Viper Energy Closes Sitio Deal, Raises Q3 Production Outlook

Core Insights - Viper Energy, Inc. has completed the acquisition of Sitio Royalties Corp. in an all-equity transaction, marking a significant milestone for both companies and establishing a new leader in the minerals and royalties sector [1][10] Production Guidance - Following the merger, Viper revised its third-quarter 2025 oil production guidance to 54,500-57,500 barrels per day, an increase of approximately 8,500 barrels per day at the midpoint compared to previous standalone projections [2] - Average total production is now projected to be between 104,000-110,000 barrels of oil equivalent per day, reflecting an increase of about 18,000 barrels of oil equivalent per day from earlier guidance, accounting for 43 days of production from Sitio [3] Strategic Positioning - The CEO of Viper Energy emphasized that the merger is a pivotal step for the minerals and royalties industry, enhancing the company's size, scale, liquidity, and access to investment-grade capital in a traditionally fragmented market [4] - The combined entity is expected to be well-positioned within North American shale to drive long-term growth efficiently, requiring no direct capital expenditures and only limited operating costs [5] Operational Leverage - With the acquisition, Viper Energy strengthens its scale and operational leverage in a consolidating sector, allowing it to capture long-term growth opportunities and deliver efficiencies from greater scale while maintaining value for shareholders [6]