Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
Vital (Formerly Laredo) Expands in Midland, Purchases Acreage From Driftwood Energy
03/10/2023
Vital Energy Inc. has made a significant acquisition, purchasing 11,200 net acres in Upton and Reagan counties, Texas. The deal, which involved a combination of cash and stock, was worth almost $214 million. This move comes shortly after the company's rebranding from Laredo Petroleum just one month ago.
According to the announcement made on February 14, Vital Energy has purchased the acreage from Driftwood Energy Operating LLC, which is now producing an average of 5,400 barrels of oil equivalent per day (63% oil) with a decline rate of 50% over the next 12 months. This purchase will extend Vital Energy's oil-weighted inventory life, adding 23 net operating horizontal drilling locations in the Wolfcamp B Formation, including four net DUCs.
The majority of the acreage, production, and inventory is situated in a contiguous leasehold in Upton, making it an excellent strategic fit for Vital Energy. The acquisition and sale agreement includes Driftwood's leasehold interests and hedges for $127.6 million cash and 1.57 million shares of Vital Energy stock.
Jason Pigott, Vital Energy's president, and CEO remarked on the acquisition's financial benefits, which are accretive on key financial metrics, leverage neutral, and extend the company’s proven track record of completing disciplined transactions that add value for shareholders.
The acquisition is expected to close in April, subject to customary closing conditions, and will have an effective date of January 1, 2023. Houlihan Lokey is serving as financial advisor to Vital Energy in this transaction.
This latest acquisition showcases Vital Energy's commitment to maintaining capital discipline and maximizing free cash flow generation while expanding its footprint into Upton and adding high-return inventory in a new development area in the basin.
Vital Energy is an independent energy company based in Tulsa, Oklahoma, United States. The company is primarily focused on the exploration, development, and production of oil and natural gas in the Permian Basin, which is located in West Texas and southeastern New Mexico.
Vital Energy operates more than 163,000 net acres in the Permian Basin, with a significant portion of its production coming from the prolific Wolfcamp formation.
The company's operations are primarily focused on horizontal drilling and hydraulic fracturing techniques to extract oil and gas from shale rock. It has a total production of approximately 79,600 barrels of oil equivalent per day.
The company has also committed to reducing its greenhouse gas emissions and has set a target to achieve net-zero emissions from its operations by 2050.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
Arena Energy Makes a Deal with Cox in GoM, Adding ca. 1,000 net boe/d to Arena's Total Production
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/128Blog_Arena_Energy_Makes_a_Deal_with_Cox_in_GoM.png)
On January 24 Independent E&P Arena Energy LLC acquired Cox Operating LLC's interests in the Eugene Island 330 and South Marsh 128 oil blocks. Cox Operating, based in Dallas, Texas, includes interests to Arena's existing ownership interest in the Gulf of Mexico fields, which it purchased from GOM Shelf LLC.
Permian Basin Giants: 2024 Net Production Forecasts
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/H243_Blog_Permian Basin Giants_ 2024 Net Production Forecasts.png)
Rystad Energy predicts that the merged company of Diamondback Energy and Endeavor Energy will produce 819,500 barrels of oil per day in the Permian Basin in 2024. Rystad, an energy research and business intelligence company from Norway, expects the ExxonMobil-Pioneer Natural Resources merger to lead the Permian in total net production for the year, with a projection of nearly 1.4 million barrels per day. Notably, about 53% of this production will be oil. Chevron is set to produce slightly more than Diamondback-Endeavor, with Occidental-CrownRock following closely. ConocoPhillips ranks fifth, with a production forecast of just under 800,000 barrels per day. Chevron's production is 47% oil, while Diamondback-Endeavor and ConocoPhillips have 57% oil in their mix, and Occidental-CrownRock is just below 50%.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/328_Blog_Why Are Oil Giants Backing Away from Green Energy Exxon Mobil, BP, Shell and more .jpg)
As world leaders gather at the COP29 climate summit, a surprising trend is emerging: some of the biggest oil companies are scaling back their renewable energy efforts. Why? The answer is simple—profits. Fossil fuels deliver higher returns than renewables, reshaping priorities across the energy industry.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/327_Blog_Oil Market Outlook A Year of Growth but Slower Than Before.jpg)
The global oil market is full of potential but also fraught with challenges. Demand and production are climbing to impressive levels, yet prices remain surprisingly low. What’s driving these mixed signals, and what role does the U.S. play?
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/326_Blog_USA Estimated Annual Rail CO2 Emissions 2035.jpg)
Shell overturned a landmark court order demanding it cut emissions by nearly half. Is this a victory for Big Oil or just a delay in the climate accountability movement?