Viper Energy: Oil Spike Reinforces The Case For This High-Yield Permian Royalty Play

Viper Energy remains a Buy, supported by high-quality Permian assets, robust yield, and an attractive valuation despite recent secondary offering pressure. VNOM's production grew 7% per share thanks in part to the Sitio acquisition, with mid-single-digit organic growth expected in 2026 and capital returns potentially reaching 100% after reducing debt. The balance sheet is strong with no notes maturing until 2030, a 15.2% dividend increase, and uplifted $1.2 billion in buyback authorization following asset sales.