Permian Basin-focused Viper Energy Partners LP agreed Monday to buy Santa Elena Minerals LP in an all-equity transaction to gain 1,358 net acres in West Texas that would give parent Diamondback Energy Inc. a more contiguous leasehold in the Permian Basin.

The royalty acreage primarily in Glasscock and Martin counties produced 1,400 boe/d in 2Q2019 and is 65% operated by Diamondback. The acreage has a 5.6% average net revenue interest and would concentrate exposure to Diamondback’s contiguous acreage.

“This acquisition is another step in Viper’s strategy to continue to consolidate the fragmented private minerals market in the Permian Basin, both through our normal ground game of smaller deals, as well as larger acquisitions, such as this deal,” said general partner CEO Travis Stice, who also is CEO of Diamondback.

Viper was launched in 2014 by Diamondback to own, acquire and develop oil and natural gas properties, with a focus on Permian oil in West Texas. Viper was the first U.S.-listed master limited partnership whose revenue is derived only from owning mineral rights.

“Viper continues to use its size, scale and expertise to accumulate Tier 1 acreage, and we believe there remain significant opportunities ahead for us to continue this consolidation, which will supplement the robust production growth of our existing asset base,” Stice said.

Assuming no purchase price adjustments, Viper plans to issue 5.2 million units to Santa Elena valued at $150 million, with closing expected by year’s end.

“With Diamondback’s significant operatorship in these properties, Viper is the right strategic partner for these assets,” Santa Elena CEO Austen Campbell said.

Like Diamondback and Viper, Santa Elena is headquartered in Midland, TX. Santa Elena claims to be one of the largest mineral acquisition companies in the country, with a focus on the Permian.