FANG · 10-Q · 2026Q3 · Full report

Acquisitions and Divestitures

Diamondback Energy, Inc. · 2026-11-04 · Importance 34 · Surprise 42

On September 1, 2026, Diamondback transferred mineral and royalty interests to Viper in the 2026 Drop Down in exchange for 3.82 million Viper LLC Units and an equivalent number of Viper Class B shares. In September, Viper acquired approximately 7,359 net royalty acres in the Permian Basin through the McElroy Ranch Acquisition; the consideration included deferred payments due in equal quarterly installments through June 2029. On July 1, Viper acquired Riverbend Oil & Gas IX for cash and 3.69 million Viper Class A shares. Viper’s February 9 divestiture of approximately 9,400 net royalty acres outside the Permian, producing approximately 4,750 BO/d, generated cash proceeds used to repay its 2025 Term Loan and revolving-credit borrowings and for general corporate purposes.

Key facts

• Diamondback completed the Double Eagle Acquisition on April 1, 2025, for $3.1 billion in cash and approximately 6.84 million shares of Diamondback common stock. source
• On August 19, 2025, Viper completed the Sitio Acquisition, an all-equity transaction valued at approximately $4.0 billion, including transaction costs, customary post-closing adjustments and partial retirement of approximately $1.2 billion of Sitio net debt. source
• As part of the water-assets divestiture, Diamondback renewed its 15-year dedication to Deep Blue for produced water and supply water within a [number omitted]-county area of mutual interest in the Midland Basin. source
• On September 1, 2026, Diamondback divested certain mineral and royalty interests to Viper Energy Partners LP in exchange for 3.82 million Viper LLC Units and an equivalent number of Viper Class B common shares, subject to transaction costs and customary post-closing adjustments. source
• Diamondback divested its 27.5% equity interest in EPIC Crude Holdings, LP on October 31, 2025, for approximately $[amount omitted] in cash and $[amount omitted] in unrecognized potential contingent consideration; the contingent payment is due if EPIC’s capacity expansion is formally sanctioned before year-end 2027. source
• Diamondback divested Environmental Disposal Systems, LLC to Deep Blue Midland Basin LLC on October 1, 2025, receiving upfront net cash proceeds of $[amount omitted] and approximately $[amount omitted] of additional Deep Blue equity interests. source
• The EPIC contingent cash payment is due to Diamondback if EPIC’s capacity expansion is formally sanctioned before year-end 2027. source
• Diamondback may earn up to $[amount omitted] in contingent consideration if specified annual completion thresholds are met in each of 2026 through 2028, and could owe Deep Blue up to $[amount omitted] if those thresholds are not met. source