Crescent Energy closed its all‑stock merger with Vital Energy on December 15, 2025, creating a combined independent producer that ranks in the U.S. top‑10 for oil and gas production. The transaction values the combined company at approximately $3.1 billion, including Vital’s net debt, and adds roughly 267,300 net acres in the Permian Basin to Crescent’s portfolio.
The deal is the third major integration for Crescent in 18 months, following the Ridgemar acquisition and the SilverBow merger. By adding Vital’s Permian assets, Crescent moves closer to its goal of becoming a top‑10 producer and strengthens its geographic diversification. The acquisition also supports Crescent’s “growth through acquisition” strategy, which has already tripled the company’s size over the past four years.
Management projects $90‑$100 million in annual free‑cash‑flow synergies, driven primarily by a planned reduction of the drilling rig count on Vital’s assets from about four rigs to one or two. The disciplined operating model that Crescent has applied to previous acquisitions—focused on cost control, well‑productivity improvements, and lean capital deployment—will be extended to Vital’s operations to accelerate the realization of these synergies.
The closing prompted S&P Global Ratings to upgrade Crescent’s issuer credit rating to “BB‑” from “B+,” citing the increased scale, geographic diversification, and expected profitability. The upgrade reflects confidence that the combined entity will maintain a net leverage ratio below 1.5x and generate stronger free‑cash‑flow generation.
The transaction led to the appointment of two former Vital Energy directors, William Albrecht and Jarvis Hollingsworth, to Crescent’s board, while CEO David Rockecharlie emphasized the importance of integrating talent and maintaining operational discipline. The board now comprises twelve directors, ten of whom are independent.
Following the closing, analysts reaffirmed a “Strong Buy” consensus for Crescent, citing the premium paid and the expected synergies. The market reaction was tempered by valuation concerns, but the credit rating upgrade and the projected $90‑$100 million in annual synergies reinforced confidence in Crescent’s long‑term growth trajectory.
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