Viper Energy to Acquire Sitio Royalties in $4.1B All-Stock Deal

Viper Energy Inc. (NASDAQ:VNOM) is one of the most promising stocks according to Wall Street analysts. On June 5, Viper Energy, which is a subsidiary of Diamondback Energy Inc. (NASDAQ:FANG), announced a definitive agreement to acquire Sitio Royalties Corp. (NYSE:STR) in an all-stock transaction valued at ~$4.1 billion. The valuation includes Sitio’s net debt of about $1.1 billion as of March 31 this year.

The acquisition will expand Viper’s Permian Basin footprint by 42%. Sitio Royalties currently holds ~34,300 net royalty acres in total, with about 25,300 net royalty acres located within the Permian Basin, and an additional 9,000 net royalty acres concentrated in other major US basins such as the Eagle Ford and Williston Basins. ~50% of Sitio’s Permian acreage overlaps with existing Viper gross-producing horizontal wells.

Viper Energy to Acquire Sitio Royalties in $4.1B All-Stock Deal

The sun rising over a sprawling network of oil & gas pipelines near Midland, Texas.

Following the closure of the deal, the combined entity will own ~85,700 net royalty acres in the Permian Basin, with about 43% operated by Diamondback. Pro forma Viper’s average production in the fourth quarter of 2025 is expected to range between 122-130 thousand barrels of oil equivalent per day.

Viper Energy Inc. (NASDAQ:VNOM) owns and acquires mineral and royalty interests in oil & natural gas properties in the Permian Basin, North America. Diamondback Energy Inc. (NASDAQ:FANG) is an independent oil & natural gas company that acquires, develops, explores, and exploits unconventional, onshore oil & natural gas reserves in the Permian Basin in West Texas. Sitio Royalties Corp. (NYSE:STR) acquires, owns, and manages mineral & royalty interests across premium basins in the US.

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Disclosure: None. This article is originally published at Insider Monkey.