04:26 AM EDT, 07/29/2024 (MT Newswires) -- Vital Energy ( VTLE ) and Northern Oil and Gas ( NOG ) have signed a deal to jointly purchase the assets located in the Delaware Basin of Point Energy Partners in an all-cash deal worth $1.1 billion, subject to adjustments, the companies said Sunday in separate statements.

Under the deal, Vital will have 80% of the assets, while Northern Oil and Gas ( NOG ) will take the remaining 20% stake, they said.

Vital Energy ( VTLE ) expects to fund its $820 million portion of the consideration using its existing $1.5 billion credit facility with Wells Fargo Bank (WFC), it said. It also expects the deal to be immediately accretive to its key financial metrics.

Northern Oil and Gas ( NOG ) plans to fund its $220 million portion using its cash flow from operations, available cash, and borrowings under its senior secured revolving credit facility. In line with the deal, the company said it already placed a $22 million deposit in escrow.

Closing of the deal is expected to occur in Q3, subject to customary closing conditions.

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