Viper Energy 2025 Q1 Earnings Strong Performance as Net Income Surges 54.5%

Viper Energy reported its fiscal 2025 Q1 earnings on May 5th, 2025. Viper Energy surpassed expectations with earnings per share of $0.54, beating the consensus estimate of $0.46. The company also exceeded revenue forecasts, delivering $245 million against the anticipated $243.5 million. Amid market volatility, Viper Energy maintained its production guidance for the remainder of the year. Despite potential commodity price weaknesses, the company projects solid performance, backed by its strategic relationship with Diamondback and robust operational capabilities.

Revenue

The total revenue for Viper Energy climbed by 19.5% to reach $245 million in Q1 2025, compared to $205 million in Q1 2024.

Earnings/Net Income

Viper Energy's EPS increased by 26.5% to $0.62 in Q1 2025 from $0.49 in Q1 2024, reflecting sustained earnings growth. The net income grew significantly to $153 million, marking a 54.5% rise from $99 million in the previous year. This quarter set a record high for fiscal Q1 net income, the highest in 11 years. The EPS performance indicates solid profitability and growth.

Price Action

The stock price of Viper Energy has edged down 0.10% during the latest trading day, has edged down 1.69% during the most recent full trading week, and has tumbled 9.86% month-to-date.

Post-Earnings Price Action Review

Following earnings releases, Viper Energy's stock has shown consistent short-to-medium-term gains. The immediate aftermath of earnings reports sees a 3-day win rate of 70%, indicating a positive trend. Although the 10-day win rate drops to 55%, suggesting heightened volatility, the 30-day win rate remains stable at 55%, reflecting a steadier performance. Investors typically observe a 3-day return of 2.83%, while the 10-day return decreases to 2.03%, reflecting some mid-term fluctuations. However, holding the stock for 30 days post-earnings can yield a 3.36% return, the highest across these terms, showcasing potential short-term momentum and medium-term gains. The maximum return observed, 15.18% on day 78, highlights significant appreciation potential if investors withstand short-term volatility.

CEO Commentary

Viper Energy, Inc. CEO Kaes Van’t Hof expressed optimism regarding the company’s performance, highlighting the successful completion of the transformative Drop Down transaction with Diamondback. He noted that conservative financing will likely keep leverage below 1.0x even in a sustained $50 per barrel WTI environment. Van’t Hof emphasized the importance of maintaining production levels despite potential commodity price weakness, citing the beneficial relationship with Diamondback and the strength of third-party operators, particularly Exxon, in managing Viper’s production.

Guidance

Viper Energy anticipates Q2 2025 average daily production of 40,000 to 43,000 bo/d and maintains average daily production guidance for the remainder of 2025 at 47,000 to 49,000 bo/d. This aligns with expectations for full-year 2025 average daily production of 41,000 to 43,500 bo/d, despite monitoring operator activity levels amidst potential market volatility.

Additional News

Viper Energy recently completed a significant acquisition, securing mineral interests from subsidiaries of Diamondback Energy for $1 billion in cash and issuing 69.6 million units of limited liability company interests. This strategic drop-down transaction aims to expand Viper's holdings in the Permian Basin, significantly increasing its net royalty acre position by 62%. Additionally, Viper Energy announced a dividend of $0.65 per share, with a record date set for May 15, 2025, and a payment date of May 22, 2025. The company also repurchased shares worth approximately $9 million in early Q2, demonstrating active capital management.