Strong Organic Production Growth
Viper Energy delivered strong organic production growth on its legacy assets and successfully executed on its acquisition strategy. For Q1 2025, the company initiated average daily production guidance of 30,000 to 31,000 barrels of oil per day. After an expected drop-down in Q2 2025, it anticipates a run rate daily average oil production of 48,000 barrels.
Strategic Transactions and Acquisitions
Viper Energy completed transformative transactions, including a drop-down transaction with Diamondback and the acquisition of Quinn Ranch. These transactions align Viper with Diamondback's development, resulting in expected organic growth driven by Diamondback's operations.
Dividend and Cash Flow Strategy
Viper Energy maintained a dividend payout guidance of 75% to 100% of free cash flow. The company aims to continue growing its base dividend and prioritizes variable dividends over repurchases.