Locator: 48815INVESTING.
Tag: Sitio, Viper, Diamondback, Permian.
Link here, from June, 3, 2025.
Link here, from July 19, 2025.
I could be wrong on this but DOR for both STR and VNOM for dividend purposes appears to be August 14, 2025.
What the merger means to STR shareholders. Link here.
For STR shareholders, the merger offers clear liquidity and a defined exchange ratio into a larger, more diversified Premier Permian royalties player. The deal may deliver modest value upside and a quicker roadside to sustainable dividends. But it also means exiting public markets, surrendering standalone governance, and relying on the future success of the combined entity.
From AI:
Sitio Royalties and Diamondback Energy's subsidiary, Viper Energy, announced a significant all-equity merger on June 3, 2025.
- this $4.1 billion deal, including $1.1 billion of Sitio's debt, combines two major players in the mineral and royalty sector, particularly focused on the Permian Basin.
- key takeaways:
- increased scale and Permian pootprint: The merger creates a dominant entity in the minerals and royalties space, significantly expanding Viper's presence in the Permian Basin and other areas, including the Bakken, according to Viper Energy.
- benefits to Viper: Viper anticipates enhanced financial stability, including a lower breakeven point and the ability to increase its base dividend by 10% to $1.32 annually. The deal is expected to be immediately accretive to cash available for distribution per share.
- benefits to Sitio: Sitio shareholders will receive 0.4855 shares of the combined company for each Sitio Class A share, representing an implied value of $19.41 per share.
- synergies: The combined company expects to realize over $50 million in annual synergies, primarily from reduced general and administrative costs and lower cost of capital.
- diamondback's role: Diamondback, as the parent company of Viper, will retain a significant ownership stake (approximately 41%) in the combined entity and is expected to continue driving production growth through its drilling activities.
- impact This merger is a key development in the consolidation of the minerals and royalties sector, particularly within the Permian Basin. It highlights the growing importance of scale and efficiency in the oil and gas royalty segment.
