Crescent Energy Company closed its all‑stock merger with Vital Energy, Inc. on December 15, 2025, creating a top‑ten independent liquids‑weighted producer. The deal, valued at approximately $3.1 billion including Vital’s net debt, was executed at an exchange ratio of 1.9062 Crescent shares for each Vital share, giving Crescent shareholders a 23% stake in the combined entity.
The acquisition expands Crescent’s production base into the Permian Basin, adding Vital’s proven assets and bringing the combined company’s operating reserves to a new peak. Management estimates annual synergies of $90 million to $100 million, driven by reduced overhead, streamlined supply chains, and operational scale. The transaction also positions Crescent to accelerate its free‑cash‑flow focus and pursue a disciplined capital allocation strategy, including a planned $1 billion divestiture of non‑core assets to strengthen the balance sheet.
David Rockecharlie, Crescent’s CEO, said the combination “significantly enhances Crescent’s free cash flow profile, operational scale, and opportunity set.” He added that the company has nearly tripled in size over the past four years and is now focused on integrating the new assets, executing identified synergies, and demonstrating the full value proposition of Crescent as a leading mid‑cap operator. Jason Pigott, Vital’s CEO, noted that the deal “creates a premier, scaled, mid‑cap operator with significant efficiencies across a larger asset base.”
Investors viewed the transaction as a liquidity event for Vital shareholders, while Crescent shareholders weighed the dilutive impact of the all‑stock structure against the strategic benefits of scale and synergy realization. The market reaction reflected a focus on integration execution risk and the potential for debt reduction and credit rating improvement as the combined company pursues disciplined capital allocation.
The transaction also includes governance changes: two former Vital directors joined Crescent’s board, expanding it to twelve members. Crescent plans to use the combined cash‑flow to pay down debt, fund the planned asset divestitures, and maintain a strong capital allocation framework, positioning the company for a potential upgrade to an investment‑grade credit rating in the future.
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