Latest news with #Diamondback
Yahoo
3 days ago
- Business
- Yahoo
Diamondback's Viper Energy buys Sitio Royalties for $4.1 billion in merger of the top two minerals players
Viper Energy will acquire Sitio Royalties for $4.1 billion in an all-stock deal combining the two biggest minerals and royalties players in the oil and gas sector. The June 3 industry shakeup further consolidates both the booming, but maturing Permian Basin in West Texas and the niche minerals and royalties space in which companies own the rights to fossil fuels beneath the surface, but do not drill or operate the wells. Viper is the publicly traded minerals subsidiary of Midland, Texas-based Diamondback Energy (ranked 383 in the Fortune 500), which continues to rapidly expand as the largest Permian oil and gas producer focused only on the West Texas region. 'The combination of Viper and Sitio signifies an important moment for mineral and royalty interests,' said Diamondback and Viper CEO Kaes Van't Hof in a prepared statement. 'This combination creates a leader in size, scale, float, liquidity, and access to investment-grade capital in the highly fragmented minerals industry.' The deal allows the expanded Viper the scale to compete for capital even with large-cap exploration and production players that own and operate their own oil and gas wells, Van't Hof added. The deal is the biggest in the minerals sector since Sitio first emerged as a power player in 2022 through its $4.8 billion combination with Brigham Minerals. The $4.1 billion equity deal, including $1.1 billion in debt assumption, represents an almost 15% premium on Sitio's stock value, which rose by 12% in early trading June 3. The deal is expected to close in the third quarter. Viper's stock largely held flat in early trading with a market cap of about $11.5 billion, while Diamondback rose 1% to a value of more than $40 billion. Diamondback's ascent continues after its nearly $4.1 billion acquisition of Double Eagle assets on April 1—a seemingly popular acquisition price for Diamondback—and its much larger $26 billion deal for Endeavor Energy Resources last year. Earlier this year, Sitio CEO Chris Conoscenti told this reporter that he saw 2025 as a growth opportunity through acquisitions. However, in the publicly traded energy space, a company is always for sale when the offer is right. In the booming Permian, which produces roughly 40% of the nation's crude oil and much of the natural gas, propane, butane, and ethane as well, Viper is more strongly positioned in the Permian's eastern Midland Basin, while Sitio is bigger in the western Delaware Basin that extends into southeastern New Mexico. 'This transaction is the next logical step in Sitio's evolution,' said Sitio chairman Noam Lockshin in a statement. 'By adding Sitio's coverage of the Delaware Basin to Viper's position in the Midland Basin, the combined company will be well positioned in the Permian for years to come.' The deal expands Viper's minerals footprint in the Permian by about 25,300 net royalty acres to a total of 85,700 net acres, about 43% of which are operated by the parent Diamondback, according to Viper. The net royalty acreage represents the geographic scale and value of Viper's ownership position of the unrecovered oil and gas still underground. The merger also expanded Viper beyond the Permian a bit with 9,000 net royalty acres in other oil and gas basins in or near South Texas, Colorado, and North Dakota. 'We are still focused on the Permian, and will hold the other basins for now—but eventually might sell them if prices improve,' Van't Hof told Fortune about the non-core assets being acquired. Diamondback is expected to own roughly 41% of Viper's outstanding shares after the deal, down from a majority ownership today. 'While this transaction will reduce Diamondback's ownership in pro forma Viper,' Van't Hof stated, 'it does not reduce the significance of the relationship between Diamondback and Viper. The Diamondback drill bit remains Viper's biggest competitive advantage and the most visible source of long-term production growth at Viper. 'Mineral interests offer the highest form of security and upside in the oil field, and any and all benefits an operator manages to unlock accrues directly to the mineral holder without any capital risk, forever,' he added. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Diamondback's Viper Energy to Buy Sitio in $4.1 Billion Deal
(Bloomberg) -- Viper Energy Inc., the mineral and royalty unit of Diamondback Energy Inc., agreed to buy Sitio Royalties Corp. for about $4.1 billion, including debt, in the latest deal focused on the Permian Basin. Where the Wild Children's Museums Are Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry The Economic Benefits of Paying Workers to Move At London's New Design Museum, Visitors Get Hands-On Access LA City Council Passes Budget That Trims Police, Fire Spending The all-stock deal will consist of 0.4855 shares of Class A common stock of a new holding company for each share of Sitio's Class A common stock, and 0.4855 units of Viper's operating subsidiary, Viper Energy Partners, for each unit of Sitio's operating subsidiary. Diamondback is expected to own approximately 41% of Viper after the closing, according to a statement Tuesday. Viper was formed by Diamondback to focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin. Denver-based Sitio focuses on investing in mineral and royalty interests in oil basins, with about 34,300 net royalty acres acquired through more than 200 acquisitions. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To Will Small Business Owners Knock Down Trump's Mighty Tariffs? ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Diamondback's Viper Energy to Buy Sitio in $4.1 Billion Deal
(Bloomberg) -- Viper Energy Inc., the mineral and royalty unit of Diamondback Energy Inc., agreed to buy Sitio Royalties Corp. for about $4.1 billion, including debt, in the latest deal focused on the Permian Basin. Where the Wild Children's Museums Are Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry The Economic Benefits of Paying Workers to Move At London's New Design Museum, Visitors Get Hands-On Access LA City Council Passes Budget That Trims Police, Fire Spending The all-stock deal will consist of 0.4855 shares of Class A common stock of a new holding company for each share of Sitio's Class A common stock, and 0.4855 units of Viper's operating subsidiary, Viper Energy Partners, for each unit of Sitio's operating subsidiary. Diamondback is expected to own approximately 41% of Viper after the closing, according to a statement Tuesday. Viper was formed by Diamondback to focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin. Denver-based Sitio focuses on investing in mineral and royalty interests in oil basins, with about 34,300 net royalty acres acquired through more than 200 acquisitions. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To Will Small Business Owners Knock Down Trump's Mighty Tariffs? ©2025 Bloomberg L.P. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
3 days ago
- Entertainment
- Yahoo
Randy Johnson won 4 consecutive Cy Young Awards for the Diamondbacks: See his career
After tallying 4,785 career strikeouts and 303 wins, Johnson became the only player to be inducted into the Baseball Hall of Fame as a Diamondback.
Economic Times
12-05-2025
- Business
- Economic Times
Why are US natural gas prices rising, and what does it mean for American families?
Market Technicals and Supply Constraints Live Events Weather-Driven Demand 'Trumpflation' and Tariffs on Energy Imports Impact on American Families What Comes Next? FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel With US natural gas prices up more than 14 percent over the past month, many American families are poised to see their utility bills rise by up to $30 a month as higher fuel and power‐sector costs get passed through to gas prices have risen from around $3.47 to nearly $3.80 per million British thermal units (MMBtu) in the last few days, driven by tighter supplies, technical buying, a brief outage at a key LNG export plant, and forecasts for hotter-than-normal summer and economic policies of the Trump administration, particularly new tariffs on energy imports under his first 100 days, are adding an extra layer of cost pressure and translating into higher heating and electricity bills for families and small businesses across the natural gas futures broke above the 50-day exponential moving average (about $3.47/MMBtu), many traders jumped back in, betting on further gains above resistance at $3.72/ major US producers like Diamondback and Coterra announced cuts to rig counts and capital spending in the Permian Basin, setting the stage for slower output growth later this National Weather Service and private forecasters predict above-normal cooling degree days across the Lower 48 through mid-May, signaling an earlier start to air-conditioning season. That additional power-sector demand tightens balances and lifts natural gas his first 100 days, President Trump has imposed a 10 percent tariff on Canadian energy exports, including natural gas, intended to 'minimize disruptive effects,' but adding cost to U.S. imports. Goldman Sachs warns these tariffs could push core inflation up to 3.8 percent by year-end, reversing recent gains toward the Fed's 2 percent note grocery and energy prices are already outpacing wage growth for many a middle-class family in Cleveland that relies on natural gas for both heating and cooking, a $0.30 rise per MMBtu can translate into an extra $20–$30 on next month's bill. Small manufacturers in the Midwest, who use gas-fired furnaces, report tightening margins and are already planning modest price increases for their EIA(Energy Information Administration) now projects the Henry Hub spot price to average $4.19/MMBtu in 2025, up nearly 90 percent over last year, before climbing further to $4.47/MMBtu in 2026 as LNG exports and seasonal power demand grow. If the summer heat wave deepens, or if geopolitical tensions flare further, we could see another leg up in consumers, that means keeping an eye on usage, exploring efficiency upgrades, and budgeting for potentially higher energy bills in the months as technical traders fuel short-term rallies, real-world factors outages at major export terminals, summer cooling demand, and new tariffs, are the main drivers tightening the US natural gas market.: Be mindful of your natural gas consumption, especially during peak demand periods.: Consider investing in energy-efficient appliances and insulation to reduce heating and cooling costs.: Plan your monthly expenses to accommodate potential increases in utility solutions include diversifying energy sources, investing in renewable energy, and improving energy efficiency across sectors. Policy decisions at the federal and state levels will play a crucial role in shaping the future of energy prices.
