Viper Energy (NASDAQ:VNOM) shares fell 3.2% to $46.05 in premarket trading Tuesday after the company priced a large secondary offering valued at roughly $798 million.
The Midland, Texas-based mineral and royalty interests owner said late Monday that approximately 17.4 million shares were sold by existing holders, including parent company Diamondback Energy (NASDAQ:FANG), EnCap affiliates and Oaktree Capital Management.
The shares were priced at about $45.90 each, a 3.6% discount to Viper’s previous closing price.
Diamondback Energy accounted for the majority of the sale, divesting around 12.4 million shares. Before the transaction, Diamondback held roughly 155.1 million shares, representing about 43.4% of Viper’s outstanding stock, according to the prospectus.
Separately, Viper announced it will repurchase 1 million partnership units from Oaktree Capital Management through a private placement as part of the broader transaction.
J.P. Morgan and Goldman Sachs acted as joint bookrunners on the offering.
Despite Tuesday’s decline, Viper Energy shares had advanced about 23% so far this year through Monday’s close.