Crescent Energy Company announced the signing of a definitive agreement to acquire assets from a private Eagle Ford operator for $168 million in cash, subject to customary purchase price adjustments. This acquisition directly expands Crescent’s existing Central Eagle Ford footprint and builds on its significant acquisition activity in the region over the past 18 months, including the recent acquisition of SilverBow Resources Inc. The transaction, which has an effective date of May 1, is expected to close in September 2024, pending customary closing conditions.

Transaction Highlights:

Accretive Financial Impact: The acquisition is accretive to key financial metrics, including operating cash flow, leveraged free cash flow, and net asset value per share. The transaction is expected to generate unlevered cash-on-cash returns exceeding Crescent’s 2.0x Multiple on Invested Capital target.
Complementary Operations: The assets include low-decline oil production with attractive inventory that directly offsets Crescent’s core position in Frio, Atascosa, La Salle, and McMullen counties. This positioning offers potential for operational efficiencies and extended lateral lengths across Crescent’s existing footprint.
High-Return Drilling Inventory: The acquisition adds approximately 30 oil-weighted, core development locations with advantaged net revenue interests from owned minerals, further enhancing returns and immediate capital competition.
Enhanced Operational Flexibility: The deal includes ownership of approximately 5,300 net royalty acres, over 3,500 surface acres, and midstream assets, increasing margins and providing significant operational flexibility.
Maintained Financial Strength: Crescent expects its leverage ratio to remain relatively unchanged, with the net debt to trailing 12-month Adjusted EBITDAX ratio staying below the Company’s maximum leverage target of 1.5x. In alignment with its risk-management strategy, Crescent has entered into additional hedges alongside the signing of the transaction.

“This transaction builds upon our momentum in the Eagle Ford, where we see substantial opportunity for further growth and compelling investment returns,” said Crescent CEO David Rockecharlie. “We are adding low-decline oil production and high-quality acreage adjacent to our existing position, with meaningful opportunity to further increase returns through improved operating efficiency. We are pleased with this attractive acquisition, and we believe in our ability to continue to accretively scale Crescent.”

For more information visit www.crescentenergyco.com

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