FANG · 10-Q · 2026Q2 · Full report
Acquisition / Partnership / Divestiture
Diamondback Energy, Inc. · 2026-08-05 · Importance 47 · Surprise 60 · In source text
On August 3, 2026, Diamondback agreed to divest certain mineral and royalty interests to Viper Energy Partners LP in exchange for 3.65 million Viper LLC Units and an equivalent number of Viper Class B shares. The pending 2026 Drop Down will be accounted for as a common-control transaction using Diamondback’s historical carrying value for the transferred properties. On July 1, 2026, Viper acquired Riverbend Oil & Gas IX for approximately $339 million in cash and 3.69 million Viper Class A shares. The Riverbend transaction expands Viper’s mineral and royalty interest portfolio.
Key facts
- The Sitio Acquisition was an all-equity transaction valued at approximately $4.0 billion, including transaction costs and customary post-closing adjustments and the retirement of Sitio’s net debt of approximately $1.2 billion source
- On April 1, 2025, the Company completed the Double Eagle Acquisition for consideration of $3.1 billion in cash and approximately 6.84 million shares of the Company’s common stock source
- On August 19, 2025, upon completion of Viper’s Sitio Acquisition, VNOM Sub, Inc. (formerly Viper Energy, Inc., “Former Viper”) became a wholly owned subsidiary of Viper Energy, Inc. (formerly New Cobra Pubco, Inc., “New Viper”) source
- On May 1, 2025, Endeavor Energy Resources, LP divested equity interests in 1979 Royalties, LP and 1979 Royalties GP, LLC to Viper and Viper LLC in exchange for the issuance of 69.63 million Viper LLC Units (among other consideration) source
- The Double Eagle Acquisition assets consisted of approximately 67,700 gross (40,000 net) acres primarily located in the Midland Basin source
- The Sitio Acquisition mineral and royalty interests represent approximately 25,300 net royalty acres in the Permian Basin and approximately 9,000 net royalty acres in the Denver-Julesburg, Eagle Ford and Williston basins, for total acreage of approximately 34,300 net royalty acres source
- Viper LLC completed multiple acquisitions during 2024 that included contingent cash consideration based on the average price of WTI sweet crude oil for calendar year 2025 which resulted in an aggregate payment of $ million in January 2026 (the 2026 WTI Contingent Liability). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | +5.7% | The Sitio Acquisition was an all-equity transaction valued at approximately $4.0 billion, including transaction costs and customary… |
| liability | positive | realized | +1.7% | The Sitio Acquisition was an all-equity transaction valued at approximately $4.0 billion, including transaction costs and customary… |
| assets | positive | realized | — | On August 19, 2025, upon completion of Viper’s Sitio Acquisition, VNOM Sub, Inc. (formerly Viper Energy, Inc., “Former Viper”) became a… |
| liability | negative | realized | — | On August 19, 2025, upon completion of Viper’s Sitio Acquisition, VNOM Sub, Inc. (formerly Viper Energy, Inc., “Former Viper”) became a… |