Oaktree Capital Management LP increased its position in Viper Energy to 6,285,062 shares, worth $240.2 million, representing 3.7 % of its $6.5 billion in reportable U.S. equity assets. The move follows the completion of Viper’s all‑stock merger with Sitio Royalties Corp. on August 19, 2025, which expanded Viper’s acreage footprint by roughly 42 % to nearly 86,000 net royalty acres.
The conversion of Oaktree’s Sitio shares into Viper equity signals institutional confidence in the company’s post‑merger strategy. By holding a larger stake, Oaktree gains greater influence over Viper’s capital allocation and governance, positioning it to benefit from the anticipated 8‑10 % accretion to distributable cash flow per share and projected $50 million in annual cost synergies.
Viper Energy’s Q3 2025 financials illustrate the impact of the merger and recent operational decisions. The company reported a consolidated net loss of $77 million, a swing from a $49 million net income in Q3 2024, largely due to a non‑cash impairment related to asset revaluation. However, adjusted net income rose to $156 million, and the company declared a base‑plus‑variable dividend of $0.58 per Class A share, reflecting a 6.2 % annualized yield.
Revenue for the quarter reached $418 million, beating consensus estimates of $395.91 million. The upside was driven by higher production volumes in the Permian Basin and a modest lift in royalty rates, offsetting the impairment charge. Analysts noted that the earnings beat was largely attributable to disciplined cost management and the scale benefits realized from the Sitio acquisition.
Management highlighted a 20 % projected increase in oil production per share for Q4 2025 and emphasized continued focus on core Permian assets, following the sale of non‑Permian holdings for $670 million expected to close in Q1 2026. The divestiture is expected to streamline operations and improve return on invested capital.
The market reaction to the announcement was muted, with investors focusing on the net loss and the company’s aggressive share‑repurchase program, which returned $140 million to shareholders in Q3 2025. Despite the earnings beat, concerns about the non‑cash impairment and future guidance tempered enthusiasm.
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