Why One Fund Ditched Viper Energy in a $12 Million Exit Amid a 20% Stock Slide

Core Viewpoint - Viper Energy's stock has experienced a decline, with significant selling activity from major investors indicating potential concerns about the company's performance and investor sentiment in the energy sector [1][2][6]. Company Overview - Viper Energy focuses on acquiring and managing mineral rights in key U.S. oil and gas basins, allowing participation in upstream production economics while minimizing capital expenditures and operational risks [5][8]. - The company operates as a subsidiary of Diamondback Energy and generates revenue primarily from royalties on hydrocarbon production [8]. Financial Performance - For the trailing twelve months (TTM), Viper Energy reported revenue of $1.19 billion and a net income of $243.66 million [4]. - The company has a dividend yield of 5.5%, with shares priced at $38.48 as of the latest report [4]. - In the third quarter, Viper produced over 108,000 barrels of oil equivalent per day and generated $165 million in pro forma cash available for distribution, returning 85% of that cash to shareholders through dividends and buybacks [6][9]. Market Performance - Viper Energy's shares have decreased by 20% over the past year, significantly underperforming the S&P 500, which has increased by approximately 15.5% during the same period [3]. - The Nemes Rush Group sold its entire position of 319,503 shares, valued at approximately $12.18 million, indicating a strategic move after a sharp drawdown [2][10].