Warwick, GRP Acquire $670 Million Oil & Gas Portfolio from Viper Energy
A strategic acquisition in the US energy sector sees Warwick Capital Partners and GRP Energy Capital purchasing a substantial portfolio of oil and gas mineral and royalty assets from Viper Energy, a subsidiary of Diamondback Energy, for $670 million. The deal underscores continued investor interest in energy assets and follows a previous transaction involving the same parties in 2023.
The acquired portfolio encompasses approximately 73,500 net royalty acres spread across key US shale basins, including the DJ Basin, Eagle Ford, and Williston Basin, all located in Texas, Colorado, and North Dakota.
Building on a Previous Deal
This latest transaction builds upon a significant exchange that occurred in 2023, where affiliates of Warwick and GRP sold certain mineral and royalty interests to Viper in exchange for approximately 9.02 million Viper common units and $750 million in cash. This prior deal demonstrates a cyclical relationship between the companies, highlighting a strategic approach to portfolio management and capital allocation within the energy sector.
Portfolio Details and Strategic Implications
The 73,500 net royalty acres represent a significant addition to Warwick and GRP’s existing holdings. These assets generate revenue from oil and gas production without the operational responsibilities associated with drilling and production. This makes them attractive to investors seeking stable income streams and exposure to commodity prices.
According to a company release, Alfredo Mattera, co-founder and managing partner at Warwick Capital Partners, expressed enthusiasm about the deal. “We are delighted to celebrate this significant close, marking another milestone in our 10-year partnership with GRP Energy Capital,” he stated. “Over the past decade, Warwick has built a successful business in minerals and royalties, showcasing our ability to scale niche opportunities and bring a differentiated offering in specialist asset classes to our investors.”
A Decade of Partnership and Growth
The acquisition highlights the successful ten-year partnership between Warwick Capital Partners and GRP Energy Capital. This collaboration has allowed Warwick to establish a strong presence in the minerals and royalties market, demonstrating their ability to identify and capitalize on specialized investment opportunities. The deal reinforces the growing trend of institutional investors seeking exposure to the energy sector through royalty and mineral interests, offering a diversified and potentially lucrative investment avenue.
