Viper Energy (VNOM) AI Stock Analysis

• Market Cap: $9.13B
• Dividend Yield: 5.58%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.59
• Revenue Growth: 17.40%
• EPS Growth: 39.33%
• Country: US
• Employees: N/A
• Sector: Energy
• Sector Strength: 75
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.54
• Shares Outstanding: 131,067,230
• 10 Day Avg. Volume: 1,706,061
• 30 Day Avg. Volume: 1,283,663
• PEG Ratio: 0.03
• Price to Book (P/B): 3.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.77
• Enterprise Value/Market Cap: 0.32
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 4.97
• Enterprise Value/Ebitda: 0.90
• 1Y Price Target: $54.38
• Price Target Upside: 33.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 81 Outperform
• Price Target: $47.00 ▲(15.08%Upside)

Viper Energy receives a strong overall score due to its robust financial performance and strategic corporate events, which enhance its market position and operational efficiency. The positive sentiment from the earnings call and attractive valuation further contribute to the favorable outlook, despite mixed technical indicators.

Positive Factors

Growth Outlook

VNOM offers investors exposure to a high-growth, oil-weighted, income investment, with strong downside protection.

Operational Synergies

VNOM's unique relationship with FANG provides access to high-quality royalty interests, enhancing production visibility and cash flow stability.

Strategic Acquisitions

The accretive acquisition of Tumbleweed and investor enthusiasm around the upcoming drop down of EER minerals support continued momentum.

Negative Factors

Transaction Cost

The absolute value of the deal was higher than estimated, resulting in a more expensive transaction and a lowered price objective.

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 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 makes money primarily through the collection of royalty payments from its mineral and royalty interests in oil and natural gas properties. These royalty interests entitle Viper Energy to a percentage of the revenue generated from the production of oil and gas by operators on its properties, without the company having to bear the cost of drilling and production. This asset-light business model allows Viper Energy to generate revenue with relatively low operational expenses. The company's earnings are influenced by factors such as oil and gas prices, production volumes, and the performance of the operators managing the extraction activities. Additionally, Viper Energy's strategic acquisitions of additional mineral interests can enhance its revenue base over time.

Viper Energy Financial Statement Overview

Summary

Viper Energy demonstrates a strong financial position with high profitability and efficient operations. Revenue growth is robust, supported by strong profitability margins. The balance sheet is stable with manageable leverage and improved equity ratios. However, negative free cash flow due to high capital expenditures presents a potential risk that requires strategic management.

Income Statement

Viper Energy shows strong profitability with a consistent gross profit margin over 66% in TTM. Net profit margin improved to 43.5% in TTM, indicating effective cost control. Revenue growth is moderate, with a 5.3% increase from the previous annual report, despite a volatile price environment in the oil & gas industry. EBIT and EBITDA margins remain robust, enhancing overall profitability.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.31 in TTM, reflecting managed leverage. Stockholders' equity has strengthened, contributing to a 42.9% equity ratio. Return on equity improved significantly to 14.6% in TTM, showcasing efficient use of shareholder funds. However, the increase in total debt requires monitoring.

Cash Flow

Operating cash flow remains robust at $705 million TTM, although free cash flow is negative due to high capital expenditures. The operating cash flow to net income ratio is healthy at 1.8, indicating strong cash generation relative to net income. The negative free cash flow to net income ratio highlights the impact of significant capital investments on cash reserves.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
898.41M	853.58M	826.79M	865.77M	504.30M	249.57M
	Gross Profit
595.55M	578.28M	630.27M	688.32M	368.75M	129.22M
	EBIT
582.47M	566.40M	620.22M	680.48M	361.57M	52.91M
	EBITDA
884.36M	794.25M	742.32M	783.41M	395.23M	82.55M
	Net Income Common Stockholders
390.88M	359.25M	200.09M	151.67M	57.94M	-192.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
560.00M	26.85M	25.87M	18.18M	39.45M	19.12M
	Total Assets
6.24B	5.07B	3.97B	2.92B	3.03B	2.46B
	Total Debt
822.00M	1.08B	1.08B	576.89M	776.73M	555.64M
	Net Debt
262.00M	1.06B	1.06B	558.72M	737.28M	536.52M
	Total Liabilities
915.00M	1.16B	1.12B	598.85M	801.19M	600.54M
	Stockholders Equity
2.67B	1.69B	1.01B	690.66M	814.82M	635.25M
Cash Flow		Free Cash Flow
-456.30M	-76.63M	-270.17M	635.66M	25.94M	130.88M
	Operating Cash Flow
705.17M	619.61M	638.19M	699.80M	307.11M	196.56M
	Investing Cash Flow
-1.07B	-608.57M	-908.37M	47.57M	-281.18M	-16.28M
	Financing Cash Flow
908.91M	-10.05M	277.86M	-768.64M	-5.61M	-164.75M

Viper Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.84
• 50DMA: Positive
• 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 40.84 is above the 20-day moving average (MA) of 40.79, above the 50-day MA of 40.29, and below the 200-day MA of 45.40, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 49.05 is Neutral, neither overbought nor oversold. The STOCH value of 38.70 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
VNOM	81 Outperform	$9.13B	10.99	20.80%	5.58%	17.40%	39.33%
HESM	80 Outperform	$8.18B	15.31	49.74%	7.29%	8.77%	15.22%
DTM	79 Outperform	$10.69B	28.78	8.29%	3.12%	10.83%	-10.47%
WES	79 Outperform	$14.53B	11.40	39.79%	9.55%	11.48%	-5.67%
AM	78 Outperform	$8.71B	21.15	19.71%	4.96%	5.03%	7.15%
Sector *	58 Neutral	$7.59B	3.32	-4.46%	9.96%	0.83%	-49.64%
KNTK	58 Neutral	$6.76B	45.60	-8.21%	7.29%	23.42%	-61.22%

Viper Energy Corporate Events

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.

The most recent analyst rating on (VNOM) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on Viper Energy stock, see the VNOM Stock Forecast page.

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.

The most recent analyst rating on (VNOM) stock is a Buy with a $61.00 price target. To see the full list of analyst forecasts on Viper Energy stock, see the VNOM Stock Forecast page.

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.

The most recent analyst rating on (VNOM) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on Viper Energy stock, see the VNOM Stock Forecast page.

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.

The most recent analyst rating on (VNOM) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on Viper Energy stock, see the VNOM Stock Forecast page.

Viper Energy Completes Major Acquisition from Diamondback

On May 1, 2025, Viper Energy, Inc. and its subsidiary completed the acquisition of mineral and royalty interests from Diamondback Energy, Inc. for $1 billion in cash and equity issuance. This transaction, known as the ‘Drop Down,’ adds approximately 22,847 net royalty acres in the Permian Basin to Viper’s portfolio, with Diamondback operating 69% of these interests. The acquisition was funded through a public offering and credit facility, and it was approved by Viper’s board and stockholders, enhancing Viper’s strategic position in the oil and gas industry.