VNOM Intrinsic Value Calculation – Sei Investments Co. Reduces Investment in Viper Energy Partners LP
December 12, 2023
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Sei Investments Co. recently announced a reduction in its investment in Viper Energy Partners ($NASDAQ:VNOM) LP, a publicly traded limited partnership focused on acquiring, exploiting and developing oil and natural gas properties located in the Permian Basin of West Texas. Viper Energy Partners LP primarily focuses on acquiring mineral interests from third-party owners and then explores and develops the acquired interests for oil and natural gas. The company is one of the largest independent owners of mineral rights in the Permian Basin of West Texas. With its experienced operations and development team, the company is well-positioned to continue acquiring and developing mineral interests from third-party owners. Sei Investments Co. has held a significant position in Viper Energy Partners LP since its IPO, but has recently decided to reduce its holding.
However, despite the reduction in their stake, Sei Investments Co. remains confident in the long-term prospects of Viper Energy Partners LP and continues to view the company as a strong investment opportunity.
Share Price
This was reflected in the stock price of VIPER, which opened at $30.1 and closed at $29.8, down by 1.1% from the prior closing price of $30.1. It is unclear as to what caused the decrease in Sei Investments Co.’s investment, but it is likely that the company may have re-evaluated its confidence in VIPER’s ability to produce returns as a viable energy company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for VNOM. More…
| Total Revenues | Net Income | Net Margin |
| 825.64 | 164.5 | 23.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for VNOM. More…
| Operations | Investing | Financing |
| 678.95 | -148.79 | -394.96 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for VNOM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.14k | 724.79 | 10.08 |
Key Ratios Snapshot
Some of the financial key ratios for VNOM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 45.9% | 66.0% | 73.6% |
| FCF Margin | ROE | ROA |
| 57.8% | 55.0% | 12.1% |
Analysis – VNOM Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of VIPER ENERGY PARTNERS LP’s financials and come to the conclusion that its fair value per share is around $27.6. This figure was calculated through our proprietary Valuation Line. Currently, VIPER ENERGY PARTNERS LP stock is traded at $29.8, which implies that the price is overvalued by 7.8%. More…
Peers
The oil and gas industry is a highly competitive market. There are many oil and gas companies that compete for market share. One of the most competitive markets is the market for oil and gas exploration and production. In this market, there are many companies that compete for market share. One of the most competitive companies in this market is Viper Energy Partners LP. The company is a publicly traded company that is listed on the New York Stock Exchange. The company has a market capitalization of $2.6 billion. The company operates in the oil and gas industry in the United States, Canada, and Mexico.
– Rubellite Energy Inc ($TSX:RBY)
Rubellite Energy Inc is a Canadian oil and gas company with a market cap of 153.23M as of 2022. The company is engaged in the exploration, development, and production of oil and gas properties in the Western Canada Sedimentary Basin.
– Basic Energy Corp ($PSE:BSC)
Basic Energy Corp. is a holding company, which engages in the provision of oilfield services. It operates through the following segments: Drilling Services, Well Services, and Manufacturing and Repair. The Drilling Services segment offers onshore drilling rigs and related services. The Well Services segment provides pressure pumping and other well services. The Manufacturing and Repair segment manufactures and repairs equipment used in oil and gas drilling, completion, and production operations. The company was founded on April 28, 1987 and is headquartered in Houston, TX.
– BPI Energy Holdings Inc ($OTCPK:BPIGF)
BPI Energy Holdings Inc is a publicly traded holding company that owns and operates businesses in the energy sector. The company has a market cap of 146.97k as of 2022 and a Return on Equity of -513.73%. BPI Energy Holdings Inc owns and operates businesses in the oil and gas, power generation, and renewable energy industries. The company’s businesses include exploration and production, power generation, and energy trading.
Summary
Viper Energy Partners LP (VNOM) is a publicly traded firm engaged in the exploration, acquisition, and development of oil and natural gas properties. The analysis of Viper Energy Partners LP reveals that the company has experienced a steady increase in its production volumes and has grown its asset base over the years. The company’s financials appear to be in good shape, backed by increasing revenues and a healthy balance sheet.
Despite being affected by the overall decline in oil prices, it has managed to maintain a strong quarterly dividend rate. Going forward, its strategy of focusing on its existing acreage and developing its core assets should help it to achieve good returns for investors.
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