Moody’s upgrades Agnico Eagle’s rating to A3 on debt reduction
Vitesse Energy , Inc. (NYSE:VTS), a $702 million market cap oil and gas company currently trading at $24.34, has announced the completion of its acquisition of Lucero Energy Corp., a move that also led to an expansion of its Board of Directors and an increase in its borrowing base. The transaction, which was finalized on Monday, brings together two prominent players in the oil and gas sector. According to InvestingPro analysis, Vitesse appears slightly overvalued at current levels, though analysts maintain price targets between $29 and $33.
On Monday, Vitesse entered into a Material Definitive Agreement, which included a Credit Agreement Amendment that consented to the Lucero Transactions, added PetroShale (US), Inc. as a Guarantor under the Credit Agreement, and increased the borrowing base from $245 million to $315 million. Additionally, the elected commitment amount was raised from $235 million to $250 million. InvestingPro data shows the company operates with moderate debt levels and maintains a strong financial health score of 2.57, rated as "GOOD."
The acquisition of Lucero by Vitesse was accomplished through a plan of arrangement approved on December 15, 2024, making Lucero a wholly-owned subsidiary of Vitesse. Lucero has been recognized for its strategic focus on acquiring and developing oil-weighted assets in North Dakota’s Bakken and Three Forks formations. As a result of the acquisition, Vitesse’s outstanding shares of common stock increased by 8,169,368 shares, totaling 38,578,409 shares.
In conjunction with the acquisition, Vitesse’s Board of Directors expanded from seven to nine members with the appointments of M. Bruce Chernoff and Gary D. Reaves. Both appointees bring extensive experience to the Board, with Chernoff’s background in investment and Reaves’ expertise in private equity and energy markets.
The issuance of Vitesse Common Stock to Lucero shareholders was in accordance with the Securities Act of 1933, exempting the need for registration of the securities. The shares were issued as part of the approved exchange terms under the Arrangement Agreement.
The financial impact of the acquisition was detailed in the Proxy Statement filed with the U.S. Securities and Exchange Commission on January 31, 2025, which included Lucero’s financial statements and unaudited pro forma financial information for Vitesse.
This news article is based on a press release statement and aims to provide investors with an overview of the recent developments at Vitesse Energy, Inc. following its acquisition of Lucero Energy Corp. The company currently offers an attractive dividend yield of 8.83% and generated $172.54 million in EBITDA over the last twelve months. For deeper insights into Vitesse’s financials and growth prospects, including 7 additional ProTips and comprehensive valuation metrics, check out the full research report available on InvestingPro.
In other recent news, Vitesse Energy, Inc. has secured shareholder approval for a strategic acquisition of Lucero Energy Corp. During a special meeting, stockholders voted in favor of issuing shares to facilitate this acquisition, which will make Lucero a wholly-owned subsidiary of Vitesse. The proposal, detailed in a proxy statement, required a majority vote, and it was affirmed with over 20 million shares represented. Specifically, 20,823,833 votes supported the stock issuance, with 67,988 against and 93,102 abstentions. An additional proposal to adjourn the meeting if necessary to secure enough votes also passed, with 20,372,281 votes for and 500,631 against. However, the completion of this acquisition is still contingent on further conditions, including approval from Lucero shareholders. Vitesse cautions that the transaction is subject to typical closing conditions and approvals, and there is no guarantee it will be finalized as anticipated. These developments were announced in a press release, reflecting the latest updates as of March 5, 2025.
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