Viper Energy: A Mildly Curious Transaction

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Viper Energy Graphic

On February 17th, 2026 – a date which, statistically speaking, is not entirely dissimilar to any other date, but let’s pretend it’s significant – Webs Creek Capital Management filed a document with the SEC. This document, a form 13F (a sort of public declaration of financial holdings, akin to a particularly verbose announcement of what one had for lunch), revealed a rather interesting adjustment to their portfolio. They decided to part ways with 1,273,209 shares of Viper Energy (VNOM +2.34%), a transaction estimated at around $48.21 million. Which, when you consider the sheer scale of the universe, is, well, a number. A surprisingly large number, actually. But a number nonetheless.

What Happened, or, The Curious Case of the Diminishing Shares

The aforementioned SEC filing (yes, the one from February 17th, 2026. We haven’t forgotten) detailed a reduction in Webs Creek’s stake in Viper Energy during the final quarter of 2025. The value of this reduction, calculated using the average closing price for the period (a figure arrived at by adding up a lot of numbers and then dividing them, which, frankly, seems like an awful lot of effort), came to approximately $48.21 million. The overall value of their remaining position also decreased by $48.55 million, a figure that includes both the share sale and the vagaries of market fluctuations. It’s a bit like trying to hold water in a sieve; you can add more, but it will always leak out eventually. (This is, of course, a metaphor. Please do not attempt to hold water in a sieve.)

Further Considerations, or, The Top Holdings of a Fund That Apparently Likes Lists

  • Following this transaction, Webs Creek’s VNOM stake now represents a modest 1.87% of their total reportable assets under management (AUM). A percentage, it should be noted, that is statistically insignificant when compared to, say, the number of grains of sand on all the beaches in the world.
  • Here’s a peek into their top holdings as of the filing, presented in a list because, frankly, lists are efficient:
    • NYSE:WHD: $57.73 million (10.3% of AUM)
    • NYSE:AR: $51.83 million (9.3% of AUM)
    • NYSE:OVV: $51.07 million (9.1% of AUM)
    • NASDAQ:WFRD: $49.30 million (8.8% of AUM)
    • NYSE:MTZ: $43.88 million (7.9% of AUM)
  • As of Wednesday (a day which, let’s be honest, is remarkably similar to Tuesday and Thursday), VNOM shares were trading at $47.16, up around 8% over the past year. However, this performance is somewhat overshadowed by the S&P 500’s rather impressive 19% gain during the same period. It’s a bit like being slightly less lost than someone who is completely lost; you’re still lost, just… less so.

A Brief Overview of the Company, or, What Viper Energy Actually Does

Metric Value
Market capitalization $17.7 billion
Revenue (TTM) $1.4 billion
Net income (TTM) ($69 million)
Dividend yield 5%

Company Snapshot, or, The Essential Viper Energy Facts

  • Viper Energy owns and manages mineral interests in oil and natural gas properties, primarily in the Permian Basin and Eagle Ford Shale. (Which are, geographically speaking, places. With oil and gas.)
  • The firm focuses on acquiring and managing mineral and royalty interests. (Essentially, they own bits of the ground where things are extracted.)
  • It operates as a subsidiary of Diamondback Energy (FANG +1.69%). (A larger entity, presumably with more bits of ground.)

Viper Energy, as a subsidiary of Diamondback Energy, benefits from the scale and resources of a major player in the energy sector. It’s a bit like a small fish swimming alongside a very large whale; it’s generally safer, but also slightly less independent.

What This Transaction Means for Investors, or, A Mildly Optimistic Assessment

Viper’s recent results suggest that the company is, shall we say, reasonably attractive, even if the current market price doesn’t fully reflect that. They generated $145 million in cash available for distribution in the fourth quarter alone, returning approximately 90% of that – or $131 million – to shareholders through dividends and buybacks. Their combined dividend of $0.52 per share implies a roughly 4.6% yield, and management recently increased the base dividend by 15% while also expanding its buyback authorization by another $1 billion. Production continues to scale, with average output hitting 134,000 boe per day in the quarter. (Boe, for the uninitiated, stands for ‘barrels of oil equivalent’. A unit of measurement designed to confuse the general public.)

However, there are also some headwinds. Reported earnings were weighed down by a $408 million non-cash impairment tied to acquired assets, resulting in a quarterly net loss of $246 million, even though operating income remained strong. (Impairment, in this context, means that something is worth less than they thought. A common occurrence in the universe.)

Relative to other top holdings, which tend to be E&P operators and oilfield services companies, this position offers a more passive, royalty-driven model with lower capital intensity. And, with a still sizable position in the stock, it doesn’t appear that Webs Creek has completely lost faith. (Although, one can never be entirely sure about the motivations of financial institutions. They are, after all, complex entities.)

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2026-03-18 20:15