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FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Assets and Liabilities Measured at Fair Value on a Recurring Basis

As discussed in Note 13—Fair Value Measurements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, certain financial instruments of the Company are reported at fair value in the Company’s condensed consolidated balance sheets in the captions indicated in the table below. The net amounts of derivative instruments, including prior outstanding interest rate swaps, are classified as current or noncurrent based on their anticipated settlement dates. Additionally, the Company has an immaterial investment in the Class A common stock of Verde Clean Fuels, Inc., which is reported at fair value using observable, quoted stock prices and is included in “Other assets” on the Company’s condensed consolidated balance sheets at June 30, 2026, and December 31, 2025.

Viper LLC completed multiple acquisitions during 2024 with Tumbleweed Royalty IV, LLC, TWR IV SellCo Parent, LLC, Tumbleweed-Q Royalties, LLC, MC TWR Royalties, LP and MC TWR Intermediate, LLC. The terms of these acquisitions included provisions for contingent cash consideration based on the average price of WTI sweet crude oil prompt month futures contracts for the calendar year 2025 (the “2026 WTI Contingent Liability”), which resulted in an aggregate payment of $20 million in January 2026. The 2026 WTI Contingent Liability was reported at fair value in the condensed consolidated balance sheet at December 31, 2025 in the caption “Other accrued liabilities” using observable market data inputs and a Monte Carlo pricing model, which are considered Level 2 inputs within the fair value hierarchy.
The following table provides the fair value of financial instruments recorded in the condensed consolidated balance sheets as of June 30, 2026, and December 31, 2025:

As of June 30, 2026
Level 1Level 2Level 3Total Gross Fair ValueGross Amounts Offset in Balance SheetNet Fair Value Presented in Balance Sheet
(In millions)
Assets:
Current assets- Prepaid expenses and other assets:
Commodity derivative instruments$— $228 $— $228 $(160)$68 
Other assets:
Commodity derivative instruments$— $79 $— $79 $(20)$59 
Non-current assets- Other assets:
Investment$15 $— $— $15 $— $15 
Liabilities:
Derivative instruments:
Commodity derivative instruments$— $196 $— $196 $(160)$36 
Other long-term liabilities:
Commodity derivative instruments$— $20 $— $20 $(20)$— 

As of December 31, 2025
Level 1Level 2Level 3Total Gross Fair ValueGross Amounts Offset in Balance SheetNet Fair Value Presented in Balance Sheet
(In millions)
Assets:
Prepaid expenses and other current assets:
Commodity derivative instruments$— $335 $— $335 $(101)$234 
Other assets:
Commodity derivative instruments$— $49 $— $49 $(42)$7 
Investment$30 $— $— $30 $— $30 
Liabilities:
Derivative instruments:
Commodity derivative instruments$— $109 $— $109 $(101)$8 
Interest rate swaps$— $7 $— $7 $— $7 
Other accrued liabilities:
2026 WTI Contingent Liability$— $20 $— $20 $— $20 
Other long-term liabilities:
Commodity derivative instruments$— $77 $— $77 $(42)$35 
Interest rate swaps$— $20 $— $20 $— $20 
Assets and Liabilities Not Recorded at Fair Value

The following table provides the fair value of financial instruments that are not recorded at fair value in the condensed consolidated balance sheets:

June 30, 2026December 31, 2025
Carrying Value
Fair Value
Carrying Value
Fair Value
(In millions)
Debt$12,614 $12,746 $14,489 $14,497 

The fair values of the Company’s borrowings under the Revolving Credit Facility, the Viper Revolving Credit Facility, the 2025 Term Loan (prior to repayment and termination) and Viper 2025 Term Loan (prior to repayment and termination) approximate their carrying values based on borrowing rates available to the Company for bank loans with similar terms and maturities and are classified as Level 2 in the fair value hierarchy. The fair values of the outstanding notes were determined using the quoted market price at each period end, a Level 1 classification in the fair value hierarchy.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis in certain circumstances. These assets and liabilities can include those acquired in a business combination, inventory, proved and unproved oil and natural gas properties, equity method investments, asset retirement obligations and other long-lived assets that are written down to fair value when impaired or held for sale. Refer to Note 4—Acquisitions and Divestitures and Note 5—Property and Equipment for additional discussion of nonrecurring fair value adjustments.

Fair Value of Financial Assets

The carrying amount of cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued capital expenditures and other accrued liabilities approximate their fair value because of the short-term nature of the instruments.