Viper Energy Closes $1B Deal For Diamondback's Mineral & Royalty Interests

Viper Energy, Inc. (NASDAQ:VNOM) ("Viper" or the "Company"), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) ("Diamondback"), today announced that it and its operating subsidiary, Viper Energy Partners LLC (the "Operating Company"), have closed their previously announced acquisition of all of the equity interests in certain mineral and royalty interest-owning subsidiaries of Diamondback (the "Drop Down"). The total consideration for the Drop Down consisted of (i) $1.0 billion in cash and (ii) the issuance (the "Equity Issuance") of 69,626,640 units representing limited liability company interests in the Operating Company and an equivalent number of shares of Viper's Class B Common Stock, in each case, subject to transaction costs and certain customary post-closing adjustments.

The mineral and royalty interests acquired by the Operating Company in the Drop Down represent approximately 22,847 net royalty acres in the Permian Basin, approximately 69% of which are currently operated by Diamondback. Viper funded the cash consideration for the Drop Down with (i) proceeds from its previously announced underwritten public offering of shares of its Class A Common Stock, completed on February 3, 2025, and (ii) borrowings under the Operating Company's revolving credit facility. Immediately following the completion of the Drop Down, Diamondback beneficially owned approximately 53.7% of Viper's outstanding voting common stock.