Viper Energy Closes $488 Million Riverbend Permian Royalty Acquisition as Diamondback Deepens Mineral Position

Viper Energy, Inc. (NASDAQ: VNOM), the Permian Basin royalty vehicle of Diamondback Energy (NASDAQ: FANG), closed its acquisition of Riverbend Oil & Gas IX, LLC's mineral and royalty interests on July 1, 2026. The transaction included $337 million in cash plus approximately 3.7 million shares of Viper's Class A common stock. At Viper's July 2 closing price of $40.75 per share, the stock component contributes approximately $150.8 million, for a combined total of approximately $487.8 million. That total is an Oil Authority calculation; Viper's disclosure notes the figure remains subject to customary post-closing adjustments.

How Viper Fits Diamondback's Permian Strategy

Viper Energy is Diamondback's dedicated mineral and royalty acquisition vehicle. Diamondback holds a controlling interest in VNOM, making the royalty company a subsidiary rather than a standalone entity. Viper collects a percentage of production revenue from Permian Basin operators without incurring drilling or operating costs. This structure gives Diamondback a second layer of Permian income on acreage it may already operate or on which its peers are active. The royalty model buffers Viper from capital expenditure swings while tracking production growth across the basin.

Deal Context: WTI at $68.78 Per Barrel

WTI crude oil settled at $68.78 per barrel on Thursday, July 2, 2026, the final CME session before the Independence Day long weekend, per OilPrice.com. Brent crude settled at $72.12 per barrel on the same date. Both benchmarks have been under pressure, with WTI recording four consecutive weeks of losses heading into the holiday weekend. Acquiring Permian royalty assets in a lower-price environment means Viper paid for capacity that benefits most when WTI recovers. The cash-and-stock structure limits balance sheet strain compared to an all-cash acquisition.

Morgan Stanley maintained its Overweight rating on VNOM but trimmed its price target to $46 per share from $49 on June 29, 2026, citing the lower oil price environment. The average analyst target for VNOM, per Yahoo Finance, stands at $57.61, within a range of $46 to $65. That spread reflects genuine disagreement about where Permian royalty valuations settle as OPEC+ adds supply through the second half of 2026.

Third Royalty Acquisition in Under Two Years

The Riverbend IX closing marks Viper's third significant royalty acquisition since mid-2024. Viper completed the acquisition of Sitio Royalties Corp. through an all-equity exchange in August 2025, creating the largest publicly traded Permian mineral company by market capitalization. Before that, Viper closed the Tumbleweed Royalty IV transaction for approximately $461 million in cash and OpCo units in October 2024. Each deal extended Viper's net royalty acre footprint across the Midland and Delaware basins. The three transactions show a pattern of consolidating fragmented Permian mineral ownership under Diamondback's control.

Seller and What Comes Next

The seller, Riverbend Oil & Gas IX, LLC, is the ninth vehicle in Riverbend's series of royalty funds. Viper's press release did not name any private equity sponsors backing Riverbend IX, nor did it disclose acreage or current production from the acquired assets. Those details are likely to emerge when Viper reports second-quarter results on August 4, 2026. Viper funded the cash consideration through existing reserves and draws on its revolving credit facility, per the SEC filing. The share issuance was registered under Viper's existing shelf registration statement.