Vital Energy expands Permian presence with additional working interest acquisition
(WO) – Vital Energy, Inc. announced the acquisition of additional working interests in producing assets associated with the recent Permian basin asset acquisition from Henry Energy LP, Moriah Henry Partners LLC and Henry Resources LLC (collectively "Henry") for total consideration of $55 million.
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 boed (57% oil). The transaction is expected to increase Vital Energy’s 2024 Free Cash Flow by approximately $20 million, furthering Vital Energy’s deleveraging goals.
"This transaction further demonstrates the opportunities provided by our increased scale in the Permian," stated Jason Pigott, President and Chief Executive Officer. "Our larger operating footprint across the Midland and Delaware basins continues to drive new efficiencies through bolt-on transactions that increase working interest or optimize our development plans by enabling longer laterals. As we successfully integrate these high-value acquisitions we expect to see continued gains in capital efficiency and stronger Free Cash Flow."
