| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 58 | 12.3x | 17.6x | Around median | |
Growth | 79 | 137.2% | 7.1% | Top tier | |
Quality | 49 | 17.6% | 4.5% | Around median | |
Safety | 71 | 0.8x | 2.6x | Top tier | |
Capital Return | 73 | 5.44% | 2.15% | Top tier | |
Momentum | 50 | 3.6% | 2.3% | Around median | |
Sentiment | 82 | 10 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Viper Energy is a company specializing in the ownership of mineral and royalty interests in the Permian Basin, generating revenue from net revenue interests in oil and gas production conducted by Diamondback and independent operators, without incurring required operating capital expenditures. Cash flow growth depends on increasing wells and production on its acreage, acquiring additional mineral interests, and repurchasing shares; a total of 691 horizontal wells commenced production during fiscal year 2026 Q2, with an average 3% net revenue interest attributable to Viper.
The latest available digital EDGAR filings cover fiscal year 2026 Q1 and reported revenue of $511 million, net income of $97 million, and earnings per share of $0.53. By comparison, fiscal year 2025 revenue was approximately $1.4 billion, with a net loss of $68 million and negative earnings per share of $0.48; the available data does not include gross margin figures or a segment revenue breakdown.
In fiscal year 2026 Q2, earnings exceeded expectations, supported by higher production volumes and realized oil prices, and management raised its fiscal year 2026 operating guidance. The company also returned 75% of cash available for distribution to shareholders, including $132 million in share repurchases and combined base and variable distributions of $0.67 per share, before adopting a new framework beginning in fiscal year 2026 Q3 that increases the annual base distribution by 32% to $2 per Class A share.
The average analyst target is $55.75, versus a target range of $46 to $61 and a consensus rating of “Buy”; the average is above the 52-week range high of $51.13, while the highest target exceeds that high by approximately 19%. However, the absence of a usable price-to-earnings ratio, together with the shift from an annual loss of $68 million in fiscal year 2025 to a quarterly profit of $97 million in fiscal year 2026 Q1, means the valuation depends heavily on the sustainability of production and cash flow growth and on the trajectory of oil prices.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Viper Energy owns mineral and royalty interests that entitle it to a share of revenue from oil and gas production conducted by operators such as Diamondback and other parties in the Permian Basin. This model does not require Viper to incur operating capital expenditures, so a large portion of revenue converts into cash flow available for distribution or investment. During fiscal year 2026 Q2, a total of 691 horizontal wells commenced production on its acreage, and its average owned net revenue interest was 3%.
Fiscal year 2026 Q2 earnings exceeded analyst expectations due to increased production volumes and higher realized oil prices. This performance led management to raise its fiscal year 2026 operating guidance, while the midpoint of fiscal year 2026 Q3 guidance indicates production growth of approximately 4.5% sequentially. This guidance includes 2,000 barrels per day from Riverbend and approximately 1,000 barrels per day of organic growth.
In fiscal year 2026 Q2, Viper returned 75% of cash available for distribution, including $132 million in share repurchases and base and variable distributions totaling $0.67 per share. Beginning in fiscal year 2026 Q3, the board increased the base distribution by 32% to $2 annually per Class A share. At the same time, the company eliminated its quarterly commitment to return at least 75% of available cash, giving itself greater flexibility among share repurchases, debt reduction, and acquisitions.
Automated analysis for informational purposes only — not investment advice.
Riverbend was the most notable acquisition completed by Viper through August 5, 2026, and adds mineral and oil interests to its portfolio. Management included a contribution of 2,000 barrels per day from Riverbend assets in fiscal year 2026 Q3 guidance. Alongside this contribution, the guidance includes approximately 1,000 barrels per day of organic growth, showing that the expected increase does not depend on the transaction alone.
Diamondback is a key operator and major shareholder in Viper, and an important part of Viper's growth is linked to its pace of asset development. Over more than five years, Viper has gained exposure to approximately 75% to 80% of Diamondback's total well activity, with an average net revenue interest of approximately 6%. The interest may rise to 25% in certain full-royalty wells, while management believes that development of the Barnett in Spanish Trail could increase returns if well results and costs meet its expectations.
Cash flows depend on oil prices and continued drilling activity and well conversions to production in the Permian Basin, including activity by Diamondback and other operators. The elimination of the 75% minimum cash return threshold beginning in fiscal year 2026 Q3 also makes total quarterly cash returns more dependent on capital allocation decisions. In addition, management did not commit to maintaining in fiscal year 2027 the high-single-digit organic growth rate expected for fiscal year 2026, instead indicating modest growth from the exit rate.
