VNOM

Energy

Viper Energy, Inc. · Oil & Gas Midstream · $17B

UQS Score — Balanced Preset
48.0
Below Average

Viper Energy, Inc. scores 48.0/100 using the Balanced preset.

UQS vs Energy Sector
VNOM
48.0
Sector avg
43.5
Quality
Weak
Moat
Weak
Growth
Strong
Risk
Good
Valuation
Neutral

What is Viper Energy, Inc.?

Viper Energy, Inc. is a Permian Basin-focused mineral rights company that generates revenue from oil and natural gas royalties without bearing direct drilling costs. It operates as a subsidiary of Diamondback Energy, Inc., one of the largest Permian operators.

Viper Energy owns mineral and royalty interests across the Permian Basin and Eagle Ford Shale. Rather than operating wells itself, the company collects royalty payments from operators who drill on its acreage. This asset-light model means revenue rises and falls with commodity prices and production volumes on its land. Its relationship with Diamondback Energy provides a steady pipeline of development activity across its acreage.

Founded in 2014 and headquartered in Midland, Texas, Viper Energy sits at the heart of one of North America's most productive oil basins.

  • Mineral royalty interests in the Permian Basin
  • Royalty interests in the Eagle Ford Shale
  • Non-operated working interests in oil and gas properties
  • Acreage acquisition and consolidation in core basins

Is VNOM a Good Stock to Buy?

UQS Score rates VNOM as Below Average overall, reflecting meaningful gaps in quality and competitive positioning despite notable strengths elsewhere.

The Growth pillar stands out as the clearest positive — Viper's royalty acreage in active Permian development corridors supports an above-average production growth trajectory. The Risk pillar also registers as Good, reflecting the relatively lower operational leverage inherent in a royalty business model compared to full-cycle producers.

Both the Quality and Moat pillars score Weak, pointing to limited earnings durability and a lack of durable competitive advantages that would protect returns through commodity cycles.

See the complete pillar breakdown and underlying financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does VNOM pay dividends?

Yes — Viper Energy, Inc. pays a dividend.

Viper Energy pays a regular dividend, consistent with its royalty-model structure where cash flows are distributed to unitholders rather than reinvested in capital-intensive operations. Dividend levels are tied to commodity price realizations and production volumes, so payouts can vary quarter to quarter. Investors seeking income from energy royalties should review the current distribution on Viper's investor relations page.

When does VNOM report earnings?

Viper Energy reports earnings on a quarterly cadence, standard for US-listed energy companies.

Royalty revenue is directly sensitive to oil and gas price realizations and operator activity on Viper's acreage, so quarterly results can swing meaningfully with commodity markets. The company's Permian exposure and Diamondback affiliation tend to support consistent production volumes across reporting periods.

For the most recent quarter's results and guidance, visit Viper Energy's investor relations page directly.

VNOM Price History

+252.4% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

VNOM Long-term Outlook

Viper's Growth pillar rating of Strong suggests the fundamental production outlook across its Permian acreage remains constructive. The royalty model insulates the company from direct capital expenditure risk, which supports the Good Risk profile. However, the Weak Quality and Moat ratings indicate that earnings quality and pricing power remain vulnerable to commodity cycles, limiting confidence in sustained outperformance over a full energy cycle.

Growth drivers

  • Continued Permian Basin operator activity on Viper's royalty acreage
  • Acreage acquisitions that expand the royalty interest footprint
  • Diamondback Energy's ongoing development program as a key operator

Key risks

  • Oil and gas price volatility directly compresses royalty revenue
  • Weak Moat rating signals limited pricing power or differentiation
  • Neutral Valuation suggests the market has already priced in near-term growth

VNOM vs Peers

Viper Energy operates in the broader energy infrastructure and royalty space alongside midstream and pipeline peers.

WESVNOM scores lower
Western Midstream Partners, LP

Western Midstream focuses on gathering and processing infrastructure rather than mineral royalties, giving it fee-based cash flows tied to throughput volumes.

PAASimilar UQS
Plains All American Pipeline, L.P.

Plains All American operates large-scale crude oil and NGL pipeline networks, with revenue driven by transportation tariffs rather than royalty interests.

DTMVNOM scores lower
DT Midstream, Inc.

DT Midstream provides natural gas gathering, transportation, and storage services, competing for energy investor capital with a more contracted, utility-like revenue profile.

Frequently Asked Questions

What does Viper Energy do?

Viper Energy owns mineral and royalty interests in oil and natural gas properties, primarily in the Permian Basin and Eagle Ford Shale. It collects royalty payments from operators who drill on its acreage without bearing direct drilling or operating costs. The company is a subsidiary of Diamondback Energy.

Does VNOM pay dividends?

Yes, Viper Energy pays a regular dividend. Because distributions are linked to royalty revenues, which fluctuate with commodity prices and production activity, the payout level can vary from quarter to quarter. Check the company's investor relations page for the current distribution amount.

When does VNOM report earnings?

Viper Energy follows a standard quarterly earnings cadence for US-listed companies. Specific dates are not available through our data source. For upcoming reporting dates, refer to Viper Energy's investor relations page.

Is VNOM a good stock to buy?

The UQS Score rates VNOM as Below Average overall. While the Growth pillar is Strong and the Risk profile is Good, the Weak Quality and Moat ratings indicate meaningful concerns about earnings durability and competitive positioning. The full pillar breakdown is available to UQS Pro members.

Is VNOM overvalued?

VNOM's Valuation pillar is rated Neutral, suggesting the market is pricing the stock broadly in line with its fundamentals rather than at a clear premium or discount. Investors should weigh this alongside the Weak Quality and Moat ratings when assessing entry points.

How does VNOM compare to its competitors?

Viper Energy's royalty-based model differs from midstream peers like Western Midstream, Plains All American, and DT Midstream, which earn fee-based revenues from pipelines and processing infrastructure. Viper's revenue is more directly exposed to commodity price swings, while midstream peers tend to have more contracted cash flows.

What is VNOM's market cap bracket?

Viper Energy is classified as a large-cap company, placing it among the larger publicly traded royalty and energy names in the US market.

Who founded Viper Energy?

Viper Energy was founded in 2014 as a subsidiary of Diamondback Energy to hold and grow mineral and royalty interests in the Permian Basin. Diamondback Energy remains the parent company and a key operator on Viper's acreage.

Is VNOM a long-term quality investment?

From a long-term quality standpoint, VNOM's Below Average UQS Score reflects concerns that temper its long-term appeal. The Strong Growth pillar and Good Risk rating are positives, but the Weak Quality and Moat pillars suggest the business may struggle to sustain returns through full commodity cycles. Pro members can access the complete analysis.

What is the main competitive advantage of Viper Energy?

Viper's primary structural advantage is its asset-light royalty model — it earns revenue from production on its acreage without funding drilling operations. Its affiliation with Diamondback Energy also provides consistent operator activity. However, the UQS Moat pillar rates this advantage as Weak relative to sector peers.

What sector does VNOM belong to?

Viper Energy belongs to the Energy sector, specifically within the oil and gas royalty and mineral rights segment. Its revenues are closely tied to Permian Basin production activity and broader crude oil and natural gas price trends.

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Pro Analysis

VNOM — Score History

40455055Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 20 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202648.023.927.081.973.252.7+0.1
May 21, 202647.923.927.081.973.252.4+0.1
May 14, 202647.823.927.081.973.251.20.0
May 12, 202647.823.927.081.973.251.4-1.0
May 8, 202648.833.327.081.945.270.4+2.3
May 7, 202646.523.127.081.965.252.0+0.1
May 6, 202646.423.127.081.965.251.1+0.1
May 5, 202646.323.127.081.965.250.7+0.1
May 3, 202646.223.127.081.965.250.4-0.2
May 1, 202646.423.127.081.965.251.2+0.1

VNOM — Pillar Breakdown

Quality

23.9/100 (25%)

Viper Energy, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityStrong

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsWeak

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

81.9/100 (20%)

Viper Energy, Inc. is growing rapidly with strong revenue and earnings expansion.

Recent Revenue TrendStrong

Revenue trajectory over the last twelve months.

3Y Revenue CAGRStrong

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookStrong

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

73.2/100 (15%)

Viper Energy, Inc. maintains a reasonable risk profile with manageable debt levels.

Financial LeverageModerate

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioStrong

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

52.7/100 (15%)

Viper Energy, Inc. has a mixed valuation — some metrics suggest fair value while others appear stretched.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorWeak

Enterprise value multiple relative to sector median.

Moat

27/100 (25%)

Viper Energy, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for VNOM.

Score Composition

Quality
23.9×25%6.0
Growth
81.9×20%16.4
Risk
73.2×15%11.0
Valuation
52.7×15%7.9
Moat
27.0×25%6.8
Total
48.0Below Average

Financial Data

More Stock Analysis

How is the VNOM UQS Score Calculated?

The UQS (Unified Quality Score) for Viper Energy, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Viper Energy, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Viper Energy, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.