Viper Energy to Buy Certain Tumbleweed Royalty Assets for $461 Million, Units

Viper Energy (VNOM) agreed to acquire certain mineral and royalty interest-owning entities of Tumbleweed Royalty IV for $461 million in cash and 10.1 million units of a Viper operating subsidiary.

Viper, a Diamondback Energy (FANG) subsidiary, said Wednesday it expects to fund the cash portion with a combination of cash on hand, borrowings and proceeds from one or more potential capital markets transactions.

The units to be issued by the operating subsidiary come with the grant of an option to purchase an equal number of class B common shares of Viper Energy.

A potential additional payment in Q1 2026 of up to $41 million, based on the average 2025 West Texas Intermediate price, is included in the agreement, Viper said.

The company expects to complete the acquisition in early Q4.

Viper also said it completed related acquisitions from Tumbleweed-Q Royalty Partners and MC Tumbleweed Royalty for a combined $189 million, plus up to $9 million to be paid in Q1 2026, linked to the average 2025 WTI price.

Separately, Viper said it launched an underwritten public offering of 8.5 million shares with proceeds partly to fund the purchase of the Tumbleweed Royalty IV assets.

The underwriters will have an option to purchase up to an additional 1.275 million shares.