Chris Matthews from Hart Energy, who covers the North American upstream shale energy industry and the acquisition and divestiture deal markets, reports that Viper Energy Inc., a subsidiary of Diamondback Energy, is set to invest over $1.1 billion in three strategic acquisitions in the Midland and Delaware Basins, as the company announced on September 11.
See Viper Energy Press Release: HERE
Viper Energy Partners LLC, Viper’s operating arm, has agreed to acquire mineral and royalty interests from Tumbleweed Royalty IV LLC for $461 million in cash and 10.1 million Viper units. At the closing price of $45.13 per unit on September 11, the equity portion of the transaction is valued at approximately $456 million.
Tumbleweed Royalty IV LLC, established in 2014 by Cody Campbell and John Sellers—co-founders of Permian-focused Double Eagle Energy—has been a significant private player in the Midland Basin, which is now a prime target for acquisitions, according to industry analysts.
Viper intends to finance the cash component through existing cash reserves, borrowings under its credit facility, and proceeds from potential capital market transactions. The deal also includes an additional contingent payment of up to $41 million in early 2026, depending on the average price of WTI crude oil in 2025.
In addition to the Tumbleweed IV acquisition, Viper closed two other deals in the Permian Basin. The company acquired assets from Tumbleweed-Q Royalty Partners LLC and MC Tumbleweed Royalty LLC for a combined total of $189 million in cash. These transactions also come with a potential additional payment of up to $9 million, contingent on 2025 WTI oil prices.
Collectively, the acquisitions will add approximately 3,727 net royalty acres to Viper’s portfolio—3,237 acres in the Midland Basin and 490 acres in the Delaware Basin [Approximately 80% of this acreage is in Lea and Eddy counties.] The acquired assets currently produce around 2,500 barrels of oil per day (bbl/d), or 4,000 barrels of oil equivalent per day (boe/d). Viper anticipates production will increase to about 4,500 bbl/d by the end of 2025, factoring in existing wells, drilled but uncompleted wells (DUCs), permits, and Diamondback Energy’s development plans.
Although Viper is a Diamondback subsidiary, it is publicly traded separately. The company expects Diamondback to develop between 120 and 140 new well locations on the acquired properties by the end of 2026, with an average net royalty interest (NRI) of approximately 3%.
These acquisitions are expected to significantly enhance Viper’s production profile, with Diamondback-operated output projected to increase from an average of 1,000 bbl/d in 2025 to 3,000 bbl/d in 2026.
“Viper was uniquely positioned to capitalize on this acquisition opportunity due to its size, scale, and the visibility we have into Diamondback’s multi-year development plan,” said Travis Stice, CEO of both Viper and Diamondback Energy.
The announcement follows Diamondback’s recent $26 billion acquisition of Endeavor Energy Partners, a major Midland Basin exploration and production (E&P) company, which has been described by analysts as “the last and best oil sandbox” in the region.
Source Credit: Hart Energy | Viper Energy Press Release
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About Viper Energy, Inc. Viper is a corporation formed by Diamondback to own, acquire and exploit oil and natural gas properties in North America, with a focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin. For more information, please visit www.viperenergy.com. About Diamondback Energy, Inc. Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.
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