Vital Energy closes deal to acquire additional interests in Permian basin assets

Vital Energy Inc., Tulsa, Okla., has agreed to acquire additional working interests in Permian basin assets. The $78-million deal gives Vital Energy additional working interests in producing assets associated with the recent asset acquisition from Henry Energy LP, Moriah Henry Partners LLC, and Henry Resources LLC (OGJ Online, Oct. 2, 2023).

The purchase increases Vital Energy’s working interest in 54 producing, low-decline wells by an average of 67%, increasing the company’s estimated 2024 production by about 1,850 boe/d (51% oil), the company said in a release Feb. 5.

This is the second transaction associated with the exercise of tag-along rights by owners of certain assets in the Henry acquisition. Vital Energy purchased and financed the assets on the same terms as the Henry purchase and sale agreement, which valued the company’s shares at $54.96.

Vital Energy funded the transaction through the issuance of about 879,000 shares of its common stock and about 980,000 shares of its 2.0% cumulative mandatorily convertible preferred securities. The company does not anticipate any additional transactions related to the exercise of tag-along rights.