Viper Energy, Inc. Announces Closing of Drop Down Transaction

Core Viewpoint - Viper Energy, Inc. has successfully completed the acquisition of mineral and royalty interests from its parent company, Diamondback Energy, for a total consideration of $1.0 billion in cash and equity issuance, enhancing its asset base in the Permian Basin [1][2]. Group 1: Acquisition Details - The acquisition, referred to as the "Drop Down," includes approximately 22,847 net royalty acres in the Permian Basin, with about 69% of these acres currently operated by Diamondback [2]. - The cash portion of the acquisition was funded through proceeds from a public offering of Class A Common Stock and borrowings from the Operating Company's revolving credit facility [2]. - Following the acquisition, Diamondback holds approximately 53.7% of Viper's outstanding voting common stock [2]. Group 2: Approval Process - The Drop Down was approved by Viper's audit committee and the full board of directors on January 30, 2025, and subsequently by a majority of the Company's stockholders at a special meeting held on May 1, 2025 [3]. - The stockholders also approved the Equity Issuance as required by Nasdaq rules during the same special meeting [3]. Group 3: Company Background - Viper Energy, Inc. is a corporation formed by Diamondback to own, acquire, and exploit oil and natural gas properties in North America, focusing on mineral and royalty interests primarily in the Permian Basin [4]. - Diamondback Energy, Inc. is an independent oil and natural gas company headquartered in Midland, Texas, concentrating on the acquisition and development of unconventional oil and natural gas reserves in the Permian Basin [5].