William Blair analyst Neal Dingmann has maintained their bullish stance on VNOM stock, giving a Buy rating today.
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Neal Dingmann has given his Buy rating due to a combination of factors that highlight Viper Energy’s strong free cash flow outlook and disciplined capital return strategy. He expects the company to generate record free cash flow this year even under lower 2026 oil price assumptions, with at least 75% of that cash likely returned to shareholders through a mix of dividends and an increasingly active share repurchase program if the stock remains undervalued. He also notes the possibility of additional upside from intermittent lease bonus payments, further supporting total shareholder returns.
Following the Sitio acquisition, Dingmann views Viper’s portfolio as better positioned for sustainable, capital‑light growth, with an expanded royalty footprint across core Permian acreage that requires no direct drilling capex. The post‑transaction divestiture of noncore assets improves visibility on future volumes and free cash flow while moving leverage toward the company’s net debt target and enabling potential cash returns approaching 100% once the sale is completed. Enhanced access to detailed well-level data on a large share of Permian horizontal wells is seen as a competitive advantage in assessing opportunities and maintaining steady, mid-single-digit organic oil growth into 2026, supporting his positive stance despite commodity and activity risks.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $64.00 price target.