Viper Energy, Inc. Secures Major Acquisition with Diamondback Subsidiaries

Viper Energy, Inc., a subsidiary of Diamondback Energy, Inc., has announced the finalization of its acquisition of mineral and royalty interests from Diamondback's subsidiaries. This significant transaction, referred to as the 'Drop Down', was completed with a total consideration of $1 billion in cash and the issuance of 69,626,640 units and an equivalent number of Class B Common Stock shares. Following this acquisition, Viper Energy has expanded its net royalty acres in the Permian Basin to approximately 22,847 acres, with the majority of these operated by Diamondback. The funding for this transaction was sourced from a public offering of Viper's Class A Common Stock and borrowings under the company's credit facility. The acquisition, which was thoroughly reviewed and approved by Viper's independent directors and board, signifies a strategic step forward in consolidating assets and enhancing its operational capabilities in the oil-rich Permian Basin. This move also reflects Viper's focus on expanding their mineral and royalty interests specifically in oil-weighted areas.