Diamondback Energy subsidiary Viper Energy has closed a previously announced acquisition of Midland Basin mineral and royalty interests for roughly $915 million, Viper said on Oct. 1.

Viper agreed in September to acquire the mineral and royalty-owning subsidiaries of Tumbleweed Royalty IV LLC. Tumbleweed was founded in 2014 by Cody Campbell and John Sellers, the co-executives behind Permian E&P Double Eagle Energy.

Combined with other recent deals with Tumbleweed, Viper has acquired about $1.1 billion from Tumbleweed and its affiliates.

Viper paid for the acquisition with $459 million in cash and 10.1 million OpCo units. Based on the $45.13 closing price of Viper units on Sept. 11, the equity portion of the deal that closed Oct. 1 was worth approximately $456 million. Tumbleweed Royalty was also granted an option to acquire the same number of shares of Viper's Class B common stock as the OpCo units Viper was paid.

The deal with Tumbleweed IV also includes a potential additional payment of up to $41 million cash in first-quarter 2026, based on average 2025 WTI oil prices.

In September, Viper closed two other Permian Basin acquisitions from Tumbleweed-Q Royalty Partners LLC and MC Tumbleweed Royalty LLC for a combined cash consideration of $189 million.

Combined, the acquisitions represent approximately 3,727 net royalty acres in the Permian Basin—3,237 in the Midland Basin and 490 in the Delaware Basin.

Viper expects Diamondback to complete between 120 and 140 gross locations beyond existing DUCs and permits on the acquired properties through the end of 2026 at an average ~3% net royalty interest.

Intrepid Partners LLC has served as financial adviser to Viper. Akin Gump Strauss Hauer & Feld LLP and Wachtell, Lipton, Rosen & Katz served as its legal advisers.

Vinson & Elkins LLP has served as the sellers' legal adviser.

Comments