Vital Energy makes Midland basin acquisition

Feb. 14, 2023
Vital Energy has agreed to acquire Midland basin assets from Driftwood Energy Operating LLC in a cash and stock deal.

Vital Energy Inc. (formerly Laredo Petroleum Inc.), Tulsa, Okla., signed an agreement to acquire Permian basin assets of Driftwood Energy Operating LLC, inclusive of all leasehold interests and hedges, in exchange for about 1.58 million shares of Vital common stock and $127.6 million of cash (total consideration of about $215 million). 

The southern Midland basin assets, primarily in Upton County, Texas, extend Vital Energy’s oil-weighted inventory with an added estimated 30 gross (23 net) operated horizontal locations in the Wolflcamp B, including four fross (four net) drilled but uncompleted locations, the company said in a release Feb. 14.

The deal includes about 16,500 gross (11,200 net) acres in Upton and Reagan counties, Texas, (about 91% held by production). Current production from the assets is about 5,400 boe/d (63% oil).

The transaction is expected to close early April 2023 with an effective date of Jan. 1, 2023, subject to customary closing conditions.