Sitio Royalties Surges to Top 493 in Trading Volume with $202 Million Turnover Amid Viper Energy Acquisition

On June 3, 2025, Sitio Royalties (STR) saw a significant surge in trading volume, with a turnover of $202 million, marking a 1,453.32% increase from the previous day. This surge placed Sitio among the top 493 stocks by trading volume for the day. The stock price of Sitio Royalties rose by 15.30%, marking its second consecutive day of gains, with a total increase of 16.99% over the past two days.

Viper Energy, a subsidiary of Diamondback Energy, has announced a definitive agreement to acquire Sitio Royalties in an all-equity transaction valued at approximately $4.1 billion. This acquisition will combine two of the largest mineral and royalty players in the oil and gas industry, significantly expanding Viper's presence in the Permian Basin.

The transaction includes the assumption of $1.1 billion of Sitio's net debt. Sitio stockholders will receive 0.4855 shares of Class A common stock in a new holding company for each share of Sitio Class A common stock they own. The deal is expected to close in the third quarter of 2025, subject to customary closing conditions.

Upon completion, Diamondback Energy is projected to hold about 41% of the new holding company's outstanding common stock. The combined entity, known as Pro forma Viper, is expected to hold approximately 85,700 net royalty acres in the Permian Basin, with an average 1.8% Net Royalty Interest across about 33,300 gross producing horizontal wells.

Viper's board has also approved a 10% increase to its base dividend, raising it to $1.32 per share annually. This move is aimed at positioning Viper to compete more effectively for capital with mid- and large-cap exploration and production companies. The transaction is anticipated to generate annual synergies exceeding $50 million.