` VNOM (Viper Energy Partners LP) vs S&P 500 Comparison - Alpha Spread

VNOM
vs
S&P 500

Over the past 12 months, VNOM has underperformed S&P 500, delivering a return of -7% compared to the S&P 500's +13% growth.

Stocks Performance
VNOM vs S&P 500

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VNOM
S&P 500
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Performance Gap
VNOM vs S&P 500

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VNOM
S&P 500
Difference
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Performance By Year
VNOM vs S&P 500

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VNOM
S&P 500
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Competitors Performance
Viper Energy Partners LP vs Peers

S&P 500
VNOM
COP
600938
EOG
CNQ
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Viper Energy Partners LP
Glance View

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
34.44 USD
Overvaluation 11%
Intrinsic Value
Price
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