VNOM - Viper Energy Partners: Grab A 9%+ Yield For 2022 Thanks To Hedges Rolling Off
- Viper Energy Partners has once again pushed their distributions higher thanks to the continued strong oil prices.
- This has seen their underlying operating cash flow that excluding temporary working capital movements surge a massive near 40% year-on-year.
- When looking ahead into 2022, their preliminary guidance indicates that their free cash flow should keep climbing even if oil prices remain static thanks to their hedges rolling off.
- Since they target a 70% payout ratio, this would see them providing a high 9% yield on current cost.
- Given this favorable outlook for higher distributions even without higher oil prices, I believe that maintaining my bullish rating is appropriate.
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Viper Energy Partners: Grab A 9%+ Yield For 2022 Thanks To Hedges Rolling Off