Viper Energy set for turnaround in natural gas business

Viper Energy Inc. (NASDAQ: VNOM), a royalty-focused subsidiary of Diamondback Energy (NASDAQ: FANG), is due to report first-quarter earnings on Monday, May 5. Analysts expect the Texas-based group to post revenue of $247 million, a +20% year-on-year increase, fueled by an anticipated turnaround in its natural gas segment.

Viper Energy has faced headwinds within its natural gas segment over the past two years as Henry Hub prices, the benchmark price for natural gas traded in the U.S. collapsed — falling -59% year-on-year in 2023 and a further -16% in 2024 — driven by oversupply, unseasonably warm winters, and elevated inventories. However, the outlook for 2025 suggests a meaningful rebound in the natural gas market. as Henry Hub prices are estimated to rebound to $3.82, up +69% in 2025.

Analyst forecasts for 2025 point to a sharp recovery, supported by tightening supply and renewed demand for gas in heating and power generation. Viper’s natural gas revenues are projected to surge +378% year-on-year in 2025, reversing a -52% decline in 2024.

Other segments, including crude oil — Viper’s largest revenue contributor — are also expected to remain resilient, with oil revenues forecast to grow +29% over the full year 2025. Furthermore, the natural gas business is expected to deliver a CAGR of +14% through 2030, compared to 0.4% for crude oil and 3% for natural gas liquids (NGLs).