Latest news with #ViperEnergy
Yahoo
8 hours ago
- Business
- Yahoo
Sitio Royalties downgraded after Viper Energy agrees to acquire co for $19.41/shr
-- Texas Capital has downgraded Sitio Royalties Corp (NYSE:STR) to Hold from Buy after the company agreed to be acquired by Viper Energy (NASDAQ:VNOM) in an all-stock transaction valued at $19.41 per share. The downgrade comes as analysts no longer see material upside following the announced deal, which values Sitio at about $4.1 billion. Texas Capital also cut its price target on Sitio to $20 from $29, in line with the proposed merger terms. 'We are positive on the transaction,' analysts wrote, citing strategic fit, increased scale, low leverage, and an attractive base dividend breakeven below $20 per barrel WTI. 'The combination creates a must-own Minerals company.' Texas Capital does not expect any competing bids given the lack of well-capitalized public rivals in the space. Viper Energy said the deal will make it the largest public mineral and royalty company in the U.S., with positions in the Permian and other key basins. The transaction is expected to close in the second half of 2025, subject to shareholder and regulatory approvals. Related articles Sitio Royalties downgraded after Viper Energy agrees to acquire co for $19.41/shr Tesla shares gain as Trump wishes Musk 'well' GFL weighs sale in infrastructure arm valued at C$5 billion - Bloomberg Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Why Sitio Royalties Corp. (STR) Gained This Week
The share price of Sitio Royalties Corp. (NYSE:STR) surged by 13.29% between May 29 and June 5, 2025, putting it among the Energy Stocks that Gained the Most This Week. Let's shed some light on the development. A close-up of an oil derrick against a colorful sunset sky, a symbol of the company's success. Sitio Royalties Corp. (NYSE:STR) received a boost this week after it was announced that the company is set to be acquired by Viper Energy, a subsidiary of Diamondback Energy. The all-equity deal is valued at around $4.1 billion, including Sitio's net debt of approximately $1.1 billion as of March 31, 2025. The transaction is subject to customary regulatory approvals and is expected to close in the third quarter of this year. Chris Conoscenti, CEO of Sitio Royalties Corp. (NYSE:STR), stated: 'We are excited to announce the combination of two leading minerals companies with a shared strategic vision of integrating the highest quality assets to create a truly differentiated investment opportunity for shareholders. While we acknowledge the potential of STR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and Disclosure: None.
Yahoo
5 days ago
- Business
- Yahoo
Viper Energy to Acquire Sitio Royalties in $4.1B All-Stock Deal
Viper Energy, Inc. VNOM, a subsidiary of the independent oil and gas exploration firm Diamondback Energy, announced that it has entered into an agreement to acquire Sitio Royalties STR in an all-stock transaction totaling $4.1 billion. The total valuation includes Sitio's net debt of $1.1 billion at the end of the first quarter of 2025. In addition to the acquisition of Sitio Royalties in the Permian Basin, the company has also announced a 10% increase in its base dividend to $1.32 per share annually, or 33 cents quarterly. For each share of Sitio Class A common stock, the shareholders will receive 0.4855 shares of Class A common stock of Viper, and against each unit of Sitio's operating subsidiary, unitholders are expected to get 0.4855 units of Viper Energy Partners LLC, Viper's operating subsidiary. This transaction has resulted in an implied share price of $19.41 per share for Sitio's stockholders, based on Viper's share price as of June 2, 2025. Following the announcement, shares of Viper Energy have risen almost 1% while those of Sitio Royalties have gained approximately 12%. The deal is anticipated to be closed in the third quarter of 2025. The transaction is deemed to be a strategic fit for Viper Energy that should enhance its scale and inventory to support sustainable production growth for the next 10 years. Further, this should enable VNOM to strengthen free cash flow generation over the next decade. The companies also expect the acquisition to be immediately accretive to cash available for distribution per Class A share by nearly 8-10%. Additionally, the deal is expected to generate more than $50 million in annual synergies, primarily due to a reduction in general and administrative costs and cost of capital savings. Post closing of the transaction, Viper Energy intends to uphold its Investment Grade rating, keeping its net debt target at $1.5 billion in the near term. The acquisition will also improve Viper Energy's financials by reducing its pro forma base dividend breakeven to below $20 WTI, roughly $2 per barrel lower than prior estimates. Sitio Royalties' total acreage dropped to approximately 34,300 net royalty acres, of which nearly 25,300 net royalty acres lie within the prolific Permian basin and approximately 9,000 net royalty acres are concentrated in other major basins in the United States, such as the Eagle Ford Basin and Williston Basin. The deal will increase Viper's Permian Basin footprint by 42%. The combined entity will own approximately 85,700 net royalty acres in the Permian Basin, of which 43% shall be operated by Diamondback. Following the closure of the deal, Viper Energy's pro forma average production in the fourth quarter is expected to be in the range of 122-130 thousand barrels of oil equivalent per day (mboe/d). After the Sitio acquisition, Diamondback Energy will own approximately 41% of pro forma Viper's outstanding common stock. Both VNOM and STR currently carry a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy sector are Flotek Industries Inc. FTK and Energy Transfer ET. While Flotek Industries sports a Zacks Rank #1 (Strong Buy) at present, Energy Transfer carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Flotek Industries specializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs. Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 130,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, ET's outlook seems positive. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sitio Royalties Corp. (STR) : Free Stock Analysis Report Energy Transfer LP (ET) : Free Stock Analysis Report Flotek Industries, Inc. (FTK) : Free Stock Analysis Report Viper Energy Inc. (VNOM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
6 days ago
- Business
- Yahoo
Why Sitio Royalties Corp. (STR) Skyrocketed On Tuesday
We recently published a list of . In this article, we are going to take a look at where Sitio Royalties Corp. (NYSE:STR) stands against other Tuesday's best performers. Sitio Royalties saw its share prices increase by 15.30 percent on Tuesday to finish at $19.97 apiece following news that it is set to be acquired by Viper Energy Inc. for $4.1 billion. In a statement, Viper Energy said it entered into a definitive agreement with Sitio Royalties Corp. (NYSE:STR), under which the former will acquire the latter in an all-stock transaction, including its net debt of approximately $1.1 billion. A close-up of an oil derrick against a colorful sunset sky, a symbol of the company's success. Under the transaction, each STR Class A stockholder will be able to receive 0.4855 Class A common shares of a new merger company. Meanwhile, shareholders of Sitio's operating subsidiary will get 0.4855 units of Viper's operating subsidiary. Lastly, Class C shareholders of Sitio Royalties Corp. (NYSE:STR) will be able to receive Class B stock in the merger company. 'The transaction was unanimously approved by the Board of Directors of each company and has been approved by the written consent of Diamondback as Viper's majority stockholder,' Viper Energy said. The transaction is subject to customary regulatory approvals and is expected to close in the third quarter of 2025. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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
6 days ago
- Business
- Yahoo
Why Sitio Royalties Corp. (STR) Skyrocketed On Tuesday
We recently published a list of . In this article, we are going to take a look at where Sitio Royalties Corp. (NYSE:STR) stands against other Tuesday's best performers. Sitio Royalties saw its share prices increase by 15.30 percent on Tuesday to finish at $19.97 apiece following news that it is set to be acquired by Viper Energy Inc. for $4.1 billion. In a statement, Viper Energy said it entered into a definitive agreement with Sitio Royalties Corp. (NYSE:STR), under which the former will acquire the latter in an all-stock transaction, including its net debt of approximately $1.1 billion. A close-up of an oil derrick against a colorful sunset sky, a symbol of the company's success. Under the transaction, each STR Class A stockholder will be able to receive 0.4855 Class A common shares of a new merger company. Meanwhile, shareholders of Sitio's operating subsidiary will get 0.4855 units of Viper's operating subsidiary. Lastly, Class C shareholders of Sitio Royalties Corp. (NYSE:STR) will be able to receive Class B stock in the merger company. 'The transaction was unanimously approved by the Board of Directors of each company and has been approved by the written consent of Diamondback as Viper's majority stockholder,' Viper Energy said. The transaction is subject to customary regulatory approvals and is expected to close in the third quarter of 2025. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
