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VNOM (Viper Energy) Degree of Operating Leverage : 0.53 (As of Mar. 2025)


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What is Viper Energy Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Viper Energy's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.53. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Viper Energy's Degree of Operating Leverage or its related term are showing as below:

VNOM's Degree of Operating Leverage is ranked better than
56.13% of 905 companies
in the Oil & Gas industry
Industry Median: 0.94 vs VNOM: 0.53

Viper Energy Degree of Operating Leverage Historical Data

The historical data trend for Viper Energy's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Viper Energy Degree of Operating Leverage Chart

Viper Energy Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.71 -16.93 1.77 2.26 -0.70

Viper Energy Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.43 1.12 -4.13 -0.70 0.53

Competitive Comparison of Viper Energy's Degree of Operating Leverage

For the Oil & Gas Midstream subindustry, Viper Energy's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Viper Energy's Degree of Operating Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Viper Energy's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Viper Energy's Degree of Operating Leverage falls into.


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Viper Energy Degree of Operating Leverage Calculation

Viper Energy's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 633.349 (Mar. 2025) / 619.467 (Mar. 2024) - 1 )/( 899.51 (Mar. 2025) / 863.232 (Mar. 2024) - 1 )
=0.0224/0.042
=0.53***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Viper Energy  (NAS:VNOM) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Viper Energy Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Viper Energy's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Viper Energy Business Description

Industry
Traded in Other Exchanges
Address
500 West Texas, Suite 100, Midland, TX, USA, 79701
Viper Energy Inc is focused on owning and acquiring mineral and royalty interests in oil and natural gas properties primarily in the Permian Basin. The Permian Basin is known to have a number of zones of oil and natural gas-bearing rock throughout.
Executives
Diamondback Energy, Inc. 10 percent owner, other: Director by deputization 500 WEST TEXAS, SUITE 1200, MIDLAND TX 79701
Blackstone Holdings Iii L.p. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Bx Swt Ml Holdco Llc 10 percent owner 345 PARK AVENUE, NEW YORK NY 10154
Laurie H Argo director 1100 LOUISIANA STREET, SUITE 1000, HOUSTON TX 77002
Frank C. Hu director 625 LIBERTY AVE., SUITE 1700, PITTSBURGH PA 15222
Armour Spencer D Iii director 400 W. ILLINOIS, SUITE 800, MIDLAND TX 79701
Bx Guidon Topco Llc 10 percent owner C/O BLACKSTONE MANAGEMENT PARTNERS L.L.C, 345 PARK AVENUE, 43RD FLOOR, NEW YORK NY 10154
Matt Zmigrosky officer: Exec. VP and General Counsel 500 WEST TEXAS AVENUE, SUITE 1200, MIDLAND TX 79701
Blackstone Management Associates Vi L.l.c. 10 percent owner C/O THE BLACKSTONE GROUP 345 PARK AVENUE, NEW YORK NY 10154
Bx Swallowtail Royalties Holding Llc 10 percent owner C/O THE BLACKSTONE GROUP INC., NEW YORK NY 10154
Blackstone Ema Ii L.l.c. 10 percent owner C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154
Blackstone Energy Management Associates Ii L.l.c. 10 percent owner C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154
Guidon Energy Holdings Gp Llc 10 percent owner C/O BLACKSTONE MANAGEMENT PARTNERS L.L.C, 345 PARK AVENUE, 43RD FLOOR, NEW YORK NY 10154
Guidon Energy Holdings Lp 10 percent owner C/O BLACKSTONE MANAGEMENT PARTNERS L.L.C, 345 PARK AVENUE, 43RD FLOOR, NEW YORK NY 10154
Swallowtail Royalties Holdings Llc 10 percent owner 545 E. JOHN CARPENTER FWY., STE. 1300, IRVING TX 75062