Sitio Royalties (STR) | News Based Sentiment Analysis

• On August 19, 2025, Sitio Royalties Corp. (STR) was delisted from the NYSE following its $4.1 billion acquisition by Viper Energy, Inc. (VNOM). This all-stock deal included the assumption of $1.1 billion of debt, marking a significant change for Sitio shareholders.
• Prior to the merger's completion, insiders of Sitio Royalties Corp. sold all of their equity holdings on August 19, 2025, exchanging 10,431 shares of Class A common stock and 15,443,610 shares of Class C common stock. Following these transactions, insiders held 0 shares.
• An Oaktree-related reporting group also divested its entire stake in Sitio Class A shares for merger consideration on August 21, 2025, ceasing to beneficially own 5% or more of Sitio's Class A shares. This indicates a complete exit by a major shareholder ahead of the acquisition.
• Following the acquisition, Sitio shareholders are expected to own approximately 20% of the combined entity, while Viper shareholders will control around 80%. Viper Energy anticipates the acquisition will lead to higher cash returns, lower breakeven costs, and substantial synergies.
• On September 2, 2025, Sitio Royalties Corp. filed a Form 15-12G with the SEC, terminating its reporting duties under the Securities Exchange Act of 1934. The filing indicated approximately one holder of record as of the certification date, a direct consequence of the merger.

The Investment Story: August and early September marked the complete acquisition of Sitio Royalties by Viper Energy, culminating in a delisting and a shift in ownership structure. The rapid sequence of insider sales and regulatory filings underscores the finalization of this major corporate event.

What It Means for Investors: The acquisition effectively removes Sitio Royalties as an independent investment option. Former Sitio shareholders now hold a 20% stake in the combined Viper Energy entity, meaning their investment performance is now tied to Viper's future success and ability to realize the projected synergies.

Looking Ahead: Investors who previously held Sitio shares should monitor Viper Energy's performance closely, particularly its ability to deliver on the promised higher cash returns and lower costs. Key metrics to watch include Viper's quarterly earnings reports and any updates on integration progress.

The Bottom Line: The month concluded with the successful completion of the $4.1 billion merger between Sitio Royalties and Viper Energy. This represents a complete exit for Sitio shareholders, who are now invested in a larger, potentially more efficient entity, but their investment profile has fundamentally changed.