Vital Energy has added additional working interests in producing assets associated from Henry Energy LP, Moriah Henry Partners LLC and Henry Resources LLC in a deal valued at $55 million.

Vital Energy said Dec. 21 that it would increase the company’s working interest in 45 wells by an average of 24%, increasing its estimated 2024 production by approximately 1,400 boe/d (57% oil). The transaction is expected to increase Vital Energy's 2024 free cash flow by approximately $20 million, furthering Vital Energy's deleveraging goals.

In September, Vital Energy acquired Henry Resources, Tall City and Maple Energy, adding 53,000 net acres for a total of $1.165 billion. The Henry portion of the deal was all equity for $517 million.

The Dec. 21 deal represents an exercise of tag-along rights by owners of certain assets in the Henry acquisition that enable Vital Energy to purchase and finance the assets on the same terms as the Henry purchase and sale agreement. The deal values Vital Energy’s shares at $54.96. Vital Energy funded the transaction through the issuance of 627,000 shares of its common stock and 595,000 shares of its 2% cumulative mandatorily convertible preferred securities.

"This transaction further demonstrates the opportunities provided by our increased scale in the Permian," Jason Pigott, president and CEO, said in a press release. "Our larger operating footprint across the Midland and Delaware basins continues to drive new efficiencies through bolt-on transactions that increase working interest or optimize our development plans by enabling longer laterals. As we successfully integrate these high-value acquisitions we expect to see continued gains in capital efficiency and stronger Free Cash Flow."

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