Vitesse Energy has announced a definitive agreement to acquire Lucero Energy in an all-stock transaction valued at $222 million, the companies both announced.
Under the terms of the agreement, Lucero shareholders will receive 0.01239 of a share of Vitesse common stock for each common share of Lucero. The addition of Lucero’s operations will enable Vitesse to expand its assets across the Bakken shale region, where Lucero had approximately 6.4 Mboe per day of two-stream net production during the third quarter of 2024.
“We are acquiring a high-quality company that has been very well managed and will be a terrific complement to our existing business,” said Bob Gerrity, Vitesse’s Chairman and Chief Executive Officer. “We are excited to add an operated leg to our strategy, while keeping our emphasis primarily on non-op. This opens the door to acquiring operated and non-operated packages that are accretive to our dividend, while giving us proportionately more control over our future capital spending.”
“We are very proud of the significant steps we have taken to enhance Lucero’s asset base, operational performance, and balance sheet over the past several years,” added Brett Herman, President & CEO of Lucero. “Combining with Vitesse will provide Lucero shareholders with immediate value for their investment and the opportunity to participate in the future upside from ownership in a stronger, larger company with enhanced shareholder returns. The transaction creates a unique oil weighted company with assets in the core of the Williston basin exhibiting lower production declines, high operating netbacks, and strong capital efficiencies.”
Following the closing of the transaction, the board of directors of Vitesse will increase to nine members and will comprise the seven current members of Vitesse’s board and two nominees currently serving on Lucero’s board.
Vitesse expects to promptly hedge a significant portion of the commodity risk associated with this transaction through 2026 and has hedged a meaningful portion of its own production into 2026. Vitesse historically hedges a portion of its expected oil production volumes to increase the predictability and certainty of its cash flow and to help maintain a strong financial position to support its dividend. Vitesse does not currently have hedges in place on its expected natural gas production volumes.
The transaction has been unanimously approved by the boards of directors of both companies. The transaction is expected to close by the second quarter of 2025.
