Viper Energy Inc. (VNOM) completed the sale of its non‑Permian royalty portfolio to an affiliate of GRP Energy Capital and Warwick Capital Partners for $670 million, with the transaction effective September 1 2025 and expected to close in the first quarter of 2026.
The divested portfolio delivers approximately 9,500 barrels of oil equivalent per day in 2026, roughly half of which is oil and the remainder gas, providing a modest but steady cash flow stream that will be removed from the company’s balance sheet.
Proceeds from the sale are expected to net about $600 million after purchase‑price adjustments and taxes, allowing Viper to retire its term loan and most of its revolving credit facility debt, and to bring net debt closer to the $1.5 billion target set for early 2026.
The sale follows Viper’s $4 billion all‑equity acquisition of Sitio Royalties, which expanded its Permian exposure. By shedding non‑Permian assets with limited inventory, Viper can concentrate capital and operational focus on its core high‑margin Permian portfolio, aligning with industry trends of portfolio optimization and debt reduction.
In Q3 2025, Viper reported a net loss attributable to the company of $77 million ($0.52 per share) but an adjusted net income of $156 million ($1.04 per share). The company’s net debt stood at roughly $1.6 billion, close to the target, and the sale is expected to bring the figure below the 65% net‑debt‑to‑capitalization covenant of its new senior unsecured revolving credit facility.
CEO Kaes Van’t Hof said the divestiture, combined with the Sitio acquisition, brings Viper closer to its debt target and enables a near‑100 % cash return to shareholders once the target is met, underscoring the company’s commitment to shareholder value and disciplined capital allocation.
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