Viper Energy Enters Agreement to Acquire Mineral and Royalty Interests
Overview
MIDLAND, Texas, Sept. 11, 2024 (GLOBE NEWSWIRE) — Viper Energy, Inc. (NASDAQ:VNOM) (“Viper” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback”), today announced it and its operating subsidiary Viper Energy Partners LLC (“OpCo”) have entered into a definitive purchase and sale agreement to acquire certain mineral and royalty interest- owning subsidiaries of Tumbleweed Royalty IV, LLC in exchange for $461.0 million of cash and approximately 10.1 million OpCo units, subject to customary adjustments.
Funding and Additional Details
The cash portion of this transaction is expected to be funded through a combination of cash on hand, borrowings under the Company’s credit facility, and proceeds from one or more capital markets transactions, subject to market conditions and other factors. The issuance of OpCo units will be accompanied by the grant of an option to purchase an equal number of shares of Class B common stock of the Company. The purchase agreement also includes a potential additional payment in Q1 2026 of contingent cash consideration of up to $41.0 million, based on the average 2025 West Texas Intermediate (“WTI”) price. This transaction is expected to close in early Q4 2024, subject to customary closing conditions.
Impact on Individuals
Based on the acquisition of mineral and royalty interests by Viper Energy, individuals who hold stakes in these interests may see a change in ownership and potential benefits from the transaction. It is important for individuals involved to review the terms of the agreement and understand how it may impact their investments.
Global Impact
On a global scale, transactions like these in the energy sector can have significant implications for the industry as a whole. The acquisition of mineral and royalty interests by Viper Energy may lead to changes in market dynamics, investment strategies, and overall industry trends. It will be important for energy market analysts and stakeholders to monitor the effects of this transaction on a broader scale.
Conclusion
In conclusion, the agreement for Viper Energy to acquire mineral and royalty interests marks a significant development in the energy sector. With the potential for financial gains and market impact, this transaction highlights the ever-evolving nature of the industry and the importance of staying informed and adaptable in the face of change.
