A brief introduction—if you’re interested, feel free to ask or do your own research online.
Viper is a 100% royalty play in the Permian Basin. It is a wholly owned subsidiary of Diamondback $FANG. (-1,59 %) No production operations of its own—Viper only collects royalties from operators on its properties, resulting in very high margins (Q2 2026: 94.8% EBITDA margin).
Q2 2026 Financial Highlights:
Revenue: $677 million (+128% YoY), 5% above expectations
Adj. EBITDA: $642 million, 9% above expectations
Adj. EPS: $0.76 (slightly below consensus)
Oil production +56% YoY
Dividend:
New base dividend starting in Q3 2026: $2.00/year
At the current price of $41.70 → ~4.8% yield (base only, excluding variable component)
This new dividend policy appears to be secured up to approximately $30 per barrel of WTI.
Dividend policy has been made more flexible (no longer a fixed 75% ratio) → more leeway for buybacks & M&A
M&A 2026:
Riverbend deal (July 2026): $522 million (cash + stock), 3,064 net royalty acres
Various smaller bolt-ons (~$95 million)
In return: Sale of all non-Permian assets for $610 million → debt reduced and a clear focus on the Permian Basin
In summary, there is solid operational momentum as well as a growing dividend. Everything is focused on Permona. Typical risks remain the dependence on oil prices and the close ties to FANG.
Some analysts view the valuation as ambitious. However, the consensus is consistently “Buy” and “Accumulate.”
I’m keeping this position as a diversification in my portfolio and will continue to buy more. 😎🍾👍🏼
