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Viper Energy (VNOM · Nasdaq)

Minerals & royalty — HQ United States. Oil & gas valuation, proved reserves, production, break-even, net-asset-value and jurisdiction-risk screen.
Category Minerals & royaltyRegion N. AmericaCEO Kaes Van't Hof (Chairman)Jurisdiction risk Low (23)

Overview

Permian pure-play mineral & royalty vehicle controlled by Diamondback: owns mineral/royalty interests under Diamondback-operated and third-party wells; roughly doubled via the 2025 Sitio Royalties combination to become the largest Permian minerals player; no-capex, high-margin cash flow.

Royalty model with a high payout; Diamondback control and Permian concentration are the key features. Flags: no operating control, single-basin, operator-activity dependence.

Valuation snapshot (FY2025)

Market cap
$16.1bn
Enterprise value
$17.7bn
EV / EBITDA
13.6x
P / E
n/m
FCF yield
6.5%
Dividend yield
5.3%
ROACE
11%
Debt / equity
50%
Net debt / EBITDA
1.7x
EV / reserves
$43.50/boe
EV / flowing
$186k/boe/d
Free cash flow
$1.1bn

Its EV/EBITDA of 13.6x is above the 5.9x median across the 142-company universe, the free-cash-flow yield of 6.5% is lower than the 6.5% median, and at $43.50/boe of proved reserves it is richer than the $13.51/boe median.

On a balanced screen across the universe, Viper Energy scores 53/100, strongest on growth (89/100). Sub-scores: value 32, quality 69, growth 89, risk 50 (higher = riskier).

Reserves & production

Viper Energy holds approximately 0.41 billion boe of proved (1P) reserves with FY2025 production of about 95 thousand boe/d (68% liquids), a reserve life of roughly 11.7 years. Break-even: n/a (royalty model (no capex breakeven)) — Mineral & royalty interests — no drilling capital; cash margin ~90%+; economics driven by operators' activity on its acreage.

Net asset value (public-source floor)

Using Viper Energy's SEC-disclosed after-tax standardized measure of proved reserves ($6.6bn) less net debt ($2.2bn) gives an equity-NAV floor of about $4.4bn — the current market capitalisation sits +265% versus that floor. Disclosed pre-tax PV-10: $7.4bn. This is a floor: proved reserves only, excluding undeveloped inventory, downstream and other business lines. Royalty NAV; no ARO; excludes future development on its acreage beyond proved.

Jurisdiction risk · production-weighted country risk

23 /100
Low jurisdiction risk
Production-weighted average of the country scores below (0 = safest, 100 = riskiest).
Country / regionProd. shareCountry riskKey jurisdiction risk
United States (Permian)100%23Stable, deep; federal-lands leasing and permitting policy swings.
How this is scored. Each country's risk (0–100) is anchored to two named public indices — the OECD Country Risk Classification (0–7 official export-credit country risk) and the World Bank Worldwide Governance Indicators (Political Stability & Absence of Violence percentile) — blended 55/45 and rescaled to 0–100. A company's jurisdiction risk is the production-weighted average across the countries where it operates. This is a pure country measure, kept separate from company & financial risk (leverage, governance). Source: OECD Country Risk Classification (CRC) as of 24 July 2025, sourced via the German Federal Export Credit Guarantees (exportkreditgarantien.de) which applies the OECD consensus country risk category directly (values 0-7; 0 = lowest risk). High-income OECD members are not individually rated by the OECD and are set to crc=0 per the model spec (US, UK, Norway, Canada, Australia, Japan, NZ, and most of Europe incl. OECD members Israel, Poland, Hungary, Czechia, Lithuania, Ireland). 'ps' = World Bank Worldwide Governance Indicators (WGI) 'Political Stability and Absence of Violence/Terrorism' percentile rank, latest available (2023 vintage), 0-100 with higher = more stable; ps values are best sourced estimates rounded to the WGI percentile scale. Yemen not on OECD list ('./.') so crc estimated at 7. Iraq-Kurdistan and Falklands are non-standard model rows using judgment, not official OECD entries..

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Key assets & projects

AssetLocationTypeNotes
Midland Basin mineralsUnited StatesMineral & royaltyunder Diamondback + 3rd-party wells
Delaware Basin mineralsUnited StatesMineral & royaltyroyalty acreage
Sitio Royalties (combination)United StatesMinerals M&A2025, largest Permian minerals
Diamondback drop-downsUnited StatesMineral & royaltyfrom FANG
Royalty acreage (Permian)United StatesRoyaltynet royalty acres
Third-party operatedUnited StatesRoyaltynon-FANG operators
Spanish TrailUnited StatesMineralsMidland
Reeves/Loving CountyUnited StatesMineralsDelaware

Five-year trend (FY2021–FY2025)

Metric20212022202320242025
Production (mboe/d)2730435195
Proved reserves (bnboe)0.150.160.170.180.41
Revenue ($bn)0.60.70.80.91.4
EBITDA ($bn)0.50.60.70.81.3
Net income ($bn)0.20.30.30.4-0.1
Free cash flow ($bn)0.40.50.70.81.1

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Peer companies — Minerals & royalty

TPL · Texas Pacific Land CorporationPSK · PrairieSky Royalty Ltd.TPZ · Topaz Energy Corp.BSM · Black Stone Minerals, L.P.FRU · Freehold Royalties Ltd.KRP · Kimbell Royalty Partners, LPDMLP · Dorchester Minerals, L.P.VTS · Vitesse Energy

Sources

✓ FY2025 figures verified against primary sources:

↗ Compare VNOM against 141 peers in the interactive screener

Disclaimer. Screening research only — a starting point, not investment or transactional advice. Figures are drawn from public sources (~mid-2026), may contain errors, and require independent due diligence before any decision.
Enerquill Advisory. Data compiled from company FY2025 filings and results releases; market data ~mid-2026. Larger names are verified against primary sources (shown on each page); smaller names are best-estimates pending verification. © Enerquill Advisory. enerquilladvisory.com