false000160206500016020652024-08-052024-08-05

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 5, 2024
___________
VIPER ENERGY, INC.
(Exact Name of Registrant as Specified in Charter)
DE
001-36505
46-5001985
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification Number)
500 West Texas Ave.
Suite 100
Midland, TX
79701
(Address of principal
executive offices)		(Zip code)
(432) 221-7400
(Registrant's telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.000001 Par Value
VNOMThe Nasdaq Stock Market LLC
(NASDAQ Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐


Item 2.02.    Results of Operations and Financial Condition.

On August 5, 2024, Viper Energy, Inc. (“Viper”), a subsidiary of Diamondback Energy, Inc., issued a press release announcing financial and operating results for the second quarter ended June 30, 2024, the second quarter 2024 base and variable cash dividends and an increase in the annual base dividend beginning with the second quarter of 2024. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01.    Financial Statements and Exhibits.

(d) Exhibits


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


VIPER ENERGY, INC.
Date:August 5, 2024
By:/s/ Teresa L. Dick
Name:Teresa L. Dick
Title:Chief Financial Officer, Executive Vice President and Assistant Secretary



Exhibit 99.1
vnomlogo-2a.jpg

VIPER ENERGY, INC., A SUBSIDIARY OF DIAMONDBACK ENERGY, INC., REPORTS SECOND QUARTER 2024 FINANCIAL AND OPERATING RESULTS; INCREASES BASE DIVIDEND

MIDLAND, Texas, August 5, 2024 (GLOBE NEWSWIRE) -- Viper Energy, Inc., (NASDAQ:VNOM) (“Viper” 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, 2024.

SECOND QUARTER HIGHLIGHTS
•Q2 2024 average production of 26,352 bo/d (47,473 boe/d), an increase of 3.7% from Q1 2024
•Q2 2024 consolidated net income (including non-controlling interest) of $122.2 million; net income attributable to Viper Energy, Inc. of $56.9 million, or $0.62 per common share
•Q2 2024 cash available for distribution to Viper’s common shares (as defined and reconciled below) of $78.4 million, or $0.86 per Class A common share
•Increasing annual base dividend 11% to $1.20 per share; declared Q2 2024 base cash dividend of $0.30 per Class A common share; implies a 3.0% annualized yield based on the August 2, 2024 share closing price of $40.25
•Q2 2024 variable cash dividend of $0.34 per Class A common share; total base-plus-variable dividend of $0.64 per Class A common share implies a 6.4% annualized yield based on the August 2, 2024 share closing price of $40.25
•Total Q2 2024 return of capital of $58.8 million, or $0.64 per Class A common share, represents 75% of cash available for distribution
•On May 1, 2024, closed divestiture of non-Permian assets for cash proceeds of approximately $90.2 million
•375 total gross (6.1 net 100% royalty interest) horizontal wells turned to production on Viper’s acreage during Q2 2024 with an average lateral length of 12,037 feet
•Initiating average daily production guidance for Q3 2024 of 26,500 to 27,000 bo/d (47,500 to 48,500 boe/d), the midpoint of which represents approximately 1.5% growth relative to Q2 2024
•Increasing full year 2024 average daily production guidance to 26,000 to 26,750 bo/d (46,750 to 48,250 boe/d)



“The 11% increase in our base dividend announced today highlights our Board’s belief in a sustainable and growing base dividend that can be maintained through the cycle. This belief and commitment to our shareholders is supported by Viper’s strong balance sheet and durable cash flow profile. Relative to a year ago when we last increased our base dividend, Viper has grown oil production per share by 14% while maintaining our cash margins1 and conversion of Adjusted EBITDA into cash available for distribution at both around 80%. Importantly, at current production levels the annual fixed amount of the increased base dividend is protected down to below $30 WTI,” stated Travis Stice, Chief Executive Officer of Viper.

Mr. Stice continued, “Viper today also announced an increase to our production guidance range for full year 2024. This increase is due to both outperformance seen during the first half of the year, as well as an increase in expectations for the remainder of 2024. The midpoint of the guidance range we have provided for Q3 2024 implies 1.5% growth relative to Q2, despite losing roughly 150 bo/d of quarterly production contribution from the non-Permian assets we divested during the second quarter. Overall, we continue to see strong activity levels across our acreage position and benefit from Diamondback’s continued large-scale development of Viper’s high concentration royalty acreage.”

FINANCIAL UPDATE

Viper’s second quarter 2024 average unhedged realized prices were $81.04 per barrel of oil, $0.20 per Mcf of natural gas and $20.35 per barrel of natural gas liquids, resulting in a total equivalent realized price of $49.88/boe.

Viper’s second quarter 2024 average hedged realized prices were $80.24 per barrel of oil, $0.64 per Mcf of natural gas and $20.35 per barrel of natural gas liquids, resulting in a total equivalent realized price of $50.00/boe.

During the second quarter of 2024, the Company recorded total operating income of $216.7 million and consolidated net income (including non-controlling interest) of $122.2 million.

As of June 30, 2024, the Company had a cash balance of $35.2 million and total long-term debt outstanding (excluding debt issuance costs, discounts and premiums) of $1.0 billion, resulting in net debt (as defined and reconciled below) of $972.1 million. Viper’s outstanding long-term debt as of June 30, 2024 consisted of $430.4 million in aggregate principal amount of its 5.375% Senior Notes due 2027, $400.0 million in aggregate principal amount of its 7.375% Senior Notes due 2031 and $177.0 million in borrowings on its revolving credit facility, leaving $673.0 million available for future borrowings and $708.2 million of total liquidity.

SECOND QUARTER 2024 CASH DIVIDEND & CAPITAL RETURN PROGRAM

Viper announced today that the Board of Directors (the “Board”) of Viper Energy, Inc., declared a base dividend of $0.30 per Class A common share for the second quarter of 2024 payable on August 22, 2024 to Class A common shareholders of record at the close of business on August 15, 2024.

The Board also declared a variable cash dividend of $0.34 per Class A common share for the second quarter of 2024 payable on August 22, 2024 to Class A common shareholders of record at the close of business on August 15, 2024.
1 Cash margin is calculated as average realized price per boe less production and ad valorem taxes, cash general and administrative expense, and interest expense per boe.



OPERATIONS UPDATE

During the second quarter of 2024, Viper estimates that 375 gross (6.1 net 100% royalty interest) horizontal wells with an average royalty interest of 1.6% were turned to production on its acreage position with an average lateral length of 12,037 feet. Of these 375 gross wells, Diamondback is the operator of 48 gross wells, with an average royalty interest of 5.4%, and the remaining 327 gross wells, with an average royalty interest of 1.1%, are operated by third parties.

Viper’s footprint of mineral and royalty interests was 31,762 net royalty acres as of June 30, 2024.

Our gross well information as of June 30, 2024 is as follows, unless otherwise specified:

Diamondback OperatedThird Party OperatedTotal
Horizontal wells turned to production(1):
Gross wells48327375
Net 100% royalty interest wells2.63.56.1
Average percent net royalty interest5.4%1.1%1.6%
Horizontal producing well count:
Gross wells1,9647,4889,452
Net 100% royalty interest wells134.796.8231.5
Average percent net royalty interest6.9%1.3%2.4%
Horizontal active development well count:
Gross wells132604736
Net 100% royalty interest wells7.66.614.2
Average percent net royalty interest5.8%1.1%1.9%
Line of sight wells:
Gross wells124608732
Net 100% royalty interest wells8.98.417.3
Average percent net royalty interest7.2%1.4%2.4%
(1) Average lateral length of 12,037 feet.

The 736 gross wells currently in the process of active development are those wells that have been spud and are expected to be turned to production within approximately the next six to eight months. Further in regard to the active development on Viper’s asset base, there are currently 49 gross rigs operating on Viper’s acreage, nine of which are operated by Diamondback. The 732 line-of-sight wells are those that are not currently in the process of active development, but for which Viper has reason to believe that they will be turned to production within approximately the next 15 to 18 months. The expected timing of these line-of-sight wells is based primarily on permitting by third party operators or Diamondback’s current expected completion schedule. Existing permits or active development of Viper’s royalty acreage does not ensure that those wells will be turned to production.



GUIDANCE UPDATE

Below is Viper’s updated guidance for the full year 2024, as well as production guidance for Q3 2024.
Viper Energy, Inc.
Q3 2024 Net Production - MBo/d
26.50 - 27.00
Q3 2024 Net Production - MBoe/d
47.50 - 48.50
Full Year 2024 Net Production - MBo/d
26.00 - 26.75
Full Year 2024 Net Production - MBoe/d
46.75 - 48.25
Share costs ($/boe)
Depletion
$11.00 - $11.50
Cash G&A
$1.00 - $1.20
Non-Cash Share-Based Compensation
$0.10 - $0.20
Interest Expense
$4.00 - $4.25
Production and Ad Valorem Taxes (% of Revenue)
~7%
Cash Tax Rate (% of Pre-Tax Income Attributable to Viper Energy, Inc.)(1)
20% - 22%
Q3 2024 Cash Taxes ($ - million)(2)
$13.0 - $18.0
(1)Pre-tax income attributable to Viper Energy, Inc. is reconciled below.
(2)Attributable to Viper Energy, Inc.



CONFERENCE CALL

Viper will host a conference call and webcast for investors and analysts to discuss its results for the second quarter of 2024 on Tuesday, August 6, 2024 at 10:00 a.m. CT. Access to the live audio-only webcast, and replay which will be available following the call, may be found here. The live webcast of the earnings conference call will also be available via Viper’s website at www.viperenergy.com under the “Investor Relations” section of the site.

About Viper Energy, Inc.
Viper is a corporation formed by Diamondback to own, acquire and exploit oil and natural gas properties in North America, with a focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin. For more information, please visit www.viperenergy.com.
About Diamondback Energy, Inc.
Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.
Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Viper’s: future performance; business strategy; future operations; estimates and projections of operating income, losses, costs and expenses, returns, cash flow, and financial position; production levels on properties in which Viper has mineral and royalty interests, developmental activity by other operators; reserve estimates and Viper’s ability to replace or increase reserves; anticipated benefits of strategic transactions (such as acquisitions or divestitures); and plans and objectives (including Diamondback’s plans for developing Viper’s acreage and Viper’s cash dividend policy and common stock repurchase program) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Viper are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Viper believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond its control. Accordingly, forward-looking statements are not guarantees of Viper’s future performance and the actual outcomes could differ materially from what Viper expressed in its forward-looking statements.

Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases, and any related company or government policies or actions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the ongoing war in Ukraine and


the Israel-Hamas war on the global energy markets and geopolitical stability; instability in the financial sector; higher interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production on Viper’s mineral and royalty acreage, or governmental orders, rules or regulations that impose production limits on such acreage; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change and the risks and other factors disclosed in Viper’s filings with the Securities and Exchange Commission, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov.

In light of these factors, the events anticipated by Viper’s forward-looking statements may not occur at the time anticipated or at all. Moreover, the new risks emerge from time to time. Viper cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements made in this news release. All forward-looking statements speak only as of the date of this news release or, if earlier, as of the date they were made. Viper does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.



Viper Energy, Inc.
Condensed Consolidated Balance Sheets
(unaudited, in thousands, except share amounts)
June 30,December 31,
20242023
Assets
Current assets:
Cash and cash equivalents$35,211 $25,869 
Royalty income receivable (net of allowance for credit losses)131,724 108,681 
Royalty income receivable—related party34,981 3,329 
Income tax receivable— 813 
Derivative instruments— 358 
Prepaid expenses and other current assets3,468 4,467 
Total current assets205,384 143,517 
Property:
Oil and natural gas interests, full cost method of accounting ($1,581,227 and $1,769,341 excluded from depletion at June 30, 2024 and December 31, 2023, respectively)
4,567,518 4,628,983 
Land5,688 5,688 
Accumulated depletion and impairment(961,646)(866,352)
Property, net3,611,560 3,768,319 
Derivative instruments2,134 92 
Deferred income taxes (net of allowances)76,393 56,656 
Other assets4,951 5,509 
Total assets$3,900,422 $3,974,093 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$19 $19 
Accounts payable—related party— 1,330 
Accrued liabilities22,106 27,021 
Derivative instruments4,766 2,961 
Income taxes payable2,200 1,925 
Total current liabilities29,091 33,256 
Long-term debt, net998,021 1,083,082 
Derivative instruments— 201 
Total liabilities1,027,112 1,116,539 
Stockholders’ equity:
Class A Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 91,423,830 shares issued and outstanding as of June 30, 2024 and 86,144,273 shares issued and outstanding as of December 31, 2023
— — 
Class B Common Stock, $0.000001 par value: 1,000,000,000 shares authorized; 85,431,453 shares issued and outstanding as of June 30, 2024 and 90,709,946 shares issued and outstanding as of December 31, 2023
— — 
Additional paid-in capital1,108,739 1,031,078 
Retained earnings (accumulated deficit)(18,939)(16,786)
Total Viper Energy, Inc. stockholders’ equity1,089,800 1,014,292 
Non-controlling interest1,783,510 1,843,262 
Total equity2,873,310 2,857,554 
Total liabilities and stockholders’ equity$3,900,422 $3,974,093 



Viper Energy, Inc.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Operating income:
Oil income$194,335 $139,300 $371,453 $275,919 
Natural gas income1,143 5,090 7,940 14,081 
Natural gas liquids income20,008 13,807 41,160 29,282 
Royalty income215,486 158,197 420,553 319,282 
Lease bonus income—related party— 1,277 120 8,348 
Lease bonus income1,096 1,134 1,146 1,534 
Other operating income126 179 281 581 
Total operating income216,708 160,787 422,100 329,745 
Costs and expenses:
Production and ad valorem taxes15,201 12,621 29,607 25,508 
Depletion48,360 34,064 95,293 65,051 
General and administrative expenses—related party2,436 924 4,822 1,848 
General and administrative expenses2,019 1,084 4,666 2,924 
Other operating expense139 — 233 — 
Total costs and expenses68,155 48,693 134,621 95,331 
Income (loss) from operations148,553 112,094 287,479 234,414 
Other income (expense):
Interest expense, net(18,667)(11,120)(37,997)(20,666)
Gain (loss) on derivative instruments, net5,346 (12,594)(2,146)(27,697)
Other income, net— 1 — 2 
Total other expense, net(13,321)(23,713)(40,143)(48,361)
Income (loss) before income taxes135,232 88,381 247,336 186,053 
Provision for (benefit from) income taxes13,006 8,450 25,535 17,856 
Net income (loss)122,226 79,931 221,801 168,197 
Net income (loss) attributable to non-controlling interest65,325 49,381 121,540 103,680 
Net income (loss) attributable to Viper Energy, Inc.$56,901 $30,550 $100,261 $64,517 
Net income (loss) attributable to common shares:
Basic$0.62 $0.42 $1.12 $0.89 
Diluted$0.62 $0.42 $1.12 $0.89 
Weighted average number of common shares outstanding:
Basic91,424 71,771 89,480 72,249 
Diluted91,424 71,771 89,570 72,249 



Viper Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Cash flows from operating activities:
Net income (loss)$122,226 $79,931 $221,801 $168,197 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for (benefit from) deferred income taxes(1,641)103 (2,282)532 
Depletion48,360 34,064 95,293 65,051 
(Gain) loss on derivative instruments, net(5,346)12,594 2,146 27,697 
Net cash receipts (payments) on derivatives529 (3,997)(2,225)(6,212)
Other1,739 579 3,080 1,222 
Changes in operating assets and liabilities:
Royalty income receivable(125)2,273 (23,277)892 
Royalty income receivable—related party(1,600)31,940 (31,652)1,876 
Accounts payable and accrued liabilities(10,220)(49)(4,915)(2,583)
Accounts payable—related party— — (1,330)(306)
Income taxes payable(11,867)(7,893)276 673 
Other1,229 (4,119)1,811 (4,370)
Net cash provided by (used in) operating activities143,284 145,426 258,726 252,669 
Cash flows from investing activities:
Acquisitions of oil and natural gas interests—related party— — — (75,073)
Acquisitions of oil and natural gas interests(8,401)(7,807)(29,175)(47,409)
Proceeds from sale of oil and natural gas interests90,212 (67)90,641 (1,975)
Net cash provided by (used in) investing activities81,811 (7,874)61,466 (124,457)
Cash flows from financing activities:
Proceeds from borrowings under credit facility5,000 73,000 95,000 191,000 
Repayment on credit facility(101,000)(119,000)(181,000)(119,000)
Repurchased shares/units under buyback program— (24,509)— (57,531)
Dividends/distributions to stockholders(54,057)(23,556)(97,904)(58,881)
Dividends/distributions to Diamondback (59,823)(38,363)(126,883)(87,729)
Other(9)(1,151)(63)(1,171)
Net cash provided by (used in) financing activities(209,889)(133,579)(310,850)(133,312)
Net increase (decrease) in cash and cash equivalents15,206 3,973 9,342 (5,100)
Cash, cash equivalents and restricted cash at beginning of period20,005 9,106 25,869 18,179 
Cash, cash equivalents and restricted cash at end of period$35,211 $13,079 $35,211 $13,079 



Viper Energy, Inc.
Selected Operating Data
(unaudited)
Three Months Ended
June 30, 2024March 31, 2024June 30, 2023
Production Data:
Oil (MBbls)2,398 2,312 1,924 
Natural gas (MMcf)5,631 5,589 4,685 
Natural gas liquids (MBbls)983 954 724 
Combined volumes (MBoe)(1)
4,320 4,198 3,429 
Average daily oil volumes (bo/d)
26,352 25,407 21,143 
Average daily combined volumes (boe/d)
47,473 46,132 37,681 
Average sales prices:
Oil ($/Bbl)$81.04 $76.61 $72.40 
Natural gas ($/Mcf)$0.20 $1.22 $1.09 
Natural gas liquids ($/Bbl)$20.35 $22.17 $19.07 
Combined ($/boe)(2)
$49.88 $48.85 $46.14 
Oil, hedged ($/Bbl)(3)
$80.24 $75.64 $71.39 
Natural gas, hedged ($/Mcf)(3)
$0.64 $1.12 $0.65 
Natural gas liquids ($/Bbl)(3)
$20.35 $22.17 $19.07 
Combined price, hedged ($/boe)(3)
$50.00 $48.19 $44.97 
Average Costs ($/boe):
Production and ad valorem taxes$3.52 $3.43 $3.68 
General and administrative - cash component
0.84 1.08 0.51 
Total operating expense - cash$4.36 $4.51 $4.19 
General and administrative - non-cash stock compensation expense$0.19 $0.12 $0.08 
Interest expense, net$4.32 $4.60 $3.24 
Depletion$11.19 $11.18 $9.93 
(1)Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.
(2)Realized price net of all deducts for gathering, transportation and processing.
(3)Hedged prices reflect the impact of cash settlements of our matured commodity derivative transactions on our average sales prices.



NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. Viper defines Adjusted EBITDA as net income (loss) attributable to Viper Energy, Inc. plus net income (loss) attributable to non-controlling interest (“net income (loss)”) before interest expense, net, non-cash share-based compensation expense, depletion, non-cash (gain) loss on derivative instruments, (gain) loss on extinguishment of debt, if any, other non-cash operating expenses, other non-recurring expenses and provision for (benefit from) income taxes. Adjusted EBITDA is not a measure of net income as determined by United States’ generally accepted accounting principles (“GAAP”). Management believes Adjusted EBITDA is useful because it allows them to more effectively evaluate Viper’s operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income, royalty income, cash flow from operating activities or any other measure of financial performance or liquidity presented as determined in accordance with GAAP. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA.
Viper defines cash available for distribution to Viper Energy, Inc. shareholders generally as an amount equal to its Adjusted EBITDA for the applicable quarter less cash needed for income taxes payable for the current period, debt service, contractual obligations, fixed charges and reserves for future operating or capital needs that the Board may deem appropriate, lease bonus income, net of tax, distribution equivalent rights payments and preferred distributions, if any. Management believes cash available for distribution is useful because it allows them to more effectively evaluate Viper’s operating performance excluding the impact of non-cash financial items and short-term changes in working capital. Viper’s computations of Adjusted EBITDA and cash available for distribution may not be comparable to other similarly titled measures of other companies or to such measure in its credit facility or any of its other contracts. Viper further defines cash available for variable dividends as 75 percent of cash available for distribution less base dividends declared and repurchased shares as part of its share buyback program for the applicable quarter.


The following tables present a reconciliation of the GAAP financial measure of net income (loss) to the non-GAAP financial measures of Adjusted EBITDA, cash available for distribution and cash available for variable dividends:

Viper Energy, Inc.
(unaudited, in thousands, except per share data)
Three Months Ended June 30, 2024
Net income (loss) attributable to Viper Energy, Inc.
$56,901 
Net income (loss) attributable to non-controlling interest65,325 
Net income (loss)122,226 
Interest expense, net18,667 
Non-cash share-based compensation expense830 
Depletion48,360 
Non-cash (gain) loss on derivative instruments(4,817)
Other non-cash operating expenses139 
Other non-recurring expenses989 
Provision for (benefit from) income taxes13,006 
Consolidated Adjusted EBITDA199,400 
Less: Adjusted EBITDA attributable to non-controlling interest96,322 
Adjusted EBITDA attributable to Viper Energy, Inc.$103,078 
Adjustments to reconcile Adjusted EBITDA to cash available for distribution:
Income taxes payable for the current period$(14,648)
Debt service, contractual obligations, fixed charges and reserves(9,412)
Lease bonus income, net of tax(460)
Distribution equivalent rights payments(116)
Preferred distributions(20)
Cash available for distribution to Viper Energy, Inc. shareholders$78,422 

Three Months Ended June 30, 2024
AmountsAmounts Per Common Share
Reconciliation to cash available for variable dividends:
Cash available for distribution to Viper Energy, Inc. shareholders
$78,422 $0.86 
75% Committed Return of Capital $58,817 $0.64 
Less:
Base dividend27,427 0.30 
Cash available for variable dividends$31,390 $0.34 
Total approved base and variable dividend per share$0.64 
Class A common stock outstanding91,424 



The following table presents a reconciliation of the GAAP financial measure of income (loss) before income taxes to the non-GAAP financial measure of pre-tax income attributable to Viper Energy, Inc. Management believes this measure is useful to investors given it provides the basis for income taxes payable by Viper Energy, Inc, which is an adjustment to reconcile Adjusted EBITDA to cash available for distribution to holders of Viper Energy, Inc. Class A common stock.

Viper Energy, Inc.
Pre-tax income attributable to Viper Energy, Inc.
(unaudited, in thousands)
Three Months Ended June 30, 2024
Income (loss) before income taxes$135,232 
Less: Net income (loss) attributable to non-controlling interest65,325 
Pre-tax income attributable to Viper Energy, Inc.
$69,907 
Income taxes payable for the current period$14,648 
Effective cash tax rate attributable to Viper Energy, Inc.
21.0 %

Adjusted net income (loss) is a non-GAAP financial measure equal to net income (loss) attributable to Viper Energy, Inc. plus net income (loss) attributable to non-controlling interest adjusted for non-cash (gain) loss on derivative instruments, net, (gain) loss on extinguishment of debt, if any, other non-cash operating expenses, other non-recurring expenses and related income tax adjustments. The Company’s computation of adjusted net income may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. Management believes adjusted net income helps investors in the oil and natural gas industry to measure and compare the Company’s performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors.



The following table presents a reconciliation of the GAAP financial measure of net income (loss) attributable to Viper Energy, Inc. to the non-GAAP financial measure of adjusted net income (loss):

Viper Energy, Inc.
Adjusted Net Income (Loss)
(unaudited, in thousands, except per share data)
Three Months Ended June 30, 2024
AmountsAmounts Per Diluted Share
Net income (loss) attributable to Viper Energy, Inc. (1)
$56,901 $0.62 
Net income (loss) attributable to non-controlling interest65,325 0.72 
Net income (loss)(1)
122,226 1.34 
Non-cash (gain) loss on derivative instruments, net(4,817)(0.05)
Other non-cash operating expenses139 — 
Other non-recurring expenses989 0.01 
Adjusted income excluding above items(1)
118,537 1.30 
Income tax adjustment for above items355 — 
Adjusted net income (loss)(1)
118,892 1.30 
Less: Adjusted net income (loss) attributed to non-controlling interests63,543 0.69 
Adjusted net income (loss) attributable to Viper Energy, Inc. (1)
$55,349 $0.61 
Weighted average Class A common shares outstanding:
Basic91,424 
Diluted91,424 
(1) The Company’s earnings (loss) per diluted share amount has been computed using the two-class method in accordance with GAAP. The two-class method is an earnings allocation which reflects the respective ownership among holders of Class A common shares and participating securities. Diluted earnings per share using the two-class method is calculated as (i) net income attributable to Viper Energy, Inc., (ii) less the reallocation of $0.1 million in earnings attributable to participating securities, (iii) divided by diluted weighted average Class A common shares outstanding.

RECONCILIATION OF LONG-TERM DEBT TO NET DEBT

The Company defines the non-GAAP measure of net debt as debt (excluding debt issuance costs, discounts and premiums) less cash and cash equivalents. Net debt should not be considered an alternative to, or more meaningful than, total debt, the most directly comparable GAAP measure. Management uses net debt to determine the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. The Company believes this metric is useful to analysts and investors in determining the Company's leverage position because the Company has the ability to, and may decide to, use a portion of its cash and cash equivalents to reduce debt.
June 30, 2024
Net Q2 Principal Borrowings/(Repayments)
March 31, 2024December 31, 2023September 30, 2023June 30, 2023
(in thousands)
Total long-term debt(1)
$1,007,350 $(96,000)$1,103,350 $1,093,350 $680,350 $654,350 
Cash and cash equivalents(35,211)(20,005)(25,869)(146,814)(13,079)
Net debt$972,139 $1,083,345 $1,067,481 $533,536 $641,271 
(1) Excludes debt issuance costs, discounts & premiums.



Derivatives

As of the filing date, the Company had the following outstanding derivative contracts. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and Crude Oil Brent. When aggregating multiple contracts, the weighted average contract price is disclosed.

Crude Oil (Bbls/day, $/Bbl)
Q3 2024Q4 2024
Q1 2025
Q2 2025
Q3 2025
Q4 2025
Deferred Premium Puts - WTI (Cushing)16,000 16,000 20,000 20,000 — — 
Strike$55.00 $55.00 $55.00 $55.00 $— $— 
Premium$(1.65)$(1.70)$(1.62)$(1.61)$— $— 

Crude Oil (Bbls/day, $/Bbl)
Q3 2024Q4 2024
Q1 2025
Q2 2025
Q3 2025
Q4 2025
Costless Collars - WTI (Cushing)
4,000 4,000 — — — — 
Floor
$55.00 $55.00 $— $— $— $— 
Ceiling
$93.66 $93.66 $— $— $— $— 

Natural Gas (Mmbtu/day, $/Mmbtu)
Q3 2024Q4 2024
Q1 2025
Q2 2025
Q3 2025
Q4 2025
Natural Gas Basis Swaps - Waha Hub30,000 30,000 40,000 40,000 40,000 40,000 
Swap Price$(1.20)$(1.20)$(0.68)$(0.68)$(0.68)$(0.68)


Investor Contact:

Austen Gilfillian
+1 432.221.7420
agilfillian@viperenergy.com

Source: Viper Energy, Inc.; Diamondback Energy, Inc.

v3.24.2.u1
Document and Entity Information Statement
Aug. 05, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 05, 2024
Entity Registrant Name VIPER ENERGY, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-36505
Entity Tax Identification Number 46-5001985
Entity Address, Address Line One 500 West Texas Ave.
Entity Address, Address Line Two Suite 100
Entity Address, City or Town Midland,
Entity Address, State or Province TX
Entity Address, Postal Zip Code 79701
City Area Code 432
Local Phone Number 221-7400
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A Common Stock, $0.000001 Par Value
Trading Symbol VNOM
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001602065
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