Actually horizontal nipples will freeze if the water inside the bucket is not kept warm enough to conduct heat to the outside part of the nipple to keep the pooled water from freezing. I imagine vertical nipples could be kept unfrozen if the water was kept so warm as to conduct enough heat throughout the vertical shaft.
Believe me, I found out just how true this is, but it had nothing to do with the temperature of the water in the bucket itself!! I had a bucket with horizontal nipples and the first winter we had chickens the nipples froze solid - I mean icicles going from the to of the nipples, down the bucket, over the bricks holding the waterer off the floor, and down to the floor into the litter. It only seemed to happen when temps got super cold, but this is Wyoming and it's usually super cold! It was frustrating to get up in the morning, start the coffee, bundle up, grab the heat gun, go out and thaw the waterer. It didn't take long, but man, was it COLD! The water in the bucket didn't freeze - we had a small stock tank heater in there that kicked on when the water temperature hit a certain point, but the little residual drops of water left in the small cups froze and eventually the pressure of the ice in there would push open the mechanism and it stayed open until the opening into the water bucket froze it shut and no more water could leak out.
I was talking on here about it, and someone
@aart was it you, or do you remember the conversation?) had one of those fancy-dancy point thermometers and tested the bucket he/she had. As would be expected, the higher up on the bucket the thermometer was aimed, the warmer the water was. Not by much, but it was measurable.
So we had made several mistakes in our setup, and we corrected those the first balmy day we had. First, we moved the nipples up a little higher on the bucket, level with the heater. Our little stock tank heater in there had a tendency to float to the top of the bucket, so we had it attached to a small round barbeque grate which was wedged firmly against the bottom sides of the bucket to hold it in place. Worked great, but raised the heater by about 3 inches, and the nipples on the original bucket were
under that. Second thing we did was get those stupid hollow bricks out from under the waterer. Nothing like providing a nice place for cold air to settle. <sigh> The third thing we did was move the water bucket out to the run (yes, I foolishly had it in the coop) into a corner on the southeast side of the run where the sun would hit it. We continued to use that same exact setup year round, winter after winter, and never had another problem.