Vital Energy acquires additional working interests in Permian Basin deals

Vital Energy announced the acquisition of additional working interests in producing assets associated with the recent asset acquisition from Henry Energy, Moriah Henry Partners and Henry, collectively “Henry, for total consideration of $55M. The purchase will increase Vital Energy’s working interest in 45 wells by an average of 24%, increasing the company’s estimated 2024 production by approximately 1,400 BOE/d. The transaction is expected to increase Vital Energy’s 2024 free cash flow by approximately $20M, furthering Vital Energy’s deleveraging goals. The transaction is associated with the exercise of tag-along rights by owners of certain assets in the Henry acquisition that enable Vital Energy to purchase and finance the assets on the same terms as the Henry purchase and sale agreement, in which the company’s shares were issued at $54.96. Vital Energy funded the transaction through the issuance of 627,000 shares of its common stock and 595,000 shares of its 2.0% cumulative mandatorily convertible preferred securities.