A Conservative Way To Play Higher Oil Prices: Viper Energy Partners

Feb. 14, 2023 5:24 PM ETViper Energy, Inc. (VNOM) Stock, , , 13 Comments

Summary

  • We see significantly higher oil prices in the second half of the year.
  • Viper Energy Partners LP is one of the best-managed public royalty companies and owns high-quality acreage with a long productive life.
  • The units offer a significant upside to higher oil prices and a margin of safety in the event prices decline.
  • We rate Viper Energy Partners LP units a Buy and increase our price target to $36.00.
  • Looking for more investing ideas like this one? Get them exclusively at HFI Research Energy Income. Learn More »

Increasing oil price

bluebay2014

We believe oil prices will surge higher in the second half of the year as the oil market supply balance brings forth a supply deficit. China will transition from a 600,000 barrel per day (bpd) drag on demand in 2022 to a significant

Outperform!

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This article was written by

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HFIR Research is a full-time professional energy investor, active in the sector since 2015 while specializing in deep value opportunities and special situations. He has managed a private investment partnership since 2007 and has a long professional history in finance, having served in various roles in the industry since 2000.

He runs the investing group HFI Research Energy Income where he works to outperform the benchmark of the Alerian MLP Index, by investing in energy stocks for income and growth. Features of the service include: 4-6 exclusive idea write-ups per month, real-time portfolio tracking including what to buy, when the dividend will be paid, tax implications and positional weighting, fundamental data pertaining to MLPs, and 24/7 direct communication with the HFI Research team to ask questions. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BSM 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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