Houlihan Lokey is pleased to announce that Vital Energy, Inc. (VTLE) recently announced the signing of a definitive joint purchase and sale agreement to acquire the assets of Point Energy Partners (Point), a Vortus Investments portfolio company. The agreement was signed in partnership with Northern Oil and Gas, Inc. (NOG), with VTLE agreeing to purchase 80% of Point’s assets and NOG acquiring the remaining 20%. Total consideration for the all-cash transaction is $1.1 billion. VTLE intends to finance its portion of the transaction through use of its credit facility, which has been expanded to $1.5 billion.
This transaction is immediately accretive, adds substantial high-return oil-weighted inventory, and increases the size and scale of VTLE’s Delaware position.(1)
- Acquisition multiple of ~2.4x NTM EBITDA, immediately accretive to production, consolidated EBITDAX, and adjusted FCF.
- 68 gross primary locations with average breakeven of ~$47 per bbl WTI (more than five years of development at 1 rig pace); substantial upside potential in secondary formations.
- >30% increase in NTM adjusted FCF at closing, combined with strong hedging profile, results in expected leverage of ~1.3x within 12 months.(2)
- Increases Delaware net acreage by ~24% and adds 60.6 MMBoe of proved reserves (66% oil).
Houlihan Lokey is proud to have acted as the lead financial advisor to VTLE and NOG on the transaction. We look forward to discussing the transaction with our valued relationships and exploring how Houlihan Lokey can help you reach your goals.
If you would like more information about Houlihan Lokey or have questions regarding the firm’s role in this transaction, please contact the team members listed below.
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