Viper Energy Q3 2026 slides: 90% margins, $1.7B in acquisitions

Viper Energy reported better-than-expected third-quarter 2026 results in their investor update, despite shares falling 1.53% to $45.02. The company's unique royalty model resulted in a 90% adjusted EBITDA margin and $520 million in free cash flow. Despite strong performance, the stock has underperformed relative to the company's fundamentals.

Viper holds significant scale in the Permian Basin minerals space, reporting an average daily oil production of 69,076 barrels. The company also declared a $0.50 per share quarterly dividend and repurchased 2.1 million shares, showcasing confidence in both the dividend and stock valuation. Viper's long-term per-share metrics reveal a 17% compound annual growth rate in oil production since 2014, representing a 4.5-times increase over the period.

This growth has occurred while maintaining cash margins between 80% and 90%. The company made 29 acquisitions in 2026, allocating approximately $1.7 billion in capital, with 79% of deals being proprietary or off-market. Major acquisitions included the Riverbend acquisition and the Buckhorn Minerals deal, both adding undeveloped acreage with high net revenue interests.