Viper Vitality, Inc. and its working subsidiary Viper Vitality Companions LLC (OpCo) are buying sure mineral and royalty interest-owning subsidiaries of Tumbleweed Royalty IV, LLC.
The acquisition worth is $461.0 million of money and roughly 10.1 million OpCo models, topic to customary changes, in accordance with a information launch from Viper, a subsidiary of Diamondback Vitality, Inc. The transaction is predicted to shut within the fourth quarter, topic to customary closing circumstances.
Viper stated the money portion of the transaction is predicted to be funded via a mix of money available, borrowings beneath the corporate’s credit score facility, and proceeds from a number of capital markets transactions, topic to market circumstances and different elements.
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The issuance of OpCo models might be accompanied by the grant of an choice to buy an equal variety of shares of Class B frequent inventory of the corporate, in accordance with the discharge. The acquisition settlement additionally features a potential extra cost within the first quarter of 2026 of contingent money consideration of as much as $41.0 million, primarily based on the typical 2025 West Texas Intermediate (WTI) worth.
Viper additionally introduced the closing of two associated acquisitions. Earlier within the month, OpCo accomplished the acquisition of sure mineral and royalty interest-owning entities from Tumbleweed-Q Royalty Companions, LLC and MC Tumbleweed Royalty, LLC for a mixed $189.0 million of money consideration, plus potential extra funds within the first quarter of 2026 of contingent money consideration of as much as an mixture of $9.0 million, primarily based on the typical 2025 WTI worth. The transactions have been funded with a mix of money available and borrowings beneath the corporate’s credit score facility.
The mixed acquisitions make up roughly 3,727 internet royalty acres (NRAs) within the Permian Basin. There’s additionally a extremely undeveloped asset with a concentrate on the core of the Midland Basin.
The property have present manufacturing of roughly 2,500 barrels of oil per day (bopd), or 4,000 barrels of oil equal per day (boepd), that are anticipated to extend to roughly 4,500 bopd for full yr 2025 primarily based on solely present producing wells (PD), drilled however uncompleted wells (DUCs), permits, and Diamondback’s anticipated improvement plan.
Viper presently expects Diamondback to finish roughly 120-140 gross places past current DUCs and permits on the acquired properties via year-end 2026. These are anticipated to drive a rise in Diamondback-operated manufacturing from a mean of roughly 1,000 bopd in 2025 to roughly 3,000 bopd in 2026.
“The set of acquisitions introduced in the present day is a continuation of Viper’s technique to consolidate top quality mineral and royalty property that not solely present significant and rapid monetary accretion, but additionally present vital undeveloped stock that helps our long-term manufacturing profile,” Viper CEO Travis Stice stated. “With roughly 50 % of the whole Midland Basin acreage representing concentrated pursuits in potential long-lateral models that presently have zero current producing wells or permits, we anticipate these property to ship vital manufacturing development over the approaching years”.
“The Tumbleweed crew has constructed a powerful mineral and royalty place during the last 4 years with the help of our devoted crew and long-term companions. The property are a pure match for Viper, and we look ahead to closing the transaction,” Grant Wright, President of Tumbleweed Royalty, stated.
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