Crescent Energy Company (CRGY) announces the acquisition of Vital Energy, Inc. in an all-stock transaction valued at $3.1 billion.
The transaction establishes Crescent as a top 10 independent energy company with a focus on free cash flow and returns.
Vital shareholders will receive 1.9062 shares of Crescent Class A common stock for each share of Vital common stock.
Attractive Acquisition Returns and Significant Accretion
Strong cash-on-cash investment returns, highly accretive across CFFO, FCF, and NAV per share, and annual synergies of $90 - $100 million.
Consistent Strategy Focused on Free Cash Flow and Attractive Returns
Implementing a lower activity, higher free cash flow business plan to align assets with a consistent strategy.
Enhances "Investment Grade" Quality Balance Sheet
Leverage accretive business plan and pipeline of non-core divestitures to create the largest liquids-weighted producer without IG status.
Strengthens Leading Growth Through Acquisition Platform
A consistent investment and operational underwriting approach to capitalize on $60 billion of opportunities.
Pro Forma Crescent is a Top 10 Independent
Scaled asset portfolio with flexible capital allocation across high-quality inventory in key basins.
- The combined company will have a strong management team with deep expertise poised for long-term growth and value creation.
- Crescent's trajectory of returns-driven growth through M&A solidifies its position as a top ten independent energy company.
- The acquisition of Vital and the non-core divestiture pipeline worth $1 billion enhance Crescent's focus, scale, and potential for long-term value creation.
The acquisition of Vital by Crescent Energy marks a transformative move that aligns with Crescent's strategy of sustainable value creation and growth through strategic acquisitions and free cash flow focus.