Vital Energy, Crescent Merger Nears Finish Line with Stockholder Approval
Shareholders of both energy firms overwhelmingly approve the deal, with the transaction expected to close by December 15, creating a scaled Permian Basin operator.
Shareholders of Vital Energy (NYSE: VTLE) and Crescent Energy (NYSE: CRGY) have overwhelmingly approved the planned merger between the two companies, marking the final major milestone before the transaction's close. The approvals, announced Friday, clear the path for creating a larger, more influential independent energy producer with a significant footprint in the Permian Basin.
The deal is now expected to close on or about December 15, 2025, according to company statements. On Friday, shares of Vital Energy were trading around $17.92, while Crescent Energy's stock was near $9.40, with both showing modest declines in a quiet session ahead of the deal's finalization.
First announced in August, the deal involves Crescent acquiring Vital in an all-stock transaction valued at approximately $3.1 billion, including the assumption of Vital's net debt. Under the terms of the agreement, Vital Energy stockholders will receive 1.9062 shares of Crescent Energy Class A common stock for each share of Vital Energy they own, as detailed in the initial merger announcement.
The merger is part of a wave of consolidation within the U.S. energy sector, as companies seek to build scale, reduce costs, and enhance their inventory of prime drilling locations. The combination of Vital and Crescent is set to create a top-10 independent oil and gas producer with assets spanning approximately 1 million net acres across multiple basins.
Stockholders of both Vital Energy and Crescent Energy cast their votes in separate special meetings, formalizing the market's expectation that the deal would proceed as planned.
The strategic rationale for the merger focuses on creating a more resilient and financially robust company. The combined entity is projected to generate over $4 billion in free cash flow over the next five years and achieve $90 million to $100 million in immediate annual cost synergies. This enhanced financial strength is expected to allow for accelerated debt reduction and a stronger return of capital to shareholders.
The initial market reaction when the deal was announced on August 25 highlighted the perceived benefits for Vital's shareholders. Vital Energy's stock price surged more than 10% on the news, while Crescent Energy's shares declined 7.6% as its investors digested the dilution from the all-stock purchase. The relatively stable trading since then indicates the market has fully priced in the completion of the merger.
For Vital Energy, a Tulsa-based firm with a market capitalization of around $719 million, the deal provides a definitive conclusion to its strategic review. For Crescent, a larger Houston-based operator with a market cap of approximately $2.5 billion, the acquisition significantly bolsters its production scale and asset base, particularly in the oil-rich Permian. The merger solidifies Crescent's position as a significant player in a basin that has become the epicenter of U.S. shale production and M&A activity.