VNOM Q4 Earnings Beat Estimates on Higher Production Volume

Viper Energy Inc. VNOM reported fourth-quarter 2025 adjusted earnings per share (EPS) of 31 cents, which beat the Zacks Consensus Estimate of 27 cents. The bottom line, however, declined from the year-ago level of 42 cents.

The company, with mineral and royalty interests in North America’s oil and gas resources, generated operating income of $435 million, beating the Zacks Consensus Estimate of $426.5 million. The metric increased from the year-ago quarter’s $228.7 million.

The better-than-expected quarterly results can be primarily attributed to a significant increase in oil-equivalent production. However, lower realized oil prices, higher total expenses and a non-cash impairment of $408 million incurred due to properties acquired from Diamondback Energy at its historical carrying value partially offset the positives.

Viper Energy Inc. Price, Consensus and EPS Surprise

 

Viper Energy Inc. price-consensus-eps-surprise-chart | Viper Energy Inc. Quote

VNOM’s Production

The resources, wherein the company has mineral interests, produced 12,328 thousand oil-equivalent barrels (MBoe), up from 5,162 MBoe a year ago. The reported figure beat our estimate of 11,477 Mboe.

Oil contributed to 49.6% of the total production volume. Oil production increased to 6,110 thousand barrels (MBbls) from 2,747 MBbls a year ago. The reported figure surpassed our estimate of 6,040 MBbls.

Natural gas production increased to 19,668 million cubic feet (MMcf) in the fourth quarter of 2025 compared with 7,236 MMcf in the corresponding period of 2024. The production of crude oil, natural gas and natural gas liquids witnessed a significant increase from the prior-year levels.

VNOM’s Realized Prices

The overall average realized price per barrel of oil equivalent was $34.23 compared with $43.56 in the fourth quarter of 2024. Our estimate for the same was pinned at $37.67 per barrel.

The average realized oil price in the quarter under review was $58.43 per barrel, down from $69.91 in the year-ago quarter. However, the figure surpassed our estimate of $58.17.

The price of natural gas was 81 cents per thousand cubic feet, down from 84 cents in the year-ago quarter. Our estimate for the same was pinned at $2.13.

The price for natural gas liquids was $16.67 a barrel, lower than $22.15 a year ago. Our estimate for the same was pinned at $16.87 per barrel.

Viper Energy’s Costs & Expenses

In the fourth quarter, total expenses were $689 million, significantly higher than $85 million in the prior-year quarter. The figure also surpassed our estimate of $282.8 million.

On a per-barrel-of-oil-equivalent basis, total operating expenses were $3.16 compared with $3.85 in the year-ago quarter. Our estimate for the same was pegged at $4.01.

Cash Flow of VNOM

Net cash provided by operating activities was $399 million, up from $158 million in the third quarter of 2024.

VNOM’s Balance Sheet

As of Dec. 31, 2025, Viper Energy’s cash and cash equivalents were $13 million. The company reported net long-term debt of $2,186 million.

Guidance by Viper Energy

For the first quarter of 2026, the company projects net production of 124-128 Mboe/d. For 2026, the metric is projected to be 120-132 Mboe/d.

VNOM currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a Glance

While we have discussed VNOM’s fourth-quarter results in detail, let us take a look at three other key reports in this space.

ConocoPhillips COP reported fourth-quarter 2025 adjusted earnings per share of $1.02, which lagged the Zacks Consensus Estimate of $1.08. The bottom line decreased from the prior-year level of $1.98.

COP’s quarterly revenues of $14.2 billion declined from $14.7 billion in the year-ago period. The top line surpassed the Zacks Consensus Estimate of $13.9 billion.

As of Dec. 31, 2025, ConocoPhillips had $6.5 billion in cash and cash equivalents. The company had a total long-term debt of $22.4 billion and a short-term debt of $1.02 billion as of the same date.

Diamondback Energy FANG reported fourth-quarter 2025 adjusted EPS of $1.74, which missed the Zacks Consensus Estimate of $1.88. The company’s bottom line declined from the year-ago adjusted profit of $3.64.

FANG posted revenues of $3.38 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 7.01%. This compares with year-ago revenues of $3.71 billion.

As of Dec. 31, Diamondback Energy had approximately $104 million in cash and cash equivalents and $13.7 billion in long-term debt, representing a debt-to-capitalization of 24.2%

The Calgary-based integrated oil and gas company, Imperial Oil Limited IMO, reported fourth-quarter 2025 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of $1.36. However, the bottom line decreased from the year-ago quarter’s $1.69 due to lower upstream price realizations.

IMO’s revenues of $8.1 billion missed the Zacks Consensus Estimate of $10.4 billion. The top line also decreased from the year-ago quarter’s $9 billion due to weak performance in both the upstream and downstream segments.

As of Dec. 31, 2025, Imperial Oil had cash and cash equivalents of C$1.1 billion. The company’s total debt amounted to C$4 billion, with a debt-to-capitalization of 15.2%.

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This article originally published on Zacks Investment Research (zacks.com).

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