Sidley represented Sitio Royalties Corp. (NYSE: STR) in two highly accretive Permian Basin acquisitions: (i) Sitio’s acquisition of over 19,700 net royalty acres (NRAs) in the Permian Basin from Foundation Minerals, a Midland-based portfolio company of Quantum Energy Partners, for approximately US$323 million; and (ii) Sitio’s definitive purchase and sale agreement to acquire over 12,200 NRAs in the Permian Basin from Momentum Minerals, a Houston-based portfolio company of funds and accounts managed or advised by affiliates of Apollo Global Management, for approximately US$224 million. The Foundation acquisition was funded through borrowings under the company’s credit facility and proceeds from a 364-day unsecured bridge loan facility. The Momentum acquisition is expected to be funded with debt financing and close in the third quarter of 2022. These acquisitions are in keeping with Sitio’s continued strategy of consolidation of large-scale, high-quality mineral and royalty positions.
The Sidley team was led by Katy Lukaszewski and Irving Rotter. Additional support was provided by partner Zackary Pullin (Tax), managing associate John Brannan III, associates Kevin Hess and Aaron Mitchell (all Energy); as well as partner Daniel Allison and associate Kaitlin Schock (both Energy).