Crescent Energy to Acquire Vital Energy in a Deal Worth $3.1 Billion

Core Viewpoint - Crescent Energy Company (CRGY) is acquiring Vital Energy, Inc. (VTLE) in an all-stock transaction valued at $3.1 billion, including Vital's net debt, which will enhance CRGY's access to key oil and gas producing basins in the U.S. [1] Deal Terms and Shareholder Impact - Vital Energy shareholders will receive 1.9062 shares of Crescent Class A common stock for each share of Vital common stock they own, with expected annual synergies of $90-$100 million [2] - The combined entity will be managed by a team with extensive operating and investing experience, aimed at increasing value creation and long-term growth [2] Free Cash Flow-Focused Operating Strategy - Crescent Energy will focus on lower drilling activity to prioritize higher free cash flow generation, which is expected to improve shareholder returns and support higher dividends [3] - The company plans to divest non-core assets worth $1 billion to strengthen its balance sheet, consolidating a strong asset base in the Eagle Ford, Permian, and Uinta Basins with over 10 years of high-quality inventory [3] Future Strategic Focus - The acquisition is expected to be completed by year-end 2025, with Crescent shareholders holding approximately 77% of the combined company and Vital shareholders owning 23% [4] - Post-merger, CRGY will focus on assets in the Eagle Ford, Permian, and Uinta Basins, potentially considering divestitures of assets outside these areas [4]