Update shared on27 Aug 2025
Fair value Decreased 1.07%Analyst price targets for Viper Energy edged slightly lower to $53.56 as near-term overhang from potential large shareholder resales and continued oil price volatility offset optimism over the transformative Sitio Royalties acquisition and strong projected shareholder returns.
Analyst Commentary
- Bullish analysts cite Viper Energy's acquisition of Sitio Royalties as a transformative deal, establishing the company as the leading large-cap pure-play minerals name and enhancing its scale, basin diversity, and exposure to well-capitalized operators.
- Multiple analysts highlight the enhanced shareholder return profile, with industry-low base dividend breakevens and a significant equity payout ratio; projected yield is expected to rise notably post-acquisition.
- The company is recognized for its superior quality inventory, operated by top-tier E&P partners—primarily Diamondback Energy—delivering strong per-share growth and positioning it for a valuation premium to peers.
- Short-term bearish sentiment arises from the automatic registration for resale of up to 54% of outstanding shares, creating a potential overhang as major shareholders, including Diamondback, gain flexibility to monetize their stakes.
- Price targets reflect updated macro views, with near-term headwinds from volatile oil prices and supply/demand imbalances, but secular tailwinds from long-term gas demand growth and power/data center sector investment provide supportive context for expansion.
What's in the News
- Viper Energy amended and restated its certificate of incorporation and bylaws.
- The company revised Q3 2025 oil production guidance to 54.5–57.5 MBO/d and net production to 104.0–110.0 MBOE/d.
- Production guidance updated for Q3 2024, 2025, and 2026, with expected increases in net output and a mid-single digit percentage production growth in 2026.
- Repurchased 255,843 shares for $9.72 million; completed buyback of 19% of shares outstanding under its ongoing program.
- Dropped from multiple Russell growth indexes.
Valuation Changes
Summary of Valuation Changes for Viper Energy
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $54.14 to $53.56.
- The Future P/E for Viper Energy has significantly fallen from 56.75x to 35.67x.
- The Consensus Revenue Growth forecasts for Viper Energy has significantly fallen from 44.8% per annum to 35.1% per annum.
Disclaimer
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