Lucero Energy Acquired For US$222 Million In All-Stock Transaction
Lucero Energy (TSXV: LOU) is set to be acquired by Vitesse Energy (NYSE: VTS) in an all-stock transaction. The deal sees Lucero valued at US$222 million on a fully-diluted basis.
The arrangement will see the acquisition of Lucero be immediately accretive to Vitesse’s earnings, operating cash flow, free cash flow, and net asset value. The purchase will also enable Vitesse to bump up its dividend, which will climb from $2.10 to $2.25 on an annualized basis upon closing of the transaction.
The purchase is expected to add more than 65 operating wells to Vitesse’s portfolio, in addition to 2 gross drilled uncompleted wells and up to 50 gross locations within the Bakken. In terms of production, Lucero’s operations currently consists of 6.4 Mboe per day of two-stream net production.
Under the terms of the arrangement, Lucero shareholders are set to receive 0.01239 of a share of Vitesse for each share held of Lucero. A total of 8.2 million shares are expected to be issued in connection with the transaction, resulting in Lucero shareholders owning roughly 20% of Vitesse on a post-transaction basis.
Lucero meanwhile will see M. Bruce Chernoff, its current chairman, nominated to sit on the board of Vitesse, along with Gary Reaves, whom is managing partner of First Reserve Management, the largest shareholder of Lucero.
The transaction is expected to close by the second quarter of 2025, subject to shareholder and regulatory approval.
Lucero Energy last traded at $0.47 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.