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Investing.com - Vital Energy (NYSE:VTLE) shares are expected to rally significantly following media reports that the company may be acquired by Crescent Energy, according to KeyBanc. According to InvestingPro data, the stock is currently trading near its Fair Value, after falling nearly 57% over the past year.
KeyBanc maintained its Sector Weight rating on Vital Energy while noting the acquisition report "may be credible." The firm pointed out that Vital Energy shares already jumped 10.0% on Friday, outperforming the XOP index which gained 2.9%. The stock currently trades at a price-to-book ratio of just 0.27x, suggesting significant potential value for acquirers.
The potential acquisition comes as a surprise to KeyBanc, which had expected Crescent to pursue bolt-on acquisitions in the Eagle Ford Shale rather than establishing a foothold in the Permian Basin. However, the firm suggested such a move could make strategic sense if it represents Crescent’s first step toward becoming a more focused shale producer.
From Vital Energy’s perspective, KeyBanc believes a sale represents "a reasonable decision amid a challenging environment for organic deleveraging." The firm specifically cited Vital’s $880 million all-cash acquisition of 80% of Point Energy in July 2024 as a "strategic mistake" that left the company vulnerable to the current commodity price downturn. InvestingPro analysis reveals concerning metrics, including a total debt of $2.4 billion and a current ratio of 0.79, indicating potential liquidity challenges. Get access to 10+ additional ProTips and comprehensive financial analysis with an InvestingPro subscription.
KeyBanc reached out to both companies for comment but did not receive responses from either Vital Energy or Crescent regarding the reported acquisition.
In other recent news, Crescent Energy Company announced its acquisition of Vital Energy in an all-stock deal valued at approximately $3.1 billion, including Vital’s net debt. This agreement will see Vital shareholders receiving 1.9062 shares of Crescent Class A common stock for each Vital share, reflecting a 5% premium to the 30-day volume-weighted average price exchange ratio. Additionally, this represents a 15% premium to Vital’s 30-day volume-weighted average price as of August 22, 2025. Prior to the official announcement, there were reports of Crescent Energy being in advanced talks to acquire Vital Energy, which led to a notable increase in Vital Energy’s share price. In terms of financial performance, Vital Energy recently reported its second-quarter 2025 earnings, with an earnings per share of $2.02, surpassing analyst expectations of $1.86. However, the company’s revenue fell short, coming in at $429.63 million compared to the forecasted $481.09 million. These developments mark significant movements for both Crescent Energy and Vital Energy in the market.
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