Vital Energy, Northern Oil And Gas To Acquire Point Energy's Assets In $1.1 Bln Deal

(RTTNews) - Vital Energy Inc. (VTLE) and Northern Oil and Gas Inc. (NOG) agreed to acquire assets of Point Energy Partners, a Vortus Investments portfolio company, in an all-cash transaction for total consideration of $1.1 billion, Vital Energy said in a statement.

Vital Energy agreed to acquire 80% of Point's assets, with NOG acquiring the remaining 20%.

Closing price adjustments are expected to total about $75 million, reducing total consideration to approximately $1.025 billion.

Vital Energy expects to fund its $820 million portion, net of expected purchase price adjustments, through the use of its credit facility, which was recently expanded to $1.5 billion.

The transaction is expected to close by the end of the third quarter of 2024 with an effective date of April 1, 2024, subject to customary closing conditions.

In a separate press release, Northern Oil and Gas announced that it has entered into a definitive agreement to acquire a 20% undivided stake in the Point Assets in the Delaware Basin, in partnership with Vital Energy, Inc., for a purchase price net to NOG of $220.0 million in cash, subject to typical closing adjustments.

The Acquired Assets are primarily located in Ward County, Texas and include approximately 4,000 net leasehold and mineral acres, 26.4 net producing wells, 1.6 net wells-in-process and about12.1 low-breakeven net undeveloped locations.