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[8-K] Viper Energy, Inc. Reports Material Event

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8-K
Rhea-AI Filing Summary

Morgan Stanley Finance LLC, guaranteed by Morgan Stanley, is marketing SX5E Dual Directional Buffered PLUS notes maturing 1 August 2030 (pricing 28 July 2025, CUSIP 61778K7E1). The unsecured notes are linked solely to the EURO STOXX 50 Index (SX5E) and have a face amount of $1,000. The bank’s internal models place the estimated value at $920.20 (±$55), indicating an embedded cost of roughly 8 cts on the dollar.

The structure is dual-directional: (i) if SX5E ends above the initial level, investors receive the positive index return multiplied by a leverage factor of 157%–172% (exact rate set on pricing); (ii) if SX5E ends below the initial level but by no more than 15%, investors earn a 100% “absolute return” on that decline, turning a moderate loss in the index into a gain on the note; (iii) once the index falls beyond the 15% buffer, principal is exposed one-for-one, creating a maximum loss of 85%. The note pays no periodic coupon and redemption depends exclusively on the single observation date of 29 July 2030.

Key risks highlighted include credit exposure to Morgan Stanley, the absence of exchange listing or guaranteed liquidity, model-based valuation that is below issue price, potential adverse hedging impacts by affiliates, and uncertain U.S. tax treatment. The securities suit investors comfortable with MSCI Europe exposure, long holding periods and the possibility of substantial capital loss in exchange for leveraged upside and limited downside protection.

Morgan Stanley Finance LLC, garantita da Morgan Stanley, sta promuovendo le note SX5E Dual Directional Buffered PLUS con scadenza il 1 agosto 2030 (prezzo al 28 luglio 2025, CUSIP 61778K7E1). Le note non garantite sono collegate esclusivamente all'Indice EURO STOXX 50 (SX5E) e hanno un valore nominale di 1.000 dollari. I modelli interni della banca stimano un valore approssimativo di 920,20 $ (±55 $), indicando un costo implicito di circa 8 centesimi per dollaro.

La struttura è bidirezionale: (i) se l'SX5E termina sopra il livello iniziale, gli investitori ricevono il rendimento positivo dell'indice moltiplicato per un fattore di leva tra il 157% e il 172% (tasso esatto definito al momento del pricing); (ii) se l'SX5E termina sotto il livello iniziale ma con un calo non superiore al 15%, gli investitori ottengono un “rendimento assoluto” del 100% su quella perdita, trasformando una perdita moderata dell'indice in un guadagno sulla nota; (iii) se l'indice scende oltre il buffer del 15%, il capitale è esposto in modo lineare, con una perdita massima dell'85%. La nota non paga cedole periodiche e il rimborso dipende esclusivamente dalla singola data di osservazione del 29 luglio 2030.

I rischi principali evidenziati includono l'esposizione creditizia verso Morgan Stanley, l'assenza di quotazione in borsa o liquidità garantita, la valutazione basata su modelli che risulta inferiore al prezzo di emissione, possibili effetti negativi di copertura da parte di affiliati e un trattamento fiscale statunitense incerto. Questi titoli sono adatti a investitori che hanno familiarità con l'esposizione all'MSCI Europe, orizzonti di investimento lunghi e la possibilità di perdite di capitale significative in cambio di un potenziale rendimento con leva e una protezione limitata dal ribasso.

Morgan Stanley Finance LLC, garantizada por Morgan Stanley, está promocionando las notas SX5E Dual Directional Buffered PLUS con vencimiento el 1 de agosto de 2030 (precio al 28 de julio de 2025, CUSIP 61778K7E1). Las notas no garantizadas están vinculadas únicamente al Índice EURO STOXX 50 (SX5E) y tienen un valor nominal de 1.000 dólares. Los modelos internos del banco estiman un valor aproximado de 920,20 $ (±55 $), lo que indica un costo implícito de alrededor de 8 centavos por dólar.

La estructura es bidireccional: (i) si el SX5E termina por encima del nivel inicial, los inversores reciben el rendimiento positivo del índice multiplicado por un factor de apalancamiento entre el 157% y el 172% (tasa exacta fijada en la fijación de precios); (ii) si el SX5E termina por debajo del nivel inicial pero con una caída no superior al 15%, los inversores obtienen un “rendimiento absoluto” del 100% sobre esa caída, convirtiendo una pérdida moderada del índice en una ganancia sobre la nota; (iii) si el índice cae más allá del margen del 15%, el capital está expuesto uno a uno, con una pérdida máxima del 85%. La nota no paga cupones periódicos y el reembolso depende exclusivamente de la única fecha de observación del 29 de julio de 2030.

Los riesgos clave destacados incluyen la exposición crediticia a Morgan Stanley, la ausencia de cotización en bolsa o liquidez garantizada, una valoración basada en modelos que está por debajo del precio de emisión, posibles impactos adversos de cobertura por parte de afiliados y un tratamiento fiscal estadounidense incierto. Estos valores son adecuados para inversores cómodos con la exposición a MSCI Europe, horizontes de inversión largos y la posibilidad de pérdidas de capital sustanciales a cambio de un potencial alza apalancada y protección limitada contra caídas.

Morgan Stanley Finance LLC는 Morgan Stanley가 보증하며, SX5E Dual Directional Buffered PLUS 노트를 2030년 8월 1일 만기(2025년 7월 28일 가격 책정, CUSIP 61778K7E1)로 마케팅하고 있습니다. 이 무담보 노트는 EURO STOXX 50 지수(SX5E)에만 연동되며, 액면가는 1,000달러입니다. 은행 내부 모델에 따르면 추정 가치는 920.20달러(±55달러)로, 달러당 약 8센트의 내재 비용을 나타냅니다.

구조는 양방향입니다: (i) SX5E가 초기 수준을 상회하면 투자자는 지수의 양(+) 수익률에 157%~172%의 레버리지 계수를 곱한 수익을 받습니다(정확한 비율은 가격 책정 시 결정); (ii) SX5E가 초기 수준 아래로 떨어지지만 15% 이내라면, 투자자는 그 하락에 대해 100% “절대 수익”을 얻어 지수의 완만한 손실을 노트 상의 이익으로 전환합니다; (iii) 지수가 15% 버퍼를 초과하여 하락하면 원금은 1대1로 노출되어 최대 손실은 85%가 됩니다. 이 노트는 정기 쿠폰을 지급하지 않으며 상환은 2030년 7월 29일 단일 관찰일에만 달려 있습니다.

주요 위험요소로는 Morgan Stanley에 대한 신용 노출, 거래소 상장이나 보장된 유동성 부재, 발행가보다 낮은 모델 기반 평가, 계열사의 헤지 영향 가능성, 그리고 미국 세금 처리의 불확실성이 강조됩니다. 이 증권은 MSCI Europe 노출에 익숙하고, 장기 보유를 감수하며, 상당한 자본 손실 가능성을 받아들일 수 있는 투자자에게 적합하며, 레버리지 상승과 제한된 하방 보호를 제공합니다.

Morgan Stanley Finance LLC, garantie par Morgan Stanley, commercialise des notes SX5E Dual Directional Buffered PLUS arrivant à échéance le 1er août 2030 (prix au 28 juillet 2025, CUSIP 61778K7E1). Ces notes non garanties sont uniquement liées à l'indice EURO STOXX 50 (SX5E) et ont une valeur nominale de 1 000 $. Les modèles internes de la banque estiment une valeur estimée à 920,20 $ (±55 $), ce qui indique un coût implicite d'environ 8 cents par dollar.

La structure est bidirectionnelle : (i) si le SX5E termine au-dessus du niveau initial, les investisseurs reçoivent le rendement positif de l'indice multiplié par un facteur de levier de 157 % à 172 % (taux exact fixé lors de la tarification) ; (ii) si le SX5E termine en dessous du niveau initial mais de pas plus de 15 %, les investisseurs bénéficient d'un “rendement absolu” de 100 % sur cette baisse, transformant une perte modérée de l'indice en gain sur la note ; (iii) si l'indice chute au-delà de la marge de 15 %, le capital est exposé à hauteur de 100 %, entraînant une perte maximale de 85 %. La note ne verse aucun coupon périodique et le remboursement dépend exclusivement de la date d'observation unique du 29 juillet 2030.

Les principaux risques soulignés comprennent l'exposition au crédit de Morgan Stanley, l'absence de cotation en bourse ou de liquidité garantie, une valorisation basée sur des modèles inférieure au prix d'émission, d'éventuels impacts défavorables de couverture par des affiliés, ainsi qu'un traitement fiscal américain incertain. Ces titres conviennent aux investisseurs à l'aise avec une exposition MSCI Europe, des horizons de détention longs et la possibilité de pertes en capital importantes en échange d'un potentiel de hausse avec effet de levier et une protection limitée à la baisse.

Morgan Stanley Finance LLC, garantiert von Morgan Stanley, vermarktet SX5E Dual Directional Buffered PLUS-Notes mit Fälligkeit am 1. August 2030 (Preisfeststellung am 28. Juli 2025, CUSIP 61778K7E1). Die unbesicherten Notes sind ausschließlich an den EURO STOXX 50 Index (SX5E) gekoppelt und haben einen Nennwert von 1.000 USD. Interne Modelle der Bank schätzen den ungefähren Wert auf 920,20 USD (±55 USD), was auf einen eingebetteten Kostenabschlag von etwa 8 Cent pro Dollar hinweist.

Die Struktur ist bidirektional: (i) endet der SX5E über dem Anfangsniveau, erhalten Anleger die positive Indexrendite multipliziert mit einem Hebelfaktor von 157% bis 172% (exakter Satz wird bei der Preisfeststellung bestimmt); (ii) endet der SX5E unter dem Anfangsniveau, aber nicht mehr als 15% darunter, erzielen Anleger eine 100% „Absolute Return“ auf diesen Rückgang, was einen moderaten Indexverlust in einen Gewinn der Note verwandelt; (iii) fällt der Index über die 15%-Pufferzone hinaus, ist das Kapital eins-zu-eins exponiert, mit einem maximalen Verlust von 85%. Die Note zahlt keine periodischen Kupons und die Rückzahlung erfolgt ausschließlich am einzigen Beobachtungstag, dem 29. Juli 2030.

Wesentliche Risiken umfassen die Kreditexponierung gegenüber Morgan Stanley, das Fehlen einer Börsennotierung oder garantierter Liquidität, eine modellbasierte Bewertung, die unter dem Ausgabepreis liegt, mögliche negative Absicherungseffekte durch verbundene Unternehmen sowie eine unsichere US-Steuerbehandlung. Die Wertpapiere eignen sich für Anleger, die mit der MSCI Europe-Exponierung vertraut sind, langfristige Haltedauern akzeptieren und die Möglichkeit erheblicher Kapitalverluste im Tausch gegen gehebelte Aufwärtschancen und begrenzten Abwärtsschutz in Kauf nehmen.

Positive
  • 157%–172% leveraged participation on any positive SX5E performance, enhancing upside potential.
  • Dual-directional 15% buffer converts moderate index declines into gains, offering downside mitigation.
  • Full principal repayment at maturity if index change is between 0% and -15%, unlike plain vanilla notes.
  • Guarantee from Morgan Stanley provides investment-grade backing.
Negative
  • Estimated value of $920.20 sits about 8% below the $1,000 issue price, indicating high embedded costs.
  • No periodic coupon; total return entirely dependent on final index level.
  • Maximum loss of 85% if SX5E falls 100%, exposing investors to significant capital risk.
  • Unsecured credit exposure to Morgan Stanley; adverse rating moves can erode market value.
  • Notes will not be exchange-listed, leading to limited secondary liquidity and potentially wide spreads.
  • Single observation date concentrates market-timing risk.
  • U.S. tax treatment is uncertain, requiring specialist advice.

Insights

TL;DR: Leveraged upside and 15% buffer offset by 8% issue premium, no coupon and MS credit risk.

The note offers an attractive 1.57-1.72× participation on SX5E gains and converts the first 15% of losses into positive return, creating a convex pay-off that retail investors often seek. However, the $920.20 estimated value versus the $1,000 issue price means buyers surrender roughly 7.9% in upfront economic value to fees and hedging costs, eroding expected return. Lack of interim observations and no secondary listing add path-dependency and liquidity risk. Credit risk is non-trivial given the 5-year tenor, though Morgan Stanley remains investment-grade. Overall, suitable only for investors with a defined bullish-to-sideways view on European large-caps who are willing to buy-and-hold through 2030.

TL;DR: 85% maximum loss, single-date exposure and valuation discount make risk/return finely balanced.

While the 15% buffer shields moderate drawdowns, once breached losses accelerate linearly, producing a fat-tail loss of up to 85%. The product’s economics already embed an 8% cost, and the issuer’s hedging activity may widen bid-ask spreads, compounding exit risk. The single observation date creates event-risk concentration—any market shock near July 2030 directly impacts payout. Finally, investors face unsecured exposure to Morgan Stanley; any downgrade would directly pressure secondary pricing. These factors neutralize the headline leverage, resulting in a risk profile better classified as speculative than defensive.

Morgan Stanley Finance LLC, garantita da Morgan Stanley, sta promuovendo le note SX5E Dual Directional Buffered PLUS con scadenza il 1 agosto 2030 (prezzo al 28 luglio 2025, CUSIP 61778K7E1). Le note non garantite sono collegate esclusivamente all'Indice EURO STOXX 50 (SX5E) e hanno un valore nominale di 1.000 dollari. I modelli interni della banca stimano un valore approssimativo di 920,20 $ (±55 $), indicando un costo implicito di circa 8 centesimi per dollaro.

La struttura è bidirezionale: (i) se l'SX5E termina sopra il livello iniziale, gli investitori ricevono il rendimento positivo dell'indice moltiplicato per un fattore di leva tra il 157% e il 172% (tasso esatto definito al momento del pricing); (ii) se l'SX5E termina sotto il livello iniziale ma con un calo non superiore al 15%, gli investitori ottengono un “rendimento assoluto” del 100% su quella perdita, trasformando una perdita moderata dell'indice in un guadagno sulla nota; (iii) se l'indice scende oltre il buffer del 15%, il capitale è esposto in modo lineare, con una perdita massima dell'85%. La nota non paga cedole periodiche e il rimborso dipende esclusivamente dalla singola data di osservazione del 29 luglio 2030.

I rischi principali evidenziati includono l'esposizione creditizia verso Morgan Stanley, l'assenza di quotazione in borsa o liquidità garantita, la valutazione basata su modelli che risulta inferiore al prezzo di emissione, possibili effetti negativi di copertura da parte di affiliati e un trattamento fiscale statunitense incerto. Questi titoli sono adatti a investitori che hanno familiarità con l'esposizione all'MSCI Europe, orizzonti di investimento lunghi e la possibilità di perdite di capitale significative in cambio di un potenziale rendimento con leva e una protezione limitata dal ribasso.

Morgan Stanley Finance LLC, garantizada por Morgan Stanley, está promocionando las notas SX5E Dual Directional Buffered PLUS con vencimiento el 1 de agosto de 2030 (precio al 28 de julio de 2025, CUSIP 61778K7E1). Las notas no garantizadas están vinculadas únicamente al Índice EURO STOXX 50 (SX5E) y tienen un valor nominal de 1.000 dólares. Los modelos internos del banco estiman un valor aproximado de 920,20 $ (±55 $), lo que indica un costo implícito de alrededor de 8 centavos por dólar.

La estructura es bidireccional: (i) si el SX5E termina por encima del nivel inicial, los inversores reciben el rendimiento positivo del índice multiplicado por un factor de apalancamiento entre el 157% y el 172% (tasa exacta fijada en la fijación de precios); (ii) si el SX5E termina por debajo del nivel inicial pero con una caída no superior al 15%, los inversores obtienen un “rendimiento absoluto” del 100% sobre esa caída, convirtiendo una pérdida moderada del índice en una ganancia sobre la nota; (iii) si el índice cae más allá del margen del 15%, el capital está expuesto uno a uno, con una pérdida máxima del 85%. La nota no paga cupones periódicos y el reembolso depende exclusivamente de la única fecha de observación del 29 de julio de 2030.

Los riesgos clave destacados incluyen la exposición crediticia a Morgan Stanley, la ausencia de cotización en bolsa o liquidez garantizada, una valoración basada en modelos que está por debajo del precio de emisión, posibles impactos adversos de cobertura por parte de afiliados y un tratamiento fiscal estadounidense incierto. Estos valores son adecuados para inversores cómodos con la exposición a MSCI Europe, horizontes de inversión largos y la posibilidad de pérdidas de capital sustanciales a cambio de un potencial alza apalancada y protección limitada contra caídas.

Morgan Stanley Finance LLC는 Morgan Stanley가 보증하며, SX5E Dual Directional Buffered PLUS 노트를 2030년 8월 1일 만기(2025년 7월 28일 가격 책정, CUSIP 61778K7E1)로 마케팅하고 있습니다. 이 무담보 노트는 EURO STOXX 50 지수(SX5E)에만 연동되며, 액면가는 1,000달러입니다. 은행 내부 모델에 따르면 추정 가치는 920.20달러(±55달러)로, 달러당 약 8센트의 내재 비용을 나타냅니다.

구조는 양방향입니다: (i) SX5E가 초기 수준을 상회하면 투자자는 지수의 양(+) 수익률에 157%~172%의 레버리지 계수를 곱한 수익을 받습니다(정확한 비율은 가격 책정 시 결정); (ii) SX5E가 초기 수준 아래로 떨어지지만 15% 이내라면, 투자자는 그 하락에 대해 100% “절대 수익”을 얻어 지수의 완만한 손실을 노트 상의 이익으로 전환합니다; (iii) 지수가 15% 버퍼를 초과하여 하락하면 원금은 1대1로 노출되어 최대 손실은 85%가 됩니다. 이 노트는 정기 쿠폰을 지급하지 않으며 상환은 2030년 7월 29일 단일 관찰일에만 달려 있습니다.

주요 위험요소로는 Morgan Stanley에 대한 신용 노출, 거래소 상장이나 보장된 유동성 부재, 발행가보다 낮은 모델 기반 평가, 계열사의 헤지 영향 가능성, 그리고 미국 세금 처리의 불확실성이 강조됩니다. 이 증권은 MSCI Europe 노출에 익숙하고, 장기 보유를 감수하며, 상당한 자본 손실 가능성을 받아들일 수 있는 투자자에게 적합하며, 레버리지 상승과 제한된 하방 보호를 제공합니다.

Morgan Stanley Finance LLC, garantie par Morgan Stanley, commercialise des notes SX5E Dual Directional Buffered PLUS arrivant à échéance le 1er août 2030 (prix au 28 juillet 2025, CUSIP 61778K7E1). Ces notes non garanties sont uniquement liées à l'indice EURO STOXX 50 (SX5E) et ont une valeur nominale de 1 000 $. Les modèles internes de la banque estiment une valeur estimée à 920,20 $ (±55 $), ce qui indique un coût implicite d'environ 8 cents par dollar.

La structure est bidirectionnelle : (i) si le SX5E termine au-dessus du niveau initial, les investisseurs reçoivent le rendement positif de l'indice multiplié par un facteur de levier de 157 % à 172 % (taux exact fixé lors de la tarification) ; (ii) si le SX5E termine en dessous du niveau initial mais de pas plus de 15 %, les investisseurs bénéficient d'un “rendement absolu” de 100 % sur cette baisse, transformant une perte modérée de l'indice en gain sur la note ; (iii) si l'indice chute au-delà de la marge de 15 %, le capital est exposé à hauteur de 100 %, entraînant une perte maximale de 85 %. La note ne verse aucun coupon périodique et le remboursement dépend exclusivement de la date d'observation unique du 29 juillet 2030.

Les principaux risques soulignés comprennent l'exposition au crédit de Morgan Stanley, l'absence de cotation en bourse ou de liquidité garantie, une valorisation basée sur des modèles inférieure au prix d'émission, d'éventuels impacts défavorables de couverture par des affiliés, ainsi qu'un traitement fiscal américain incertain. Ces titres conviennent aux investisseurs à l'aise avec une exposition MSCI Europe, des horizons de détention longs et la possibilité de pertes en capital importantes en échange d'un potentiel de hausse avec effet de levier et une protection limitée à la baisse.

Morgan Stanley Finance LLC, garantiert von Morgan Stanley, vermarktet SX5E Dual Directional Buffered PLUS-Notes mit Fälligkeit am 1. August 2030 (Preisfeststellung am 28. Juli 2025, CUSIP 61778K7E1). Die unbesicherten Notes sind ausschließlich an den EURO STOXX 50 Index (SX5E) gekoppelt und haben einen Nennwert von 1.000 USD. Interne Modelle der Bank schätzen den ungefähren Wert auf 920,20 USD (±55 USD), was auf einen eingebetteten Kostenabschlag von etwa 8 Cent pro Dollar hinweist.

Die Struktur ist bidirektional: (i) endet der SX5E über dem Anfangsniveau, erhalten Anleger die positive Indexrendite multipliziert mit einem Hebelfaktor von 157% bis 172% (exakter Satz wird bei der Preisfeststellung bestimmt); (ii) endet der SX5E unter dem Anfangsniveau, aber nicht mehr als 15% darunter, erzielen Anleger eine 100% „Absolute Return“ auf diesen Rückgang, was einen moderaten Indexverlust in einen Gewinn der Note verwandelt; (iii) fällt der Index über die 15%-Pufferzone hinaus, ist das Kapital eins-zu-eins exponiert, mit einem maximalen Verlust von 85%. Die Note zahlt keine periodischen Kupons und die Rückzahlung erfolgt ausschließlich am einzigen Beobachtungstag, dem 29. Juli 2030.

Wesentliche Risiken umfassen die Kreditexponierung gegenüber Morgan Stanley, das Fehlen einer Börsennotierung oder garantierter Liquidität, eine modellbasierte Bewertung, die unter dem Ausgabepreis liegt, mögliche negative Absicherungseffekte durch verbundene Unternehmen sowie eine unsichere US-Steuerbehandlung. Die Wertpapiere eignen sich für Anleger, die mit der MSCI Europe-Exponierung vertraut sind, langfristige Haltedauern akzeptieren und die Möglichkeit erheblicher Kapitalverluste im Tausch gegen gehebelte Aufwärtschancen und begrenzten Abwärtsschutz in Kauf nehmen.

DE false 0001602065 0001602065 2025-06-30 2025-06-30
 
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): June 30, 2025

 

 

VIPER ENERGY, INC.

(Exact Name of Registrant as Specified in Charter)

 

 

 

DE   001-36505   46-5001985
(State or other jurisdiction
of incorporation)		   (Commission
File Number)		   (I.R.S. Employer
Identification Number)

 

500 West Texas Ave.,    
Suite 100    
Midland, TX     79701
(Address of principal executive offices)     (Zip code)

(432) 221-7400

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

 

  ☒

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  ☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

  ☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  ☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

 

Title of each class

  

Trading
Symbol(s)

  

Name of each exchange
on which registered

Class A Common Stock, $0.000001 Par Value   VNOM   The Nasdaq Stock Market LLC
    (NASDAQ Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 
 

Item 8.01

Other Events

As previously announced, on May 1, 2025, Viper Energy, Inc., a Delaware corporation (“Viper”), and Viper Energy Partners LLC, a Delaware limited liability company (the “Viper Operating Company”) completed the acquisition of certain mineral and royalty interests (the “Endeavor Mineral and Royalty Interests”) from Endeavor Energy Resources, L.P., a subsidiary of Diamondback Energy, Inc.

Also as previously announced, on June 2, 2025, Viper and the Viper Operating Company, entered into an Agreement and Plan of Merger with Sitio Royalties Corp., a Delaware corporation (“Sitio”), Sitio Royalties Operating Partnership, LP, a Delaware limited partnership and a subsidiary of Sitio, New Cobra Pubco, Inc., a Delaware corporation and a wholly owned subsidiary of Viper (“New Viper”), Cobra Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of New Viper, and Scorpion Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of New Viper, pursuant to which New Viper would acquire Sitio in an all-equity transaction (the “Sitio Transaction”).

Viper is filing: (a) as Exhibit 99.1 to this Current Report on Form 8-K, Sitio’s audited consolidated financial statements as of December 31, 2024 and 2023 and for each of the years in the three-year period ended December 31, 2024; (b) as Exhibit 99.2, Sitio’s interim unaudited consolidated financial statements as of March 31, 2025 and for the three months ended March 31, 2025 and 2024; (c) as Exhibit 99.3, the reserve report of Cawley, Gillespie & Associates, Inc. for Sitio as of December 31, 2024; (d) as Exhibit 99.4, the unaudited statements of revenues and direct operating expenses for the Endeavor Mineral and Royalty Interests for the three months ended March 31, 2025; and (e) as Exhibit 99.5, the unaudited pro forma condensed combined financial statements of Viper, including (i) the unaudited pro forma condensed combined consolidated statement of operations of Viper for three months ended March 31, 2025 and the unaudited pro forma condensed combined balance sheet of Viper as of March 31, 2025 and (ii) the unaudited pro forma condensed combined consolidated statement of operations of Viper for the year ended December 31, 2024.

This Current Report on Form 8-K does not modify or update the consolidated financial statements of Viper included in Viper’s Annual Report on Form 10-K for the year ended December 31, 2024, or Viper’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, nor does it reflect any subsequent information or events.

 

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit
Number

   

Description of Exhibit

23.1    Consent of KPMG LLP.
23.2    Consent of Cawley, Gillespie & Associates, Inc.
99.1    Audited consolidated financial statements of Sitio Royalties Corp. as of December 31, 2024 and 2023, and for each of the years in the three-year period ended December 31, 2024.
99.2    Interim unaudited consolidated financial statements of Sitio Royalties Corp. as of March 31, 2025, and for the three months ended March 31, 2025 and 2024.
99.3    Cawley, Gillespie & Associates, Inc. Summary of Reserves of Sitio Royalties Corp. at December 31, 2024.
99.4    Unaudited statements of revenues and direct operating expenses for the Endeavor Mineral and Royalty Interests for the three months ended March 31, 2025.
99.5    Unaudited pro forma condensed combined consolidated financial statements of Viper Energy, Inc. (a) as of and for the three months ended March 31, 2025 and (b) for the year ended December 31, 2024.
104    Cover Page Interactive Data File (embedded within the Inline XBRL document).

Forward-Looking Statements

This document and/or the documents included as exhibits may contain forward-looking statements within the meaning of the federal securities laws, which involve certain risks, uncertainties and assumptions that could cause the results to differ materially from such statements. All statements, other than statements of historical fact, including statements regarding future performance; business

 

strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and ability to replace or increase reserves; anticipated benefits of strategic transactions (including the Sitio Transaction and any prior or future acquisitions and divestitures), and plans and objectives of Viper or Sitio management (including plans for future cash flow from operations and for executing environmental strategies) are forward-looking statements. When used in such documents, 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) are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements involve risks and uncertainties that are difficult to predict and, in many cases, beyond Viper’s or Sitio’s control. Accordingly, forward-looking statements are not guarantees of future performance and actual outcomes could differ materially from what Viper or Sitio have expressed in any forward-looking statements in the documents included in this Current Report on Form 8-K.

Factors that could cause the outcomes to differ materially include (but are not limited to) the following: the risk associated with Sitio’s ability to obtain the approvals of its stockholders required to consummate the Sitio Transaction; risks related to the timing of the closing of the Sitio Transaction, including the risk that the conditions to the Sitio Transaction are not satisfied on a timely basis or at all or the failure of the Sitio Transaction to close for any other reason or to close on the anticipated terms, including the anticipated tax treatment; the risk that any regulatory approval, consent or authorization that may be required for the Sitio Transaction is not obtained or is obtained subject to conditions that are not anticipated; the post-combination company’s ability to successfully integrate Viper’s and Sitio’s businesses and technologies; the risk that the expected benefits and synergies of the Sitio Transaction may not be fully achieved in a timely manner, or at all; the risk that Viper or Sitio will not, or that following the Sitio Transaction, the post-combination company will not, be able to retain and hire key personnel; unanticipated difficulties or expenditures relating to the Sitio Transaction, the response of business partners and retention as a result of the announcement and pendency of the Sitio Transaction; ability to finance the combined company on acceptable terms or at all; uncertainty as to the long-term value of the post-combination company’s common stock; the diversion of Viper’s and Sitio’s management’s time on transaction-related matters; 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 or Sitio’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 those risks described in Viper’s periodic filings with the U.S. Securities and Exchange Commission (“SEC”), including in Item 1A of Viper’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 26, 2025, subsequent Forms 10-Q and 8-K and other filings Viper makes with the SEC, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Viper’s website at https://www.viperenergy.com/investors/overview, and in Sitio’s periodic filings with the SEC, including in Item 1A of Sitio’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 26, 2025, subsequent Forms 10-Q and 8-K and other filings Sitio makes with the SEC, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Sitio’s website at investors.sitio.com.

In light of these factors, the events anticipated by Viper’s and Sitio’s forward-looking statements may not occur at the time anticipated or at all. Moreover, Viper and Sitio conduct their businesses in a very competitive and rapidly changing environment and new risks emerge from time to time. Viper and Sitio cannot predict all risks, nor can they assess the impact of all factors on their businesses 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 they may make. Accordingly, you should not place undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this communication or, if earlier, as of the date they were made. Viper and Sitio do not intend to, and disclaim any obligation to, update or revise any forward-looking statements unless required by applicable law.

Additional Information and Where to Find It

In connection with the Sitio Transaction, New Viper will file with the SEC a registration statement on Form S-4, which will include a proxy statement of Sitio, an information statement of Viper and a prospectus of New Viper. The Sitio Transaction will be submitted to Sitio’s stockholders for their consideration. Viper, Sitio and New Viper may also file other documents with the SEC

regarding the Sitio Transaction. After the registration statement has been declared effective by the SEC, a definitive joint information statement/proxy statement/prospectus will be mailed to the stockholders of Viper and Sitio. This communication is not a substitute for the registration statement and joint information statement/proxy statement/prospectus that will be filed with the SEC or any other documents that Viper, Sitio or New Viper may file with the SEC or send to stockholders of Viper or Sitio in connection with the Sitio Transaction. INVESTORS AND STOCKHOLDERS OF SITIO AND VIPER ARE URGED TO READ THE REGISTRATION STATEMENT AND JOINT INFORMATION STATEMENT/PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ALL OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE SITIO TRANSACTION AND RELATED MATTERS.

Investors and stockholders will be able to obtain free copies of the registration statement and the joint information statement/proxy statement/prospectus (when available) and all other documents filed or that will be filed with the SEC by Viper, Sitio or New Viper, through the website maintained by the SEC at http://www.sec.gov.

Participants in the Solicitation

Viper, Sitio, New Viper and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Sitio stockholders in connection with the Sitio Transaction.

Information regarding the directors and executive officers of Viper, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth (i) in Viper’s definitive proxy statement for its 2025 Annual Meeting of Stockholders, including under the headings “Proposal 1: Election of Directors”, “Executive Officers”, “Compensation Discussion and Analysis”, “Compensation Tables”, “Stock Ownership” and “Certain Relationships and Related Party Transactions,” which was filed with the SEC on April 10, 2025 and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1602065/000119312525077960/d884560ddef14a.htm, and (ii) to the extent holdings of Viper’s securities by its directors or executive officers have changed since the amounts set forth in Viper’s definitive proxy statement for its 2025 Annual Meeting of Stockholders, such changes have been or will be reflected on Initial Statement of Beneficial Ownership of Securities on Form 3, Statement of Changes in Beneficial Ownership on Form 4, or Annual Statement of Changes in Beneficial Ownership on Form 5 filed with the SEC, which are available at EDGAR Search Results https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001602065&type=&dateb=&owner=only&count=40&search_text=.

Information regarding the directors and executive officers of Sitio, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth (i) in Sitio’s definitive proxy statement for its 2025 Annual Meeting of Stockholders, including under the headings “Proposal 1 - Election of Directors”, “Executive Officers”, “Security Ownership of Certain Beneficial Owners and Management”, “Certain Relationships and Interested Transactions”, “Compensation Discussion and Analysis”, “Summary Compensation Table” and “2024 Director Compensation”, which was filed with the SEC on March 28, 2025 and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1949543/000162828025015343/str-20250328.htm, and (ii) to the extent holdings of Sitio’s securities by its directors or executive officers have changed since the amounts set forth in Sitio’s definitive proxy statement for its 2025 Annual Meeting of Stockholders, such changes have been or will be reflected on Initial Statement of Beneficial Ownership of Securities on Form 3, Statement of Changes in Beneficial Ownership on Form 4, or Annual Statement of Changes in Beneficial Ownership on Form 5 filed with the SEC, which are available at EDGAR Search Results https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=1949543&type=&dateb=&owner=only&count=40&search_text=.

Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint information statement/proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available. You may obtain free copies of these documents through the website maintained by the SEC at http://www.sec.gov.

No Offer or Solicitation

This communication is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, pursuant to the Sitio Transaction or otherwise, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    VIPER ENERGY, INC.
Date: June 30, 2025     By:  

/s/ Matt Zmigrosky

    Name:   Matt Zmigrosky
    Title:   Executive Vice President, General Counsel and Secretary

Source: View Original Filing on SEC EDGAR

FAQ

What leverage does the Morgan Stanley (MS) SX5E Buffered PLUS provide?

The note offers 157%–172% participation in any positive EURO STOXX 50 return, finalized on the July 28 2025 pricing date.

How does the 15% buffer work on the Morgan Stanley Dual Directional note?

If SX5E falls by up to 15%, investors receive a 100% absolute return on that decline; losses begin only beyond the 15% threshold.

What is the estimated value versus the $1,000 issue price?

Morgan Stanley’s models place the value at $920.20 ± $55, about an 8% discount to face value due to fees and hedging costs.

Does the SX5E Buffered PLUS pay interest during its term?

No. The securities do not pay periodic coupons; all value is delivered at maturity based on SX5E performance.

When is the maturity date and observation date for these notes?

The observation date is 29 July 2030, and payment of principal occurs on the 1 August 2030 maturity date.

Are the notes exchange-listed or easily tradable?

No. The securities will not be listed on any exchange, and secondary market trading may be limited and at unfavorable prices.
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Viper Energy

NASDAQ:VNOM

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VNOM Latest News

Jun 26, 2025
Viper Energy, Inc., a Subsidiary of Diamondback Energy, Inc., Schedules Second Quarter 2025 Conference Call for August 5, 2025
Jun 3, 2025
Viper Energy, Inc., a Subsidiary of Diamondback Energy, Inc., to Acquire Sitio Royalties Corp. in All-Equity Transaction; Increases Base Dividend
May 5, 2025
Viper Energy, Inc., a Subsidiary of Diamondback Energy, Inc., Reports First Quarter 2025 Financial and Operating Results
May 1, 2025
Viper Energy, Inc. Announces Closing of Drop Down Transaction
Apr 16, 2025
Viper Energy, Inc. Provides Financial and Operating Update for the First Quarter of 2025

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