Viper Raises Permian Oil Output Guidance to 67,500
Permian royalty owners and operators in Texas gain higher production volumes as Viper's acquisitions and Diamondback-led development add barrels.
Updated on Nov. 3, 2026 in Oil and Gas
Viper Energy raised its 2026 average daily oil production guidance to 67,250-67,750 barrels and returned to profit in the third quarter of 2026, reporting $0.72 per share in GAAP earnings through September 30. For Texas operators, the results reflect activity across the Permian Basin in West Texas, where Viper's mineral and royalty interests are concentrated.
Why it matters
The higher production outlook is linked to recent acquisitions and development activity by Diamondback and third-party operators, which signals continued drilling and royalty-generating activity in the basin. The swing from a $0.52 per-share loss in third quarter 2025 to a $0.72 profit shows how sharply earnings for mineral and royalty owners can move with production volumes and acquisition timing.
Viper reported $661 million in third-quarter operating income, up from $418 million a year earlier, on average oil production of 69,076 barrels per day. The company paid for McElroy Ranch mineral and royalty interests at about $529 million in September, and the Buckhorn deal carries $280 million in cash plus about 1.8 million Class A shares.
The players
Viper Energy
A Permian Basin mineral and royalty company that acquires oil and gas interests and collects revenue from production on that acreage.
Diamondback Energy
A large independent oil producer focused on the Permian Basin that established Viper to acquire oil and gas properties.
The details
Viper holds mineral and royalty interests, which means it collects a share of revenue from oil and gas produced on its acreage without bearing drilling costs directly. Because those interests are concentrated in West Texas' Permian Basin, production gains flow to Viper when Diamondback and other operators drill and complete wells on that land. The gap between consolidated net income of $300 million and the $140 million attributable to Viper reflects non-controlling interests in the company's structure.
Timeline
September 2025: Viper posted a third-quarter loss of $0.52 per share, the comparison point for the current result.
September 2026: Viper acquired McElroy Ranch mineral and royalty interests for about $529 million.
Q4 2026: The Buckhorn acquisition is expected to close, subject to customary conditions.
November 12, 2026: Shareholders of record are set for the $0.50 base cash dividend per Class A share.
Market Landscape
Viper's model of holding royalty interests alongside Diamondback's operating role places it within the Permian Basin's consolidation of mineral acreage through acquisition. Its recent deals, including McElroy Ranch and the pending Buckhorn transaction, follow that pattern of buying royalty positions rather than drilling them.
Texas operators and service firms working in the Permian Basin should watch whether royalty-generating production keeps rising as acquisitions close and new wells come online. Mineral owners with acreage in West Texas may see revenue move with these volume changes, and questions about lease terms are a matter for a qualified attorney or accountant.
The takeaway
Oil and gas businesses in Texas should treat Viper's pending Buckhorn closing and fourth-quarter production report as the next signals of royalty-volume growth in the Permian. Operators tracking basin activity should file those results alongside Diamondback's own drilling updates to compare how acquired and developed acreage performs.
What happens next
The Buckhorn acquisition is expected to close in the fourth quarter of 2026, subject to customary conditions, and Viper's fourth-quarter production results will show whether the 70,000-71,000 barrel-per-day target is met.
Further reading
For broader context on the basin's drilling and royalty activity, see Oil and Gas coverage across Texas.
Source note: This article includes information reported by TokenPost.
