Sitio Royalties to buy oil & gas rights firm Brigham Minerals in $4.8-bln deal (updated)

Sitio Royalties

06/09/2022 13:13

(Updates with details on the deal and background)
    Sept 6 (Reuters) - Sitio Royalties Corp  STR.N  said on
Tuesday it would buy oil and gas rights company Brigham Minerals
Inc  MNRL.N  in a $4.8-billion deal, as it looks to capitalise
on the uptick in the energy markets following Russia's invasion
of Ukraine.    
    Minerals companies such as Brigham sign agreements with
landowners for the right to drill and keep any hydrocarbons they
find, often paying an upfront fee and subsequent royalty
payments to the landowner.
    The equity value of the all-stock deal is $1.73 billion and
it is expected to close by the first quarter of 2023.
    Sitio and Brigham shareholders will own about 54% and 46% of
the company, respectively.

 (Reporting by Arunima Kumar in Bengaluru;
Editing by Vinay Dwivedi)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94
 ;))