Viper Energy (VNOM) reported earnings 30 days ago. What's next for the stock?
Viper Energy is part of the Diamondback Energy organization. VNOM plans to sell non-Permian acreage for under $700 million to reduce merger-incurred debt. The stock's pullback presents a potential buying opportunity, despite cyclical downturn risks.
VNOM's Q3 earnings beat estimates as surging oil-equivalent production offset lower realized prices and higher expenses.
Viper Energy remains a Buy, supported by strong fundamentals, a robust dividend, and the accretive Sitio Royalties acquisition fueling double-digit oil production growth. VNOM's Q3 report highlights 12% net oil production per share growth, expanding Permian royalty acreage, and diversification away from Diamondback. Solid cash flow, manageable debt maturities, and a flexible capital return policy position the company to withstand oil price volatility and benefit from macro tailwinds.
Viper Energy, Inc. ( VNOM ) Q3 2025 Earnings Call November 4, 2025 12:00 PM EST Company Participants Chip Seale Kaes Van't Hof - CEO & Director Austen Gilfillian - President and Director Conference Call Participants Neal Dingmann - William Blair & Company L.L.C., Research Division Wei Jiang - Barclays Bank PLC, Research Division Neil Mehta - Goldman Sachs Group, Inc., Research Division Kaleinoheaokealaula Akamine - BofA Securities, Research Division Derrick Whitfield - Texas Capital Securities, Research Division Leo Mariani - ROTH Capital Partners, LLC, Research Division Timothy Rezvan - KeyBanc Capital Markets Inc., Research Division Presentation Operator Good day, and thank you for standing by.
Viper Energy remains a solid buy, offering a strong dividend and robust financials despite a 22% YTD decline tied mostly to oil prices. VNOM's recent Sitio Royalties acquisition is expected to be 8-10% accretive to cash available for distribution and supports 15% oil production per share growth by 2026. The company maintains a good balance sheet, targets $1.5B net debt, and plans to return all excess cash as dividends when leverage is at or below target.
Viper Energy is a $12.9 billion market cap publicly-traded minerals (Permian oil and gas) company. At 2Q25 base plus variable dividend rates annualized, it returns 5.4%, higher than two-year Treasuries at 3.66%. Viper's $4.1 billion acquisition of Sitio Royalties offers synergies across the Permian and a boost to Viper's oil and gas production.
Viper completed its Sitio acquisition and expects mid-single-digit production growth in 2026 from current levels. This could put Viper's 2026 production around 132,000 BOEPD, including 68,000 barrels per day of oil production. At current 2026 strip prices, Viper should be able to generate close to $4 per share in distributable cash flow.
VNOM completes Sitio merger, boosting Q3 oil output outlook and positioning itself as a minerals and royalties leader.
Viper Energy, Inc. (NASDAQ:VNOM ) Q2 2025 Earnings Conference Call August 5, 2025 11:00 AM ET Company Participants Austen Gilfillian - President of Viper Energy Partners GP LLC Chip Seale - Corporate Participant Matthew Kaes Van't Hof - CEO & Director of Viper Energy Partners GP LLC Conference Call Participants Aaron Bilkoski - TD Cowen, Research Division Christopher Moore Baker - Evercore ISI Institutional Equities, Research Division Derrick Lee Whitfield - Texas Capital Securities, Research Division Leo Paul Mariani - ROTH Capital Partners, LLC, Research Division Neil Singhvi Mehta - Goldman Sachs Group, Inc., Research Division Paul Michael Diamond - Citigroup Inc. Exchange Research Wei Jiang - Barclays Bank PLC, Research Division Operator Good day, and thank you for standing by. Welcome to the Viper Energy Second Quarter 2025 Earnings Conference Call.
VNOM Q2 earnings and revenues gain on strong oil-weighted production growth, partially offset by rising expenses.
The headline numbers for Viper Energy (VNOM) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.