In the second quarter of 2025, investment markets experienced significant upheaval, yet small-cap stocks demonstrated a notable recovery. Amidst this volatile environment, the Carillon Eagle Small Cap Growth Fund drew attention to Viper Energy, Inc. (VNOM), an entity specializing in mineral and royalty interests within the oil and natural gas sector, primarily in the prolific Permian Basin. Despite experiencing recent declines in its stock value, influenced by broader macroeconomic concerns and shifts in global oil supply, Viper Energy is actively reinforcing its market standing through strategic acquisitions. The company's relationship with its parent, Diamondback, is perceived as a significant advantage, offering unparalleled insights into future growth avenues, a crucial differentiator in the current oil and gas industry landscape.
The second quarter of 2025 proved to be a challenging yet ultimately recuperative period for equity markets. Small-cap stocks, in particular, rebounded strongly, recovering from earlier declines. The Russell 2000® Growth Index significantly outperformed its Value counterpart, recording an 11.96% gain versus 4.96%, respectively. Within this context, Carillon Tower Advisers, through its “Carillon Eagle Small Cap Growth Fund” investor letter, emphasized its continued confidence in Viper Energy, Inc.
Viper Energy, trading under NASDAQ:VNOM, holds and acquires vital mineral and royalty interests in various oil and natural gas properties, with a notable concentration in the Permian Basin. This strategic focus positions the company at the heart of significant energy production. While the company's stock faced downward pressure, seeing a 0.95% drop over the preceding month and a 19.13% decline over the past 52 weeks, closing at $37.37 per share with a market capitalization of $10.783 billion on August 19, 2025, the underlying operational strength remains a key consideration for investors.
The primary headwinds for Viper Energy have been the softening of oil prices, a direct consequence of global macroeconomic anxieties, compounded by geopolitical factors and increased production by OPEC nations. However, Carillon Tower Advisers maintains a positive outlook, citing Viper Energy's aggressive pursuit of accretive acquisitions as a method to bolster its market position. Furthermore, the firm highlights the symbiotic relationship between Viper Energy and its parent company, Diamondback, as a unique advantage. This affiliation is believed to grant Viper Energy a distinct foresight into future growth opportunities, a characteristic that is conspicuously absent across much of the broader oil and gas industry.
Viper Energy's resilience, underscored by its strategic acquisitions and its beneficial relationship with Diamondback, positions it favorably for future expansion. Despite the current fluctuations in commodity prices and the broader economic environment, the company's continuous efforts to consolidate its presence in the mineral space suggest a robust long-term trajectory, distinguishing it within the competitive energy sector.