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HOUSTON - Crescent Energy Company (NYSE:CRGY) announced Monday it will acquire Vital Energy, Inc. (NYSE:VTLE) in an all-stock transaction valued at approximately $3.1 billion, including Vital’s net debt. Vital Energy, with last twelve months revenue of $1.94 billion and EBITDA of $1.45 billion, currently carries a market capitalization of $578 million. InvestingPro analysis shows the company operates with a significant debt burden of $2.4 billion.
Under the agreement, Vital shareholders will receive 1.9062 shares of Crescent Class A common stock for each Vital share, representing a 5% premium to the 30-day volume weighted average price exchange ratio and a 15% premium to Vital’s 30-day VWAP as of August 22, 2025. The deal comes as Vital trades at a notably low Price/Book multiple of 0.27, with InvestingPro data showing the stock has declined 57% over the past year. For detailed valuation metrics and 10+ additional ProTips, explore InvestingPro’s comprehensive research report.
The transaction will establish a top 10 independent energy company with operations across the Eagle Ford, Permian and Uinta Basins. Following completion, Crescent shareholders will own approximately 77% of the combined company, with Vital shareholders owning the remaining 23%.
Crescent expects to realize $90-100 million in annual synergies immediately, with potential for additional operating efficiencies. The company also announced plans to increase its non-core divestiture pipeline to $1 billion.
"This transaction is transformative for Crescent and consistent with our strategy," said John Goff, Crescent’s Chairman of the Board, in a statement released with the announcement.
The combined company will continue to be led by Crescent CEO David Rockecharlie, with John Goff remaining as Non-Executive Chairman. The board will expand to 12 members, adding two directors from Vital.
The transaction has received unanimous approval from both companies’ boards of directors and from a special committee of independent Crescent directors. Shareholders representing approximately 29% of Crescent shares and 20% of Vital shares have agreed to support the deal.
Subject to shareholder approvals and regulatory clearances, the transaction is expected to close by year-end 2025.
The announcement was made in a press release issued by both companies.
In other recent news, Vital Energy reported its second-quarter 2025 earnings, showing a mixed performance. The company achieved an earnings per share (EPS) of $2.02, which exceeded analysts’ expectations of $1.86, representing an 8.6% surprise. However, Vital Energy’s revenue was $429.63 million, falling short of the anticipated $481.09 million by 10.7%. In a separate development, Crescent Energy is in advanced discussions to acquire Vital Energy. This potential acquisition was initially reported by Reuters, citing sources familiar with the matter. These discussions have sparked interest, with Vital Energy’s shares experiencing a notable increase in premarket trading. These recent developments highlight significant activity surrounding Vital Energy, drawing attention from investors and analysts alike.
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