VNOM Sub completes merger with Sitio Royalties, new entity trades as NASDAQ:VNOM

VNOM Sub, Inc. (formerly Viper Energy, Inc.) announced Tuesday the completion of its previously disclosed all-equity merger with Sitio Royalties Corp (NYSE:STR). The combined company, now named Viper Energy, Inc. (NASDAQ:VNOM), began trading under the VNOM ticker on the Nasdaq Stock Market, replacing the former listing. The merger creates a significant player in the energy sector with a market capitalization of $10.75 billion. InvestingPro data shows the company maintains an impressive 98.93% gross profit margin and currently offers an attractive 8.19% dividend yield.

According to a statement based on a SEC filing, the transaction was completed through a series of mergers involving VNOM Sub, Sitio Royalties, and their respective subsidiaries. As part of the transaction, each share of Sitio Royalties’ Class A common stock was converted into the right to receive 0.4855 shares of the new Viper Energy Class A common stock. Former Viper Energy shareholders received one share of the new Viper Energy Class A or Class B common stock for each share held prior to the merger.

The deal resulted in Sitio Royalties and Viper Energy becoming wholly owned subsidiaries of the newly formed Viper Energy, Inc. The company also completed related transactions, including the conversion of certain partnership units and the assumption of several agreements with counterparties. Trading at a P/E ratio of 11.27 with annual revenue of $932.2 million, InvestingPro analysis indicates the stock is currently trading near its Fair Value, with multiple additional ProTips available for subscribers.

On Tuesday, all outstanding shares of the former Viper Energy’s Class A common stock were cancelled, and the new shares began trading under the same VNOM symbol. The former Viper Energy shares are no longer listed on Nasdaq.

The merger led to changes in the company’s board of directors. Steven E. West, Laurie H. Argo, Spencer D. Armour, Frank C. Hu, W. Wesley Perry, James L. Rubin, and Travis D. Stice stepped down as directors. Austen Gilfillian and Matt Zmigrosky were appointed to the board, and Kaes Van’t Hof remains as a director.

In connection with the merger, the company amended and restated its certificate of incorporation and bylaws. The issuance of the new shares was registered under the Securities Act of 1933.

All information is based on a press release statement and the company’s SEC filing.

In other recent news, Viper Energy reported a robust performance for the second quarter of 2025, with earnings per share (EPS) reaching $0.41, exceeding the projected $0.36 by 13.89%. The company’s revenue also surpassed expectations, totaling $297 million against the anticipated $287.21 million. Raymond (NSE:RYMD) James adjusted its price target for Viper Energy, lowering it to $56.00 from $57.00, while maintaining an Outperform rating. This adjustment followed Viper’s second-quarter returns of capital, which were $0.56 per share, approximately 75% of distributable cash flow, but about 7% below expectations of $0.60 per share.

Morgan Stanley (NYSE:MS) initiated coverage on Viper Energy with an Overweight rating and set a price target of $46.00. The investment bank noted Viper Energy’s significant holdings of mineral rights and royalty interests in the Permian basin. These developments highlight recent analyst attention on Viper Energy, reflecting varying perspectives on its financial performance and future potential.

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