Diamondback’s Viper Energy buys Sitio Royalties for $4.1 billion in merger of the top two minerals players
From Yahoo Finance: 2025-06-03 10:34:00
Viper Energy acquires Sitio Royalties for $4.1 billion, creating a major player in the oil and gas royalties sector. The deal consolidates the booming Permian Basin in West Texas and the minerals and royalties space. Sitio’s stock value rose by 12% with the deal expected to close in the third quarter.
Viper, a subsidiary of Diamondback Energy, expands its presence in the Permian Basin with this acquisition. The combined company will have a strong position in the Permian for years to come. Diamondback’s stock rose 1% in early trading after the deal announcement, showing confidence in the acquisition.
The deal marks an important moment for mineral and royalty interests, according to Diamondback and Viper CEO Kaes Van’t Hof. The transaction gives the expanded Viper the scale to compete for capital with large exploration and production players, strengthening its position in the industry.
Viper’s stock remained flat in early trading, while Diamondback rose 1% after the announcement. The deal includes $1.1 billion in debt assumption and represents a 15% premium on Sitio’s stock value. Sitio emerged as a key player in 2022 through its combination with Brigham Minerals.
The acquisition expands Viper’s mineral footprint by 25,300 net royalty acres in the Permian, reaching a total of 85,700 net acres. The merger also adds 9,000 net royalty acres in other oil and gas basins. Diamondback is expected to own 41% of Viper’s outstanding shares after the deal.