Diamondback Energy-backed Viper Energy to acquire Sitio Royalties for $4.1bn.

Diamondback Energy-backed Viper Energy, a company that owns and acquires mineral and royalty interests, agreed to acquire Sitio Royalties, a pure-play mineral and royalty company, for $4.1bn. “The combination of Viper and Sitio signifies an important moment for mineral and royalty interests. This combination creates a leader in size, scale, float, liquidity and access to investment grade capital in the highly fragmented minerals industry. Pro forma Viper is now clearly a must-own public mineral and royalty company in North America, with attractive size and scale in the Permian Basin. This transaction positions Viper to compete for capital with mid and large cap North American E&Ps; except with higher margins, minimal operating costs, and the lowest dividend breakeven in the space," Kaes Van’t Hof, Viper Chief Executive Officer.