What Viper Energy Does & How It Makes Money (VNOM)

Updated October 2026 · reflects Viper Energy's latest reported financials

Permian Basin mineral and royalty owner backed by Diamondback Energy. Viper earns royalty income, which is a share of revenue from oil and gas that operators produce on its mineral acreage, and it does not pay drilling or operating costs.

How Viper Energy makes money

Viper earns royalty income, which is a share of revenue from oil and gas that operators produce on its mineral acreage, and it does not pay drilling or operating costs. It grows by buying more mineral and royalty interests.

What Viper Energy does

Viper Energy, Inc. owns and acquires mineral and royalty interests in oil and natural gas properties, focused on the Permian Basin. As a mineral and royalty owner, it gets paid a share of production from wells that other companies drill and operate, so it has little direct exposure to drilling and operating costs. It grows mainly by acquiring more interests. Viper was founded in 2013 and is based in Midland, Texas. It operates as a subsidiary of Diamondback Energy, Inc., a major Permian producer. The company was formerly Viper Energy Partners LP and changed its name to Viper Energy, Inc. in November 2023.

Products & services

• Mineral interests
• Royalty interests
• Permian Basin acreage
• Oil royalties
• Natural gas royalties

What is Viper Energy worth?

On an owner-earnings DCF, Viper Energy's most-likely value is about $51 versus a recent price near $43 (19% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$33) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.

Related companies

Diamondback Energy (FANG) · Permian Resources (PR) · Texas Pacific Land (TPL) · Matador Resources (MTDR) · Crescent Energy (CRGY)