Midland-based Viper Energy, subsidiary of Diamondback Energy, said Tuesday it agreed to acquire Sitio Royalties in an all-equity transaction valued at $4.1 billion. The agreement, which includes Sitio’s $1.1 billion of debt, is expected to close in 2025Q3. Diamondback will own 41 percent of Viper’s outstanding common stock after closing.”
“This combination creates a leader in size, scale, float, liquidity and access to investment grade capital in the highly fragmented minerals industry,” Kaes Van’t Hof, CEO of Viper, said. “Viper is now clearly a must-own public mineral and royalty company in North America with attractive size and scale in the Permian Basin.”
Chris Conoscenti, CEO of Sitio, said, “This transaction provides Sitio’s shareholders with exposure to an entity with significantly greater size, future development visibility, and all of the benefits of the economies of scale to the minerals business.” Noam Lockshin, chair of the Sitio board, added, “By adding Sitio’s coverage of the Delaware Basin to Viper’s position in the Midland Basin, the combined company will be well positioned in the Permian for years to come.”
Sitio’s assets included 25,300 net royalty acres in the Permian Basin and 9,000 additional net acres in Eagle Ford, DJ and Williston basins. First quarter production was 42,100 boed (18,900 b/d of crude oil).
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