Viper Energy Acquires Sitio Royalties, Raises Q3 Oil Production Guidance

Viper Energy, a subsidiary of Diamondback Energy, has acquired Sitio Royalties Corp. in an all-equity transaction. The acquisition will increase Viper's Q3 2025 production guidance by 8,500 bo/d at the midpoint, with average oil production of 54,500 - 57,500 bo/d and total production of 104,000 - 110,000 boe/d. The revised guidance takes into account the 43 days of contribution from Sitio.

Viper Energy, Inc., a subsidiary of Diamondback Energy, Inc., has completed its acquisition of Sitio Royalties Corp. in an all-equity transaction. This acquisition is expected to significantly enhance Viper's Q3 2025 production guidance. The revised guidance indicates an average oil production of 54,500 to 57,500 barrels per day (bo/d) and an average total production of 104,000 to 110,000 barrels of oil equivalent per day (boe/d). This represents an increase of 8,500 bo/d at the midpoint compared to the prior standalone guidance, reflecting the 43 days of contribution from Sitio Royalties Corp. [1]

Kaes Van't Hof, Chief Executive Officer of Viper Energy, expressed his pleasure with the merger, stating, "We are pleased to announce the closing of the merger of Viper and Sitio, the combination of which signifies an important moment for the mineral and royalty industry. This combination creates a leader in size, scale, float, liquidity and access to investment grade capital in the highly fragmented minerals market with Viper still maintaining its highly unique and symbiotic relationship with Diamondback as our parent company. Pro forma Viper will be uniquely positioned in North American shale to deliver sustained growth with no capex and only limited operating costs." [1]

The acquisition of Sitio Royalties Corp. is part of Diamondback Energy's strategy to expand its portfolio of oil and natural gas assets. The company plans to provide a full-year 2025 guidance update with its upcoming third quarter earnings release in November 2025. This update will further inform investors about the company's growth outlook and operational strategies. [2]

While the acquisition presents potential benefits, such as increased production and operational expansion, it also comes with risks and uncertainties. These include the integration of Sitio's and Viper's businesses and technologies, the expected benefits and synergies of the merger, and the ability to finance the combined company on acceptable terms. [1]

Investors should closely monitor Diamondback Energy's progress and future updates to assess the impact of the acquisition on the company's financial performance. As with any forward-looking statements, the outcomes may differ materially from the company's expectations due to various risks and uncertainties. [1]

References:
[1] Viper Energy, Inc. (2025). Viper Energy, Inc. Subsidiary Diamondback Energy, Inc. Has Completed. [URL](https://www.viperenergy.com/news-releases/news-release-details/viper-energy-inc-subsidiary-diamondback-energy-inc-has-completed)
[2] QuiverQuant (2025). Diamondback Energy's Viper Energy, Inc. Completes Acquisition of Sitio Royalties Corp. and Updates Q3 2025 Production Guidance. [URL](https://www.quiverquant.com/news/Diamondback+Energy%27s+Viper+Energy%2C+Inc.+Completes+Acquisition+of+Sitio+Royalties+Corp.+and+Updates+Q3+2025+Production+Guidance)