Viper Energy

VNOM

Market cap $6.22B

Viper Energy Partners (VNOM) completed the $4 billion Sitio acquisition. VNOM issued revised production guidance post-acquisition for the third quarter.  The slide below shows guidance for the second half of the fiscal year. Recent stock issuance has pressured VNOM's share price.

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.

MIDLAND, Texas, Sept. 30, 2025 (GLOBE NEWSWIRE) -- Viper Energy, Inc. (NASDAQ: VNOM) (“Viper”), a subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), today announced that it plans to release third quarter 2025 financial results on November 3, 2025 after the market closes.

Energy stocks offer compelling value due to low sector valuations, supply constraints, and long-term demand growth, making the sector highly attractive for investors. OPEC+ spare capacity is dwindling, U.S. shale investment is declining, and political risks are curbing new supply, setting up a bullish environment for oil prices. Key investment ideas include Canadian oil sands, Permian Basin producers, and royalty/landowner companies, with a positive outlook for select natural gas and service firms.

Energy remains one of the most misunderstood and undervalued opportunities, with supply tightening and demand growth setting up a powerful backdrop. The risk/reward is improving daily as OPEC spare capacity dwindles, shale output plateaus, and long-term fundamentals grow stronger. That's why I'm highlighting three of my favorite stocks that combine income and capital gains potential, perfectly aligned with this thesis.

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Viper Energy (VNOM) reported earnings 30 days ago. What's next for the stock?

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.

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