Viper Energy Raises $1.6 Billion Through Senior Notes Issuance

Viper Energy has announced a $1.6 billion senior notes issuance, with $500 million due in 2030 and $1.1 billion due in 2035. The proceeds will be used for general corporate purposes, including redeeming existing notes and potentially those of Sitio Royalties Corp. The notes will be senior unsecured obligations and are expected to close on July 23, 2025.

Viper Energy Inc. (VNOM) has announced a significant $1.6 billion senior notes issuance, with two tranches totaling $500 million due in 2030 and $1.1 billion due in 2035. The notes, priced at 99.902% and 99.636% of their principal amounts, respectively, are expected to close on July 23, 2025, pending customary closing conditions [1][2].

The funds raised from this offering will be used for general corporate purposes, including redeeming existing senior notes due in 2031 and 2027, and potentially those of Sitio Royalties Corp. if the acquisition closes. The company also plans to repay Sitio's borrowings under its revolving credit facility [1][2].

Goldman Sachs & Co. LLC, Barclays Capital Inc., BofA Securities, Inc., and Wells Fargo Securities, LLC are serving as joint book-running managers for the notes offering. Investors can obtain the prospectus supplement and related base prospectus from these financial institutions and the U.S. Securities and Exchange Commission's website [2].

Viper Energy, a publicly traded corporation focused on owning and acquiring mineral and royalty interests in oil and natural gas properties primarily in the Permian Basin, has seen strong investor demand and confidence in its financial strategy with this issuance [3]. The proceeds from the notes offering are intended to strengthen the company's financial position by refinancing existing higher-interest debt, potentially reducing interest expenses.

However, the reliance on a significant debt offering could indicate potential liquidity concerns for Viper Energy, as the company is using these proceeds for corporate purposes including redeeming existing debt. The issuance of new senior notes at lower interest rates than existing debt may signal a negative outlook on the company's financial stability or creditworthiness [3].

Viper Energy has provided a disclaimer stating that the press release contains forward-looking statements, which involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Viper Energy [2]. Investors are advised to review the company's filings with the U.S. Securities and Exchange Commission for more information on these risks and uncertainties.

References:
[1] https://www.nasdaq.com/articles/viper-energy-partners-prices-offering-16-bln-senior-notes
[2] https://www.globenewswire.com/news-release/2025/07/09/3112907/0/en/Viper-Energy-Partners-Prices-Offering-of-1-6-billion-of-Senior-Notes.html
[3] https://www.nasdaq.com/articles/viper-energy-inc-announces-pricing-16-billion-senior-notes-offering