Crescent Energy acquires Vital Energy for $3.1 billion in a shale gas deal
Crescent Energy, a U.S. shale oil producer, announced on Monday that it will acquire Vital Energy for $3.1 billion in stock and debt.
The deal shows how some U.S. firms are seeking scale in a period when mergers and purchases in the shale sector slowed down in the second quarter because of volatility in energy and equity markets.
Vital shareholders receive 1,9062 Crescent common shares for every share they hold. This represents an offer valued at 18.95 dollars per share, and a 20% premium based on last day's close.
In premarket trading, shares of Vital Energy rose 9.5% and Crescent Energy fell 2.9%.
After the markets closed on Friday, had reported on the talks, citing sources familiar with the issue.
The companies stated that the merger would create one of the ten largest independent oil producers in the U.S. with positions in the Eagle Ford and Permian basins, and a drilling inventory of more than 10 years.
The transaction, which is expected to be completed by the end 2025, should generate immediate synergies of $90 to $100 million per year and boost cash flow.
Crescent has also lined up $1 billion in non-core assets sales to strengthen its balance sheet.
Crescent shareholders will hold about 77% and Vital stockholders the remainder (Reporting from Sumit Saha, Bengaluru. Editing by Sriraj Kaluvila).
(source: Reuters)
