CluenexViper Energy VNOM
Viper Energy scores excellent on business quality (8.0 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Viper Energy does
Viper Energy owns and acquires mineral and royalty interests in oil and natural gas properties, primarily in the Permian Basin, collecting passive cash royalties from operators without bearing drilling costs. The company is advancing its asset base as a subsidiary of Diamondback Energy, scaling up production rights while balancing cash returns to shareholders.
- What it does best
Viper converts top-line revenue into industry-leading margins, posting a gross margin of 93.4% that towers above peers like Ovintiv at 72.9%. This unmatched conversion stems from a pure royalty model where operators foot the entire capital bill.
- The main risk
Debt escalation creates balance-sheet friction, with net debt climbing to $2.17B from $1.06B in just one year. Higher leverage limits flexibility if Permian drilling activity slows or commodity prices drop.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins sit at a massive 50.7%, landing in the top decile of its sector at the 93rd percentile. Because royalties bypass operational expenses, the business extracts immense profitability as scale expands.
Exclusive ownership of Permian Basin mineral interests locks out rivals by denying them access to the same cash-generating acreage. A gross margin ranking in the 98th percentile of its sector confirms this hard-to-copy asset advantage.
Revenue surged 62.2% to $2.04B, sitting in the top decile of its sector at the 93rd percentile. This massive leap accelerates past its historical baseline as expanded Permian mineral interests feed the top line.
Net debt sits at $2.17B against $13M in cash, leaving the balance sheet carrying meaningful obligations. Operating cash flow hit $1.49B, supporting $809M in dividends and $412M in buybacks, keeping the financial structure under modest strain.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on VNOM
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Viper Energy scores excellent on the Cluenex quality check (8.0 of 10), measured against its own industry. Profitability is strong, moat fair, growth fast and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 2, 2026.
See VNOM today
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- Fair value with cautious, base and optimistic cases
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Cite this page: Cluenex, “Viper Energy (VNOM)”, https://cluenex.com/stocks/vnom/, data as of Oct 10, 2026.