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Exciting Acquisition News from Viper Energy, Inc.

Midland, Texas, Oct. 01, 2024 (GLOBE NEWSWIRE) –

Have you heard the good news? Viper Energy, Inc. has just announced the completion of a significant acquisition that is set to shake up the energy industry. In a move that signals growth and expansion, Viper Energy, Inc. and its subsidiary, Viper Energy Partners LLC, have acquired certain mineral and royalty interest-owning subsidiaries of Tumbleweed Royalty IV, LLC. This strategic acquisition comes hot on the heels of the previously reported purchase agreement, which was dated as of September 11, 2024.

The total consideration for this acquisition is nothing to scoff at, totaling approximately $459.0 million in cash. In addition to the cash component, approximately 10.1 million OpCo units were issued to TWR IV, with an option granted for TWR IV to acquire the same number of shares of Viper’s Class B common stock. The cash for the acquisition was sourced from a combination of cash on hand, borrowings under OpCo’s revolving credit facility, and proceeds from a recent underwritten public offering of Viper’s Class A common stock.

But wait, there’s more! The purchase agreement also includes provisions for a potential additional payment in Q1 2026. Contingent cash consideration of up to $41.0 million may be paid out based on the average 2025 West Texas Intermediate (WTI) price. This additional payment adds an extra layer of excitement and incentive to the deal.

This acquisition is a significant milestone for Viper Energy, Inc. and its subsidiaries, signaling a strategic move towards growth, diversification, and increased market share. With these new assets under their belt, Viper Energy, Inc. is poised to make waves in the energy industry and solidify their position as a key player in the market.

How Will This Acquisition Affect Me?

As a consumer, you may not feel the immediate effects of this acquisition in your day-to-day life. However, the acquisition may have broader implications for the energy industry as a whole, which could ultimately impact the prices you pay for energy-related products and services.

With Viper Energy, Inc. expanding its portfolio and increasing its market presence, there is the potential for greater competition in the energy sector. This competition could lead to improved efficiency, innovation, and potentially lower prices for consumers in the long run.

How Will This Acquisition Affect the World?

On a global scale, this acquisition could have far-reaching implications for the energy industry. As Viper Energy, Inc. expands its operations and acquires new assets, the company may play a more significant role in shaping the future of energy production and consumption.

This acquisition could also impact the broader market trends and industry dynamics, influencing decisions made by other players in the energy sector. The ripple effects of this move by Viper Energy, Inc. may be felt across the world, shaping the future of the energy industry in profound ways.

Conclusion

In conclusion, the acquisition announced by Viper Energy, Inc. is a significant development that has the potential to shake up the energy industry. With this strategic move, Viper Energy, Inc. is positioning itself for growth, expansion, and increased market influence. While the full impact of this acquisition remains to be seen, one thing is clear – Viper Energy, Inc. is on a path towards a bright and promising future in the energy sector.