Sitio Royalties Unveils Pair of Permian Basin Acquisitions Worth Nearly $550 Million

Sitio Royalties Corp. disclosed two acquisitions in the Permian Basin on June 27 worth a combined $547 million that builds on Sitio’s strategy of consolidation of large-scale, high-quality mineral and royalty positions.

“We believe that the mineral and royalty sector is ripe for consolidation and are proud to announce these highly accretive acquisitions soon after completing the Falcon Minerals merger and rebranding the company to Sitio,” Noam Lockshin, chairman of the Sitio board of directors, commented in a company release.

Falcon Minerals completed its merger with Desert Peak Minerals on June 7, creating Sitio Royalties led by Chris Conoscenti, who previously served as CEO of Desert Peak. At the time of the initial announcement of the merger agreement in January, the combined company was expected to have a significant Permian and Eagle Ford footprint and an enterprise value of $1.9 billion.

In a June 27 company release, Sitio said it had completed the acquisition of over 19,700 net royalty acres from Foundation Minerals for approximately $323 million. The company separately entered an agreement to acquire over 12,200 net royalty acres from Momentum Minerals for $224 million.