Vital Energy shareholders approved Crescent Energy’s $3.1 billion acquisition on December 14, clearing the final hurdle for a transaction that will close on December 15, 2025. With the vote complete and Vital shares set to be suspended from NYSE trading, the deal marks a defining moment—not just for the two companies, but for how independent oil and gas operators are positioning themselves for the next phase of the U.S. shale cycle.
While the headline numbers focus on valuation and scale, the real story emerges when looking at wells drilled since 2024. The drilling data makes clear that this merger is less about consolidation for its own sake and more about building a resilient, multi-basin operating platform.
Two Companies, Two Distinct Drilling Profiles
Crescent Energy: Eagle Ford and Uinta Focus
Since 2024, Crescent’s drilling activity has been heavily concentrated in the Eagle Ford, with additional development in the Uinta Basin. The Eagle Ford continues to stand out as a short-cycle, capital-efficient play, delivering fast paybacks and strong free cash flow. Uinta wells add diversification with different crude markets and decline characteristics.
Vital Energy: A Permian-Heavy Portfolio
Vital’s wells drilled since 2024 tell a very different story. Activity is overwhelmingly Permian Basin-focused, particularly across Reeves, Ward, Glasscock, Midland, and Howard counties. This footprint offers deep inventory, scalability, and long-term development visibility—attributes that have made the Permian the backbone of U.S. shale growth.
Minimal Overlap, Maximum Complementarity
Importantly, there is very little overlap in drilling locations between the two companies. Crescent was not buying more of the same wells in the same counties. Instead, it was acquiring new basins, new drilling inventory, and new capital options.
Why Multi-Basin Operators Win in Today’s Market
1. Capital Flexibility Across Cycles
Different basins perform differently depending on commodity prices, service costs, and infrastructure constraints. A multi-basin operator can:
- Lean into short-cycle Eagle Ford wells during volatile price periods
- Allocate capital to long-run Permian development when scale and inventory depth matter most
- Adjust drilling pace without forcing capital into sub-optimal locations
This flexibility is visible directly in the combined wells-drilled profile.
2. More Stable Free Cash Flow
Single-basin operators often experience sharper production swings and greater exposure to regional bottlenecks. By spreading drilling across:
- Permian development wells
- Eagle Ford cash-flow wells
- Uinta diversification wells
the combined Crescent-Vital portfolio produces smoother decline curves and more predictable cash flow—a key objective highlighted by both management teams.
3. Reduced Regulatory and Infrastructure Risk
Regulatory and permitting risk is not evenly distributed across the U.S. A multi-basin footprint reduces exposure to:
- Basin-specific permitting delays
- Local infrastructure constraints
- Regional basis blowouts
Wells drilled since 2024 show exposure across Texas and Utah, reducing reliance on any single regulatory regime.
4. Stronger Credit and Investor Appeal
Crescent leadership has described the transaction as “transformative,” with a clear path toward investment-grade credit. From a lender and investor perspective, a drilling portfolio that spans multiple basins:
- Lowers perceived risk
- Improves borrowing base durability
- Supports long-term capital return programs
The diversified wells-drilled profile directly underpins that narrative.
A Strategic Merger, Not Just a Bigger One
This merger wasn’t about chasing production growth at all costs. It was about building optionality. The wells drilled since 2024 show two companies that excelled in different basins coming together to create a platform that can shift capital, manage risk, and generate free cash flow across cycles.
With shareholder approval secured and closing imminent, Crescent and Vital are not just combining assets—they are creating a top-tier, multi-basin independent designed for the realities of modern U.S. shale development.
