Viper Energy Partners LP
NASDAQ:VNOM

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Viper Energy Partners LP
NASDAQ:VNOM
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Price: 47.64 USD -0.71% Market Closed
Market Cap: 9B USD
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Net Margin
Viper Energy Partners LP

24.6%
Current
18%
Average
7%
Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
24.6%
=
Net Income
205.8m
/
Revenue
836.4m

Net Margin Across Competitors

Country US
Market Cap 9B USD
Net Margin
25%
Country MY
Market Cap 5.2T MYR
Net Margin
-105%
Country US
Market Cap 123B USD
Net Margin
18%
Country CN
Market Cap 749.5B CNY
Net Margin
33%
Country US
Market Cap 67.2B USD
Net Margin
29%
Country CA
Market Cap 89.8B CAD
Net Margin
21%
Country US
Market Cap 46B USD
Net Margin
25%
Country US
Market Cap 45.4B USD
Net Margin
33%
Country US
Market Cap 39.5B USD
Net Margin
21%
Country AU
Market Cap 44.7B AUD
Net Margin
15%
Country US
Market Cap 25.8B EUR
Net Margin
40%
No Stocks Found

Viper Energy Partners LP
Glance View

Market Cap
9B USD
Industry
Energy
Economic Moat
Narrow

Viper Energy Partners LP stands out in the oil and gas industry due to its unique business model centered on mineral rights acquisition. Formed by Diamondback Energy, a well-known player in the Permian Basin, Viper Energy Partners was established to manage and optimize the vast mineral rights held and acquired by Diamondback. Unlike traditional exploration and production companies, Viper Energy focuses on owning mineral interests rather than working interests. This strategic choice reduces operational risks, as Viper doesn't directly engage in drilling operations. Instead, it generates revenue through leasing agreements with operators who extract oil and gas from its lands. This means while others bear the costs and risks associated with drilling and production, Viper essentially collects royalties—a steady revenue stream influenced by production levels and oil and gas prices. The heart of Viper's profitability lies in its extensive mineral and royalty interests scattered across some of the most prolific areas within the Permian Basin. As operators ramp up production on these lands, Viper benefits without the operational headaches typical of oil companies. Additionally, the company actively seeks to expand its portfolio through strategic acquisitions, bolstering its income potential. This asset-light model ensures that Viper can maintain strong financial health, appealing to investors seeking exposure to the oil and gas sector without the volatility often associated with exploration and production risks. In essence, Viper Energy Partners has carved out a niche in the energy sector by capitalizing on its ability to monetize mineral rights effectively, establishing itself as a significant player in the Permian Basin’s dynamic landscape.

VNOM Intrinsic Value
38 USD
Overvaluation 20%
Intrinsic Value
Price

See Also

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What is Net Margin?

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
24.6%
=
Net Income
205.8m
/
Revenue
836.4m
What is the Net Margin of Viper Energy Partners LP?

Based on Viper Energy Partners LP's most recent financial statements, the company has Net Margin of 24.6%.