Viper Energy , a subsidiary of oil and gas producer Diamondback Energy , said on Wednesday it had reached an agreement to acquire mineral and royalty interest-owning subsidiaries from Tumbleweed Royalty IV for $461 million in cash.
Under the agreement, there is a potential additional payment of up to $41 million in the first quarter of 2026, based on the average prices of the U.S. West Texas Intermediate crude in 2025.
Viper launched an 8.5 million share offering to fund the acquisition, sending shares down over 4% after the market close.
Expected to close early in the fourth quarter of this year, the deal would raise Viper’s oil production to approximately 33,000 barrels of oil per day (bopd) from 30,000 bopd currently.
Tumbleweed IV, backed by private equity firms such as EnCap and Apollo Natural Resources, specializes in royalty and mineral investments throughout the Permian Basin.
The deal includes assets spanning across nearly 3,237 net royalty acres (NRA) in the Midland Basin and 490 NRAs in the Delaware Basin.
The agreement includes approximately 10.1 million OpCo units and provides Tumbleweed with the option to purchase an equal number of Viper’s Class B common stock.
Source: Reuters.com