Viper Energy Inc., fresh off a trio of Midland Basin acquisitions totaling $1.1 billion, has priced an upsized public offering of 10 million shares of its common stock at $42.50 each, with proceeds anticipated to help pay for the deals.
Net proceeds to Viper from the sale of the shares, after the underwriting discount and estimated offering expenses, will be approximately $413.7 million. The offerings’ underwriters have a 30-day option to purchase up to an additional 1.5 million share of Class A common stock, less an underwriting discount.
If underwriters exercise their full option, Viper’s net proceeds will rise to $475.9 million.
Viper, a Diamondback Energy subsidiary, intends to use proceeds, along with cash on hand and borrowings under its revolving credit facility, to fund part of its cash consideration for its pending acquisition of mineral and royalty interests from subsidiaries of Tumbleweed Royalty IV LLC.
Tumbleweed Royalty was founded in 2014 by Cody Campbell and John Sellers, the co-executives behind Permian E&P Double Eagle Energy.
The offering is expected to close on Sept. 13, subject to customary closing conditions. Viper initially offered 8.5 million shares of its Class A common stock on Sept. 11 before increasing the offering later that day. Viper also announced the acquisitions on Sept. 11.
Goldman Sachs & Co. LLC, BofA Securities and Truist Securities are acting as joint book-running managers.
The Class A common stock will be issued and sold pursuant to an effective automatic shelf registration statement on Form S-3ASR previously filed with the Securities and Exchange Commission.