VNOM - Viper Energy Partners: Plenty More Distribution Growth Coming After The Upcoming Acquisition

• Viper Energy Partners has once again increased their distributions for 2021 with the oil price recovery lifting their free cash flow.
• The second quarter of 2021 saw their free cash flow increase versus the first quarter with management expecting even more in the second half year than during the first half year.
• They have increased their distribution payout ratio to 70%, which boosts their distributions in the short term but their upcoming acquisition will provide plenty more growth in the medium term.
• It stands to boost their production by a very impressive 30%+ by 2024 without hurting their very healthy financial position, which should push distributions even higher.
• Since this provides a chance to own a high distribution yield that also has high growth prospects with little financial position risks, I still believe that my bullish rating is appropriate.

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