Vital Energy (VTLE) Soars 19% on $3-Billion Merger

We recently published 10 Big Names With Surprising Gains. Vital Energy, Inc. (NYSE:VTLE) is one of the top performers of last week.

Vital Energy soared by as much as 19 percent on Monday before paring gains to close at $18.08 apiece following news that it is set to be acquired by Crescent Energy for $3.1 billion.

In a statement, Crescent Energy Company (NYSE:CRGY) said it entered into a definitive agreement to merge with Vital Energy, Inc. (NYSE:VTLE) for an all-stock transaction, inclusive of its net debt.

Under the terms, VTLE shareholders will receive an equivalent of 1.9062 CRGY common shares for every stock they own.

The value marked a 5-percent premium to the 30-day volume weighted average price exchange ratio and a 15 percent premium to Vital Energy, Inc.’s (NYSE:VTLE) 30-day VWAP as of August 22.

“Our combination with Crescent Energy will create a premier, scaled, mid-cap operator with significant efficiencies across a larger asset base. The combined businesses will have more capital allocation flexibility across a vast development inventory and the ability to immediately transfer best operating practices across basins,” said Vital Energy, Inc. (NYSE:VTLE) CEO Jason Pigott.

“We are confident that this deal is the right move for Vital shareholders, and it recognizes the hard work and dedication of all Vital employees over the last six years,” he added.

The transaction is expected to close by the end of the year and remains subject to shareholder and other regulatory approvals.

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