Viper Energy, Inc. · NASDAQ:VNOM
Viper Energy — Q1 2025 Earnings Presentation
18 slides from Viper Energy's earnings presentation, May 6, 2025
Slide 1: Investor Presentation
Investor Presentation May 2025
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as emended, which involve risks, uncertainties, and assumptions. All statements, oth
Slide 3: Viper: Investment Highlights
Viper: Investment Highlights 1Q ’25 cash available for distribution(1) of $0.76/share; total return of capital to Class A shareholders of $0.57/share 1Q ‘25 average production of 31,311 Bo/d (57,378 Boe/d) Q1 2025 Review 442 total gross (8.0 net 100% royalty interest) horizontal wells with ave
Slide 4: Viper Energy Overview
Viper Energy Overview Differentiated Investment Opportunity Viper Mineral and Royalty Assets Unique Relationship with Primary Operator Diamondback relationship and ownership reduces uncertainty around pace of development Minimal Exposure to Cost Inflation Zero capital requirements means insulate
Slide 5: Viper Per Share Growth
Viper Per Share Growth Viper is focused on increasing per share value for shareholders and maximizing long-term returns A combination of organic growth, accretive acquisitions, and an opportunistic share repurchase program have driven production per share to a Company record With Viper’s low c
Slide 6: Durable Cash Available for Distribution
Durable Cash Available for Distribution Viper is uniquely positioned to generate free cash flow through commodity price cycles with high leverage to increasing oil prices; hedging strategy provides mostly uncapped exposure to upside At $60 WTI and production held flat at the midpoint of our 2025
Slide 7: Return of Capital Framework
Return of Capital Framework Return of Capital Framework Q1 2025 Return of Capital to Class A Shareholders Reconciliation ♦ Viper is committed to returning at least 75% of cash $MM $ / Share available for distribution to Class A shareholders (1) Base Dividend - $1.20 / Share $39 $0.30 ♦ Board has aut
Slide 8: Portfolio Overview
Portfolio Overview 442 gross (8.0 net) horizontal wells turned to production during Q1 2025 Near-term inventory of 23.4 net wells currently in the process of active development and an additional 36.0 net line-of-sight wells not currently being developed 63 gross rigs currently operating on Vip
Slide 9: Diamondback Activity on Viper's Acreage
Diamondback Activity on Viper’s Acreage Higher exposure to Diamondback’s completions with a higher average NRI supports Viper’s production despite lower gross Diamondback activity levels Viper has high confidence visibility into Diamondback’s expected forward development for years to come, with
Slide 10: Significant Alignment with Diamondback Development
Significant Alignment with Diamondback Development Significant exposure to Diamondback’s completions with a high average NRI supports Viper’s production profile; recently closed Drop Down expected to further Viper’s alignment with Diamondback for years to come Diamondback’s continued focus on Vi
Slide 11: Significant Weighting to Leading Operators
Significant Weighting to Leading Operators Viper has a significant weighting to leading operators in the Permian Basin, both in terms of current production and net wells in the process of active development Viper’s top four operators make up >80% of existing production and >85% of current net we
Slide 12: Financial Overview
Financial Overview Financial Strategy Viper Capitalization ($MM) Maintain Financial Flexibility VNOM Capitalization & Leverage 3/31/2025 Adjustments(1) 5/1/2025 ♦ Elected commitment of $1.25 billion with no borrowings Cash $560 -$516 $44 Revolving Credit Facility 0 255 255 drawn on revolver as of 3/
Slide 13: Appendix
VIPSeS Appendix
Slide 14: How Viper Defines a "Net Royalty Acre"
How Viper Defines a “Net Royalty Acre” Methodology for deriving “Net Royalty Viper’s Formula for Net Royalty Acreage Acreage” differs widely across the industry Many companies calculate assuming there are eight royalty acres for every one net Net Lease Net Royalty mineral acre (NMA) Mineral Roya
Slide 15: Hedge Update
Hedge Update Crude Oil (Bbls/day, $/Bbl) Q2 2025 Q3 2025 Q4 2025 FY 2026 FY 2027 Deferred Premium Put Options - WTI 20,000 18,000 - - - Strike $55.00 $55.00 - - - Premium -$1.61 -$1.60 - - - Natural Gas - Henry Hub (Mmbtu/day, $/Mmbtu) Q2 2025 Q3 2025 Q4 2025 FY 2026 FY 2027 Costless Collars - Henry
Slide 16: Non-GAAP Definitions and Reconciliations
Non-GAAP Definitions and Reconciliations Cash available for dividends: Viper defines cash available for dividends generally as an amount equal to its Adjusted EBITDA for the applicable period less cash needed for income taxes payable, debt service, contractual obligations, fixed charges and reserv
Slide 17: Final Thoughts
Final Thoughts Viper Energy offers sustainable free cash flow, substantial remaining inventory, and durable return of capital Mineral ownership provides surest form of security in the oil industry Relationship with Diamondback provides visibility to production and cash flow durability Royalty assets
Slide 18: Viper Energy, Inc. Contact
Viper Energy, Inc. Chip Seale 500 West Texas Ave., Suite 100 (432) 247-6218 Midland, TX 79701 cseale@viperenergy.com www.viperenergy.com 18