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Viper Energy Partners, poised for Permian growth, upgraded to Buy at UBS

Published 12/05/2017, 03:54 PM
© Reuters.  Viper Energy Partners, poised for Permian growth, upgraded to Buy at UBS
VNOM
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  • Viper Energy Partners (VNOM +1.7%) is upgraded to Buy from Neutral with a $27 price target, raised from $19, at UBS, which believes VNOM is well positioned for growth through higher oil and gas production in the Permian Basin with 22 active rigs on its acreage, up from 18 in Q2.
  • The energy team at UBS increases its production estimates for VNOM by a respective 5% and 6% for 2018 and 2019 as it raises its 2018 and 2019 crude price forecast by a respective 6% and 2%.
  • As a result, UBS hikes its distribution growth expectations for VNOM and now expects a 2017-21 DPU compound annual growth rate of 17% (without additional acquisitions), up from 6%.
  • Now read: Viper Energy Partners LP 2017 Q3 - Results - Earnings Call Slides


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