Viper to buy Sitio Royalties; increases dividend

[cmm3rd]

Viper Energy, Inc., a Subsidiary of Diamondback
Energy, Inc., to Acquire Sitio Royalties Corp. in All-
Equity Transaction; Increases Base Dividend
2025-06-03
MIDLAND, Texas, June 03, 2025 (GLOBE NEWSWIRE) -- Viper Energy, Inc. (NASDAQ:VNOM) (“Viper” or the
“Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback”), and Sitio Royalties Corp.
(NYSE:STR) (“Sitio”) today announced that they have entered into a denitive agreement under which Viper will
acquire Sitio in an all-equity transaction valued at approximately $4.1 billion, including Sitio’s net debt of
approximately $1.1 billion as of March 31, 2025. The consideration will consist of 0.4855 shares of Class A common
stock of a new holding company (“pro forma Viper”) for each share of Sitio Class A common stock, and 0.4855 units
of Viper’s operating subsidiary, Viper Energy Partners LLC, for each unit of Sitio’s operating subsidiary (along with a
corresponding amount of Class B common stock of pro forma Viper for each share of Sitio Class C common stock),
representing an implied value to each Sitio stockholder of $19.41 per share based on the closing price of Viper
common stock on June 2, 2025. The transaction was unanimously approved by the Board of Directors of each
company and has been approved by the written consent of Diamondback as Viper’s majority stockholder.
Stockholders holding an aggregate of approximately 48% of Sitio’s outstanding voting power, including Kimmeridge,
its largest stockholder, have agreed to vote in favor of the transaction. The transaction is subject to customary
regulatory approvals and is expected to close in the third quarter of 2025.
The Company today also announced that the Board of Directors of Viper approved a 10% increase to its base
dividend to $1.32 per share annually ($0.33 per share quarterly)

[dan_s]

I did not see this coming, but since I own them both I love it.
> STR should go up by at least 10%
> VNOM increases their dividend