Viper Energy vs Permian Resources

This page compares Viper Energy and Permian Resources, examining their business models, financial performance, and market context. It presents objective information to help readers understand how each company operates within the energy sector, how their strategies address risk and opportunity, and how external factors shape their positioning. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

VNOM

Metric

$13.40B

Market Cap

$11.84B

27.09%

Potential Profit

27.59%

Buy

Analyst Rating

Buy

Investment Analysis

Viper Energy

VNOM

Pros

Viper Energy Partners LP owns a large mineral interest portfolio with 27,027 net royalty acres in prolific basins like the Permian and Eagle Ford Shale, supporting long-term resource potential.
The company has a strong return on equity (ROE) at 16.16%, well above its historical average, indicating efficient capital use and profitability improvements.
Recent strategic asset acquisitions, including royalty expansions, may broaden its resource base and enhance future cash flows.

Considerations

The stock has experienced a notable price decline of about 25% year-to-date and over the past 12 months, reflecting market concerns and volatility.
Valuation models suggest the stock is currently overvalued, with forecasts indicating a potential downside of over 80% compared to calculated fair value, raising valuation risk.
Market sentiment remains bearish with a bearish technical outlook and moderate price volatility, implying continued near-term uncertainty.

Permian Resources

Pros

Permian Resources Corporation operates in the core Permian Basin, offering exposure to a top U.S. oil-producing region with strong growth prospects.
The company has a market capitalization around $8.76 billion, providing scale and possible access to capital markets for growth investment.
Recent industry performance and comparisons suggest Permian Resources has competitive metrics relative to peers in the energy sector.

Considerations

Specific detailed financial metrics and growth rates for Permian Resources are less transparent compared to Viper Energy, which may increase assessment difficulty.
The company faces typical commodity cyclicality and regulatory risks associated with oil and gas exploration and production in the Permian Basin.
Potential execution risks exist given the highly competitive and capital-intensive nature of upstream operations in the region.

About The Companies

Viper Energy (VNOM)

Viper Energy Partners LP is an American company operating within the energy sector. It focuses on owning, acquiring, and exploiting oil and natural gas properties located in North America. The company's strategy is centred on acquiring mineral and royalty interests in prolific, oil-weighted basins, with its primary area of operation being the Permian Basin. This business model means Viper generates revenue from the production of oil and gas on its acreage without being directly involved in the operational aspects of drilling. As a Master Limited Partnership (MLP), its structure is designed to pass income through to investors. Potential investors should note that, like any energy stock, its performance can be influenced by fluctuations in commodity prices and global energy demand. Understanding the unique risks and opportunities associated with both the energy sector and MLPs is crucial before considering an investment.

Permian Resources (PR)

Permian Resources Corp is an independent oil and natural gas company focused on the acquisition, optimisation, and development of properties primarily in the United States. The company's operations are highly concentrated in the core of the Delaware Basin, a major oil and gas-producing area within the larger Permian Basin. Its asset base includes significant leasehold and royalty acreage across parts of New Mexico and Texas. For investors, Permian Resources represents a focused play on one of North America's most prolific energy regions. Its business strategy centres on efficiently developing these assets to generate returns. As with any company in the energy sector, its performance can be influenced by commodity prices, regulatory changes, and operational factors. It's important for potential investors to consider these risks alongside the company's strategic position.

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Viper Energy vs Permian Resources

Comparison Snapshot

Investment Analysis

Viper Energy

Pros

Considerations

Permian Resources

Pros

Considerations

About The Companies

Buy VNOM or PR in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

Comparison Snapshot

About The Companies

Viper Energy vs Permian Resources

Comparison Snapshot

Investment Analysis

Viper Energy

Pros

Considerations

Permian Resources

Pros

Considerations

About The Companies

Buy VNOM or PR in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

Viper Energy vs Ovintiv

Viper Energy vs Antero Resources

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Frequently asked questions

What is the basic difference between Viper Energy Partners LP and Permian Resources in terms of business model?

How should I interpret ROE and other profitability indicators in this comparison?

What does the valuation risk data imply for Viper Energy Partners LP?

How do recent strategic asset acquisitions affect the investment profile of Viper Energy Partners LP?

What are the primary growth considerations for Permian Resources as an investment?

Why might transparency of financial metrics differ between Viper Energy and Permian Resources here?

What market factors commonly affect upstream oil and gas stocks like these?

How do cyclical risk and commodity exposure influence the two stocks differently?

What should a reader consider when comparing these two stocks for a basic due diligence checklist?

Is this page a substitute for professional financial advice?

Comparison Snapshot

About The Companies