U.S. shale producer Crescent Energy said on Monday it would acquire smaller peer Vital Energy in an all-stock deal valued at $3.1 billion, including debt.
Vital shareholders will receive 1.9062 shares of Crescent common stock for each share held, representing a value of $18.95 per share and a premium of 20%, based on the stocks’ last close.
Shares of Vital rose 11%, while those of Crescent fell nearly 3% before the bell.
Last week, Reuters reported that Crescent was in advanced talks to acquire Vital, citing people familiar with the matter.
Crescent shareholders will own about 77% of the combined company and Vital shareholders will own the rest. The deal is expected to close by year-end 2025.
(Reporting by Sumit Saha in Bengaluru; Editing by Sriraj Kalluvila)