This Energy Stock Returned $131 Million to Shareholders Last Quarter, but One Fund Still Sold Off $48 Million in Shares
Key Points
Webs Creek Capital Management sold 1,273,209 shares of Viper Energy in the fourth quarter.
The quarter-end position value decreased by $48.55 million, reflecting both share sales and market price movement.
The quarter-end stake stood at 270,923 shares valued at $10.47 million.
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On February 17, 2026, Webs Creek Capital Management disclosed in an SEC filing that it sold 1,273,209 shares of Viper Energy (NASDAQ:VNOM) in the fourth quarter, an estimated $48.21 million transaction based on quarterly average pricing.
What happened
According to a SEC filing dated February 17, 2026, Webs Creek Capital Management LP reduced its position in Viper Energy (NASDAQ:VNOM) by 1,273,209 shares during the fourth quarter of 2025. The estimated transaction value was $48.21 million, calculated using the period’s average unadjusted closing price. The quarter-end value of the position fell by $48.55 million, a figure that includes both the share sale and market price changes.
What else to know
- Webs Creek Capital Management’s VNOM stake now accounts for 1.87% of its 13F reportable AUM after the sale.
- Top holdings after the filing:
- NYSE:WHD: $57.73 million (10.3% of AUM)
- NYSE:AR: $51.83 million (9.3% of AUM)
- NYSE:OVV: $51.07 million (9.1% of AUM)
- NASDAQ:WFRD: $49.30 million (8.8% of AUM)
- NYSE:MTZ: $43.88 million (7.9% of AUM)
- As of Wednesday, VNOM shares were priced at $47.16, up about 8% over the past year and underperforming the S&P 500’s roughly 19% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $17.7 billion |
| Revenue (TTM) | $1.4 billion |
| Net income (TTM) | ($69 million) |
| Dividend yield | 5% |
Company snapshot
- Viper Energy owns and manages mineral interests in oil and natural gas properties, primarily in the Permian Basin and Eagle Ford Shale
- The firm focuses on acquiring and managing mineral and royalty interests
- It operates as a subsidiary of Diamondback Energy (NASDAQ:FANG)
Viper Energy holds mineral interests in prolific U.S. shale basins. As a subsidiary of Diamondback Energy, it benefits from the scale and resources of a major energy sector player.
What this transaction means for investors
Viper’s latest results underscore why the name has been attractive even if recent returns don’t fully seem to price that in. The company generated $145 million in cash available for distribution in the fourth quarter alone, returning about 90% of that, or $131 million, to shareholders through dividends and buybacks. Its combined dividend of $0.52 per share implies a roughly 4.6% yield, and management just raised the base dividend by 15% while expanding its buyback authorization by another $1 billion. Meanwhile, production continues to scale, with average output hitting 134,000 boe per day in the quarter.
Of course, there are things pressuring the stock as well, including reported earnings that were weighed down by a $408 million non-cash impairment tied to acquired assets, resulting in a quarterly net loss of $246 million even as operating income remained strong.
Relative to other top holdings, which skew more toward E&P operators and oilfield services, this position offers a more passive royalty-driven model with lower capital intensity. And with a still sizable position in the stock, it’s not like Webs Creek has full-on lost conviction.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Cactus, MasTec, and Viper Energy. The Motley Fool has a disclosure policy.
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