Crescent Energy Co. ( CRGY ) will acquire Vital Energy Inc. ( VTLE ) in an all-stock merger valued at about $3.1 billion, including debt, the companies said Monday. The deal will create one of the 10 largest independent U.S. oil and gas producers with operations across the Eagle Ford, Permian, and Uinta basins.

Vital shareholders will receive 1.9062 Crescent shares for each share, representing a 15% premium to Vital’s 30-day average price as of Aug. 22. Both boards approved the deal, which is expected to close by the end of 2025.

Crescent expects $90 million to $100 million in annual savings and plans to sell $1 billion in non-core assets. Executives said the company will continue a free cash flow–focused strategy, with capital discipline and shareholder returns as priorities.

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“This transaction is transformative for Crescent and consistent with our strategy,” said John Goff, Crescent’s board chairman. David Rockecharlie, Crescent’s chief executive, said the combination creates “compelling value for all shareholders.” Jason Pigott, Vital’s CEO, called the merger a recognition of Vital’s growth, adding that the combined operator will gain efficiency and capital flexibility.

Crescent shareholders will own about 77% of the merged company, with Vital investors holding the rest. Crescent’s board will expand to 12 directors, including two from Vital. Goff will remain chairman, and Rockecharlie will stay CEO. The headquarters will remain in Houston.

Broader exposure to the sector is available through the Energy Select Sector SPDR Fund ( XLE ) and iShares U.S. Energy ETF ( IYE ) .

Price Action: At last check Monday, VTLE shares were trading higher by 11.15% to $17.55, and CRGY was 6.44% lower at $9.30.

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