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DENVER - Sitio Royalties Corp. (NYSE:STR), a $2.76 billion market cap energy company with an impressive 92.28% gross profit margin according to InvestingPro, announced Monday that its stockholders have approved the previously announced merger with Viper Energy, Inc. The transaction is expected to close on Tuesday, August 19, 2025.
Under the terms of the merger agreement, Sitio stockholders will receive 0.4855 shares of Class A common stock of New Cobra Pubco, Inc. (New Viper) for each share of Sitio Class A common stock owned. Sitio Royalties Operating Partnership unitholders will receive 0.4855 common units of Viper Energy Partners LLC and 0.4855 shares of New Viper Class B common stock for each unit owned.
Trading of Sitio Class A common stock will be suspended on the New York Stock Exchange prior to market open on Tuesday.
Sitio Royalties describes itself as focused on large-scale consolidation of oil and gas mineral and royalty interests across premium basins. The company reports having accumulated over 275,000 net royalty acres through more than 200 acquisitions as of June 30, 2025. With a robust current ratio of 4.04 and an attractive 7.87% dividend yield, InvestingPro data shows the company maintains strong financial health while rewarding shareholders. Get access to 8 more exclusive ProTips and comprehensive analysis in the Pro Research Report.
The merger announcement follows the SEC’s declaration on July 18, 2025, that the registration statement on Form S-4 filed by New Parent in connection with the merger was effective. A definitive joint information statement/proxy statement/prospectus was mailed to stockholders of both companies around the same date.
This article is based on a press release statement from Sitio Royalties Corp. Based on InvestingPro’s Fair Value analysis, the stock appears slightly undervalued, making it an interesting watch ahead of the merger completion.
In other recent news, Sitio Royalties Corp has been at the center of significant developments following the announcement of its acquisition by Viper Energy, Inc. The all-equity transaction values Sitio Royalties at $4.1 billion, including its net debt of approximately $1.1 billion. This acquisition, unanimously approved by the boards of both companies, is expected to close in the third quarter of 2025. Analysts from Texas Capital Securities have downgraded Sitio Royalties’ stock rating from Buy to Hold, despite expressing a positive view of the strategic benefits of the merger. The transaction is anticipated to create a major player in the minerals sector, with a focus on substantial scale and low leverage. As part of the acquisition, Viper Energy will gain approximately 25,300 net royalty acres in the Permian Basin. Additionally, Viper’s board has approved a 10% increase in its base dividend to $1.32 per share annually, indicating confidence in the merger’s potential to enhance shareholder value. These recent developments have marked a transformative period for Sitio Royalties Corp.
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