Diamondback Energy Acquires 3.8M+ Paired Units in Viper Energy Asset Transaction

Executive Summary

On September 3, 2026, Diamondback Energy, Inc. filed a Form 4 disclosing the receipt of 3,815,459 paired Class B Common Stock and Operating Company Units of Viper Energy, Inc. ($VNOM) on September 1, 2026. The units were issued as transaction consideration in connection with the closing of an asset purchase agreement for mineral and royalty interests.

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Transaction Breakdown

• Diamondback E&P LLC (Indirect): Acquired 2,808,459 paired Class B Common Stock & Operating Company Units, bringing its post-transaction holding to 10,874,987 units.
• Endeavor Energy Resources, L.P. (Indirect): Acquired 1,007,000 paired Class B Common Stock & Operating Company Units, bringing its post-transaction holding to 70,633,640 units.
• Direct Holdings (Diamondback Energy, Inc.): 64,463,550 units.
• Total Beneficial Ownership: 145,972,177 paired shares/units.

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Context & Mechanics

1. Redemption Rights: Each share of Class B Common Stock, together with one Operating Company Unit of VNOM Holding Company LLC, is redeemable at the holder's discretion for one share of Class A Common Stock.
2. Underlying Transaction: Pursuant to an agreement dated August 3, 2026, Viper Energy Partners LP acquired mineral and royalty interests from Diamondback and its subsidiaries in exchange for an aggregate 3,815,459 paired units upon closing on September 1, 2026.

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Significance Assessment

• Trading Significance: Medium
• Interpretation: While this transaction represents a sizable equity issuance (~3.82 million shares/units), it is structured consideration for an asset acquisition rather than an open-market insider purchase. It further consolidates the mineral and royalty assets under Viper Energy while increasing Diamondback's equity interest.