MIDLAND: Viper Energy Inc., a subsidiary of Diamondback Energy Inc., announced Monday it has agreed to acquire Sitio Royalties Corp. in an all-stock transaction valued at approximately $4.1 billion, including $1.1 billion in net debt.
The deal, expected to close in the third quarter of 2025, will create one of the largest publicly traded mineral and royalty companies in North America. Under the terms, Sitio shareholders will receive 0.4855 shares of a newly formed holding company for each share of Sitio Class A common stock, valuing Sitio at $19.41 per share based on Viper’s closing price June 2.
The combined company will hold roughly 85,700 net royalty acres in the Permian Basin, with Diamondback operating about 43% of the assets. The transaction was unanimously approved by both companies’ boards and received consent from Diamondback, Viper’s majority shareholder.
“This combination creates a leader in size, scale and liquidity in the minerals industry,” said Viper CEO Kaes Van’t Hof. “Pro forma Viper is now a must-own public mineral and royalty company.”
Sitio CEO Chris Conoscenti called the deal a “shared strategic vision” that offers shareholders greater scale and development visibility.
The merger is projected to deliver $50 million in annual cost savings and boost cash flow per share by 8% to 10%. Viper also announced a 10% increase in its base dividend to $1.32 per share annually.
J.P. Morgan advised Sitio, while Moelis & Company served as financial advisor to Viper.