Crescent Energy today announced a definitive agreement to acquire shale rival Vital Energy in an all-stock transaction valued at approximately $3.1 billion. The merger positions Crescent as a top 10 independent producer, with a scaled and focused asset portfolio across more than a decade of high-quality inventory in the Eagle Ford, Permian and Uinta Basins.
Image: Vital Energy
“This transaction is transformative for Crescent and consistent with our strategy,” said John Goff, Crescent’s Chairman of the Board. “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. Acquiring Vital and executing on an attractive pipeline of non-core divestitures sharpens our focus and expands our opportunity set for accretive future growth.”
“This combination represents compelling value for all shareholders, with attractive acquisition returns and significant accretion across all key financial metrics,” said Crescent CEO David Rockecharlie. “We’ve always had a free cash flow focused strategy, and our model applied to these assets creates sustainable value for all shareholders. 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.”
“Today’s announcement recognizes the value we have created at Vital Energy,” added Vital CEO Jason Pigott. “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. Strong free cash flow generation will maintain a premier balance sheet and drive sustainable capital returns to shareholders. 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.”
