Viper Energy will buy certain Permian minerals assets from Tumbleweed Royalty at $461 million

Viper Energy is a subsidiary owned by oil and gas producer Diamondback Energy. It announced on Wednesday that it had entered into an agreement with Tumbleweed Royalty to purchase mineral and royalty interests from the company for $461,000,000 in cash.

According to the agreement, an additional payment of $41 million could be made in the first quarter 2026 based on average U.S. West Texas Intermediate Crude prices in 2025.

Viper issued an 8.5-million share offering to finance the acquisition. Shares fell over 4% following the close of the market.

The deal is expected to close in the fourth quarter this year and would increase Viper's production of oil to 33,000 barrels per day (bopd), up from the current 30,000 bopd.

Tumbleweed IV is backed by private equity companies such as EnCap, Apollo Natural Resources and other firms. It specializes in mineral and royalty investments across the Permian basin.

The assets included in this deal cover nearly 3,237 Net Royalty Acres (NRAs) in the Midland Basin, and 490 NRAs within the Delaware Basin.

The agreement provides Tumbleweed the option to buy an equal number Viper Class B common stocks. Reporting by Seher dareen, Bengaluru. Editing by Mohammed Safi Shamsi

(source: Reuters)