Vital Energy acquired Forge Energy II Delaware from Quantum Energy Partners for $540 million in October 2023, marking its entry into the Delaware Basin. The deal added approximately 14,000 boe/d and 24,000 net acres in Reeves and Pecos counties, Texas.
Vital Energy agreed to acquire 70% of the assets for $378 million and will operate the asset, with Northern Oil and Gas, Inc. (NYSE: NOG) acquiring the remaining 30% for $162 million. Vital Energy plans to fund the acquisition through the use of its credit facility.
Houlihan Lokey and KeyBank are serving as financial advisors to Vital Energy and Latham & Watkins is serving as legal counsel. RBC Richardson Barr is serving as financial advisor to Forge and O’Melveny & Myers is serving as legal counsel.