PE-backed Sitio Royalties Corp to merge with Brigham Minerals in $4.8bn deal

• The closing of the merger is expected to occur in the first quarter of 2023
• Noam Lockshin, a partner at Kimmeridge and the current chairman of Sitio’s board, will serve as chairman of the combined company
• Credit Suisse Securities (USA) LLC is serving as financial advisor to Sitio while Goldman Sachs is doing likewise to Brigham

Oil royalty and mineral companies Sitio Royalties Corp and Brigham Minerals have agreed to merge in a $4.8 billion deal.

Sitio is backed by Kimmeridge, Blackstone and Oaktree.

The combination brings together two of the largest public companies in the oil and gas mineral and royalty sector with complementary high-quality assets in the Permian Basin and other oil-focused regions.

On the merger, Chris Conoscenti, CEO of Sitio, said in a statement, “Our merger with Brigham Minerals brings together two complementary businesses that are aligned in every key way, and further advances the business plan that Sitio outlined earlier in the year following the merger of Sitio’s predecessor companies. Both companies are focused on asset quality, maintain disciplined acquisition underwriting standards, understand the benefits of scale, and prioritize shareholder alignment in our approaches to capital allocation and best-in-class governance.”

The closing of the merger is expected to occur in the first quarter of 2023.

The combined company, which will operate under the name Sitio Royalties Corp, will be led by Sitio’s current executive leadership team and be headquartered in Denver, Colorado.

Noam Lockshin, a partner at Kimmeridge and the current chairman of Sitio’s board, will serve as chairman of the combined company.

Credit Suisse Securities (USA) LLC is serving as exclusive financial advisor and Davis Polk & Wardwell LLP is serving as legal advisor to Sitio. Goldman Sachs is serving as exclusive financial advisor and Vinson & Elkins LLP is serving as legal advisor to Brigham.