Crescent Energy to Acquire Permian’s Vital Energy in $3.1 Billion Deal
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Crescent Energy and Vital Energy have entered into a definitive agreement where Crescent will acquire Vital in an all-stock transaction valued at approximately $3.1 billion. The combined company will be led by a management team and board with deep operating and investing expertise, well-positioned to drive long-term growth and value creation.
“This transaction is transformative for Crescent and consistent with our strategy. Crescent’s impressive trajectory of returns-driven growth through M&A has cemented the company as a top ten independent, with line of sight to an investment grade credit rating,” said John Goff, Crescent’s chairman of the board.
“Acquiring Vital and executing on an attractive pipeline of non-core divestitures sharpens our focus and expands our opportunity set for accretive future growth,” added Goff.
“This combination represents compelling value for all shareholders, with attractive acquisition returns and significant accretion across all key financial metrics. With this acquisition and our $1 billion non-core divestiture pipeline, we are better positioned than ever before. Crescent will have more focus, more scale, and more potential to deliver long-term value to shareholders,” said Crescent CEO David Rockecharlie.
“Today’s announcement recognizes the value we have created at Vital Energy. Our combination with Crescent Energy will create a premier, scaled, mid-cap operator with significant efficiencies across a larger asset base. The combined businesses will have more capital allocation flexibility across a vast development inventory and the ability to immediately transfer best operating practices across basins,” said Vital CEO Jason Pigott.
“We are confident that this deal is the right move for Vital shareholders, and it recognizes the hard work and dedication of all Vital employees over the last six years,” added Pigott.
The transaction has been unanimously approved by the boards of directors of both companies and unanimously approved by a special committee of independent directors of Crescent. The transaction is targeted to close by year-end 2025.
After closing of the transaction, the Crescent board of directors will increase to 12 members with the addition of two directors to be designated by Vital. John Goff will continue to serve as non-executive chairman and David Rockecharlie will continue to serve as chief oxecutive Officer of the combined company. Crescent will remain headquartered in Houston.
Crescent Energy is a differentiated U.S. energy company committed to delivering value for shareholders through a disciplined growth through acquisition strategy and consistent return of capital. Crescent’s long-life, balanced portfolio combines stable cash flows from low-decline production with deep, high-quality development inventory. The company’s investing and operating activities are focused in Texas and the Rocky Mountain region.
Vital Energy is an independent energy company with headquarters in Tulsa, Oklahoma. Vital Energy’s business strategy is focused on the acquisition, exploration and development of oil and natural gas properties in the Permian Basin of West Texas.
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