Transaction Details: 

Viper Energy, Inc., a subsidiary of Diamondback Energy, announced a pair of transformative mineral and royalty acquisitions totaling $4.45 billion that significantly expand its footprint in the Permian Basin, primarily in Texas. The transactions include the purchase of royalty interests from Diamondback subsidiaries for $1.0 billion in cash and approximately 69.6 million OpCo units (valued at $3.45 billion), and a separate acquisition from Morita Ranches Minerals LLC for $211 million in cash and 2.4 million OpCo units.

These “Drop Down” and “Quinn Ranch” acquisitions add approximately 60,200 net royalty acres (NRAs) — including 23,100 NRAs in the core Midland Basin where Diamondback operates over 70% — and are projected to yield 2025 production of 18,000 barrels of oil per day (bo/d). Viper expects average production to grow to 47,000–49,000 bo/d following full integration, with Diamondback-operated volumes reaching ~31,000 bo/d by 2026. The acreage is supported by a robust inventory of 334 net locations with over 300–325 gross wells expected to be developed in 2026.

CEO Travis Stice called the Drop Down “highly anticipated and transformative,” emphasizing it will “deliver organic growth driven by the Diamondback drillbit for multiple years ahead.” He also highlighted the transaction’s immediate accretion to financial metrics and low leverage, positioning Viper to “opportunistically consolidate the highly fragmented minerals market.”

Evercore advised Viper’s Audit Committee, with Hunton Andrews Kurth LLP as legal counsel. RBC Capital Markets and Kirkland & Ellis LLP advised Diamondback, while Akin Gump and Vinson & Elkins LLP represented Viper and Morita Ranches, respectively.

Permian Deal Activity In Last 12 Months