Citi analyst Paul Diamond CFA maintained a Buy rating on Viper Energy (VNOM – Research Report) yesterday and set a price target of $37.00.
Paul Diamond CFA has given his Buy rating for Viper Energy due to a multitude of factors. The company posted a moderately strong quarter, with the 3Q2023 EBITDA reaching approximately $181.8 million, exceeding both the consensus of $167.2 million and Diamond’s estimate of $164.7 million. Viper Energy’s production surpassed expectations, reaching approximately 40.5k boe/d, which was around 6% above the consensus and Diamond’s estimate. Furthermore, FY2023 guidance was slightly increased, and preliminary guidance for FY2024 production was initiated at approximately 45.5k-48.0k boe/d.
In addition to the strong financial performance, Viper Energy’s transition to a Delaware Corporation is expected to become effective in the following week, which adds to the company’s attractiveness. The analyst’s Buy rating and $37/share target price is also influenced by the company’s low-risk business profile and sensible operational rhythm. The initial FY2024 guidance is strong and the company is expected to focus on any incremental opportunities for further deals post-close of GRP. Overall, Paul Diamond CFA’s rating is a reflection of Viper Energy’s solid financial performance and promising outlook.
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Viper Energy (VNOM) Company Description:
Viper Energy Partners LP engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.
Read More on VNOM:
- Viper Energy Partners LP, A Subsidiary Of Diamondback Energy, Inc., Reports Third Quarter 2023 Financial And Operating Results; Announces Filing For Conversion Into A Delaware Corporation
- VNOM Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Viper Energy Partners LP, a Subsidiary of Diamondback Energy, Inc., Announces Closing of GRP Acquisition
- Wall Street’s Best Analyst Bets on These 3 Energy Stocks — Here’s Why You Might Want to Follow His Lead
- Viper Energy Partners LP, a Subsidiary of Diamondback Energy, Inc., Prices $400 Million Offering of 7.375% Senior Notes
