Viper Energy has agreed to acquire Sitio Royalties in a deal valued at USD 4.1 billion, the company said on Wednesday.
The acquisition will position Viper as a leading publicly traded mineral and royalty company in North America, significantly enhancing its scale, asset base and access to capital.
With an estimated 34,300 net royalty acres and substantial production overlap in the Permian Basin, the transaction strengthens Viper’s long-term free cashflow potential and competitive positioning among North American E&Ps. The deal is expected to deliver immediate financial accretion and operational synergies, including over USD 50 million in annual savings.
The all-equity transaction includes Sitio’s net debt of approximately USD 1.1 billion as of March 31, 2025.
Viper will issue 0.4855 shares of pro forma Viper Class A stock for each Sitio Class A share and equivalent units for other classes, giving Sitio shareholders USD 19.41 per share based on Viper’s June 2, 2025, closing price. The boards of both companies and majority shareholder Diamondback Energy have approved the deal, which is set to close in Q3 2025 pending regulatory clearances.
Sitio has accumulated around 34,300 net royalty acres across key US basins, including 25,300 acres in the Permian Basin. In Q1 2025, Sitio reported average production of 18.9 million bopd.
“This combination creates a leader in size, scale, float, liquidity and access to investment grade capital in the highly fragmented minerals industry,” Viper Energy CEO Kaes Van’t Hof said.
“Pro forma Viper is now clearly a must-own public mineral and royalty company in North America.”
Following the merger, Diamondback will own approximately 41% of the combined entity. Viper expects annual synergies exceeding USD 50 million, with immediate accretion of 8-10% to distributable cash per share and a 10% increase in its annual base dividend to USD 1.32.
Viper Energy, headquartered in Midland, Texas, is a subsidiary of Diamondback Energy and is engaged in the ownership and acquisition of mineral and royalty interests across oil-weighted basins in North America. The company focuses on generating long-term value through its portfolio of oil and gas assets, particularly in the Permian Basin.
Sitio Royalties, based in Denver, Colorado, is a pure-play minerals company focused on the aggregation of oil and gas mineral and royalty interests in key producing US basins. The company’s strategy centres on accretive acquisitions and portfolio optimisation to generate sustainable cashflow and shareholder returns.
Source: theenergyyear.com