On 2023-09-13 Vital signed three Permian acquisition agreements, all expected to close in Q4 2023. Henry (about 15,900 net acres in Midland, Reeves and Upton Counties) is for about 3.72 million common shares plus about 4.98 million shares of new 2.0% mandatorily convertible Series A preferred stock; the preferred converts automatically once stockholders approve, which Vital intends to seek at its May 2024 annual meeting. Maple (about 15,500 net acres in Reeves County) is for about 3.58 million common shares. Tall City (about 21,450 net acres in Reeves County) is for $300 million cash plus about 2.27 million common shares. Existing shareholders face significant dilution from the new shares; the filing text provided is truncated, so any financing for the cash portion is not confirmed here.
15 Feb 2023capital raising announcement● NeutralMajor
On 2023-02-14 Vital Energy (the renamed Laredo) agreed to buy Driftwood Energy Operating's Midland Basin properties, about 11,200 net acres in Upton and Reagan Counties, for $127.6 million cash plus 1,578,948 new shares. The cash is expected to come from cash on hand and credit facility borrowings, and closing is expected in early April 2023; the new shares will dilute existing holders and carry registration rights. The company says the deal is accretive and leverage neutral (management's claim).
On 2021-09-17 Laredo agreed to buy about 20,000 net acres in western Glasscock County, Texas, from Pioneer Natural Resources and affiliates for $160.0 million cash plus 959,691 new shares (about $230 million in total per the press release), effective 2021-07-01. A $20.5 million deposit has been paid; the cash is to come from cash on hand and credit facility borrowings, and closing is expected around 2021-10-18. Pioneer will get registration rights and agree to vote its shares as the board recommends.
11 May 2021capital raising announcement● NeutralMajor
On 2021-05-07 Laredo agreed to buy Midland Basin properties in Howard and Borden Counties, Texas from Sabalo and Shad for $714.3 million ($624.3 million cash plus 2,506,964 new shares), expected to close around 2021-07-01. To help fund it, it agreed to sell about 37.5% of its interest in certain producing wells in Glasscock and Reagan Counties to a Sixth Street affiliate for $405 million cash plus possible earn-out payments, and amended its credit facility, keeping the borrowing base at $725 million, to permit both deals. Both are subject to closing conditions, and the sale is conditioned on the acquisition closing.
