Viper Energy (VNOM) AI Stock Analysis

• Market Cap: $13.59B
• Dividend Yield: 6.21%
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.60
• Revenue Growth: 17.92%
• EPS Growth: 18.39%
• Country: US
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.41
• Shares Outstanding: 169,318,800
• 10 Day Avg. Volume: 1,505,896
• 30 Day Avg. Volume: 1,730,739
• 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: 0.83
• Enterprise Value/Revenue: 11.61
• Enterprise Value/Gross Profit: 19.11
• Enterprise Value/Ebitda: 12.35
• 1Y Price Target: $50.85
• Price Target Upside: 33.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 72 Outperform
• Price Target: $41.00 ▲(7.87% Upside)

Viper Energy's strong financial performance and positive earnings call sentiment are key strengths, supported by strategic growth plans and capital return commitments. However, technical indicators suggest bearish momentum, and challenges in cash management could impact future growth.

Positive Factors

Revenue Growth

Viper Energy's strong revenue growth indicates robust demand and effective business operations, supporting long-term financial health and market position.

Strategic Acquisitions

The acquisition of Sitio Royalties enhances Viper's production profile and market presence, aligning with its strategy for sustained growth and competitive advantage.

Cash Return to Shareholders

Viper's commitment to returning cash to shareholders demonstrates strong cash generation and a shareholder-friendly approach, enhancing investor confidence.

Negative Factors

Negative Free Cash Flow

The decline in free cash flow suggests inefficiencies in converting profits to cash, potentially impacting investment capacity and financial flexibility.

Concerns Over Non-Permian Assets

Uncertainty about non-Permian assets could lead to strategic misalignment and operational challenges, affecting Viper's focus and resource allocation.

Rising Debt Levels

Rising debt levels may strain Viper's financial resources, limiting its ability to invest in growth opportunities and maintain a strong balance sheet.

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 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	-1.19B	-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: 38.01
• 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 38.01 is above the 20-day moving average (MA) of 37.61, below the 50-day MA of 38.12, and below the 200-day MA of 40.41, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 75.43 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
WES	80 Outperform	$15.65B	11.99	38.42%	9.31%	7.11%	-16.14%
HESM	73 Outperform	$6.98B	12.34	52.91%	8.37%	9.02%	17.28%
VNOM	72 Outperform	$13.59B	10.99	16.43%	6.21%	17.92%	18.39%
DTM	69 Neutral	$11.01B	28.49	8.48%	3.03%	15.28%	-9.99%
PAA	67 Neutral	$11.61B	18.60	8.34%	8.70%	-4.31%	-17.80%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PAGP	63 Neutral	$13.26B	25.91	8.16%	8.27%	-4.31%	-16.62%

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.

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.