Midland-based Viper Energy Partners said Tuesday it agreed to acquire for about $1 billion in cash and stock certain Permian Basin mineral and royalty interests from affiliates of Warwick Capital Partners and GRP Energy Capital. Viper, subsidiary of Midland’s Diamondback Energy, said it will pay about $750 million in cash plus about nine million Viper common units to acquire 4,600 net royalty acres in Permian Basin (2,800 in Midland Basin, 1,800 in Delaware Basin) and an additional 2,700 net royalty acres in other major basins, including Eagle Ford and Barnett Shale in Texas. Most of the Midland Basin acreage is in Martin and Midland counties; most of the Delaware Basin acreage is in Loving and Reeves counties.
Current oil production on the acquired assets is about 4,000 barrels per day (7,000 boed), and it is expected to increase to about 4,750 b/d of oil (8,500 boed) for fullyear 2024. Viper now will own about 32,000 net royalty acres in Permian Basin with fullyear 2024 oil production of 26,500 b/d (46,250 boed) at midpoint.
Travis Stice, CEO, said the quantity and quality of the acquired undeveloped acreage position will allow the company to “capture an increasing amount of activity particularly within the northern Midland Basin.” He said Viper is expected to play “a meaningful role” in consolidating the fragmented mineral market as high-value opportunities become available. Closing is expected in 2023Q4.