STR Overview

Viper Energy Overview: Viper Energy, Inc. (NASDAQ: VNOM) is recognized as one of the 11 best high-yield energy stocks, focusing on mineral and royalty interests primarily in the Permian Basin.

Analyst Coverage: Jefferies analyst John Edelman initiated coverage with a 'Hold' rating and a price target of $38, citing high valuation and oil price risks, while awaiting a better entry point for investment.

Recent Acquisition and Concerns: The company completed the acquisition of Sitio Royalties, expected to enhance cash flow and earnings per share, but raised concerns about its shift away from being a pure play in the Permian Basin.

Dividend Increase: Viper Energy raised its quarterly dividend by 10% to $0.33 per share, alongside a variable cash dividend of $0.20, resulting in a dividend yield of 6.28%.

Analyst Ratings and Price Target: KeyBanc analyst Tim Rezvan lowered Viper Energy Inc.'s price target to $54 while maintaining an Overweight rating, reflecting updated natural gas price forecasts and production estimates post-acquisition of Sitio Royalties Corp. All covering analysts continue to rate the stock as a Buy.

Company Position and Growth Potential: Viper Energy Inc. is recognized as the largest public minerals company, with strong growth prospects driven by organic expansion, selective acquisitions, and buybacks, alongside plans to sell noncore assets to unlock additional value.

Merger Announcement: Sitio Royalties Corp. (STR) stockholders have approved a merger with Viper Energy, Inc., set to close on August 19, 2025.

Share Exchange Details: Sitio stockholders will receive 0.4855 shares of New Cobra Pubco, Inc. (to be renamed New Viper) for each Sitio Class A share, while Sitio Opco unitholders will get equivalent common units in Viper Energy Partners LLC and New Viper Class B shares.

Cancellation of Class C Stock: Sitio Class C common stock will be canceled without compensation, and trading of Sitio Class A stock on the NYSE will be suspended prior to the market opening on the closing date.

Current Stock Performance: STR is currently trading at $18.17, reflecting a decrease of 0.71% on the NYSE.

NASDAQ 100 After Hours Performance: The NASDAQ 100 is down -2.43 to 23,711.33 with a total after-hours volume of 129,178,808 shares traded.

Active Stocks Overview: Notable active stocks include Vanguard Intermediate-Term Corporate Bond ETF (VCIT) unchanged at $82.96, Twilio Inc. (TWLO) up +0.45 at $105.50, and Sitio Royalties Corp. (STR) down -0.04 at $18.08.

Stock Recommendations: Several stocks such as TWLO, NVIDIA Corporation (NVDA), and Bank of America Corporation (BAC) are reported to be in the "buy range" according to Zacks recommendations.

Earnings Forecast Updates: Companies like Bank of America and Johnson & Johnson have had multiple upward revisions for their earnings forecasts for the fiscal quarter ending December 2025.

Merger Approval: Sitio Royalties Corp. stockholders approved the merger with Viper Energy, expected to close on August 19, 2025.

Share Exchange Details: Sitio stockholders will receive shares of New Cobra Pubco, Inc. for their Sitio Class A common stock, while Sitio Opco unitholders will receive common units and shares of New Viper Class B common stock.

Trading Suspension: Sitio Class A common stock will be suspended from trading on the NYSE prior to market opening on the merger closing date.

Forward-Looking Statements: The announcement includes forward-looking statements regarding the merger's potential outcomes and risks, emphasizing uncertainties that could affect the anticipated results.

Vanguard Energy ETF Analysis: The Vanguard Energy ETF (VDE) has an implied analyst target price of $141.18, indicating a potential upside of 17.29% from its current trading price of $120.36 per unit, based on the average targets of its underlying holdings.

Individual Stock Upside Potential: Notable underlying holdings such as Northern Oil & Gas Inc, Sitio Royalties Corp, and Kinetik Holdings Inc show significant upside potential, with expected increases of 44.63%, 43.39%, and 29.19% respectively, compared to their recent share prices.