Crescent Energy Buys Rival Vital for $3.1 Billion. It’s Now a Top 10 Independent Oil Producer.

The combined company will be one of the 10 largest independent oil and gas producers in the U.S. (Photograph by Matt Cardy/Getty Images)

Oil and gas producer Crescent Energy has agreed to acquire Vital Energy in an all-stock transaction valued at around $3.1 billion, the companies announced Monday.

Crescent has operations in Texas, Utah, and Wyoming, and Vital is active in the Permian Basin in Texas. The combined company will be one of the 10 largest independent oil and gas producers in the U.S., said the companies in a statement.

Shares of Vital Energy, which had a market value of just over $600 million entering Monday, were climbing 14% to $18.07. Crescent stock was falling 5.7% to $9.38.

“This transaction is transformative for Crescent and consistent with our strategy,” said Crescent Chairman John Goff. “Crescent’s impressive trajectory of returns-driven growth through M&A has cemented the
company as a top 10 independent, with line of sight to an investment grade credit rating.”

As part of the merger, Vital shareholders will receive 1.9062 shares of Crescent Class A common stock for each share of Vital common stock. The deal is targeted to close by the end of 2025.

Crescent, which has been focused on snapping up middle-tier shale gas assets, is likely to pursue further consolidation in the Permian Basin, said Andrew Dittmar, principal analyst at Enverus Intelligence Research.

“There are still a number of notable private operators holding lower quality Permian assets,” Dittmar wrote in a note Monday. “That is likely to be a key focus area for Crescent with that tier of asset quality fitting its business and acquisition model.”

Write to Nate Wolf at nate.wolf@barrons.com