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Investing.com -- Viper Energy, Inc. (NASDAQ:VNOM) reported second-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $0.41, surpassing the consensus estimate of $0.36 by $0.05.
The oil and gas royalty company, a subsidiary of Diamondback Energy (NASDAQ:FANG), posted second-quarter production of 41,615 barrels of oil per day, representing a significant portion of its total production of 79,286 barrels of oil equivalent per day. The company generated consolidated net income of $84 million, with $37 million attributable to Viper, or $0.28 per Class A common share. Viper’s shares declined 1.9% following the earnings announcement.
During the quarter, Viper declared a base cash dividend of $0.33 per Class A common share and a variable cash dividend of $0.20 per share, bringing the total dividend to $0.53 per share. The company also repurchased 255,843 shares for approximately $10 million at an average price of $37.99 per share.
"Despite oil price volatility in the second quarter, Viper delivered strong oil production growth, both on an absolute and per share basis," said Kaes Van’t Hof, Chief Executive Officer of Viper. "We remain highly confident our organic growth trajectory will continue into 2026 at current prices, led by over 15% expected YoY growth in our Diamondback-operated net oil production."
The company reported average unhedged realized prices of $63.64 per barrel of oil, resulting in total operating income of $297 million for the quarter. As of June 30, Viper had a cash balance of $28 million and total long-term debt of $1.1 billion.
Looking ahead, Viper initiated third-quarter production guidance of 46,000 to 49,000 barrels of oil per day. The company is also proceeding with its previously announced acquisition of Sitio Royalties Corp (NYSE:STR). in an all-equity transaction valued at approximately $4.1 billion, with Sitio shareholders scheduled to vote on the merger on August 18.
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