Crescent Energy Company and Vital Energy, Inc. have entered into a definitive agreement for Crescent to acquire Vital in an all-stock transaction valued at approximately $3.1 billion.
The transaction aims to establish a top 10 independent company with a focus on free cash flow and returns.
The combined entity will be led by a management team and Board with deep expertise for long-term growth and value creation.
Accretive On All Key Metrics
The transaction is accretive across cash flow from operations (CFFO), free cash flow (FCF), and net asset value (NAV) per share.
Consistent Strategy for Free Cash Flow
Crescent plans to implement a lower activity, higher free cash flow business plan aligned with its strategy.
Enhanced Balance Sheet Quality
The acquisition will create a larger producer with an improved balance sheet, including a pipeline of non-core divestitures.
Leading Growth Through Acquisition
The combined companies will have a platform for growth with significant opportunities in their footprint.
- The transaction offers compelling value for all shareholders through attractive returns and significant accretion across key financial metrics.
- Crescent's strategy focused on free cash flow and attractive returns is expected to drive sustainable value creation for shareholders.
- The merger strengthens Crescent's position as a top 10 independent, with enhanced operational capabilities and asset portfolio.
The acquisition of Vital Energy marks a transformative move for Crescent Energy, aligning with its growth strategy and creating significant value for shareholders. The combined entity is poised for long-term success and value creation.