Viper Energy, a subsidiary of Diamondback Energy focused on oil and gas production in the Permian Basin (United States), has entered into a definitive agreement with Sitio, under the terms of which Viper will acquire Sitio in an all-equity transaction valued at around US$4.1bn, including Sitio’s net debt (around US$1.1bn as of 31 March 2025). Viper Energy will thus increase its acreage in the Permian Basin by 25,300 acres (102 km2) to 85,700 acres (347 km2) (plus around 9,000 net royalty acres (36 km2) in the DJ, Eagle Ford, Williston basins), and add an average production of 42.1 kboe/d to reach 122-130 kboe/d at the end of 2025.
The transaction aims to create a leader in size, scale, float, liquidity, able to access to investment grade capital in the highly fragmented minerals industry. It is subject to customary regulatory approvals and is expected to close in the third quarter of 2025.