Crescent Energy said on 25 August it will acquire Vital Energy in an all-stock deal valued at about $3.1 billion, expanding its Permian Basin footprint and lifting total production from 258,000 to 397,000 BOE/D. The company said the additional volumes will push it from being the 13th largest independent US oil and gas producer into the 9th position.
Vital holds more than 267,000 net acres in the Permian where it averaged nearly 138,000 BOE/D as of June. Founded in 2006 in Tulsa, Oklahoma, Vital was originally named Laredo Petroleum before being rebranded in 2023.
Crescent said the acquisition also increases its drilling inventory by about 50%, bringing its portfolio to 3,100 undeveloped well locations. The company plans to scale back activity on Vital’s acreage by cutting two rigs to boost cash flow. It also outlined plans for $1 billion in noncore assets and will target from $90 to $100 million in annual synergies within the first year of closing the Vital acquisition.
“This combination represents compelling value for all shareholders, with attractive acquisition returns and significant accretion across all key financial metrics,” Crescent CEO David Rockecharlie said in a statement. “We’ve always had a free cash flow–focused strategy, and our model applied to these assets creates sustainable value for all shareholders.”
On a pro forma basis, Crescent will hold nearly 1 million net acres across three major shale basins. Its biggest position of about 540,000 acres is in the Eagle Ford Shale of south Texas, along with 145,000 acres in Utah’s Uinta Basin, and now it will control around 285,000 acres in the Permian with about 1,000 future drilling locations.
Andrew Dittmar, principal analyst at Enverus Intelligence Research, said the deal reshapes Crescent from a company with “scattered legacy positions” into a consolidator of middle-tier shale assets. He added that Vital faced limited growth options due to its debt load and relatively weak share performance. In contrast, he believes Crescent is likely to continue shopping for Permian acreage.
“While high-quality private targets have been largely exhausted, there are still notable private operators holding lower-quality assets, particularly in the southern Midland Basin. That tier of assets fits Crescent’s business and acquisition model,” explained Dittmar.
The combined company will retain Crescent’s existing executive team and add two directors from Vital, bringing its board to 12 members. Closing is expected in the fourth quarter, subject to regulatory approvals.
