Another asset acquistion

Vital Energy, previously known as Laredo Petroleum, will acquire the assets of Point Energy Partners, a move that will significantly increase the company’s operational scale and footprint in the Delaware Basin.

The agreement, signed in partnership with Northern Oil and Gas, has the two companies acquiring Point Energy’s assets in an all-cash transaction for total consideration of US$1.1 billion. Vital Energy agreed to acquire 80% of Point’s assets, with NOG acquiring the remaining 20%. 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.

The transaction is expected to add 68 gross inventory locations (49 net) with an estimated average breakeven oil price of $47 per barrel NYMEX WTI. The assets include approximately 16,300 net acres and net production of approximately 30.0 thousand barrels of oil equivalent per day (MBOE/d) (67% oil), as of the effective date.

Over the past 15 months, Vital Energy has built its operating position in the Delaware Basin, complementing its substantial Midland Basin leasehold. This transaction will increase the vompany’s Delaware Basin position by approximately 25% to 84,000-net acres. Post closing, the Delaware Basin will comprise more than one third of the company’s oil production.

“This bolt-on is a great fit for us, adding high-value inventory and production in the heart of our core operating areas. Furthermore, it expands our growing Delaware Basin position and balances our Permian operations. We expect to continue to demonstrate our ability to capture, integrate and create substantial value on acquired assets through optimized development plans, lower capital costs and proven operating practices, resulting in higher future cash flows,” said Jason Pigott, President and Chief Executive Officer.