Viper Energy Business Summary

Viper Energy, Inc. (VNOM) operates an asset-light business model focused on the acquisition and ownership of mineral and royalty interests in oil and natural gas properties, primarily within the prolific Permian Basin. The company generates revenue through passive royalty payments—typically ranging from 12.5% to 25% of gross production—without incurring the capital expenditures or operational risks associated with drilling and development. Its primary business segment is centered on unconventional resource plays, with a significant portion of its production derived from acreage operated by its parent company, Diamondback Energy. Following its 2025 merger with Sitio Royalties and the strategic divestiture of non-Permian assets in early 2026, Viper has solidified its position as a pure-play Permian vehicle. It competes directly with other royalty-focused entities such as Texas Pacific Land Corporation (TPL), Black Stone Minerals (BSM), and Kimbell Royalty Partners (KRP), distinguishing itself through its high-margin operational efficiency and unique strategic alignment with Diamondback's development program. Formed in 2013 as a subsidiary of Diamondback Energy, Viper is led by a management team with deep roots in Permian Basin operations and energy finance. Kaes Van’t Hof serves as Chief Executive Officer, having previously held the role of President and bringing a background in investment banking at Citigroup and private equity at Wexford Capital. He is supported by President Austen Gilfillian, who rose through the finance and business development ranks at Diamondback, and Executive Vice President and CFO Teresa L. Dick, a veteran executive with extensive experience in energy accounting and corporate strategy. The company’s board is chaired by Steven E. West, a former CEO of Diamondback Energy, and includes notable members such as former CEO Travis D. Stice. Viper maintains a high level of institutional backing, with major stakeholders including Diamondback Energy, State Street Corporation, and Geode Capital Management.