Goldman Sachs Top Energy Picks Have Big Upside and Pay Solid Dividends - 24/7 Wall St. S&P 5006,581.00 -0.16% Dow Jones46,183.50 -0.20% Nasdaq 10024,193.80 -0.13% Russell 20002,489.24 -0.23% FTSE 1009,908.80 -0.49% Nikkei 22552,775.50 -0.95% Investing Goldman Sachs Top Energy Picks Have Big Upside and Pay Solid Dividends By Lee JacksonPublished Mar 24, 7:20AM EDT This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. How ...

Viper Energy, Inc. (NASDAQ:VNOM) is included among the 13 Oil Stocks with Highest Dividends. Viper Energy (VNOM) Price Target Bumped to $54 at Mizuho Viper Energy, Inc. (NASDAQ:VNOM) is a publicly traded Delaware corporation focused on owning and acquiring mineral and royalty interests, primarily in the Permian Basin. On March 17, Mizuho analyst William Janela slightly raised the firm’s price target on Viper Energy, Inc. (NASDAQ:VNOM) from $53 to $54, while maintaining an ‘Outperform’ rating on the shar ...

On February 17, 2026, Webs Creek Capital Management disclosed in an SEC filing that it sold 1,273,209 shares of Viper Energy (NASDAQ:VNOM) in the fourth quarter, an estimated $48.21 million transaction based on quarterly average pricing. What happened According to a SEC filing dated February 17, 2026, Webs Creek Capital Management LP reduced its position in Viper Energy (NASDAQ:VNOM) by 1,273,209 shares during the fourth quarter of 2025. The estimated transaction value was $48.21 million, calculated usin ...

Core Viewpoint - Goldman Sachs identifies four energy stocks with double-digit upside potential and attractive dividends, appealing to both passive income and value-oriented investors as oil prices remain elevated due to geopolitical tensions [2][4][6]. Group 1: Market Context - Brent crude prices have surpassed $100, while West Texas Intermediate is approaching similar levels, leading to increased investor interest in energy stocks [1][4]. - The U.S. attack on Iran has contributed to rising oil prices, prompting a significant uptick in energy stock valuations [4]. Group 2: Investment Opportunities - Goldman Sachs has highlighted four energy companies that are not overbought and possess strong cash flows and rising dividends, making them appealing for investment [4][5]. - The selected companies are rated "Buy" and offer substantial upside relative to Goldman Sachs' price targets [6]. Group 3: Company Profiles - **Diamondback Energy (NASDAQ: FANG)**: Focused on hydrocarbon exploration in the Permian Basin, offering a 2.29% dividend with a price target of $212, indicating a 20% upside [8][9]. - **Ovintiv (NYSE: OVV)**: Engaged in oil and natural gas exploration across the U.S. and Canada, with a 2.20% dividend and a price target of $66, representing a 13% gain potential [10][13]. - **Permian Resources (NYSE: PR)**: Concentrated in the Delaware Basin, trading at 8.5 times earnings with a 3.15% dividend and a price target of $22, suggesting a 14% upside [14][15]. - **Viper Energy (NASDAQ: VNOM)**: Focused on mineral and royalty interests in the Permian Basin, offering a high dividend yield of 4.998% and a price target of $59, indicating a 35% potential gain [17][19].

Core Insights - Viper Energy (VNOM) and Adams Natural Resources Fund (PEO) are highlighted as two energy stocks designed for long-term investment, capable of generating cash flow through various oil market cycles [1] - VNOM reported $1.053 billion in operating cash flow for 2025, with dividend payouts of $328 million, indicating strong cash flow coverage [1] - PEO has maintained continuous quarterly distributions for over 26 years, with net assets of $803.6 million and a share price increase of 150.51% from March 2021 to March 2026 [1] Group 1: Durable Business Structures - VNOM operates on a royalty model, collecting income from oil and gas production without incurring drilling costs, benefiting from partnerships with operators like Diamondback Energy and Exxon [1] - PEO is a closed-end fund with a diversified structure, providing long-term holders with exposure to energy equities without the need for constant portfolio management [1] Group 2: Income Generation and Compounding - VNOM has consistently paid quarterly dividends since at least 2014, with annual payouts increasing from $1.75 in 2023 to $2.40 in 2024 and $2.33 in 2025 [1] - PEO has delivered stable quarterly income for over two decades, with recent distributions in the range of $0.49 to $0.53 for 2025 [1] Group 3: Surviving Market Cycles - Both VNOM and PEO have demonstrated resilience during market downturns, with VNOM's share price increasing by 258.69% from March 2021 to March 2026, while PEO gained 150.51% in the same period [1] - VNOM's management has structured the balance sheet to withstand oil price declines, targeting a leverage ratio of approximately 1.0x even at $50 WTI [1]

Core Viewpoint - Viper Energy (VNOM) is positioned as a favorable investment opportunity in the oil and natural gas sector, characterized by a low-risk profile due to its asset-light business model [1]. Group 1: Company Overview - Viper Energy operates with an asset-light business model, which allows for efficient capital management and risk mitigation [1]. Group 2: Investment Strategy - The investment strategy focuses on wealth preservation, income generation, and long-term appreciation, indicating a balanced approach to portfolio management [1].

Core Insights - The focus is on in-depth research of various companies across different sectors, particularly in commodities and technology, with a strong emphasis on metals and mining stocks [1] Group 1: Company Research - The company has over a decade of experience in researching a wide range of industries, including oil, natural gas, gold, copper, and technology firms like Google and Nokia [1] - The company has transitioned from writing a blog to creating a value investing-focused YouTube channel, where extensive research on hundreds of companies has been conducted [1] - The company expresses a particular interest in covering metals and mining stocks, while also being comfortable with sectors such as consumer discretionary/staples, REITs, and utilities [1]

Core Viewpoint - The article discusses the investment analysis of oil and gas companies, particularly focusing on Viper Energy, highlighting the cyclical nature of the industry and the importance of patience and experience in investing [2]. Group 1: Company Analysis - Viper Energy's stock price experienced a significant decline following its acquisition, but has shown some recovery due to rising oil prices [2]. - The analysis emphasizes the need to evaluate the balance sheet, competitive position, and development prospects of oil and gas companies to identify undervalued opportunities [1]. Group 2: Investment Strategy - The investment group, Oil & Gas Value Research, seeks out under-followed oil companies and midstream companies that present compelling investment opportunities [2]. - The group facilitates discussions among oil and gas investors through an active chat room, allowing members to share recent information and investment ideas [2].

Company Overview - Viper Energy, Inc. is a publicly traded Delaware corporation that focuses on owning and acquiring mineral and royalty interests in oil and natural gas properties, primarily in the Permian Basin [4] Offering Details - Certain selling stockholders have granted underwriters a 30-day option to purchase up to an additional 2,608,696 shares of Class A Common Stock to cover over-allotments [1] - Viper has filed a registration statement, including a prospectus, with the SEC for the offering related to this communication [2]

Core Viewpoint - Viper Energy, Inc. has announced a public offering of 17,391,304 shares of its Class A common stock, expected to generate approximately $798 million in gross proceeds, with the offering set to close on March 4, 2026 [1]. Group 1: Offering Details - The offering is being conducted by Diamondback Energy, Inc. and certain affiliates of EnCap Investments, L.P. and Oaktree Capital Management, L.P. as the Selling Stockholders [1]. - The underwriters have been granted a 30-day option to purchase an additional 2,608,696 shares to cover over-allotments [2]. - Viper will not receive any proceeds from the sale of shares by the Selling Stockholders [1]. Group 2: Concurrent Purchase - In conjunction with the Secondary Offering, Viper has agreed to purchase 1,000,000 units in its operating company, VNOM Holding Company LLC, from certain affiliates of Oaktree Capital Management, L.P. [3]. - The price per unit for the Concurrent OpCo Unit Purchase will match the price per share received by Selling Stockholders in the Secondary Offering [3]. - The completion of the Secondary Offering is not contingent upon the Concurrent OpCo Unit Purchase, but the latter is conditioned upon the completion of the former [3]. Group 3: Regulatory and Management Information - Viper has filed a registration statement with the SEC for the offering, which includes a prospectus [4]. - J.P. Morgan and Goldman Sachs & Co. LLC are acting as joint book-running managers for the Secondary Offering [5]. - Viper Energy, Inc. is a publicly traded Delaware corporation focused on owning and acquiring mineral and royalty interests in oil and natural gas properties, primarily in the Permian Basin [7].