WASHINGTON (dpa-AFX) - Viper Energy, Inc. (VNOM), a subsidiary of Diamondback Energy (FANG), and Sitio Royalties Corp. (STR) have entered into a definitive agreement under which Viper will acquire Sitio in an all-equity transaction valued at approximately $4.1 billion, including Sitios net debt of approximately $1.1 billion as of March 31, 2025. The consideration will consist of 0.4855 shares of Class A common stock of a new holding company or pro forma Viper for each share of Sitio Class A common stock, and 0.4855 units of Vipers operating subsidiary, Viper Energy Partners, for each unit of Sitios operating subsidiary, representing an implied value to each Sitio stockholder of $19.41 per share.
The transaction was approved by the Board of each company and has been approved by the written consent of Diamondback as Viper's majority stockholder. Diamondback is expected to own approximately 41% of pro forma Viper's outstanding common stock after closing.
Viper Energy announced that the Board of Directors approved a 10% increase to its base dividend to $1.32 per share annually.
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