Diamondback’s Viper Buys $1.1B in Permian Mineral, Royalty Interests

Mineral and royalty player Viper Energy Inc. will pay more than $1.1 billion for three Midland Basin acquisitions, the Diamondback Energy subsidiary said on Sept. 11.

Viper’s operating subsidiary, Viper Energy Partners LLC, agreed to acquire mineral and royalty-owning subsidiaries of Tumbleweed Royalty IV LLC for $461 million in cash and 10.1 million Viper units, the company announced after markets closed Sept. 11.

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Based on the $45.13 closing price of Viper units on Sept. 11, the equity portion of the deal is valued at approximately $456 million.

Tumbleweed Royalty was founded in 2014 by Cody Campbell and John Sellers, the co-executives behind Permian E&P Double Eagle Energy. Double Eagle IV is one of the largest private producers left in the Midland Basin and a major target for acquisitions, analyst have said.

Viper expects to fund the cash portion of the deal through a combination of cash on hand, borrowings under its credit facility and proceeds from one or more capital markets transactions.

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

Viper also announced closing two other Permian Basin acquisitions from Tumbleweed-Q Royalty Partners LLC and MC Tumbleweed Royalty LLC for a combined cash consideration of $189 million.

Those deals also include a potential additional cash payment of up to $9 million in first-quarter 2026, based on 2025 WTI oil prices.

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.

Current production from the acquired assets averages 2,500 bbl/d (4,000 boe/d). Viper anticipates output growing to about 4,500 bbl/d in full-year 2025, based on current producing wells, DUCs, permits and Diamondback Energy’s development plans.

Viper is a Diamondback subsidiary but is publicly traded separately.

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 (NRI).

The deals are expected to boost Viper’s Diamondback-operated production from an average of 1,000 bbl/d in 2025 to 3,000 bbl/d in 2026.

“Viper was able to uniquely execute on this differentiated acquisition opportunity given its overall size and scale, but also due to the visibility we have into Diamondback’s expected multi-year development plan,” said Viper CEO Travis Stice—who also serves as CEO of Diamondback Energy.

This week, Diamondback closed a blockbuster $26 billion acquisition of Midland Basin E&P Endeavor Energy Partners, creating what an analyst called “the last and best oil sandbox” in the basin.

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

Vinson & Elkins LLP and Kirkland & Ellis LLP are serving as the sellers' legal advisers.

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