Viper Energy Reports Revenue Increase to $860.4 Million and Net Income Rise to $359.2 Million for Fiscal Year 2024

Viper Energy, Inc. reported a significant increase in financial performance for the fiscal year ending December 31, 2024, with total revenue reaching $860.4 million, up from $827.7 million in 2023. The company's net income attributable to Viper Energy rose to $359.2 million, compared to $200.1 million in the previous year. This growth was primarily driven by a 27% increase in production volumes, which amounted to approximately 18,221 MBOE, alongside a rise in oil income to $750.2 million from $619.2 million in 2023. However, the average sales price for oil decreased slightly to $75.48 per barrel from $77.13, reflecting the volatility in commodity prices.

In terms of strategic developments, Viper Energy completed several acquisitions in 2024, including the Tumbleweed Acquisitions, which added approximately 3,067 net royalty acres in the Permian Basin for a total cash consideration of $464.2 million. Additionally, the company divested its non-Permian assets for approximately $87.2 million. The company is also preparing for a significant Pending 2025 Drop Down transaction, which involves acquiring mineral and royalty interests from Endeavor Energy Resources for $1 billion in cash and the issuance of 69.63 million OpCo Units. This transaction is expected to close in the second quarter of 2025, subject to stockholder and regulatory approvals.

Operationally, Viper Energy's assets as of December 31, 2024, included approximately 35,671 net royalty acres, with 14,707 gross productive wells, 3,714 of which are operated by Diamondback. The company reported a net production of 56,109 BOE/d in the fourth quarter of 2024. The average net royalty interest across its properties was approximately 2.7%, with a significant portion of production coming from Diamondback-operated wells. The company’s focus on the Permian Basin, a historically prolific area for oil production, continues to be a key aspect of its operational strategy.

Looking ahead, Viper Energy's management expressed optimism regarding future production growth, driven by ongoing development activities by its operators. The company anticipates that the completion of the Pending 2025 Drop Down will enhance its asset base and cash flow generation capabilities. However, management also acknowledged the inherent risks associated with fluctuating commodity prices and the potential impact of regulatory changes on operations. The company plans to maintain a conservative capital structure while continuing to return capital to stockholders through dividends and share repurchases, with a quarterly dividend of $0.65 per share declared for the fourth quarter of 2024.