From Yahoo Finance: 2025-06-03 10:20:00

Viper Energy Inc., the mineral and royalty unit of Diamondback Energy Inc., is set to acquire Sitio Royalties Corp. for about $4.1 billion, including debt, in a move focused on the Permian Basin. This marks a consolidation among two major players in US shale rights. Viper CEO aims to become the top mineral champion in the public markets.

The deal gives Viper access to 34,300 net royalty acres across major US shale basins, with a 50% overlap in the Permian Basin. Sitio’s shares rose 13% in trading, while Viper’s shares remained steady. The all-stock deal includes 0.4855 shares of a new holding company for each Sitio share and 0.4855 units of Viper’s subsidiary.

Diamondback is expected to own around 41% of Viper after the deal. Viper plans to increase its base dividend by 10% to 33 cents per quarter. Viper was established by Diamondback to focus on acquiring mineral and royalty interests in oil-heavy basins, primarily the Permian Basin. Citigroup analysts anticipate positive reception due to increased scale and dividend bump.

Read more: Diamondback’s Viper Buys Minerals Rival for $4.1 Billion