#3 - Viper Energy (NASDAQ:VNOM)
An asset light approach such as that taken by Viper Energy (NASDAQ:VNOM) is a safe way to play the current energy market. In the case of VNOM, they buy land that is rich in oil, specifically the Permian Basin. This gives the company a reliable revenue stream. In fact, Viper’s cash and cash alternatives are over 5 times its current liabilities.
The company’s debt is just over 20% of its assets and the debt that it does have doesn’t even start maturing until 2022. That should allow the company to weather the current crisis. Of course Viper does face the potential of having companies slow production or abandon their wells altogether. Is that possible? Sure. Is it likely? That’s less likely. Viper’s primary customers are companies with a long history in drilling and exploration. Viper also has the backing of Diamondback Energy (NASDAQ:FANG).
Viper is a relatively new stock. But it has generated two consecutive years of dividend growth.
About Viper Energy
Viper Energy, Inc owns and acquires mineral and royalty interests in oil and natural gas properties in the Permian Basin, North America. Viper Energy Partners GP LLC operates as the general partner of the company. The company was formerly known as Viper Energy Partners LP and changed its name to Viper Energy, Inc in November 2023.
Read More - Current Price
- $37.82
- Consensus Rating
- Buy
- Ratings Breakdown
- 7 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $41.29 (9.2% Upside)
