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Viper Energy
Travis Stice leads Viper Energy, a Diamondback-controlled mineral-and-royalty firm holding roughly 32,700 net royalty acres in the Permian Basin.
Viper Energy
Viper Energy formed in 2013 as Diamondback Energy's mineral- and royalty-acquisition arm before its public listing in 2014, giving outside shareholders a way to own Permian Basin subsurface rights without taking drilling risk. Travis Stice, Diamondback's CEO, runs Viper, with Kaes Van't Hof serving as President. The firm's parentage means it inherits Diamondback's Midland Basin operational intelligence, using that insight to acquire royalty acreage underneath some of the most active drilling programs in West Texas. Viper owns perpetual, non-cost-bearing royalty interests across the Midland and Delaware sub-basins of the Permian. The portfolio converts roughly one-third of its production to natural gas and natural gas liquids, with the remainder as oil. The firm does not drill wells or pay completion costs; it receives a top-line percentage of revenue when operators on its acreage produce hydrocarbons. That model gives Viper direct commodity-price exposure without capital-expenditure overhead. Key operators running rigs on Viper's acreage include Diamondback itself, ExxonMobil's Pioneer Natural Resources subsidiary, and ConocoPhillips. Viper's operating agreement with Diamondback has been a growth engine. Diamondback contributes non-operated mineral interests to Viper through a continuous acquisition structure, most recently dropping roughly $1 billion in Permian mineral and royalty assets into Viper's portfolio in October 2023. Viper repurchased Diamondback Energy's operating-company units in a $900 million transaction in July 2023, simplifying the corporate structure and eliminating the general-partner relationship. The firm reported holding roughly 32,700 net royalty acres at year-end 2023, with the majority concentrated in the core of the Midland Basin. Viper's structural advantage over competing royalty trusts is permanent capital and corporate-level tax-efficient structure. Unlike legacy trusts that distribute nearly all cash flow and trade as wasting assets, Viper retains enough free cash flow after the variable dividend to acquire new acreage — pairing a steady-yield equity instrument with a modest growth mandate inside a single public vehicle.
General information
Firm type
Asset Manager
Year founded
2013
AUM
$3B–$6B (Altss estimate)
Location
Region
North America
Country
United States
City
Midland
Corporate office
Midland, TX, United States
Principals
Travis D. Stice
Chief Executive Officer
Kaes Van't Hof
President
Sector focus
Frequently asked questions
How does Viper Energy make money without operating any wells?
Viper owns perpetual mineral and royalty interests. Operators like Diamondback Energy, ExxonMobil, and ConocoPhillips drill and complete wells on Viper's acreage at their own cost, and Viper receives a fixed percentage of the gross revenue from produced hydrocarbons. Because Viper does not pay drilling or operating costs, its revenue translates directly to cash flow with very high margins.
What is the relationship between Viper Energy and Diamondback Energy?
Diamondback Energy controls Viper and uses it as the vehicle to hold and acquire mineral and royalty assets. Diamondback contributes assets in exchange for Viper equity, and Viper benefits from Diamondback's subsurface intelligence when purchasing additional royalty acreage. Travis Stice serves as CEO of both entities, and Kaes Van't Hof is President of both.
Why would an allocator choose a mineral-and-royalty company over a traditional E&P operator?
Royalty companies offer commodity-price exposure without the capital-expenditure risk of drilling operations. Viper receives a share of production revenue but never writes a check for leasehold drilling costs, completion services, or operating expenses. This creates a lower-decline, high-margin cash-flow profile that produces significant free cash flow even during periods of lower oil prices.
What basins does Viper's royalty acreage cover?
Viper's 32,700 net royalty acres are concentrated in the Permian Basin of West Texas, split between the Midland Basin and the Delaware Basin. The Midland Basin represents the bulk of the company's acreage, located in the core of the play underneath operators running some of the highest-productivity wells in the United States.
Does Viper Energy pay a dividend?
Viper maintains a variable-plus-fixed dividend policy. The base dividend is set at a sustainable level, and the variable component rises with free cash flow, meaning payouts increase during periods of strong commodity prices or high production. The structure is designed to return the majority of cash flow to shareholders while retaining modest capital for accretive acreage acquisitions.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
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