Strategic Firepower: Scale, Synergy, and $50M in Savings
The merger isn’t just about size—it’s about strategic synergy. Viper estimates annual savings exceeding $50 million, driven by administrative efficiencies and reduced capital costs.
Importantly, nearly half of Sitio’s Permian footprint overlaps with Viper’s operated wells, offering immediate production alignment and integration potential. Sitio’s Q1 2025 average output stood at 42,100 barrels of oil equivalent per day, signaling robust contributions to Viper’s future performance.
“This isn’t just a merger—it’s a compounding engine,” said Kaes Van’t Hof, CEO of Viper. “We’re creating a royalty titan with unmatched liquidity, investment-grade access, and visibility across America’s most productive basins.”
Deal Details: Unanimous Board Support, Q3 Close Expected
The transaction has been unanimously approved by both boards, with backing from Diamondback, Viper’s majority holder. Additionally, approximately 48% of Sitio’s voting power—including alternative asset giant Kimmeridge—has already pledged support, effectively greasing the wheels for a smooth shareholder approval.
Closing is anticipated in Q3 2025, pending standard regulatory approvals.
“This transaction provides Sitio’s shareholders with a clear runway to a larger platform, superior scale, and long-term development upside,” noted Sitio CEO Chris Conoscenti.
