Published: September 12, 2023 |

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Crescent Energy Company has entered into a definitive purchase agreement to acquire incremental working interest in its operated Western Eagle Ford assets for total consideration of $250 million in cash, subject to customary purchase price adjustments. The acquisition follows the recent $600 million acquisition of operatorship of the Western Eagle Ford position that closed in July 2023.

“We are pleased to further scale our high-quality Western Eagle Ford position following the recent acquisition of operatorship of this asset earlier in the quarter. This transaction is consistent with our strategy to grow opportunistically through accretive acquisitions, adding low decline cash flow and high quality inventory at attractive valuations while maintaining financial strength. With increased scale and operational control, we believe there are significant opportunities to realize meaningful synergies across our broader Eagle Ford footprint,” said Crescent CEO David Rockecharlie.

For the fourth quarter of 2023, the company estimates the acquisition will increase net production by 12 MBoe/d and capital investments by approximately $5 million.

HIGHLIGHTS

• Attractive purchase price and immediately accretive to key financial metrics: The transaction is expected to be immediately accretive to operating cash flow, free cash flow and net asset value. Crescent is acquiring more than $300 million of proved developed PV-10 value.

• Further enhances Eagle Ford scale and operational control: Combined with the acquisition of operatorship of this asset in July, Crescent will have increased its legacy ~15 percent non-operated interest to a ~63 percent operated working interest in the acquired assets and will operate approximately 90 percent of its broader Eagle Ford position. Crescent expects meaningful improvements in capital efficiencies, operating performance and basin-wide synergies from its increased scale and operatorship

• Low decline production with substantial cash flow and reserves: Acquisition grows Crescent’s large base of stable cash flow with current production of approximately 12 Mboe/d as of June 2023 (~70 percent liquids) and an estimated next 12-month decline rate of 13 percent.

• Proven inventory with significant resource upside: Incremental exposure to high-value operated Eagle Ford inventory with substantial potential upside from the Austin Chalk and Upper Eagle Ford

Crescent Energy is a growth-oriented U.S. independent energy company engaged in the acquisition, development, and operation of oil and natural gas properties. Crescent’s portfolio of low-decline, cash-flow oriented assets comprises both mid-cycle unconventional and conventional assets with a long reserve life and deep inventory of low-risk, high-return development locations in the Eagle Ford and Uinta Basins. Crescent’s leadership is an experienced team of investment, financial, and industry professionals that combines proven investment and operating expertise. For more than a decade, Crescent and its predecessors have executed on a consistent growth through acquisition strategy focused on cash flow, risk management and returns.

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