STR - Sitio Royalties Brigham Minerals to merge in $4B all-stock deal

Brigham Minerals ( NYSE: MNRL ) +8.1% pre-market on Tuesday after agreeing to merge with Sitio Royalties ( NYSE: STR ) in an all-stock deal with an aggregate enterprise value of ~$4.8B.

The merger will create one of the largest publicly traded mineral and royalty companies in the U.S., with complementary high quality assets in the Permian Basin and other oil-focused regions.

The combined company will have nearly 260K net royalty acres, pro forma Q2 net production of 32.8K boe/day and 50.3 net line-of-sight wells operated by a well-capitalized, diverse set of E&P companies.

The deal is expected to generate $15M of annual operational cash cost synergies and reduce Sitio's ( STR ) Q2 pro forma cash G&A per boe by 19% to $1.72 for the combined company.

Sitio ( STR ) and Brigham ( MNRL ) shareholders will receive 54% and 46% of the combined company, respectively, on a fully diluted basis.

Sitio Royalties ( STR ) recently reported Q2 net income of $72M on revenues of $88M .

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