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Viper Energy
(NASDAQ:VNOM)
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Rating:59Neutral
Price Target:
$44.00
â–¼(-2.50% Downside)
Action:Reiterated
Date:08/05/26
The score is held back mainly by weak free-cash-flow performance and inconsistent profitability, despite strong operating cash generation and manageable leverage. Earnings-call commentary is a clear positive due to growth guidance and a higher base dividend plus buybacks, while technical indicators remain soft and valuation is mixed (high yield but negative P/E).
Positive Factors
Royalty / Mineral Business Model
Viper’s royalty/mineral model creates a durable low-capex cash stream: it collects a contractual share of production revenue while avoiding most drilling and operating costs. Over months this supports resilient cash generation tied to operator activity and enables growth through accretive acreage purchases.
Negative Factors
Negative Free Cash Flow
Sustained deeply negative free cash flow erodes funding flexibility: even with strong operating cash, heavy investing and acquisitions have outpaced inflows. If negative FCF persists, the company may need to slow buybacks, tap capital markets, or divest assets, constraining strategic choices across months.
Read all positive and negative factors
Positive Factors
Negative Factors
Royalty / Mineral Business Model
Viper’s royalty/mineral model creates a durable low-capex cash stream: it collects a contractual share of production revenue while avoiding most drilling and operating costs. Over months this supports resilient cash generation tied to operator activity and enables growth through accretive acreage purchases.
Read all positive factors
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 (VNOM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.90B
Dividend Yield5.18%
Average Volume (3M)1.76M
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth78.85%
EPS Growth-108.36%
CountryUS
EmployeesN/A
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.14
Shares Outstanding191,523,540
10 Day Avg. Volume1,328,816
30 Day Avg. Volume1,757,500
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)1.24
Price to Sales (P/S)4.09
P/FCF Ratio-4.02
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$55.77Price Target Upside23.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)2.56
Revenue Forecast (FY)$2.29B
Viper Energy Business Overview & Revenue Model
Company Description
Viper Energy Partners LP is an entity dedicated to the ownership, acquisition, and development of oil and natural gas assets across North America. By the end of 2021, the company had established mineral interests encompassing 27,027 net royalty ac...
How the Company Makes Money
Viper Energy makes money primarily by collecting royalties and other payments tied to oil and natural gas production from properties where it owns mineral and/or royalty interests. When an operator (often a third-party E&P company) drills and prod...
Viper Energy Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and capital-allocation picture: solid well activity (691 gross horizontal wells), meaningful production growth guidance (~4.5% Q/Q and ~15% annualized per-share), a sizable and protected increase to the base dividend (+32% to $2.00 annually) and continued aggressive share repurchases (~$132M in Q2). Management also gained flexibility to self-fund M&A and highlighted low dividend breakevens and downside hedging. The main negatives are persistent market undervaluation, reduced predictability of total quarterly cash returns after removing the 75% CAD commitment, sensitivity to commodity prices and uncertainty that buybacks alone will re-rate the stock. On balance, the tangible operational growth, higher secure base dividend and clear capital-allocation plan outweigh the headline risks related to valuation and market volatility.Positive Updates
Strong well activity and production growth
Operators turned 691 gross horizontal wells to production on Viper acreage in Q2, with Viper owning an average 3% net revenue interest. Q3 average production guidance implies ~4.5% growth vs Q2 and the midpoint of Q3 guidance implies ~15% annualized growth in oil production per share relative to Q4 2025. Management cites high-single-digit organic growth for 2026 and ~1,000 barrels/day quarter-over-quarter organic growth embedded in the Q3 guide (after ~2,000 bbl/day contribution from Riverbend).
Negative Updates
Market undervaluation and shareholder frustration
Management emphasized that the market is not rewarding Viper's growth or distribution profile, with the company trading substantially below comparables. This persistent valuation gap prompted the strategic shift to a larger base dividend and buybacks; management acknowledged frustration that prior variable payouts and growth were not recognized.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong well activity and production growth
Operators turned 691 gross horizontal wells to production on Viper acreage in Q2, with Viper owning an average 3% net revenue interest. Q3 average production guidance implies ~4.5% growth vs Q2 and the midpoint of Q3 guidance implies ~15% annualized growth in oil production per share relative to Q4 2025. Management cites high-single-digit organic growth for 2026 and ~1,000 barrels/day quarter-over-quarter organic growth embedded in the Q3 guide (after ~2,000 bbl/day contribution from Riverbend).
Read all positive updates
Company Guidance
Viper guided Q3 average production implying roughly 4.5% growth versus Q2 (the Q3 midpoint implies ~15% annualized oil production-per-share growth vs. Q4‑2025), a guide that already includes ~2,000 bbl/d from the Riverbend drop‑in yet still implies ~1,000 bbl/d of organic q/q growth; operationally the company noted 691 gross horizontal wells turned to production in Q2 on acreage with an average ~3% NRI. On capital allocation, the Board approved a 32% lift to the base dividend to $2.00 per Class A share annually (effective Q3), which at today’s share price implies an ~4.5% yield, represents roughly 50% of free cash flow at $70/bbl WTI and is described as protected down to about $30/bbl; Viper eliminated its prior quarterly commitment to return ≥75% of cash available (it returned 75% in Q2, including ~$132M of repurchases and a combined $0.67/share payout) and will instead retain flexibility to opportunistically repurchase shares, pay down debt or pursue M&A while maintaining 0 required capex and downside hedges (e.g., $50 puts).Viper Energy Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
72
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.97B | 1.35B | 859.75M | 826.79M | 865.77M | 504.30M |
| Gross Profit | 1.02B | 645.00M | 584.45M | 630.27M | 688.32M | 368.75M |
| EBITDA | 1.07B | 478.00M | 792.20M | 740.80M | 783.42M | 395.23M |
| Net Income | 59.00M | -68.00M | 359.25M | 200.09M | 151.67M | 57.94M |
Balance Sheet | ||||||
| Total Assets | 12.05B | 12.67B | 5.07B | 3.97B | 2.92B | 3.03B |
| Cash, Cash Equivalents and Short-Term Investments | 77.00M | 13.00M | 26.85M | 25.87M | 18.18M | 39.45M |
| Total Debt | 1.68B | 2.19B | 1.08B | 1.08B | 576.89M | 776.73M |
| Total Liabilities | 1.77B | 2.31B | 1.16B | 1.12B | 598.85M | 801.19M |
| Stockholders Equity | 5.04B | 4.45B | 1.69B | 1.01B | 690.01M | 814.09M |
Cash Flow | ||||||
| Free Cash Flow | -3.45B | -1.37B | -76.63M | -270.17M | 635.66M | 25.94M |
| Operating Cash Flow | 1.50B | 1.05B | 619.61M | 638.19M | 699.80M | 307.11M |
| Investing Cash Flow | -686.00M | -2.42B | -608.57M | -908.37M | 47.57M | -281.18M |
| Financing Cash Flow | -760.00M | 1.36B | -10.05M | 277.86M | -768.64M | -5.61M |
Viper Energy Technical Analysis
Negative
45.13
Price Trends
43.87
Negative
45.24
Negative
41.91
Positive
Market Momentum
-0.07
Positive
43.35
Neutral
38.13
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 45.13 is above the 20-day moving average (MA) of 43.59, above the 50-day MA of 43.87, and above the 200-day MA of 41.91, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 43.35 is Neutral, neither overbought nor oversold. The STOCH value of 38.13 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.42B | 14.13 | 64.33% | 7.47% | 7.06% | 13.61% | |
74 Outperform | $19.24B | 15.02 | 34.98% | 7.71% | 11.43% | -8.64% | |
70 Outperform | $14.08B | 29.74 | 9.95% | 2.33% | 18.12% | 22.38% | |
67 Neutral | $17.33B | 18.47 | 11.77% | 6.48% | -9.94% | 43.70% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $20.06B | 26.87 | 14.67% | 6.03% | -9.94% | 34.19% | |
59 Neutral | $15.90B | -143.90 | -1.05% | 5.12% | 78.85% | -108.36% |
* Energy Sector Average
VNOM
Viper Energy
41.43
5.17
14.25%
PAA
Plains All American
23.17
6.67
40.44%
WES
Western Midstream Partners
46.15
9.20
24.90%
PAGP
Plains GP Holdings
25.08
7.18
40.14%
HESM
Hess Midstream Partners
40.12
1.63
4.25%
DTM
DT Midstream
133.10
31.56
31.08%
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.