The oil and gas industry is about to see a major merger and acquisition! Viper Energy (VNOM.US) acquires Sitio (STR.US) for $4.1 billion in all-stock deal.

Wisdom Financial APP learned that Viper Energy (VNOM.US), a listed company focusing on North American oil and gas assets, announced on Tuesday local time that it has agreed to acquire one of the competitors in the Permian Basin, Sitio Royalties (STR.US), in an all-stock transaction with a total value of approximately $4.1 billion (including net debt). Viper management stated in a statement that this move will significantly increase the company's oil and gas asset scale and inventory depth, laying an important foundation for stable oil and gas production and free cash flow growth over the next decade. Boosted by the acquisition news, Sitio Royalties' stock price surged more than 17% in pre-market trading on the US stock market. As of the close on Monday, Sitio's total market value was approximately $1.3 billion.