viper's common stock repurchase program on November 9, 2020 through July 31, 2026, the Company has repurchased approximately 24.3 million shares of common stock (including both Class A shares and Class B shares paired with OpCo Units) for an aggregate purchase price of approximately $766 million, excluding excise tax (average price of $31.50 per share) and has approximately $984 million remaining on its share buyback authorization. Future cash dividends and stock repurchases are at the discretion of the Board and are subject to a number of factors discussed in Viper's reports filed with the U.S. Securities and Exchange Commission ("SEC").

OPERATIONS UPDATE