Diamondback Energy’s subsidiary Viper Energy has agreed to acquire Sitio Royalties in an all-equity transaction valued at around $4.1bn.
The deal includes Sitio’s net debt of approximately $1.1bn as of 31 March 2025.
Sitio is a pure-play mineral and royalty company engaged in the acquisition of high quality oil and gas mineral and royalty interests in productive US basins.
As of 31 March 2025, Sitio has accumulated around 34,300 net royalty acres via the consummation of more than 200 acquisitions.
Viper owns, acquires and exploits oil and natural gas properties in North America, with a focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin.
The boards of both companies have unanimously approved the transaction, and Diamondback, as Viper’s majority stockholder, has also given written consent.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataPost-acquisition, Diamondback is expected to own around 41% of pro forma Viper’s outstanding common stock and will continue to drive meaningful long-term oil production growth from the company’s acreage.
The transaction is anticipated to close in the third quarter of 2025 (Q3 2025), subject to customary regulatory approvals.
Viper chief executive officer Kaes Van’t Hof said: “The combination of Viper and Sitio signifies an important moment for mineral and royalty interests. This combination creates a leader in size, scale, float, liquidity and access to investment grade capital in the highly fragmented minerals industry. Pro forma Viper is now clearly a must-own public mineral and royalty company in North America, with attractive size and scale in the Permian Basin.
“This transaction positions Viper to compete for capital with mid and large cap North American E&Ps [exploration and production companies]; except with higher margins, minimal operating costs and the lowest dividend breakeven in the space.”
In conjunction with the acquisition news, Viper announced a 10% increase to its base dividend, which now stands at $1.32 per share annually, or $0.33 per share quarterly.
