Viper Energy To Acquire Sitio Royalties For $4.1B In All-Stock Transaction

Shares of Sitio Royalties Corp. (STR) gained over 7% in Tuesday’s pre-market session after Viper Energy, Inc. (VNOM) agreed to acquire the company in an all-equity transaction valued at approximately $4.1 billion.

The transaction also includes Sitio’s net debt of approximately $1.1 billion as of March 31, 2025.

Viper Energy is a subsidiary of Diamondback Energy, Inc. (FANG), with a focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin.

Sitio has approximately 25,300 net royalty acres in the Permian Basin and an additional 9,000 net royalty acres in other major basins, with a total acreage of approximately 34,300 net royalty acres.

The company has approximately a 50% overlap with existing Viper gross-producing horizontal wells in the Permian Basin.

The acquisition will add significant scale and inventory depth that will support Viper’s durable production profile and free cash flow growth over the next decade. The deal is expected to be approximately 8% to 10% accretive to cash available for distribution per Class A share immediately upon closing.

Viper CEO Kaes Van’t Hof stated that the transaction positions the company to compete for capital with mid- and large-cap North American explorers and producers (E&Ps), except with higher margins, minimal operating costs, and the lowest dividend breakeven in the space.

“While this transaction will reduce Diamondback’s ownership in pro forma Viper to 41%, it does not reduce the significance of the relationship between Diamondback and Viper. The Diamondback drill-bit remains Viper’s biggest competitive advantage and the most visible source of long-term production growth at Viper,” he said.

Sitio’s stock has declined over 12% in 2025, while Viper's stock is down nearly 20% this year.

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