Viper Energy (VNOM)
NASDAQ:VNOM
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Viper Energy
(NASDAQ:VNOM)
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Rating:62Neutral
Price Target:
$48.00
â–²(5.19% Upside)
Action:ReiteratedDate:02/25/26
The score is held back mainly by financial risks—2025 net loss and deeply negative free cash flow—despite strong revenue/margins and improved leverage. Support comes from constructive technical trend and a shareholder-return-focused earnings update (dividend increase, buyback expansion, ~1x leverage), while valuation is mixed due to negative earnings despite a high dividend yield.
Positive Factors
Scale via mineral acquisitions
A large, strategic ($8B+) acquisition program that nearly 2.5x'd Permian acreage meaningfully extends reserve life and royalty inventory. Durable scale raises recurring lease/royalty cash flow, improves bargaining leverage with operators, and supports per‑share growth for years.
Negative Factors
Persistent negative free cash flow
Deep, recurring negative free cash flow (-$1.37B in 2025) indicates capital or working capital drains that operating cash flow hasn't offset. Over months, sustained FCF deficits can force asset sales, higher leverage, or cutbacks to distributions, undermining long‑term payout sustainability.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale via mineral acquisitions
A large, strategic ($8B+) acquisition program that nearly 2.5x'd Permian acreage meaningfully extends reserve life and royalty inventory. Durable scale raises recurring lease/royalty cash flow, improves bargaining leverage with operators, and supports per‑share growth for years.
Read all positive factors
Viper Energy (VNOM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.13B
Dividend Yield6.08%
Average Volume (3M)3.76M
Price to Earnings (P/E)―
Beta (1Y)0.52
Revenue Growth38.38%
EPS Growth3.35%
CountryUS
EmployeesN/A
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.31
Shares Outstanding176,723,280
10 Day Avg. Volume1,990,192
30 Day Avg. Volume3,759,483
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)1.24
Price to Sales (P/S)4.09
P/FCF Ratio-4.02
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue14.32
Enterprise Value/Gross Profit29.86
Enterprise Value/Ebitda22.25
Forecast
1Y Price Target
$55.50Price Target Upside21.63% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)2.14
Revenue Forecast (FY)$2.09B
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 oi...
How the Company Makes Money
Viper Energy primarily makes money through its revenue model based on royalties and production from its mineral and leasehold interests. The company earns revenue by leasing its mineral rights to third-party operators who conduct drilling and prod...
Viper Energy Key Performance Indicators (KPIs)
Any
Revenue by Type
Breaks down revenue into oil, gas, NGLs and other streams so you can see what really drives cash flow. The mix shows exposure to different commodity prices and helps explain why revenue moves up or down even when total production is steady.
Breaks down revenue into oil, gas, NGLs and other streams so you can see what really drives cash flow. The mix shows exposure to different commodity prices and helps explain why revenue moves up or down even when total production is steady.
Data provided by:
The Fly
The FlyViper Energy Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call highlights substantial strategic progress: transformative 2025 acquisitions (> $8B), strong per‑share growth (+7% oil production per share), a repaired balance sheet (pro forma net debt ≈ $1.6B, ~1x leverage), a 15% dividend increase and a $1B repurchase authorization. Management emphasizes resilient third‑party activity, strong Diamondback alignment, active leasing and downside hedging. Key risks are limited visibility in the back half of 2026 (wide guidance), a tight market for large M&A at current prices, concentration in the Permian and some shift toward a higher gas/NGL mix (oil cut trending lower). Overall, positive operational and capital allocation momentum outweighs the noted execution and market uncertainties.Positive Updates
Large Mineral Acquisitions and Permian Scale Expansion
Completed more than $8.0 billion of mineral acquisitions in 2025, growing Permian Basin acreage by nearly 2.5x year‑over‑year and materially increasing scale, longevity and quality of asset base.
Negative Updates
Wide 2026 Production Guidance and Visibility Risk
2026 oil guidance is wide due to limited visibility beyond existing DUCs and permits; management explicitly notes greater confidence in H1 and more uncertainty in the back half of the year if activity/permitting changes.
Read all updates
Q4-2025 Updates
Positive
Negative
Large Mineral Acquisitions and Permian Scale Expansion
Completed more than $8.0 billion of mineral acquisitions in 2025, growing Permian Basin acreage by nearly 2.5x year‑over‑year and materially increasing scale, longevity and quality of asset base.
Read all positive updates
Company Guidance
Viper initiated full-year 2026 average daily production guidance that implies mid-single-digit organic production growth from its Q4 2025 exit rate, noting the guide is wide because it only models existing DUCs and permits (conversions historically ~5–6 months) and could skew higher if activity accelerates; the company also reported pro forma net debt of roughly $1.6 billion (just over 1.0x leverage) after fully repaying a $500 million term loan and the revolver, increased the base dividend by 15% (the base dividend is ~50% of estimated 2026 free cash flow at $50 WTI and is fully covered below $30 WTI), expanded the share repurchase authorization by $1.0 billion, returned 90% of available cash in Q4 and said it is positioned to return upwards of 100% of cash available for distribution, and has a 2026 hedge position largely in place using deferred-premium puts with protection through Q3.Viper Energy Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
66
Positive
Cash Flow
42
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.35B | 859.75M | 826.79M | 865.77M | 504.30M |
| Gross Profit | 645.00M | 584.45M | 630.27M | 688.32M | 368.75M |
| EBITDA | 1.19B | 792.20M | 740.80M | 783.42M | 395.23M |
| Net Income | -68.00M | 359.25M | 200.09M | 151.67M | 57.94M |
Balance Sheet | |||||
| Total Assets | 12.67B | 5.07B | 3.97B | 2.92B | 3.03B |
| Cash, Cash Equivalents and Short-Term Investments | 13.00M | 26.85M | 25.87M | 18.18M | 39.45M |
| Total Debt | 2.19B | 1.08B | 1.08B | 576.89M | 776.73M |
| Total Liabilities | 2.31B | 1.16B | 1.12B | 598.85M | 801.19M |
| Stockholders Equity | 4.45B | 1.69B | 1.01B | 690.01M | 814.09M |
Cash Flow | |||||
| Free Cash Flow | -1.37B | -76.63M | -270.17M | 635.66M | 25.94M |
| Operating Cash Flow | 1.05B | 619.61M | 638.19M | 699.80M | 307.11M |
| Investing Cash Flow | -2.42B | -608.57M | -908.37M | 47.57M | -281.18M |
| Financing Cash Flow | 1.36B | -10.05M | 277.86M | -768.64M | -5.61M |
Viper Energy Technical Analysis
Positive
45.63
Price Trends
44.88
Positive
41.35
Positive
39.03
Positive
Market Momentum
0.23
Positive
49.54
Neutral
20.87
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 45.63 is below the 20-day moving average (MA) of 46.60, above the 50-day MA of 44.88, and above the 200-day MA of 39.03, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 49.54 is Neutral, neither overbought nor oversold. The STOCH value of 20.87 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $15.35B | 8.81 | 14.75% | 8.54% | -7.53% | 9.74% | |
75 Outperform | $13.84B | 27.57 | 9.41% | 2.70% | 20.39% | -3.85% | |
74 Outperform | $16.17B | 13.53 | 34.44% | 9.13% | 5.81% | -13.58% | |
73 Outperform | $8.22B | 11.96 | 59.38% | 8.45% | 10.78% | 19.10% | |
66 Neutral | $17.96B | 14.58 | 19.19% | 8.03% | -7.53% | 11.27% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $16.13B | -80.97 | -1.79% | 6.08% | 38.38% | 3.35% |
* Energy Sector Average
VNOM
Viper Energy
45.63
10.08
28.35%
PAA
Plains All American
21.74
5.99
38.07%
WES
Western Midstream Partners
41.05
6.78
19.77%
PAGP
Plains GP Holdings
23.58
6.71
39.74%
HESM
Hess Midstream Partners
38.31
4.65
13.80%
DTM
DT Midstream
133.09
41.43
45.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.