SEC Form 10-Q filed by Viper Energy Inc.

8/5/24 4:10:13 PM ET

$VNOM

Oil & Gas Production

Energy

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-36505

Viper Energy, Inc.

(Exact Name of Registrant As Specified in Its Charter)

46-5001985

(State or Other Jurisdiction of Incorporation or Organization)

(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)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock
$0.000001 par value

VNOM

The Nasdaq Stock Market LLC

(NASDAQ Global Select Market)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check One):

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-Accelerated Filer

☐

Smaller Reporting Company

☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 1, 2024, 91,447,008 shares of Class A Common Stock and 85,431,453 shares of Class B Common Stock of the registrant were outstanding.

VIPER ENERGY, INC.

FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 2024

TABLE OF CONTENTS


			Page
Glossary of Oil and Natural Gas Terms			ii
Glossary of Certain Other Terms			iv
Cautionary Statement Regarding Forward-Looking Statements			v

PART I. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements (Unaudited)			1
Condensed Consolidated Balance Sheets			1
Condensed Consolidated Statements of Operations			2
Condensed Consolidated Statements of Changes to Stockholders’ Equity			3
Condensed Consolidated Statements of Cash Flows			5
Condensed Notes to Consolidated Financial Statements			6
1. Organization and Basis of Presentation			6
2. Summary of Significant Accounting Policies			7
3. Revenue from Contracts with Customers			8
4. Acquisitions and Divestitures			9
5. Oil and Natural Gas Interests			10
6. Debt			11
7. Stockholders' Equity			11
8. Earnings Per Common Share			13
9. Income Taxes			14
10. Derivatives			15
11. Fair Value Measurements			16
12. Commitments and Contingencies			18
13. Subsequent Events			18

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			19

Item 3. Quantitative and Qualitative Disclosures about Market Risk			30

Item 4. Controls and Procedures			31

PART II. OTHER INFORMATION
Item 1. Legal Proceedings			32

Item 1A. Risk Factors			32

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			32

Item 5. Other Information			33

Item 6. Exhibits			34

Signatures			35



Argus WTI Midland			Grade of oil that serves as a benchmark price for oil at Midland, Texas.
Basin			A large depression on the earth’s surface in which sediments accumulate.
Bbl or barrel			One stock tank barrel, or 42 U.S. gallons liquid volume, used in this report in reference to crude oil or other liquid hydrocarbons.


BO/d			One barrel of crude oil per day.
BOE			One barrel of oil equivalent, with six thousand cubic feet of natural gas being equivalent to one barrel of oil.
BOE/d			BOE per day.

Completion			The process of treating a drilled well followed by the installation of permanent equipment for the production of natural gas or oil, or in the case of a dry hole, the reporting of abandonment to the appropriate agency.

Crude oil			Liquid hydrocarbons retrieved from geological structures underground to be refined into fuel sources.




Development well			A well drilled within the proved area of a natural gas or oil reservoir to the depth of a stratigraphic horizon known to be productive.
Differential			An adjustment to the price of oil or natural gas from an established spot market price to reflect differences in the quality and/or location of oil or natural gas.






Fracturing			The process of creating and preserving a fracture or system of fractures in a reservoir rock typically by injecting a fluid under pressure through a wellbore and into the targeted formation.
Gross wells			The total wells, as the case may be, in which a working interest is owned.

Henry Hub			Natural gas gathering point that serves as a benchmark price for natural gas futures on the NYMEX.
Horizontal wells			Wells drilled directionally horizontal to allow for development of structures not reachable through traditional vertical drilling mechanisms.
MBbl			One thousand barrels of crude oil and other liquid hydrocarbons.
MBOE			One thousand barrels of crude oil equivalent, determined using a ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or natural gas liquids.
MBOE/d			One thousand BOE per day.
Mcf			One thousand cubic feet of natural gas.

Mineral interests			The interests in ownership of the resource and mineral rights, giving an owner the right to profit from the extracted resources.
MMBtu			One million British Thermal Units.
MMcf			Million cubic feet of natural gas.



Net royalty acres			Net mineral acres multiplied by the average lease royalty interest and other burdens.
Oil and natural gas properties			Tracts of land consisting of properties to be developed for oil and natural gas resource extraction.
Operator			The individual or company responsible for the exploration and/or production of an oil or natural gas well or lease.







Proved reserves			The estimated quantities of oil, natural gas and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be commercially recoverable in future years from known reservoirs under existing economic and operating conditions.



Reserves			The estimated remaining quantities of oil and natural gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and natural gas or related substances to the market and all permits and financing required to implement the project. Reserves are not assigned to adjacent reservoirs isolated by major, potentially sealing, faults until those reservoirs are penetrated and evaluated as economically producible. Reserves should not be assigned to areas that are clearly separated from a known accumulation by a non-productive reservoir (i.e., absence of reservoir, structurally low reservoir or negative test results). Such areas may contain prospective resources (i.e., potentially recoverable resources from undiscovered accumulations).


Royalty interest			An interest that gives an owner the right to receive a portion of the resources or revenues without having to carry any costs of development, which may be subject to expiration.
Spud			Commencement of actual drilling operations.
Waha Hub			Natural gas gathering point that serves as a benchmark price for natural gas at western Texas and New Mexico.






WTI			West Texas Intermediate, a light sweet blend of oil produced from fields in western Texas and is a grade of oil that serves as a benchmark for oil on the NYMEX.
WTI Cushing			Grade of oil that serves as a benchmark price for oil at Cushing, Oklahoma.



Adjusted EBITDA			Consolidated Adjusted EBITDA, a non-GAAP measure, generally equals net income (loss) attributable to Viper Energy, Inc. plus net income (loss) attributable to non-controlling interest before interest expense, net, non-cash share-based compensation expense, depletion expense, non-cash (gain) loss on derivative instruments, other non-cash operating expenses, other non-recurring expenses and provision for (benefit from) income taxes, which measure is used by management to more effectively evaluate the operating performance and determine dividend amounts for purposes of the dividend policy.
ASU			Accounting Standards Update.
Class A Common Stock			Class A Common Stock, $0.000001 par value per share of Viper Energy, Inc.
Class B Common Stock			Class B Common Stock, $0.000001 par value per share of Viper Energy, Inc.
Common Stock			Collectively, Class A Common Stock and Class B Common Stock.
Diamondback			Diamondback Energy, Inc., a Delaware corporation.

Exchange Act			The Securities Exchange Act of 1934, as amended.
GAAP			Accounting principles generally accepted in the United States.
General Partner			Viper Energy Partners GP LLC, a Delaware limited liability company, and the General Partner of the Partnership.


LTIP			Viper Energy, Inc. Amended and Restated 2014 Long Term Incentive Plan, as amended and restated by Viper Energy, Inc. 2024 Amended and Restated Long Term Incentive Plan, and as may be further amended or restated from time to time.
Nasdaq			The Nasdaq Global Select Market.
Notes			The outstanding senior notes of Viper Energy, Inc. issued under indentures where Viper Energy Partners LLC is the sole guarantor, consisting of the 5.375% Senior Notes due 2027 and the 7.375% Senior Notes due 2031.

OPEC			Organization of the Petroleum Exporting Countries.
Operating Company			Viper Energy Partners LLC, a Delaware limited liability company and a consolidated subsidiary of Viper Energy, Inc.
Partnership			Viper Energy Partners LP, the predecessor of the Company, which converted into the Company in the Conversion.
SEC			United States Securities and Exchange Commission.
Securities Act			The Securities Act of 1933, as amended.
SOFR			The secured overnight financing rate.


	June 30,		December 31,
	2024		2023
	(In thousands, except share amounts)
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 party	34,981		3,329
Income tax receivable	—		813
Derivative instruments	—		358
Prepaid expenses and other current assets	3,468		4,467
Total current assets	205,384		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
Land	5,688		5,688
Accumulated depletion and impairment	(961,646)		(866,352)
Property, net	3,611,560		3,768,319

Derivative instruments	2,134		92
Deferred income taxes (net of allowances)	76,393		56,656
Other assets	4,951		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 liabilities	22,106		27,021
Derivative instruments	4,766		2,961
Income taxes payable	2,200		1,925
Total current liabilities	29,091		33,256
Long-term debt, net	998,021		1,083,082

Derivative instruments	—		201
Total liabilities	1,027,112		1,116,539
Commitments and contingencies (Note 12)

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 capital	1,108,739		1,031,078
Retained earnings (accumulated deficit)	(18,939)		(16,786)
Total Viper Energy, Inc. stockholders’ equity	1,089,800		1,014,292
Non-controlling interest	1,783,510		1,843,262
Total equity	2,873,310		2,857,554
Total liabilities and stockholders’ equity	$	3,900,422	$	3,974,093


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	(In thousands, except per share amounts)
Operating income:
Oil income	$	194,335	$	139,300	$	371,453	$	275,919
Natural gas income	1,143		5,090		7,940		14,081
Natural gas liquids income	20,008		13,807		41,160		29,282
Royalty income	215,486		158,197		420,553		319,282
Lease bonus income—related party	—		1,277		120		8,348
Lease bonus income	1,096		1,134		1,146		1,534

Other operating income	126		179		281		581
Total operating income	216,708		160,787		422,100		329,745
Costs and expenses:
Production and ad valorem taxes	15,201		12,621		29,607		25,508

Depletion	48,360		34,064		95,293		65,051

General and administrative expenses—related party	2,436		924		4,822		1,848
General and administrative expenses	2,019		1,084		4,666		2,924
Other operating expense	139		—		233		—
Total costs and expenses	68,155		48,693		134,621		95,331
Income (loss) from operations	148,553		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, net	5,346		(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 taxes	135,232		88,381		247,336		186,053
Provision for (benefit from) income taxes	13,006		8,450		25,535		17,856
Net income (loss)	122,226		79,931		221,801		168,197
Net income (loss) attributable to non-controlling interest	65,325		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:
Basic	91,424		71,771		89,480		72,249
Diluted	91,424		71,771		89,570		72,249


	Common Stock(1)
		Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Non-Controlling Interest		Total
					Class A Shares			Class B Shares

			(In thousands)
Balance at December 31, 2023			86,144	90,710		$	1,031,078	$	(16,786)	$	1,843,262	$	2,857,554

Common shares issued to related party			5,279	(5,279)		—		—		—		—
Equity-based compensation			—	—		485		—		—		485
Issuance of shares upon vesting of equity awards			1	—		—		—		—		—
Distribution equivalent rights payments			—	—		—		(56)		—		(56)
Dividends to stockholders			—	—		—		(43,791)		—		(43,791)
Dividends to Diamondback			—	—		20		(4,490)		(62,590)		(67,060)
Change in ownership of consolidated subsidiaries, net			—	—		69,753		—		(52,298)		17,455
Cash paid for tax withholding on vested equity awards			—	—		(28)		—		—		(28)

Net income (loss)			—	—		—		43,360		56,215		99,575
Balance at March 31, 2024			91,424	85,431		1,101,308		(21,763)		1,784,589		2,864,134


Equity-based compensation			—	—		830		—		—		830

Distribution equivalent rights payments			—	—		—		(116)		—		(116)
Dividends to stockholders			—	—		—		(53,941)		—		(53,941)
Dividends to Diamondback			—	—		—		(20)		(59,803)		(59,823)
Change in ownership of consolidated subsidiaries, net			—	—		6,601		—		(6,601)		—


Net income (loss)			—	—		—		56,901		65,325		122,226
Balance at June 30, 2024			91,424	85,431		$	1,108,739	$	(18,939)	$	1,783,510	$	2,873,310


							General Partner			Non-Controlling Interest		Total
	Limited Partners
	Common Units	Amount		Class B Units	Amount		Amount		Amount

	(In thousands)
Balance at December 31, 2022	73,230	$	689,178	90,710	$	832	$	649		$	1,630,866	$	2,321,525

Unit-based compensation	—	370		—	—		—			—		370
Issuance of shares upon vesting of equity awards	4	—		—	—		—			—		—
Distribution equivalent rights payments	—	(72)		—	—		—			—		(72)
Distributions to public	—	(35,253)		—	—		—			—		(35,253)
Distributions to Diamondback	—	(358)		—	(25)		—			(48,983)		(49,366)
Distributions to General Partner	—	—		—	—		(20)			—		(20)
Change in ownership of consolidated subsidiaries, net	—	11,449		—	—		—			(11,449)		—

Repurchased units as part of unit buyback	(1,115)	(33,022)		—	—		—			—		(33,022)
Net income (loss)	—	33,967		—	—		—			54,299		88,266
Balance at March 31, 2023	72,119	666,259		90,710	807		629			1,624,733		2,292,428

Unit-based compensation	—	259		—	—		—			—		259

Distribution equivalent rights payments	—	(43)		—	—		—			—		(43)
Distributions to public	—	(23,513)		—	—		—			—		(23,513)
Distributions to Diamondback	—	(241)		—	(25)		—			(38,097)		(38,363)
Distributions to General Partner	—	—		—	—		(20)			—		(20)
Change in ownership of consolidated subsidiaries, net	—	16,749		—	—		—			(16,749)		—

Repurchased units as part of unit buyback	(912)	(24,509)		—	—		—			—		(24,509)
Net income (loss)	—	30,550		—	—		—			49,381		79,931
Balance at June 30, 2023	71,207	$	665,511	90,710	$	782	$	609		$	1,619,268	$	2,286,170


	Distributions
	(In thousands, except share amounts)
Period	Amount per Operating Company Unit		Operating Company Distributions to Diamondback		Amount per Common Share		Common Stockholders(1)(2)		Declaration Date	Stockholder Record Date	Payment Date
2024
Q4 2023	$	0.69	$	62,590	$	0.56	$	48,337	February 15, 2024	March 5, 2024	March 12, 2024
Q1 2024	$	0.70	$	59,803	$	0.59	$	54,077	April 25, 2024	May 15, 2024	May 22, 2024



2023
Q4 2022	$	0.54	$	48,983	$	0.49	$	35,683	February 15, 2023	March 3, 2023	March 10, 2023
Q1 2023	$	0.42	$	38,097	$	0.33	$	23,797	April 26, 2023	May 11, 2023	May 18, 2023


					Swaps	Collars		Puts
Settlement Month	Settlement Year	Type of Contract	Bbls/MMBtu Per Day	Index	Weighted Average Differential	Weighted Average Floor Price	Weighted Average Ceiling Price	Strike Price	Deferred Premium
OIL
Jul. - Sep.	2024	Puts	16,000	WTI Cushing	$—	$—	$—	$55.00	$(1.65)
Oct. - Dec.	2024	Puts	16,000	WTI Cushing	$—	$—	$—	$55.00	$(1.70)
Jul. - Dec.	2024	Costless Collar	4,000	WTI Cushing	$—	$55.00	$93.66	$—	$—
Jan. - Mar.	2025	Puts	20,000	WTI Cushing	$—	$—	$—	$55.00	$(1.62)
Apr. - Jun.	2025	Puts	16,000	WTI Cushing	$—	$—	$—	$55.00	$(1.61)
NATURAL GAS
Jul. - Dec.	2024	Basis Swaps	30,000	Waha Hub	$(1.20)	$—	$—	$—	$—
Jan. - Dec.	2025	Basis Swaps	40,000	Waha Hub	$(0.68)	$—	$—	$—	$—


	As of June 30, 2024
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(In thousands)
Assets:
Current:
Derivative instruments	$	—	$	6,619	$	—	$	6,619	$	(6,619)	$	—
Non-current:

Derivative instruments	$	—	$	2,869	$	—	$	2,869	$	(735)	$	2,134
Liabilities:
Current:
Derivative instruments	$	—	$	11,385	$	—	$	11,385	$	(6,619)	$	4,766
Non-current:
Derivative instruments	$	—	$	735	$	—	$	735	$	(735)	$	—


	June 30,		December 31,
	2024		2023
	(In thousands)
5.375% Senior unsecured notes due 2027	$	430,350	$	430,350
7.375% Senior unsecured notes due 2031	400,000		400,000
Revolving credit facility	177,000		263,000
Unamortized debt issuance costs	(6,373)		(6,903)
Unamortized discount	(2,956)		(3,365)
Total long-term debt	$	998,021	$	1,083,082


	Diamondback Operated		Third Party Operated		Total
Horizontal wells turned to production(1):
Gross wells	48		327		375
Net 100% royalty interest wells	2.6		3.5		6.1
Average percent net royalty interest	5.4	%	1.1	%	1.6	%

Horizontal producing well count:
Gross wells	1,964		7,488		9,452
Net 100% royalty interest wells	134.7		96.8		231.5
Average percent net royalty interest	6.9	%	1.3	%	2.4	%

Horizontal active development well count(2):
Gross wells	132		604		736
Net 100% royalty interest wells	7.6		6.6		14.2
Average percent net royalty interest	5.8	%	1.1	%	1.9	%

Line of sight wells(3):
Gross wells	124		608		732
Net 100% royalty interest wells	8.9		8.4		17.3
Average percent net royalty interest	7.2	%	1.4	%	2.4	%


	Three Months Ended
	June 30, 2024		March 31, 2024
Production data:
Oil (MBbls)	2,398		2,312
Natural gas (MMcf)	5,631		5,589
Natural gas liquids (MBbls)	983		954
Combined volumes (MBOE)(1)	4,320		4,198

Average daily oil volumes (BO/d)	26,352		25,407
Average daily combined volumes (BOE/d)	47,473		46,132


Average sales prices:
Oil ($/Bbl)	$	81.04	$	76.61
Natural gas ($/Mcf)	$	0.20	$	1.22
Natural gas liquids ($/Bbl)	$	20.35	$	22.17
Combined ($/BOE)(2)	$	49.88	$	48.85

Oil, hedged ($/Bbl)(3)	$	80.24	$	75.64
Natural gas, hedged ($/Mcf)(3)	$	0.64	$	1.12
Natural gas liquids ($/Bbl)(3)	$	20.35	$	22.17
Combined price, hedged ($/BOE)(3)	$	50.00	$	48.19

Average costs ($/BOE):
Production and ad valorem taxes	$	3.52	$	3.43
General and administrative - cash component	0.84		1.08
Total operating expense - cash	$	4.36	$	4.51

General and administrative - non-cash stock compensation expense	$	0.19	$	0.12
Interest expense, net	$	4.32	$	4.60
Depletion	$	11.19	$	11.18


	Six Months Ended June 30,
	2024		2023
Production data:
Oil (MBbls)	4,710		3,734
Natural gas (MMcf)	11,220		8,909
Natural gas liquids (MBbls)	1,937		1,357
Combined volumes (MBOE)(1)	8,517		6,576

Average daily oil volumes (BO/d)	25,879		20,630
Average daily combined volumes (BOE/d)	46,797		36,331


Average sales prices:
Oil ($/Bbl)	$	78.86	$	73.89
Natural gas ($/Mcf)	$	0.71	$	1.58
Natural gas liquids ($/Bbl)	$	21.25	$	21.58
Combined ($/BOE)(2)	$	49.38	$	48.55

Oil, hedged ($/Bbl)(3)	$	77.98	$	72.80
Natural gas, hedged ($/Mcf)(3)	$	0.88	$	1.34
Natural gas liquids ($/Bbl)(3)	$	21.25	$	21.58
Combined price, hedged ($/BOE)(3)	$	49.12	$	47.61

Average costs ($/BOE):
Production and ad valorem taxes	$	3.48	$	3.88
General and administrative - cash component	0.96		0.63
Total operating expense - cash	$	4.44	$	4.51

General and administrative - non-cash stock compensation expense	$	0.15	$	0.10
Interest expense, net	$	4.46	$	3.14
Depletion	$	11.19	$	9.89


	As of December 31, 2023
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(In thousands)
Assets:
Current:
Derivative instruments	$	—	$	7,040	$	—	$	7,040	$	(6,682)	$	358
Non-current:

Derivative instruments	$	—	$	1,269	$	—	$	1,269	$	(1,177)	$	92
Liabilities:
Current:
Derivative instruments	$	—	$	9,643	$	—	$	9,643	$	(6,682)	$	2,961
Non-current:
Derivative instruments	$	—	$	1,378	$	—	$	1,378	$	(1,177)	$	201


	June 30, 2024				December 31, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(In thousands)
Debt:
Revolving credit facility	$	177,000	$	177,000	$	263,000	$	263,000
5.375% senior unsecured notes due 2027(1)	$	426,493	$	423,417	$	425,949	$	422,122
7.375% senior unsecured notes due 2031(1)	$	394,528	$	414,448	$	394,133	$	418,408


			2024 Guidance
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

Costs ($/BOE)
Depletion			$11.00 - $11.50

Cash general and administrative expenses			$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.)			20% - 22%
Q3 2024 cash taxes (In millions)(1)			$13.0 - $18.0


Period	Total Number of Shares Purchased	Average Price Paid Per Share(1)(2)		Total Number of Shares Purchased as Part of Publicly Announced Plan	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan(1)(2)
	(In thousands, except share amounts)
April 1, 2024 - April 30, 2024	—	$	—	—	$	434,161
May 1, 2024 - May 31, 2024	—	$	—	—	$	434,161
June 1, 2024 - June 30, 2024	—	$	—	—	$	434,161
Total	—	$	—	—


Exhibit Number						Description
3.1						Certificate of Conversion of Viper Energy Partners LP (incorporated by reference to Exhibit 99.2 to the Current Report on Form 8-K, filed by Viper Energy Partners LP with the SEC on November 2, 2023).
3.2						Certificate of Incorporation of Viper Energy, Inc. (incorporated by reference to Exhibit 99.3 to the Current Report on Form 8-K, filed by Viper Energy Partners LP with the SEC on November 2, 2023).
3.3						Bylaws of Viper Energy, Inc. (incorporated by reference to Exhibit 99.4 to the Current Report on Form 8-K, filed by Viper Energy Partners LP with the SEC on November 2, 2023).
3.4						Second Amended and Restated Limited Liability Company Agreement of Viper Energy Partners LLC, dated as of May 9, 2018 (incorporated by reference to Exhibit 3.3 of the Partnership’s Current Report on Form 8-K (File 001-36505), filed on May 15, 2018).
3.5						First Amendment to Second Amended and Restated Limited Liability Company Agreement of Viper Energy Partners LLC, dated as of March 30, 2020, (incorporated by reference to Exhibit 3.1 of the Partnership’s Current Report on Form 8-K (File 001-36505) filed on March 31, 2020).
3.6						Second Amendment to the Second Amended and Restated Limited Liability Company Agreement of Viper Energy Partners LLC, dated as of December 27, 2021 (incorporated by reference to 3.1 of the Partnership’s Current Report on Form 8-K (File 001-36505) filed on December 28, 2021).
4.1						Second Amended and Restated Registration Rights Agreement, dated as of November 10, 2023, effective as of November 13, 2023, by and between Viper Energy Partners LP and Diamondback Energy, Inc. (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K (File 001-36505) filed on November 13, 2023).
10.1						Viper Energy, Inc. 2 024 A mende d and Restated Long Term Incentive Plan (in corporated by reference to Appendix A to Schedule DEF 1 4A filed by the Company wi th th e SEC on A pri l 25 , 2024).
31.1*						Certification of Chief Executive Officer pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
31.2*						Certification of Chief Financial Officer pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
32.1**						Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code.
101						The following financial information from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statement of Changes in Stockholders’ Equity, (iv) Condensed Consolidated Statements of Cash Flows, and (v) Condensed Notes to Consolidated Financial Statements.
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).


*			Filed herewith.
**			The certifications attached as Exhibit 32.1 accompany this Quarterly Report on Form 10-Q pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.


		VIPER ENERGY, INC.

		By:	VIPER ENERGY, INC.

Date:	August 5, 2024	By:	/s/ Travis D. Stice
			Travis D. Stice
			Chief Executive Officer

Date:	August 5, 2024	By:	/s/ Teresa L. Dick
			Teresa L. Dick
			Chief Financial Officer

Date	Price Target	Rating	Analyst
10/23/2025	$38.00	Hold	Jefferies
8/25/2025		Outperform	William Blair
8/18/2025	$46.00	Overweight	Morgan Stanley
5/7/2025	$49.00	Outperform	Evercore ISI
3/31/2025	$56.00	Outperform	Mizuho
3/14/2025	$51.00	Overweight	Wells Fargo
12/13/2024	$62.00	Sector Weight → Overweight	KeyBanc Capital Markets
12/2/2024	$70.00	Buy	Goldman

SEC Form 10-Q filed by Viper Energy Inc.

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