Viper Energy (VNOM) AI Stock Analysis

• Market Cap: $10.75B
• Dividend Yield: 6.34%
• Average Volume (3M): 2.19M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.59
• Revenue Growth: 17.92%
• EPS Growth: 18.39%
• Country: US
• Employees: N/A
• Sector: Energy
• Sector Strength: 49
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.41
• Shares Outstanding: 168,747,250
• 10 Day Avg. Volume: 3,037,430
• 30 Day Avg. Volume: 2,188,072
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 11.61
• Enterprise Value/Gross Profit: 19.11
• Enterprise Value/Ebitda: 12.35
• 1Y Price Target: $52.33
• Price Target Upside: 40.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 76 Outperform
• Price Target: $42.00 ▲(13.02% Upside)

Viper Energy's overall stock score is driven by strong financial performance and strategic corporate events. The company's low valuation and high dividend yield add to its attractiveness. However, technical indicators suggest a bearish trend, and challenges in cash management need addressing to sustain growth.

Positive Factors

Financial Performance

Improvements in credit quality should continue to aid the cost of capital with some tangible benefits.

Growth Strategy

VNOM holds the line on 2025 volume guide and looks to assuage growth concerns out to 2026.

Market Position

As the largest publicly traded royalty company, VNOM's size and scale advantages allow it to target high-quality assets in the Permian Basin.

Negative Factors

Valuation Concerns

VNOM’s strong growth outlook warrants a premium valuation, yet shares trade in line with royalty peer group median.

Viper Energy Business Overview & Revenue Model

Company Description

Viper Energy (VNOM) is a publicly traded company that focuses on the acquisition and management of oil and natural gas mineral and royalty interests in the United States. Primarily operating in the leading oil and gas regions such as the Permian Basin, Viper Energy aims to provide investors with exposure to the energy sector while minimizing operational costs and risks. The company does not engage in drilling or operating wells directly; instead, it earns revenue by holding mineral rights and receiving royalties from production activities conducted by its operator partners.

How the Company Makes Money

Viper Energy generates revenue primarily through the collection of royalties on oil and gas production from its mineral and royalty interests. These royalties are paid by operators who extract resources from the land where Viper holds rights, allowing the company to earn income without the direct costs associated with exploration and production. Key revenue streams include a percentage of the sale price of crude oil, natural gas, and natural gas liquids produced from its properties. Additionally, Viper may benefit from long-term contracts and strategic partnerships with major operators in the industry, which can enhance its revenue stability and growth potential as these operators increase production in high-demand areas.

Viper Energy Financial Statement Overview

Summary

Viper Energy demonstrates strong revenue growth and profitability, supported by efficient operations and a stable balance sheet. However, the negative free cash flow and its declining trend highlight potential challenges in cash management. The company should focus on improving free cash flow generation to sustain its growth trajectory and manage its increasing debt levels effectively.

Income Statement

Viper Energy shows strong revenue growth with a 7.96% increase in TTM, indicating robust demand. The company maintains high profitability with a gross profit margin of 56.70% and a net profit margin of 113.26%, although the latter seems unusually high, possibly due to extraordinary items. EBIT and EBITDA margins are also strong at 109.48% and 165.80% respectively, suggesting efficient operations. However, the decline in gross profit margin from previous periods indicates potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.32, indicating moderate leverage. Return on equity is healthy at 16.16%, showcasing effective use of equity to generate profits. The equity ratio stands at 34.95%, suggesting a balanced capital structure. However, the increase in total debt over time could pose future risks if not managed carefully.

Cash Flow

Operating cash flow is strong, with a high operating cash flow to net income ratio of 10.19, indicating good cash generation from operations. However, the negative free cash flow and its decline by 8.13% in TTM raise concerns about cash management and investment efficiency. The negative free cash flow to net income ratio suggests that the company is not converting its profits into free cash flow effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	969.93M	853.58M	826.79M	865.77M	504.30M	249.57M
Gross Profit	589.28M	578.28M	630.27M	688.32M	368.75M	129.22M
EBITDA	912.10M	794.25M	742.32M	783.41M	395.23M	82.55M
Net Income	370.98M	359.25M	200.09M	151.67M	57.94M	-192.30M
Balance Sheet
Total Assets	9.79B	5.07B	3.97B	2.92B	3.03B	2.46B
Cash, Cash Equivalents and Short-Term Investments	28.00M	26.85M	25.87M	18.18M	39.45M	19.12M
Total Debt	1.10B	1.08B	1.08B	576.89M	776.73M	555.64M
Total Liabilities	1.18B	1.16B	1.12B	598.85M	801.19M	600.54M
Stockholders Equity	3.42B	1.69B	1.01B	690.01M	814.09M	634.45M
Cash Flow
Free Cash Flow	-419.19M	-76.63M	-270.17M	635.66M	25.94M	130.88M
Operating Cash Flow	733.88M	619.61M	638.19M	699.80M	307.11M	196.56M
Investing Cash Flow	-1.93B	-608.57M	-908.37M	47.57M	-281.18M	-16.28M
Financing Cash Flow	1.19B	-10.05M	277.86M	-768.64M	-5.61M	-164.75M

Viper Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNOM, the sentiment is Negative. The current price of 37.16 is below the 20-day moving average (MA) of 37.33, below the 50-day MA of 37.85, and below the 200-day MA of 42.94, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 47.24 is Neutral, neither overbought nor oversold. The STOCH value of 25.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VNOM.

Viper Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HESM	80 Outperform	$8.60B	15.19	52.91%	6.86%	9.02%	17.28%
AM	78 Outperform	$8.34B	18.52	21.65%	5.15%	7.09%	17.53%
DTM	77 Outperform	$10.36B	27.42	8.48%	3.03%	15.28%	-9.99%
WES	77 Outperform	$14.59B	11.77	38.42%	9.38%	7.11%	-16.14%
VNOM	76 Outperform	$10.75B	10.80	16.43%	6.34%	17.92%	18.39%
Sector *	65 Neutral	$14.81B	7.14	3.01%	5.53%	4.29%	-62.49%
KNTK	54 Neutral	$6.45B	55.09	-8.21%	7.85%	16.09%	-71.69%

Viper Energy Corporate Events

Viper Energy Restructures and Trades Under New Ticker

Viper Energy Partners LP, previously known as Former Viper, has undergone significant corporate restructuring. On August 19, 2025, New Viper became the successor to Former Viper, with its Class A Common Stock beginning to trade on Nasdaq under the ticker symbol ‘VNOM’, replacing Former Viper’s stock. This restructuring involved the cancellation of Former Viper’s common stock and the assumption of various agreements by New Viper. Additionally, the board of directors saw changes with new appointments and the amendment of the certificate of incorporation and bylaws.

Viper Energy Completes $1.6 Billion Senior Notes Offering

On July 23, 2025, Viper Energy, Inc. and Viper Energy Partners LLC completed a public offering of $1.6 billion in senior notes, which will be guaranteed by Viper Energy and New Cobra Pubco, Inc. following the acquisition of Sitio Royalties Corp. The offering includes $500 million of 4.900% Senior Notes due 2030 and $1.1 billion of 5.700% Senior Notes due 2035. Concurrently, Viper Energy entered into a Term Loan Credit Agreement allowing for up to $500 million in unsecured borrowing, contingent on the Sitio Acquisition. Additionally, Viper Energy redeemed its existing 2027 and 2031 notes, and released subsidiary guarantees under its Revolving Credit Agreement, marking significant financial restructuring and positioning for future growth.

Viper Energy Announces $1.6 Billion Senior Notes Issuance

On July 9, 2025, Viper Energy, Inc. announced an underwriting agreement for the issuance and sale of $1.6 billion in senior notes, with $500 million due in 2030 and $1.1 billion due in 2035. The proceeds from this offering are intended for general corporate purposes, including redeeming existing notes and potentially those of Sitio Royalties Corp. if an acquisition closes. The notes will be senior unsecured obligations, ranking equally with existing senior indebtedness and are expected to close on July 23, 2025, subject to customary conditions.

Viper Energy Announces Merger with Sitio Royalties

On May 1, 2025, Viper Energy, Inc. and Viper Energy Partners LLC completed the acquisition of mineral and royalty interests from Endeavor Energy Resources, a subsidiary of Diamondback Energy, Inc. Subsequently, on June 2, 2025, Viper entered into a merger agreement with Sitio Royalties Corp., aiming to acquire Sitio in an all-equity transaction. These strategic moves are expected to strengthen Viper’s position in the energy market by expanding its asset base and operational capabilities.

Viper Energy Enters New $1.5 Billion Credit Agreement

On June 12, 2025, Viper Energy, Inc. entered into a new Credit Agreement with Viper Energy Partners LLC and Wells Fargo Bank, replacing an existing agreement from 2018. The new agreement provides a $1.5 billion senior unsecured revolving credit facility, with borrowings bearing interest based on term SOFR or an alternate base rate plus an applicable margin. The agreement includes customary covenants and allows for voluntary prepayment without penalty, except for term SOFR loan breakage. The Borrower terminated all commitments under the previous agreement, repaid outstanding borrowings, and released related guarantees and security interests.

Viper Energy Announces Merger with Sitio Royalties

On June 2, 2025, Viper Energy, Inc. announced a merger agreement with Sitio Royalties Corp., involving an all-equity transaction. This strategic merger will result in Viper stockholders owning 80% of the new entity, with Sitio stockholders holding the remaining 20%. The merger aims to enhance Viper’s market positioning and operational efficiency, with the new entity continuing under the name ‘Viper Energy, Inc.’ and maintaining the same board and executive officers as Viper. The merger is subject to customary conditions, including stockholder approvals and regulatory clearances, with a termination fee outlined for certain scenarios.

Viper Energy Announces $4.1 Billion Acquisition Deal

On June 2, 2025, Viper Energy, Inc. announced an agreement to acquire Sitio Royalties Corp. in an all-equity transaction valued at approximately $4.1 billion. The merger, expected to close in the third quarter of 2025, will see former Viper and Sitio stockholders owning 80% and 20% of the new entity, respectively. The transaction aims to enhance Viper’s scale and inventory depth, providing significant synergies and financial accretion. Viper also announced a 10% increase in its base dividend, reflecting confidence in future cash flow growth. The merger positions Viper as a leader in the mineral and royalty interests sector, with substantial assets in the Permian Basin, and is expected to deliver higher margins and lower costs of capital, benefiting shareholders with increased returns.

Viper Energy Holds 2025 Annual Stockholders Meeting

On May 20, 2025, Viper Energy, Inc. held its 2025 Annual Meeting of Stockholders in Midland, Texas. During the meeting, stockholders voted on three key proposals. Firstly, the election of eight directors was confirmed, allowing them to serve until the 2026 Annual Meeting. Secondly, the compensation for the company’s named executive officers was approved on an advisory basis. Lastly, the appointment of Grant Thornton LLP as the independent auditors for the fiscal year ending December 31, 2025, was ratified.