Did Viper Energy’s (VNOM) Major Buyback and Profit Swing Just Shift Its Investment Narrative?

• Viper Energy recently reported its third quarter 2025 results, highlighting a significant year-over-year revenue increase to US$418 million, alongside a net loss of US$77 million and confirmation of continued share buybacks and dividend payments.
• Despite substantially higher revenues, investors’ focus is likely on the swing from profit to loss, fresh production guidance, and the company's completion of a major share repurchase program.
• We'll explore how Viper Energy's substantial buyback completion may reshape its investment case and return profile for shareholders.

Uncover the next big thing with financially sound penny stocks that balance risk and reward.

Viper Energy Investment Narrative Recap

To own Viper Energy shares, you have to believe in the company’s ability to maintain attractive cash returns while balancing ongoing risks tied to third-party operators and the Permian Basin. This quarter’s swing to a net loss doesn’t alter the core catalyst: continued operational performance from Diamondback and key partners. The most immediate risk, volatile production from non-operated assets, remains, and the latest results do not appear to meaningfully change this near-term concern for investors.

Among recent announcements, the completion of a multi-year buyback stands out. Repurchasing over 21% of outstanding shares since late 2020 could influence Viper’s per-share financial profile, especially when paired with ongoing dividends. For those focused on shareholder returns, this buyback history may offer some confidence in capital allocation discipline, yet questions about the source and sustainability of free cash flow given production swings persist.

Yet, behind these headline numbers, investors should watch for signs of instability beyond core Permian assets...

Read the full narrative on Viper Energy (it's free!)

Viper Energy's outlook anticipates $2.3 billion in revenue and $293.3 million in earnings by 2028. This scenario assumes annual revenue growth of 35.1%, but earnings are expected to decrease by $77.9 million from the current $371.2 million.

Uncover how Viper Energy's forecasts yield a $50.94 fair value, a 35% upside to its current price.

Exploring Other Perspectives

Five fair value estimates from the Simply Wall St Community range from US$38 to US$132.48 per share. While investor views differ, continued reliance on third-party operators means income stability could shift rapidly as operating partners adapt their development plans.

Explore 5 other fair value estimates on Viper Energy - why the stock might be worth over 3x more than the current price!

Build Your Own Viper Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Viper Energy research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Viper Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Viper Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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