Viper Energy Partners: Expect Weaker Q4 Performance But Company Still A Winner

Summary

• Viper Energy Partners LP could be a good way to expose your consumer exposure to energy prices.
• The company's cash flows and distributions tend to vary based on energy prices.
• We may see a short-term decline in energy prices in 2023, but it will likely not be a substantial fall.
• Viper Energy Partners boasts a reasonably strong balance sheet, although its leverage ratio is a bit high.
• The company's distribution coverage is acceptable, but I would rather see a distribution than a buyback.
• This idea was discussed in more depth with members of my private investing community, Energy Profits in Dividends. Learn More »

imaginima

Analyst’s Disclosure:I/we have a beneficial long position in the shares of VNOM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article was originally posted to Energy Profits in Dividends during the morning of January 30, 2022. Subscribers to the service have had since that time to act upon it.