Viper Energy, Inc. has announced a significant acquisition through a definitive equity purchase agreement with Endeavor Energy Resources, LP and its subsidiaries. The company will acquire 22,847 net royalty acres in the Permian Basin for $1.0 billion in cash and 69,626,640 units of limited liability company interests, which are exchangeable for shares of Class A common stock. The assets, primarily operated by Diamondback Energy, include interests in 6,055 gross proved developed production wells, 116 gross completed wells, and 394 gross drilled but uncompleted wells.

The transaction, pending shareholder and regulatory approval, is expected to close in the second quarter of 2025. Viper will fund the cash portion through a combination of cash on hand, credit facility borrowings, and potential capital market transactions. Additionally, Viper is acquiring mineral and royalty interests from Morita Ranches Minerals, LLC for $211 million in cash and 2,400,297 equity units, with closing anticipated in February 2025.

The deal has been approved by Viper’s board and its independent audit committee, and it will be accounted for as a common control transaction, meaning the assets will be recorded at their historical carrying value.