Viper Energy Acquires Sitio Royalties in All-Equity Deal, Updates Q3 Guidance

Viper Energy, a subsidiary of Diamondback Energy, has completed its acquisition of Sitio Royalties Corp. in an all-equity transaction. The merger creates a leader in the mineral and royalty industry, with Viper maintaining its unique relationship with Diamondback as its parent company. The combination is expected to deliver sustained growth with no capex and limited operating costs. Revised Q3 2025 production guidance has been announced, with average oil production of 54,500-57,500 bo/d and total production of 104,000-110,000 boe/d.

Viper Energy, Inc. (NASDAQ: VNOM), a subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG), has announced the completion of its acquisition of Sitio Royalties Corp. (Sitio) in an all-equity transaction. The merger aims to establish a leading position in the mineral and royalty industry, with Viper maintaining its unique and symbiotic relationship with Diamondback as its parent company.

The acquisition is expected to create a company with significant size, scale, float, liquidity, and access to investment-grade capital in a highly fragmented minerals market. Pro forma Viper will be uniquely positioned in North American shale to deliver sustained growth with no capital expenditure (capex) and only limited operating costs.

In conjunction with the merger, Viper has revised its Q3 2025 production guidance. The average oil production is now expected to be between 54,500 to 57,500 barrels per day (bo/d), an increase of 8,500 bo/d at the midpoint compared to the prior standalone guidance. The average total production is projected to be between 104,000 to 110,000 barrels of oil equivalent per day (boe/d), representing an increase of 18,000 boe/d at the midpoint.

Kaes Van’t Hof, Chief Executive Officer of Viper, stated, "We are pleased to announce the closing of the merger of Viper and Sitio. This combination signifies an important moment for the mineral and royalty industry."

Viper Energy focuses on owning, acquiring, and exploiting oil and natural gas properties in North America, with a particular emphasis on mineral and royalty interests in oil-weighted basins, primarily the Permian Basin. Diamondback Energy, the parent company, is an independent oil and natural gas company headquartered in Midland, Texas, focused on the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin.

The merger is subject to certain risks and uncertainties, including the ability to successfully integrate Sitio’s and Viper’s businesses and technologies, the potential that expected benefits and synergies may not be fully achieved, and the risk of not being able to retain and hire key personnel. Additionally, the merger may face unanticipated difficulties or expenditures, and there is uncertainty regarding the long-term value of Viper’s common stock.

For more information, please visit the respective company websites: [1] https://www.viperenergy.com and [2] https://www.diamondbackenergy.com.

References:
[1] https://www.globenewswire.com/news-release/2025/08/19/3135583/31654/en/Viper-Energy-Inc-a-Subsidiary-of-Diamondback-Energy-Inc-Has-Completed-Its-Acquisition-of-Sitio-Royalties-Corp-In-All-Equity-Transaction.html
[2] https://www.stocktitan.net/news/VNOM/viper-energy-inc-a-subsidiary-of-diamondback-energy-inc-has-47kom1eh2v3k.html