Viper Energy: A Lot Of Catching Up Needed

Long PlayerInvesting Group LeaderFollow5ShareSavePlay(7min)CommentsSummaryViper Energy remains undervalued post-acquisition.The recent acquisition is accretive, enhancing per-share earnings potential and providing downside protection through increased yield.VNOM’s disciplined focus on immediately developable acreage supports ongoing organic and acquisition-driven production per share growth.Return of capital is balanced between a base dividend, variable dividends, and share repurchases.There is significant upside as oil prices rise and the market digests new shares.This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More » Esteban Alejandro/iStock via Getty Images The last article noted that the stock price of Viper Energy (VNOM) was down considerably as the market digested the acquisition. Now with the oil price run-up, the stock price has responded somewhat. But theThis article was written byLong Player25.42K FollowersFollowLong Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA. He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of VNOM, FANG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: I am not an investment advisor and this is not a recommendation to buy or sell a security. Investors are recommended to read all of the company's filings and press releases as well as do their own research to determine if the company fits their own investment objectives and risk portfolios.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.