Viper Energy, Inc. Announces Closing of Drop Down Transaction
Viper Energy (NASDAQ: VNOM) has completed its previously announced Drop Down transaction with Diamondback Energy (NASDAQ: FANG). The deal involves acquiring mineral and royalty interest-owning subsidiaries from Diamondback for $1.0 billion in cash and 69.6 million Operating Company units with equivalent Class B Common Stock shares.
The acquired assets comprise 22,847 net royalty acres in the Permian Basin, with approximately 69% operated by Diamondback. Viper funded the cash portion through a public offering of Class A Common Stock and credit facility borrowings. Post-transaction, Diamondback owns approximately 53.7% of Viper's voting common stock. The transaction received approval from Viper's audit committee, board of directors, and stockholders.
Viper Energy (NASDAQ: VNOM) ha completato la sua precedente transazione Drop Down con Diamondback Energy (NASDAQ: FANG). L'accordo prevede l'acquisizione di filiali proprietarie di interessi minerari e royalty da Diamondback per un importo di 1,0 miliardi di dollari in contanti e 69,6 milioni di unità della Operating Company equivalenti a azioni ordinarie di Classe B.
Gli asset acquisiti comprendono 22.847 acri netti di royalty nel Bacino del Permiano, di cui circa il 69% è gestito da Diamondback. Viper ha finanziato la parte in contanti tramite un'offerta pubblica di azioni ordinarie di Classe A e prestiti da una linea di credito. Dopo la transazione, Diamondback detiene circa il 53,7% delle azioni ordinarie con diritto di voto di Viper. La transazione ha ricevuto l'approvazione dal comitato di revisione, dal consiglio di amministrazione e dagli azionisti di Viper.
Viper Energy (NASDAQ: VNOM) ha completado su transacción Drop Down previamente anunciada con Diamondback Energy (NASDAQ: FANG). El acuerdo implica la adquisición de subsidiarias propietarias de intereses minerales y regalías de Diamondback por 1.000 millones de dólares en efectivo y 69,6 millones de unidades de la Operating Company equivalentes a acciones comunes Clase B.
Los activos adquiridos comprenden 22.847 acres netos de regalías en la Cuenca Pérmica, con aproximadamente un 69% operado por Diamondback. Viper financió la parte en efectivo mediante una oferta pública de acciones comunes Clase A y préstamos de una línea de crédito. Tras la transacción, Diamondback posee aproximadamente el 53,7% de las acciones comunes con derecho a voto de Viper. La transacción recibió la aprobación del comité de auditoría, la junta directiva y los accionistas de Viper.
바이퍼 에너지(NASDAQ: VNOM)는 다이아몬드백 에너지(NASDAQ: FANG)와 이전에 발표한 드롭다운 거래를 완료했습니다. 이번 거래는 다이아몬드백으로부터 광물 및 로열티 이익을 보유한 자회사를 10억 달러 현금과 6960만 운영 회사 단위 (클래스 B 보통주에 상응하는 주식)로 인수하는 내용입니다.
인수한 자산은 퍼미안 분지 내 22,847 순 로열티 에이커로, 약 69%는 다이아몬드백이 운영 중입니다. 바이퍼는 현금 부분을 클래스 A 보통주 공개 발행과 신용 대출을 통해 조달했습니다. 거래 후 다이아몬드백은 바이퍼 의결권 있는 보통주 약 53.7%를 보유하게 됩니다. 이 거래는 바이퍼의 감사위원회, 이사회 및 주주들의 승인을 받았습니다.
Viper Energy (NASDAQ: VNOM) a finalisé sa transaction Drop Down précédemment annoncée avec Diamondback Energy (NASDAQ: FANG). L'accord consiste en l'acquisition de filiales détenant des intérêts miniers et des redevances de Diamondback pour 1,0 milliard de dollars en espèces et 69,6 millions d'unités de la Operating Company équivalentes à des actions ordinaires de classe B.
Les actifs acquis comprennent 22 847 acres nettes de redevances dans le bassin permien, dont environ 69% sont exploités par Diamondback. Viper a financé la partie en espèces par une offre publique d'actions ordinaires de classe A et des emprunts sur une ligne de crédit. Après la transaction, Diamondback détient environ 53,7% des actions ordinaires avec droit de vote de Viper. La transaction a été approuvée par le comité d'audit, le conseil d'administration et les actionnaires de Viper.
Viper Energy (NASDAQ: VNOM) hat die zuvor angekündigte Drop-Down-Transaktion mit Diamondback Energy (NASDAQ: FANG) abgeschlossen. Der Deal umfasst den Erwerb von Tochtergesellschaften mit Mineral- und Lizenzgebietsanteilen von Diamondback für 1,0 Milliarden US-Dollar in bar und 69,6 Millionen Operating Company Einheiten, die äquivalent zu Class B Stammaktien sind.
Die erworbenen Vermögenswerte umfassen 22.847 Netto-Royalty-Acre im Permian-Becken, von denen etwa 69% von Diamondback betrieben werden. Viper finanzierte den Baranteil durch eine öffentliche Emission von Class A Stammaktien und Kreditaufnahmen. Nach der Transaktion hält Diamondback etwa 53,7% der stimmberechtigten Stammaktien von Viper. Die Transaktion wurde vom Prüfungsausschuss, Vorstand und den Aktionären von Viper genehmigt.
- Acquisition of 22,847 net royalty acres in the strategic Permian Basin region
- 69% of acquired assets are operated by parent company Diamondback, ensuring operational alignment
- Successfully secured $1.0 billion funding through stock offering and credit facility
- Significant debt increase through credit facility borrowings
- Potential dilution from issuance of 69.6 million new units and Class B shares
- Increased dependence on Diamondback with 53.7% voting control
Insights
Viper Energy completed a $1B cash plus equity drop-down transaction with Diamondback, acquiring nearly 23,000 royalty acres in the Permian Basin.
This transaction represents a significant expansion of Viper Energy's royalty portfolio through a structured drop-down from its parent company, Diamondback Energy. The consideration consists of
The acquired assets comprise 22,847 net royalty acres in the Permian Basin, with a noteworthy
To fund the cash portion, Viper utilized proceeds from its February 2025 public offering of Class A Common Stock combined with borrowings under its revolving credit facility. Post-transaction, Diamondback now holds a controlling
This type of parent-subsidiary asset transfer is common in the energy sector and creates potential benefits for both entities. Diamondback receives substantial liquidity while maintaining majority control, while Viper gains scale without taking on operational responsibilities, as royalty interests only entitle the holder to revenue without bearing development or production costs.
The transaction underwent multiple approval layers to protect minority shareholder interests, including Viper's independent audit committee, full board, and a majority vote from non-Diamondback stockholders.
While the deal substantially increases Viper's asset base and potential for future royalty income, the press release lacks production estimates or cash flow projections from the acquired properties, making immediate financial impact assessment difficult. The transaction also increases Viper's debt load and creates equity dilution, which balances against the expanded asset base.
MIDLAND, Texas, May 01, 2025 (GLOBE NEWSWIRE) -- Viper Energy, Inc. (NASDAQ: VNOM) (“Viper” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), today announced that it and its operating subsidiary, Viper Energy Partners LLC (the “Operating Company”), have closed their previously announced acquisition of all of the equity interests in certain mineral and royalty interest-owning subsidiaries of Diamondback (the “Drop Down”). The total consideration for the Drop Down consisted of (i)
The mineral and royalty interests acquired by the Operating Company in the Drop Down represent approximately 22,847 net royalty acres in the Permian Basin, approximately
The Drop Down was approved by Viper’s audit committee comprised of all independent directors and the full board of directors, in each case, on January 30, 2025, and by the majority of the Company’s stockholders, other than Diamondback and its subsidiaries, at the special meeting of the Company’s stockholders held on May 1, 2025 (the “Special Meeting”). At the Special Meeting, Viper’s stockholders also approved the Equity Issuance, as required under the rules of The Nasdaq Stock Market LLC.
About Viper Energy, Inc.
Viper is a corporation formed by Diamondback to own, acquire and exploit oil and natural gas properties in North America, with a focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin. For more information, please visit www.viperenergy.com.
About Diamondback Energy, Inc.
Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.
Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Viper’s: future performance; business strategy; future operations; estimates and projections of operating income, losses, costs and expenses, returns, cash flow, and financial position; production levels on properties in which Viper has mineral and royalty interests, developmental activity by other operators; reserve estimates and Viper’s ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the Drop Down and other acquisitions or divestitures); and plans and objectives (including Diamondback’s plans for developing Viper’s acreage and Viper’s cash dividend policy and common stock repurchase program) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Viper are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Viper believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond its control. Accordingly, forward-looking statements are not guarantees of Viper’s future performance and the actual outcomes could differ materially from what Viper expressed in its forward-looking statements.
Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases, and any related company or government policies or actions; changes in U.S. energy, environmental, monetary and trade policies, including with respect to tariffs or other trade barriers, and any resulting trade tensions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the ongoing war in Ukraine and the Israel-Hamas war on the global energy markets and geopolitical stability; instability in the financial sector; higher interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production on Viper’s mineral and royalty acreage, or governmental orders, rules or regulations that impose production limits on such acreage; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change and the risks and other factors disclosed in Viper’s filings with the Securities and Exchange Commission, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov.
In light of these factors, the events anticipated by Viper’s forward-looking statements may not occur at the time anticipated or at all. Moreover, new risks emerge from time to time. Viper cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements made in this news release. All forward-looking statements speak only as of the date of this news release or, if earlier, as of the date they were made. Viper does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.
Investor Contact:
Chip Seale
+1 432.247.6218
cseale@viperenergy.com
FAQ
What is the value of Viper Energy's (VNOM) Drop Down transaction with Diamondback?
How many net royalty acres did Viper Energy (VNOM) acquire in the Permian Basin?
How did Viper Energy (VNOM) fund the $1.0 billion cash portion of the Drop Down?
What percentage of Viper Energy (VNOM) does Diamondback own after the Drop Down transaction?
When was the Viper Energy (VNOM) Drop Down transaction approved by shareholders?
