Crescent Energy Co. (NYSE:CRGY) will acquire Vital Energy Inc. (NYSE:VTLE) in an all-stock merger valued at about $3.1 billion. The deal creates one of the 10 largest independent U.S. oil and gas producers with operations in the Eagle Ford, Permian, and Uinta basins.

Vital shareholders will receive 1.9062 Crescent shares for each share, representing a 15% premium to Vital’s 30-day average price as of Aug. 22. Both boards have approved the deal, expected to close by the end of 2025.

Crescent expects $90 million to $100 million in annual savings and plans to sell $1 billion in non-core assets. The company will focus on free cash flow, capital discipline, and shareholder returns.

Crescent shareholders will own about 77% of the merged company, with Vital investors holding the rest. Crescent’s board will expand to 12 directors, including two from Vital. The headquarters will remain in Houston.

VTLE shares were trading higher by 11.15% to $17.55, while CRGY was 6.44% lower at $9.30. The Energy Select Sector SPDR Fund (NYSE:XLE) and iShares U.S. Energy ETF (NYSE:IYE) offer broader sector exposure.

Read more at Yahoo Finance: Crescent Energy To Absorb Vital In $3.1 Billion All-Stock Transaction