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Vital Energy (VTLE) in $55M Deal to Enhance Permian Presence
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Tulsa, OK-based oil and gas explorer Vital Energy (VTLE - Free Report) is making significant strides in expanding its footprint in the Permian Basin. The company has acquired additional working interests from local operators Henry Energy LP, Moriah Henry Partners LLC and Henry Resources LLC for $55 million.
Vital Energy's latest acquisition will increase its working interest in 45 wells by an average of 24%. The company anticipates a substantial boost to its estimated 2024 production by nearly 1,400 barrels of oil equivalent per day, with 57% being oil. Moreover, the deal is projected to increase Vital Energy's 2024 free cash flow by almost $20 million, contributing to the firm's deleveraging objectives.
To fund the transaction, Vital Energy utilized tag-along rights associated with the Henry acquisition, allowing the purchase and financing of assets on the same terms. The company issued 627,000 shares of its common stock and 595,000 shares of its 2.0% cumulative mandatorily convertible preferred securities. Vital Energy management believes that the transaction will help it realize economies of scale in the lucrative basin. Moreover, integrating these high-value assets is likely to drive the company’s efficiency and cash flow gains
Vital Energy's strategic acquisitions in the Permian Basin, including the recent deal with Henry Energy, underscore the company's commitment to leveraging its larger operating footprint in the Midland and Delaware basins.
Zacks Rank & Stock Picks
Vital Energy is an oil and natural gas exploration and production company with operations in the Permian Basin of West Texas. VTLE carries a Zacks Rank #5 (Strong Sell) at present.
Schlumberger: Schlumberger beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. It has a trailing four-quarter earnings surprise of 2.2%, on average.
Schlumberger is valued at around $75.6 billion. The company has seen its shares gain 2.1% in a year.
Nine Energy Service: Over the past 60 days, Nine Energy Service saw the Zacks Consensus Estimate for 2023 move up 9%. The oilfield service provider has a Value Score of A.
NINE is valued at around $92.9 million. The company has seen its shares drop 76.4% in a year.
Liberty Energy: The 2023 Zacks Consensus Estimate for LBRT indicates 52.1% year-over-year earnings per share growth.
Liberty Energy is valued at around $3.1 billion. LBRT has seen its shares rise 24.5% in a year.
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Vital Energy (VTLE) in $55M Deal to Enhance Permian Presence
Tulsa, OK-based oil and gas explorer Vital Energy (VTLE - Free Report) is making significant strides in expanding its footprint in the Permian Basin. The company has acquired additional working interests from local operators Henry Energy LP, Moriah Henry Partners LLC and Henry Resources LLC for $55 million.
Vital Energy's latest acquisition will increase its working interest in 45 wells by an average of 24%. The company anticipates a substantial boost to its estimated 2024 production by nearly 1,400 barrels of oil equivalent per day, with 57% being oil. Moreover, the deal is projected to increase Vital Energy's 2024 free cash flow by almost $20 million, contributing to the firm's deleveraging objectives.
To fund the transaction, Vital Energy utilized tag-along rights associated with the Henry acquisition, allowing the purchase and financing of assets on the same terms. The company issued 627,000 shares of its common stock and 595,000 shares of its 2.0% cumulative mandatorily convertible preferred securities. Vital Energy management believes that the transaction will help it realize economies of scale in the lucrative basin. Moreover, integrating these high-value assets is likely to drive the company’s efficiency and cash flow gains
Vital Energy's strategic acquisitions in the Permian Basin, including the recent deal with Henry Energy, underscore the company's commitment to leveraging its larger operating footprint in the Midland and Delaware basins.
Zacks Rank & Stock Picks
Vital Energy is an oil and natural gas exploration and production company with operations in the Permian Basin of West Texas. VTLE carries a Zacks Rank #5 (Strong Sell) at present.
Meanwhile, investors interested in the energy sector might look at operators like Schlumberger (SLB - Free Report) , Nine Energy Service (NINE - Free Report) and Liberty Energy (LBRT - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Schlumberger: Schlumberger beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. It has a trailing four-quarter earnings surprise of 2.2%, on average.
Schlumberger is valued at around $75.6 billion. The company has seen its shares gain 2.1% in a year.
Nine Energy Service: Over the past 60 days, Nine Energy Service saw the Zacks Consensus Estimate for 2023 move up 9%. The oilfield service provider has a Value Score of A.
NINE is valued at around $92.9 million. The company has seen its shares drop 76.4% in a year.
Liberty Energy: The 2023 Zacks Consensus Estimate for LBRT indicates 52.1% year-over-year earnings per share growth.
Liberty Energy is valued at around $3.1 billion. LBRT has seen its shares rise 24.5% in a year.