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Viper Energy, Inc. (NASDAQ:VNOM), a $11 billion market cap energy company with a robust 6.46% dividend yield, on Monday filed a report with the U.S. Securities and Exchange Commission providing financial statements and other exhibits in connection with its proposed merger with Sitio Royalties Corp (NYSE:STR). According to InvestingPro data, Viper maintains strong financial health with exceptional liquidity metrics, including a current ratio of 8.7x.
According to the press release statement, Viper Energy and Sitio Royalties entered into an agreement on June 2, 2025, for Viper, through a wholly owned subsidiary, to acquire Sitio in an all-equity transaction. The filing also referenced the completion of Viper’s earlier acquisition of certain mineral and royalty interests from Endeavor Energy Resources, L.P., a subsidiary of Diamondback (NASDAQ:FANG) Energy, Inc., on May 1, 2025.
Viper’s filing includes several exhibits: audited consolidated financial statements of Sitio Royalties as of December 31, 2024 and 2023, and for each of the three years ended December 31, 2024; interim unaudited financial statements for Sitio as of and for the three months ended March 31, 2025 and 2024; a reserve report for Sitio as of December 31, 2024; unaudited statements of revenues and direct operating expenses for the Endeavor mineral and royalty interests for the three months ended March 31, 2025; and unaudited pro forma condensed combined financial statements for Viper as of and for the three months ended March 31, 2025, as well as for the year ended December 31, 2024.
The company stated that this filing does not modify or update the consolidated financial statements included in Viper’s previous annual or quarterly reports, nor does it reflect subsequent information or events.
The merger remains subject to approval by Sitio stockholders and other customary closing conditions. Viper Energy’s Class A common stock is listed on the Nasdaq Stock Market under the symbol VNOM.
This article is based on a press release statement filed with the SEC.
In other recent news, Viper Energy’s acquisition of Sitio Royalties, valued at approximately $4.1 billion, has been a focal point for analysts and investors. This strategic move is anticipated to enhance Viper Energy’s scale, reduce its dividend breakeven to below $20 per barrel, and increase production per share by 10%. Mizuho (NYSE:MFG) analysts have raised their price target for Viper Energy stock to $55, citing the acquisition as a key factor, while Evercore ISI adjusted their target to $51, highlighting the company’s strengthened position as a mineral consolidator in the Permian Basin. Additionally, Texas Capital Securities maintained a Buy rating with a price target of $49, emphasizing the transaction’s potential to generate over $50 million in synergies.
The acquisition is expected to lower Viper Energy’s debt target to $1.5 billion by 2026, assuming stable oil prices, and has been approved by both companies’ boards. Viper Energy’s market capitalization is projected to reach $15 billion, making it a significant player in the energy sector. The company also announced a 10% increase in its base dividend to $1.32 per share annually, reflecting confidence in the transaction’s potential to enhance shareholder value. Overall, the acquisition is viewed as a strategic move to solidify Viper Energy’s position in the North American mineral and royalty space.
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