Group 1 - Viper Energy (NYSE: VNOM) is presented as a low-risk investment option in the U.S. oil and gas sector, contrasting with traditional integrated majors and exploration and production (E&P) companies [1] - The analysis provided by Energess Resources focuses on company-level insights, emphasizing valuation, capital and operational efficiency, asset quality, and shareholder alignment [1] - The initial coverage will concentrate on E&P companies in the U.S. and Canada, with plans to expand to midstream and royalty companies for a comprehensive view of the energy value chain [1] Group 2 - Investments in the energy sector are highlighted as capable of delivering strong total returns and providing diversification for long-term portfolios when approached with discipline and a value-oriented strategy [1] - The cyclical nature of commodity prices is acknowledged, but it is noted that quality companies with experienced management can still create shareholder value during challenging pricing periods [1]

Core Viewpoint - Viper Energy, Inc. has announced a significant Notes Offering totaling $1.6 billion, which includes two series of senior notes with different maturities and interest rates, aimed at refinancing existing debt and supporting potential acquisitions [1][3]. Group 1: Notes Offering Details - The offering consists of $500 million in 4.900% senior notes maturing on August 1, 2030, and $1.1 billion in 5.700% senior notes maturing on August 1, 2035 [1]. - The public pricing for the 2030 Notes is set at 99.902% of the principal amount, while the 2035 Notes are priced at 99.636% [1]. - The expected closing date for the Notes Offering is July 23, 2025, pending customary closing conditions [2]. Group 2: Use of Proceeds - The net proceeds from the Notes Offering will be utilized for general corporate purposes, including redeeming existing senior notes and potentially repaying borrowings related to the acquisition of Sitio Royalties Corp. [3]. - Specifically, the proceeds will be used to redeem Viper Energy's 7.375% senior notes due 2031 and 5.375% senior notes due 2027, as well as Sitio's 7.875% senior notes due 2028 if the acquisition closes [3]. Group 3: Company Overview - Viper Energy, Inc. is focused on owning and acquiring mineral and royalty interests in oil and natural gas properties, primarily in the Permian Basin [7].

Company Overview - Viper Energy, Inc. is a subsidiary of Diamondback Energy, Inc. focused on owning, acquiring, and exploiting oil and natural gas properties in North America, particularly in the Permian Basin in West Texas [3] - Diamondback Energy, Inc. is an independent oil and natural gas company headquartered in Midland, Texas, specializing in the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin [4] Upcoming Financial Results - Viper Energy plans to release its second quarter 2025 financial results on August 4, 2025, after the market closes [1] - A conference call and webcast will be held on August 5, 2025, at 10:00 a.m. CT to discuss the second quarter results [2]

Core Insights - Viper Energy, Inc. (VNOM) is acquiring Sitio Royalties for $4.1 billion, highlighting the ongoing profitability of operations in the Permian Basin despite declining crude prices [3][5][6] - The acquisition will increase VNOM's net royalty acres in the Permian to 85,700, with expected production of 122,000-130,000 barrels of oil equivalent per day by Q4 2025 [3][4][9] - The deal reflects the enduring attractiveness of the Permian Basin, where break-even costs are significantly low, making operations profitable even with current WTI prices below $65 per barrel [6][10] Company and Industry Analysis - The acquisition by VNOM indicates a positive outlook for midstream players like Enterprise Products Partners LP (EPD) and producers like Occidental Petroleum (OXY), as increased activity in the Permian is anticipated [2][9] - Occidental holds 2.9 million net acres in the Permian, with break-even costs below $50 per barrel, ensuring profitability in the current pricing environment [10] - EPD has a strong presence in the Permian and has connected over 1,000 new oil and gas wells to its infrastructure, with expectations for similar growth in the second half of 2025 [12][13]

Key Takeaways VNOM to acquire STR in a $4.1B all-stock deal, including $1.1B of STR's net debt at Q1 2025 end. Deal boosts VNOM's Permian Basin footprint by 42%, adding 34,300 net royalty acres. Transaction to increase VNOM's cash available for distribution per share by 8-10%.Viper Energy, Inc. (VNOM) , a subsidiary of the independent oil and gas exploration firm Diamondback Energy, announced that it has entered into an agreement to acquire Sitio Royalties (STR) in an all-stock transaction totaling $4.1 b ...

Core Viewpoint - Viper Energy Partners has seen a 3.7% increase in shares over the past month, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Estimates Movement - Estimates for Viper Energy have remained flat over the past month, with a consensus estimate shift of -10.25% [2] VGM Scores - Viper Energy has an average Growth Score of C, a Momentum Score of B, and a Value Score of F, resulting in an aggregate VGM Score of D, indicating a poor performance in the value investment strategy [3] Outlook - Viper Energy holds a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the upcoming months [4] Industry Performance - Viper Energy is part of the Zacks Oil and Gas - Exploration and Production - United States industry, where EOG Resources has gained 3.8% over the past month, reporting revenues of $5.67 billion with a year-over-year change of -7.4% [5] - EOG Resources is expected to post earnings of $2.12 per share for the current quarter, reflecting a year-over-year change of -32.9%, with a Zacks Consensus Estimate change of -8.7% over the last 30 days [6]

Viper Energy Partners (VNOM) M&A Announcement June 03, 2025 08:00 AM ET Speaker0 Good day, and welcome to the Viper Insidio Merger Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Instructions will be given at that time. As a reminder, this call may be recorded. I would like to turn the call over to Chip Seal, Investor Relations Director. Please go ahead. Speaker1 Thank you, Michelle. Good morning, and w ...

Factors that could cause the outcomes to differ materially include (but are not limited to) the following: the risk associated with Sitio's ability to obtain the approvals of its stockholders required to consummate the Mergers; risks related to the timing of the closing of the Mergers, including the risk that the conditions to the Mergers are not satisfied on a timely basis or at all or the failure of the Mergers to close for any other reason or to close on the anticipated terms, including the anticipated t ...

Core Viewpoint - Viper Energy, Inc. has announced a definitive agreement to acquire Sitio Royalties Corp. in an all-equity transaction valued at approximately $4.1 billion, which includes Sitio's net debt of about $1.1 billion as of March 31, 2025 [1] Transaction Details - The acquisition will involve the exchange of 0.4855 shares of Class A common stock of a new holding company for each share of Sitio Class A common stock, and 0.4855 units of Viper's operating subsidiary for each unit of Sitio's operating subsidiary, implying a value of $19.41 per Sitio share based on Viper's stock price on June 2, 2025 [1] - The transaction has received unanimous approval from the Boards of Directors of both companies and has the consent of Diamondback Energy, Viper's majority stockholder [1] - Approximately 48% of Sitio's voting power has agreed to support the transaction [1] - The deal is subject to customary regulatory approvals and is expected to close in Q3 2025 [1] Financial Highlights - Viper has approved a 10% increase in its base dividend to $1.32 per share annually, which represents approximately 45% of cash available for distribution at $50 WTI [2][6] - The acquisition is expected to be approximately 8-10% accretive to cash available for distribution per Class A share immediately upon closing [6] - The pro forma Viper's base dividend breakeven is expected to decrease by approximately $2 per barrel to below $20 WTI [6] - Estimated annual synergies from the merger are projected to exceed $50 million, primarily from administrative and capital cost savings [6] Strategic Rationale - The merger is expected to create a leader in the minerals industry with enhanced size, scale, liquidity, and access to investment-grade capital [7] - The combined company will have approximately 34,300 net royalty acres in the Permian Basin and an additional ~9,000 net royalty acres in other major basins [6][7] - The merger will position the combined entity to compete effectively for capital with mid and large-cap North American exploration and production companies, benefiting from higher margins and lower operating costs [7] Production and Operational Highlights - The average production for Q1 2025 was reported at 18.9 mbo/d (42.1 mboe/d), with Permian production at 14.5 mbo/d (31.9 mboe/d) [6] - The pro forma Viper is expected to have an average production of 64-68 mbo/d (122-130 mboe/d) by Q4 2025, with a mid-single-digit percentage increase expected for the full year 2026 [6]

Group 1 - The article promotes a free two-week trial for the investment group Distressed Value Investing, which offers exclusive research on various companies and investment opportunities [1] - The investment group focuses on value opportunities and distressed plays, particularly in the energy sector [2] - The author, Aaron Chow, has over 15 years of analytical experience and previously co-founded a mobile gaming company that was acquired by PENN Entertainment [2] Group 2 - The article emphasizes that past performance is not indicative of future results and does not provide specific investment recommendations [3] - It clarifies that the analysts contributing to the platform may not be licensed or certified by any regulatory body [3]