BUZZ-Viper Energy rises after boosted stock sale for Diamondback drop down deal

Viper Energy's VNOM.O shares up 2.6% at $47.43 premarket after overnight acquisition-related follow-on priced

Midland, Texas-based VNOM late Thurs announced 24.6 mln shares at $44.50, 3.8% discount to last sale

Offering size boosted from 22 mln shares

VNOM intends to use expected net proceeds of ~$1.1 bln to fund acquisition of certain mineral rights in Permian Basin from its parent Diamondback Energy FANG.O

The drop down transaction valued at $4.45 bln, FANG said

After the bell Thurs, VNOM said its avg daily production in Q4 was 56,109 barrels of oil equivalent. It also said the drop down would be financially accretive in near and long term, adding it expects it to be >10% accretive to distributable cash/sh immediately upon closing (anticipated in Q1 2025)

Co has ~188.4 mln shares outstanding for $8.7 bln market cap, per LSEG

Through Thurs, VNOM shares down ~6% YTD but up roughly 50% over the past 12 months

JP Morgan, Citigroup, Mizuho and Morgan Stanley jt bookrunners for the stock offering

Shares of FANG are flat at $170.41 in thin premarket volume. Its stock is up 4% to begin 2025