Sitio Royalties (NYSE: STR) saw its shares climb 16% in midday trading Tuesday following the announcement that it will be acquired by Viper Energy in a $4.1 billion all-stock deal. The merger will create the largest publicly traded minerals and royalties company in the U.S. oil and gas sector.
Viper Energy, the minerals-focused arm of Midland, Texas-based Diamondback Energy — ranked No. 383 on the 2025 Fortune 500 — will assume $1.1 billion of Sitio’s debt as part of the agreement. The all-equity transaction represents a nearly 15% premium on Sitio’s stock value, signaling strong confidence in the strategic potential of the combined company.
The acquisition unites two dominant players in the oil and gas royalties space, both with extensive holdings across the Permian Basin, the nation’s most productive oil region. Viper, which operates solely in West Texas, has been a key driver of Diamondback Energy’s rapid regional expansion.
The deal marks the largest transaction in the minerals sector since Sitio Royalties’ $4.8 billion merger with Brigham Minerals in 2022 — a move that catapulted the company into the top tier of mineral rights holders in the U.S.
“This transformative combination consolidates the top-tier mineral and royalty acreage across the Permian Basin,” said a Viper executive in a statement. Analysts say the merger is likely to deliver scale-driven efficiencies and increased cash flow potential, appealing to investors seeking returns in the upstream energy segment.
With U.S. shale producers prioritizing capital discipline and shareholder returns, the focus on mineral rights — which offer consistent revenue without operating costs — has become a more attractive investment niche. The combined entity is expected to benefit from Diamondback’s operational strength and the expanded royalty footprint Sitio brings to the table.
Pending regulatory approvals, the deal is expected to close by the end of 2025.
