Viper Energy, Inc.

The call did not provide full Q2 revenue, EPS, or gross margin figures. Management said operators turned 691 gross horizontal wells to production on Viper acreage in Q2, and that the company returned 75% of available cash for distribution, including $132 million in share repurchases and a combined base plus variable dividend of $0.67 per share. For Q3, management said average production guidance implies roughly 4.5% growth versus Q2 and about 15% annualized growth in oil production per share versus Q4 2025. The new base dividend is $2 per Class A share annually, a 32% increase, and management said it represents about 50% of free cash flow at $70 WTI and implies an annualized yield of approximately 4.5% at the current share price.

Kaes Van't Hof framed the quarter as another period of strong execution, with organic growth from development activity plus accretive acquisitions and share repurchases. He argued the market is not recognizing Viper’s growth or cash generation, so the company is moving to a larger, more durable base dividend and more flexible capital allocation. His tone was confident and increasingly assertive, repeatedly describing Viper as mispriced and emphasizing the company’s ability to redeploy cash into buybacks, M&A, or the balance sheet.

The transcript did not include a separate CFO, so the financial commentary came from management. Kaes Van't Hof said Q2 returned 75% of available cash, with $132 million of buybacks and a $0.67 per share base-plus-variable dividend, and said the new base dividend is $2 per Class A share annually, up 32%. He added that the base dividend is roughly 50% of free cash flow at $70 WTI, has protection to $30 oil, and that the company still likes buying $50 puts for downside protection. Management also said flexibility would allow the company to repurchase shares, reduce debt, or pursue disciplined M&A.

Analysts focused on why Viper changed its cash return framework, how it will fund future M&A, and whether buybacks can meaningfully support the stock. Management said the market was not rewarding the variable distribution model, so Viper is shifting to a high base dividend and using excess cash more opportunistically; it also said it can now avoid relying on equity markets for every deal. On growth, management said Q3 guidance includes about 2,000 barrels a day from Riverbend but still implies about 1,000 barrels a day of organic quarter-over-quarter growth, and it cited high single-digit organic growth in 2026. On emerging benches, Austen Gilfillian highlighted growing leasing activity in the Woodford on the Delaware side, with $25 million to $30 million of lease bonuses on deep rights, and said that should eventually translate into more production.