Viper Energy: A Top Growth Stock to Watch

Updated: 27 Apr 25

3mins

Viper Energy, Inc. (NASDAQ:VNOM) emerges as a leading growth stock, with a remarkable 5-year average growth rate of 79.15%. Operating in the Permian Basin, the company's royalty-based business model ensures high-margin cash flows, making it an attractive choice for investors. With 35 hedge funds holding positions and projections of increased production in 2025, VNOM ranks 7th among consistent growth stocks to buy now.

Viper Energy's Growth Trajectory

Viper Energy, Inc. (NASDAQ:VNOM) has demonstrated a strong 5-year average growth rate of 79.15%, positioning itself as a reliable option among growth-focused investors. Its royalty-based business model allows the company to generate substantial revenue from oil and gas production without bearing significant operational costs. This high-margin structure makes VNOM particularly attractive to income-focused investors within the energy sector. The company's emphasis on leveraging its scale and geographic concentration has further solidified its financial performance.

Market Position and Hedge Fund Interest

Based in Texas, Viper Energy operates exclusively in the Permian Basin, one of the most lucrative oil and gas regions globally. This geographical focus, combined with its low operational risk model, enhances its appeal in the energy market. The company has also attracted significant institutional interest, with 35 hedge funds currently holding positions in VNOM. Such backing from institutional investors underscores confidence in the company's strategy and growth potential, making it a compelling choice for portfolios seeking stability and returns.

Future Prospects for Investors

Looking ahead, Viper Energy has projected production volumes of 30,000-31,000 barrels per day in 2025, with the potential to reach 48,000 barrels per day in the latter half of the year. This anticipated growth reflects the company's effective acquisition strategies and operational efficiency. Combined with its robust historical data, Viper Energy offers a strong case for sustained growth and long-term investor confidence. Its unique positioning and high-margin business model ensure its relevance in both stable and volatile market conditions.