Diamondback Energy (NASDAQ: FANG) subsidiary Viper Energy acquired certain mineral and royalty interests from subsidiaries of Diamondback Energy in a drop-down transaction valued at about $4.45 billion.
The deal includes $1 billion in cash and approximately 69.6 million operating company units issued by Viper's operating subsidiary. The OpCo units will be issued alongside an equal number of Class B common shares of Viper and will be exchangeable for Class A common stock.
Based on the 30-day volume-weighted average price of $49.55 for Viper's common shares ending Jan. 24, 2025, the equity portion of the transaction contributes to a total valuation of roughly $4.45 billion.