Midland-based Diamondback Energy said Thursday it reached agreement with subsidiary Viper Energy to sell mineral and royalty interests from subsidiaries of Diamondback for $1 billion in cash and about 69.6 million units of Viper’s operating subsidiary in a “drop down” transaction. The transaction is valued at $4.45 billion.
Travis Stice, chairman and CEO of Diamondback, said, “This ‘drop down’ transaction with Viper is a major milestone in the continued synergy capture and execution of corporate development objectives related to the Endeavor transaction… The ‘drop down’ will accelerate debt reduction and increase Diamondback’s exposure to Viper’s differentiated growth profile and market-leading minerals position.”
Closing is expected in 2025Q1.
Hart Energy said Diamondback is “working to reduce debt after a $26 billion acquisition of Endeavor Energy Resources.”