Viper Energy (VNOM) AI Stock Analysis

• Market Cap: $13.64B
• Dividend Yield: 6.14%
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.64
• Revenue Growth: 38.38%
• EPS Growth: 3.35%
• Country: US
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.40
• Shares Outstanding: 168,430,980
• 10 Day Avg. Volume: 1,496,466
• 30 Day Avg. Volume: 1,488,231
• PEG Ratio: 0.31
• Price to Book (P/B): 2.73
• Price to Sales (P/S): 5.40
• P/FCF Ratio: -60.15
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 12.30
• Enterprise Value/Gross Profit: 22.35
• Enterprise Value/Ebitda: 20.10
• 1Y Price Target: $49.82
• Price Target Upside: 31.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $40.00 ▲(5.40% Upside)

Viper Energy's strong financial performance and optimistic earnings call sentiment are the most significant factors driving the score. The stock's attractive valuation further supports its potential, despite weak technical indicators suggesting bearish momentum.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding operations and effective management of royalty interests, enhancing long-term financial stability.

Oil Production Growth

Projected increase in oil production per share supports sustained revenue growth and strengthens market position in the energy sector.

Capital Return Strategy

Strong capital return strategy enhances shareholder value and reflects confidence in cash flow generation, supporting long-term investment appeal.

Negative Factors

Negative Free Cash Flow

Negative free cash flow indicates potential cash management issues, which could impact the company's ability to fund operations and growth initiatives.

Decline in Return on Equity

Decreasing return on equity suggests reduced profitability relative to shareholder investment, potentially affecting investor confidence.

Tax Implications of Asset Sale

Tax implications from asset sales could reduce available capital for reinvestment and shareholder returns, impacting financial flexibility.

Viper Energy Business Overview & Revenue Model

Company Description

Viper Energy Partners LP owns, acquires, and exploits oil and natural gas properties in North America. As of December 31, 2021, it had mineral interests in 27,027 net royalty acres in the Permian Basin and Eagle Ford Shale; and estimated proved oil and natural gas reserves of 127,888 thousand barrels of crude oil equivalent. Viper Energy Partners GP LLC operates as the general partner of the company. The company was founded in 2013 and is based in Midland, Texas. Viper Energy Partners LP is a subsidiary of Diamondback Energy, Inc.

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 robust revenue growth and strong operating performance, particularly in terms of gross and EBIT margins. However, the decline in return on equity and negative free cash flow are areas of concern, indicating potential cash flow management issues.

Income Statement

Viper Energy shows strong revenue growth with a TTM revenue growth rate of 18.93%. The company maintains healthy profitability margins, with a gross profit margin of 60.76% and an EBIT margin of 60.36% in the TTM period. However, the net profit margin has decreased to 38.25% from 42.09% in the previous year, indicating some pressure on net income.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.32 in the TTM period, showing improved leverage compared to previous years. Return on equity is at 16.16%, which is a decline from 21.29% in the previous year, suggesting a decrease in profitability relative to equity. The equity ratio stands at 33.75%, indicating a stable equity position.

Cash Flow

Operating cash flow is strong, with an operating cash flow to net income ratio of 3.31 in the TTM period. However, the free cash flow is negative, with a significant decline in free cash flow to net income ratio at -1.63, highlighting potential cash flow challenges despite strong operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.15B	859.75M	826.79M	865.77M	504.30M	249.57M
Gross Profit	634.77M	584.45M	630.27M	688.32M	368.75M	129.22M
EBITDA	706.06M	792.20M	740.80M	783.42M	395.23M	82.55M
Net Income	245.07M	359.25M	200.09M	151.67M	57.94M	-192.30M
Balance Sheet
Total Assets	13.69B	5.07B	3.97B	2.92B	3.03B	2.46B
Cash, Cash Equivalents and Short-Term Investments	443.00M	26.85M	25.87M	18.18M	39.45M	19.12M
Total Debt	2.62B	1.08B	1.08B	576.89M	776.73M	555.64M
Total Liabilities	2.75B	1.16B	1.12B	598.85M	801.19M	600.54M
Stockholders Equity	4.62B	1.69B	1.01B	690.01M	814.09M	634.45M
Cash Flow
Free Cash Flow	-3.23B	-76.63M	-270.17M	635.66M	25.94M	130.88M
Operating Cash Flow	811.91M	619.61M	638.19M	699.80M	307.11M	196.56M
Investing Cash Flow	-2.78B	-608.57M	-908.37M	47.57M	-281.18M	-16.28M
Financing Cash Flow	2.24B	-10.05M	277.86M	-768.64M	-5.61M	-164.75M

Viper Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.95
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 37.95 is above the 20-day moving average (MA) of 36.82, above the 50-day MA of 37.21, and below the 200-day MA of 39.08, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 41.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VNOM.

Viper Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WES	78 Outperform	$15.79B	11.45	40.29%	9.32%	5.81%	-13.58%
DTM	75 Outperform	$11.79B	29.40	9.04%	2.91%	20.39%	-3.85%
PAA	72 Outperform	$11.95B	13.74	9.78%	8.97%	-7.53%	9.74%
HESM	72 Outperform	$6.92B	11.85	59.81%	8.71%	10.78%	19.10%
VNOM	69 Neutral	$13.64B	15.71	8.10%	6.14%	38.38%	3.35%
PAGP	68 Neutral	$13.61B	20.39	10.33%	8.51%	-7.53%	11.27%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Viper Energy Corporate Events

Viper Energy Reports Q3 2025 Results and Strategic Moves

Viper Energy, Inc., a subsidiary of Diamondback Energy, Inc., is focused on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin in West Texas. The company recently announced its third-quarter 2025 financial and operating results, highlighting a significant acquisition and a strategic asset divestiture.

Viper Energy Partners’ Earnings Call Highlights Growth and Returns

Viper Energy Partners’ recent earnings call painted a picture of optimism, driven by strong growth in oil production and significant shareholder returns. The company highlighted strategic asset sales and positive third-party activity as key contributors to this positive outlook. However, concerns were raised regarding market valuation and the tax implications of asset sales, which tempered the overall enthusiasm. Despite these challenges, the sentiment remains largely optimistic due to the company’s robust growth strategy and commitment to shareholder returns.

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.

The most recent analyst rating on (VNOM) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Viper Energy stock, see the VNOM Stock Forecast page.

Viper Energy Reports Strong Q2 2025 Results

Viper Energy, Inc., a subsidiary of Diamondback Energy, Inc., is engaged in owning, acquiring, and exploiting oil and natural gas properties, primarily focusing on mineral and royalty interests in oil-weighted basins, notably the Permian Basin in West Texas.

Viper Energy’s Earnings Call: Growth and Challenges

During Viper Energy Partners’ recent earnings call, the sentiment was predominantly positive, highlighting robust production growth, strategic acquisitions, and a strong commitment to shareholder returns. Despite these positive developments, the company acknowledged challenges such as oil price volatility and a perceived market underappreciation of its recent acquisitions.