ZACKSยท2025-06-05 17:15Core 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]