UPDATE: Sterne Agee Starts Viper Energy Partners (VNOM) at Neutral

(Updated - July 14, 2014 12:04 PM EDT)

Sterne Agee initiated coverage on Viper Energy Partners (NASDAQ: VNOM) with a Neutral rating. Analyst Tim Rezvan called it an attractive story but he thinks near term growth is baked in.

"We initiate coverage of Viper Energy Partners, an LP representing Diamondback Energy's Permian Basin mineral rights interests, with a Neutral rating. Coverage dovetails nicely with our coverage of Diamondback's equity. We share the market's enthusiasm for Viper's unique, variable distribution growth model, but believe shares are fairly valued after a 26% rally since June's IPO. We believe visibility on oil production growth above our expectations will represent the next leg up in the LP units," he said.

For an analyst ratings summary and ratings history on Viper Energy Partners click here. For more ratings news on Viper Energy Partners click here.

Shares of Viper Energy Partners closed at $32.68 yesterday.

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