12:05 PM EDT, 06/03/2025 (MT Newswires) -- (Updates with Sitio Royalties' ( STR ) recent stock movement in the headline and second paragraph.)

Viper Energy ( VNOM ) said Tuesday that it will acquire Sitio Royalties ( STR ) in an all-equity deal valued at $4.1 billion, including $1.1 billion in net debt, with the transaction backed by Diamondback (FANG) and key Sitio shareholders.

Shares of Sitio Royalties ( STR ) were up more than 15% in recent Tuesday trading.

Viper will issue 0.4855 pro forma shares per Sitio share, implying $19.41 per share based on its Monday closing price, the company said.

The deal will result in a public minerals company with 85,700 net royalty acres in the Permian Basin and expected Q4 output of up to 130 mboe/d, Viper said.

Synergies are projected to exceed $50 million per year, and the deal will immediately be accretive to cash available for distribution per share by 8-10%, the company said.

Viper said it has also raised its base annual dividend by 10% to $1.32 per share, lowering its breakeven point to below $20 WTI.

The deal is expected to be completed in Q3, the company said.

Price: 41.37, Change: +1.40, Percent Change: +3.49