Viper Energy completes Sitio Royalties acquisition, revises production guidance

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Viper Energy (NASDAQ:VNOM [https://seekingalpha.com/symbol/VNOM]) said Tuesday it completed its acquisition [https://seekingalpha.com/pr/20204628-viper-energy-inc-a-subsidiary-of-diamondback-energy-inc-has-completed-its-acquisition-of] of Sitio Royalties (STR [https://seekingalpha.com/symbol/STR]), a day after Sitio shareholders approved the previously announced deal [https://seekingalpha.com/news/4454827-viper-energy-to-buy-sitio-royalties-in-4_1b-all-stock-deal].

Viper Energy (NASDAQ:VNOM [https://seekingalpha.com/symbol/VNOM]) said it expects the deal will be 8%-10% accretive to cash available for distribution immediately after closing.

The company also issued revised Q3 2025 production guidance given the closing of the merger deal, which would include 43 days of contribution from Sitio (STR [https://seekingalpha.com/symbol/STR]), now forecasting oil production of 54,500-57,500 bbl/day, an increase of 8,500 bbl/day at the midpoint compared to prior standalone guidance.

Revised Q3 guidance for total production is forecast at 104,000-110,000 boe/day, an increase of 18,000 boe/day at the midpoint vs. prior standalone guidance given 43 days of contribution from Sitio (STR [https://seekingalpha.com/symbol/STR]).

Diamondback Energy (FANG [https://seekingalpha.com/symbol/FANG]), Viper's (VNOM [https://seekingalpha.com/symbol/VNOM]) majority stockholder, will own ~41% of the new combined company; it also increased [https://seekingalpha.com/pr/20204620-diamondback-energy-inc-s-subsidiary-viper-energy-inc-closes-acquisition-of-sitio-royalties] its Q3 production guidance to reflect 43 days of contribution from the Sitio assets, now seeing oil production of 494,000-504,000 bbl/day and total production of 908,000-938,000 boe/day, compared to previous estimates of 485,000-495,000 bbl/day and 890,000-920,000 boe/day, respectively.

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* Viper Energy Boosts Its Distribution Cash Flow With Acquisition Of Sitio Royalties [https://seekingalpha.com/article/4792318-viper-energy-boosts-distributable-cash-flow-with-acquisition-of-sitio-royalties]