Viper Energy, Inc., a subsidiary of Diamondback Energy, Inc., announced a definitive agreement to acquire Sitio Royalties Corp. in an all-equity transaction valued at approximately $4.1 billion. This valuation includes Sitio’s net debt of approximately $1.1 billion as of March 31, 2025, marking a significant consolidation in the mineral and royalty sector.
Under the terms of the agreement, Sitio Class A common stockholders will receive 0.4855 shares of Class A common stock of a new holding company, referred to as 'pro forma Viper,' for each Sitio Class A share. Sitio shareholders are expected to own 20% of the combined company upon the closing of the transaction.
The merger is anticipated to close in the third quarter of 2025, creating a larger, more diversified entity focused on the Permian Basin. Viper Energy also announced an increase to its base dividend, and the acquisition is expected to boost Viper's cash flow per share by 9%.
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