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Viper Energy (VNOM) Down 7.9% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Viper Energy Partners (VNOM - Free Report) . Shares have lost about 7.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Viper Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Viper Energy 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.
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.
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 14.94% due to these changes.
VGM Scores
At this time, Viper Energy has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a score of F on the value side, putting it in the lowest quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Viper Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Viper Energy (VNOM) Down 7.9% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Viper Energy Partners (VNOM - Free Report) . Shares have lost about 7.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Viper Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Viper Energy's Q1 Earnings & Revenues Beat Estimates
Viper Energy 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.
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.
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 14.94% due to these changes.
VGM Scores
At this time, Viper Energy has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a score of F on the value side, putting it in the lowest quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Viper Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.