Nemes Rush Group fully exits Viper Energy position amid market volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 29 2025
0mins
Source: Fool
Viper Energy Inc shares fell by 5.23% today, crossing below the 5-day SMA, as the broader market showed strength with the Nasdaq-100 up 0.69% and the S&P 500 up 0.67%.
The decline follows Nemes Rush Group's complete exit from its position in Viper Energy, liquidating 319,503 shares valued at approximately $12.18 million. This move reflects a cautious outlook on the company's future performance, especially as Viper Energy has underperformed the S&P 500 over the past year, down 20% compared to the index's 15.5% gain. Despite producing over 108,000 barrels of oil equivalent per day and generating significant cash flow, the company reported a net loss due to non-cash impairment charges, raising concerns about its profitability model.
This exit by a significant investor highlights the ongoing volatility in energy stocks and suggests a lack of confidence in Viper Energy's future earnings potential, which could further impact its stock performance.
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Analyst Views on VNOM
Wall Street analysts forecast VNOM stock price to rise
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 43.360
Low
41.00
Averages
50.80
High
64.00
Current: 43.360
Low
41.00
Averages
50.80
High
64.00
About VNOM
Viper Energy, Inc. owns, acquires and exploits oil and natural gas properties in North America, with a focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin. The Company owns approximately 85,700 net royalty acres in the Permian Basin.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Comparative Analysis of Gulfport and Viper Energy
- Gulfport Energy Growth: Gulfport Energy reported approximately $1.3 billion in revenue for FY 2025, reflecting a 43% year-over-year increase, with net income nearing $427.8 million and a net margin of about 32.3%, indicating strong performance in the natural gas and oil markets.
- Viper Energy Model: Viper Energy achieved nearly $1.4 billion in revenue for FY 2025, a 57% increase year-over-year, but reported a net loss of approximately $69 million, resulting in a negative net margin of -5.1%, highlighting challenges in its reliance on partner production.
- Financial Health Comparison: As of December 2025, Gulfport's debt-to-equity ratio stood at approximately 0.4 with a current ratio of about 0.7, while Viper's debt-to-equity ratio was around 0.5 with a current ratio of 3.7, showcasing significant differences in their financial structures.
- Future Outlook: Gulfport is expected to see a 20% increase in earnings per share to around $26 in 2026, and while neither company pays dividends, Gulfport's profitability and value appeal make it more attractive to investors.
See More
Investment Comparison: Gulfport vs. Viper Energy
- Gulfport Energy Growth: Gulfport Energy reported approximately $1.3 billion in revenue for FY 2025, reflecting a 43% year-over-year increase, with a net income of nearly $427.8 million and a net margin of about 32.3%, showcasing its strong performance in the natural gas and oil markets.
- Viper Energy Challenges: Despite Viper Energy achieving nearly $1.4 billion in revenue for FY 2025, a 57% increase, it reported a net loss of approximately $69 million, resulting in a negative net margin of -5.1%, indicating risks associated with its reliance on partner production activities.
- Financial Health Comparison: As of December 2025, Gulfport's debt-to-equity ratio stood at approximately 0.4, with a current ratio of about 0.7, indicating financial stability; in contrast, Viper's debt-to-equity ratio was 0.5, with a high current ratio of 3.7, reflecting strong short-term debt coverage but a free cash flow of -$1.3 billion, highlighting investment pressures.
- Investment Value Assessment: Gulfport's forward P/E ratio of 7.1x is significantly lower than Viper's 21.3x, suggesting that Gulfport may represent a more value-oriented investment choice, particularly in the context of fluctuating oil and gas prices.
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- Viper Energy Initiation: RBC initiated coverage of Viper Energy with an Outperform rating and a $58 price target, highlighting its advantages in scale and core Permian focus, positioning it as a best-in-class mineral and royalty company.
- SentinelOne Buy Rating: Bank of America upgraded SentinelOne from neutral to buy, viewing its solid quarterly performance as a strong entry point after an 18% decline in after-hours trading, reflecting confidence in its future growth prospects.
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Analysis of High-Risk, High-Reward Companies
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- Boeing Growth Potential: Boeing (NYSE:BA) has experienced a 69.7% growth in unit sales over the past two years, with an estimated revenue growth of 10.6% for the next 12 months, and an impressive annual earnings per share growth of 47.6%, reflecting strong profitability and market demand.
- Viper Energy's Profitability: Viper Energy (NASDAQ:VNOM) has achieved a remarkable 36.8% annual revenue growth over the past decade, with a 6.4 percentage point improvement in EBITDA margin over the last five years, demonstrating its ability to scale efficiently.
- Market Risk Warning: Despite some companies showing growth potential, the risks of high debt and negative cash flow remain, necessitating cautious evaluation by investors regarding potential shareholder dilution and bankruptcy risks.
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Stock Analysis: Buy and Sell Recommendations
- Optimum Communications Warning: With a GAAP operating margin of -33.1%, Optimum Communications is lagging behind peers in broadband subscriber growth, and its 8x net debt-to-EBITDA ratio complicates financing, potentially necessitating dilutive equity offerings to raise capital.
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- Viper Energy Growth Potential: Viper Energy reports a GAAP operating margin of -2.5%, with a remarkable 36.8% annual revenue growth over the past decade, showcasing strong unit economics and a best-in-class gross margin of 99.8%, while its EBITDA margin has expanded by 6.4 percentage points in the last five years.
- Market Outlook Analysis: While Optimum and WEBTOON face significant challenges, Viper Energy's stock price of $48.60 reflects an attractive forward P/E ratio of 18.8, suggesting potential growth opportunities that investors should closely monitor.
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- Production Exceeds Expectations: Viper Energy's Q1 2026 production surpassed expectations, with operators turning over 650 gross horizontal wells on its acreage, including 114 from Diamondback, indicating strong momentum in the oil and gas market.
- Increased Production Guidance: Management raised the midpoint of its full-year oil production guidance by approximately 2.5%, suggesting over 5% organic growth relative to the 2025 exit rate, reflecting confidence in future performance.
- Acquisition Announcement: Viper announced the acquisition of Riverbend for $337 million in cash and 3.7 million Class A shares, expected to add over 3,000 net royalty acres and approximately 2,000 barrels of oil production per day, with a 75% overlap with existing acreage, enhancing market positioning.
- Capital Return Strategy: The first-quarter capital return of $0.94 per share represents 90% of cash available for distribution, including a $0.68 dividend and $0.28 in stock repurchases, demonstrating a proactive approach to capital allocation.
See More
Comparative Analysis of Gulfport and Viper Energy
- Gulfport Energy Growth: Gulfport Energy reported approximately $1.3 billion in revenue for FY 2025, reflecting a 43% year-over-year increase, with net income nearing $427.8 million and a net margin of about 32.3%, indicating strong performance in the natural gas and oil markets.
- Viper Energy Model: Viper Energy achieved nearly $1.4 billion in revenue for FY 2025, a 57% increase year-over-year, but reported a net loss of approximately $69 million, resulting in a negative net margin of -5.1%, highlighting challenges in its reliance on partner production.
- Financial Health Comparison: As of December 2025, Gulfport's debt-to-equity ratio stood at approximately 0.4 with a current ratio of about 0.7, while Viper's debt-to-equity ratio was around 0.5 with a current ratio of 3.7, showcasing significant differences in their financial structures.
- Future Outlook: Gulfport is expected to see a 20% increase in earnings per share to around $26 in 2026, and while neither company pays dividends, Gulfport's profitability and value appeal make it more attractive to investors.
See More
Investment Comparison: Gulfport vs. Viper Energy
- Gulfport Energy Growth: Gulfport Energy reported approximately $1.3 billion in revenue for FY 2025, reflecting a 43% year-over-year increase, with a net income of nearly $427.8 million and a net margin of about 32.3%, showcasing its strong performance in the natural gas and oil markets.
- Viper Energy Challenges: Despite Viper Energy achieving nearly $1.4 billion in revenue for FY 2025, a 57% increase, it reported a net loss of approximately $69 million, resulting in a negative net margin of -5.1%, indicating risks associated with its reliance on partner production activities.
- Financial Health Comparison: As of December 2025, Gulfport's debt-to-equity ratio stood at approximately 0.4, with a current ratio of about 0.7, indicating financial stability; in contrast, Viper's debt-to-equity ratio was 0.5, with a high current ratio of 3.7, reflecting strong short-term debt coverage but a free cash flow of -$1.3 billion, highlighting investment pressures.
- Investment Value Assessment: Gulfport's forward P/E ratio of 7.1x is significantly lower than Viper's 21.3x, suggesting that Gulfport may represent a more value-oriented investment choice, particularly in the context of fluctuating oil and gas prices.
See More
Major Wall Street Rating Changes Overview
- Dell Upgrade: Susquehanna upgraded Dell from neutral to positive, citing increased confidence in a sustainable 8-10% operating margin and a 6% free cash flow margin, which supports a potential rerating of its EV/sales multiple to 3x, indicating strong market potential.
- Viper Energy Initiation: RBC initiated coverage of Viper Energy with an Outperform rating and a $58 price target, highlighting its advantages in scale and core Permian focus, positioning it as a best-in-class mineral and royalty company.
- SentinelOne Buy Rating: Bank of America upgraded SentinelOne from neutral to buy, viewing its solid quarterly performance as a strong entry point after an 18% decline in after-hours trading, reflecting confidence in its future growth prospects.
- XPeng Upgrade: Macquarie upgraded XPeng from neutral to outperform, noting its volume growth in the Chinese EV market, while future investments in humanoids and robotaxis provide additional upside potential for its stock.
See More
Analysis of High-Risk, High-Reward Companies
- Torrid Underperformance: Torrid Holdings (NYSE:CURV) has shown weak same-store sales trends over the past two years, leading to a 2.2% decline in free cash flow margin, indicating a lack of expansion opportunities in its core markets and potential shareholder dilution risks.
- Boeing Growth Potential: Boeing (NYSE:BA) has experienced a 69.7% growth in unit sales over the past two years, with an estimated revenue growth of 10.6% for the next 12 months, and an impressive annual earnings per share growth of 47.6%, reflecting strong profitability and market demand.
- Viper Energy's Profitability: Viper Energy (NASDAQ:VNOM) has achieved a remarkable 36.8% annual revenue growth over the past decade, with a 6.4 percentage point improvement in EBITDA margin over the last five years, demonstrating its ability to scale efficiently.
- Market Risk Warning: Despite some companies showing growth potential, the risks of high debt and negative cash flow remain, necessitating cautious evaluation by investors regarding potential shareholder dilution and bankruptcy risks.
See More
Stock Analysis: Buy and Sell Recommendations
- Optimum Communications Warning: With a GAAP operating margin of -33.1%, Optimum Communications is lagging behind peers in broadband subscriber growth, and its 8x net debt-to-EBITDA ratio complicates financing, potentially necessitating dilutive equity offerings to raise capital.
- WEBTOON User Growth Issues: WEBTOON's GAAP operating margin stands at -3.3%, with disappointing monthly active user numbers over the past two years leading to a 73.5% annual drop in earnings per share, despite revenue growth, indicating a significant decline in profitability and a lack of free cash flow limiting reinvestment opportunities.
- Viper Energy Growth Potential: Viper Energy reports a GAAP operating margin of -2.5%, with a remarkable 36.8% annual revenue growth over the past decade, showcasing strong unit economics and a best-in-class gross margin of 99.8%, while its EBITDA margin has expanded by 6.4 percentage points in the last five years.
- Market Outlook Analysis: While Optimum and WEBTOON face significant challenges, Viper Energy's stock price of $48.60 reflects an attractive forward P/E ratio of 18.8, suggesting potential growth opportunities that investors should closely monitor.
See More
Viper Energy Reports Strong Q1 2026 Earnings and Acquisition Plans
- Production Exceeds Expectations: Viper Energy's Q1 2026 production surpassed expectations, with operators turning over 650 gross horizontal wells on its acreage, including 114 from Diamondback, indicating strong momentum in the oil and gas market.
- Increased Production Guidance: Management raised the midpoint of its full-year oil production guidance by approximately 2.5%, suggesting over 5% organic growth relative to the 2025 exit rate, reflecting confidence in future performance.
- Acquisition Announcement: Viper announced the acquisition of Riverbend for $337 million in cash and 3.7 million Class A shares, expected to add over 3,000 net royalty acres and approximately 2,000 barrels of oil production per day, with a 75% overlap with existing acreage, enhancing market positioning.
- Capital Return Strategy: The first-quarter capital return of $0.94 per share represents 90% of cash available for distribution, including a $0.68 dividend and $0.28 in stock repurchases, demonstrating a proactive approach to capital allocation.
See More
