Crescent Energy Closes Accretive Central Eagle Ford Bolt-On

Crescent Energy Company (NYSE: CRGY) has successfully closed an accretive acquisition of Central Eagle Ford assets from Ridgemar Energy, further strengthening its position in the Eagle Ford basin. The transaction, valued at $905 million, includes an upfront consideration of $830 million in cash and 5,454,546 shares of Class A common stock, plus future oil price contingent consideration, subject to customary purchase price adjustments. Crescent Energy plans to provide 2025 guidance reflecting the acquisition along with its fourth quarter and full year 2024 financial and operating results.



The acquisition is directly offset Crescent's existing Central Eagle Ford footprint and builds upon its significant acquisition activity in the Eagle Ford over the past 18 months, totaling more than $4 billion of accretive M&A. The transaction, which has an effective date of October 1, is expected to close in the first quarter of 2025, subject to customary closing conditions.

Highlights of the acquisition include:

* Complementary operations directly offset Crescent's core position, adding significant and contiguous scale in Frio, Atascosa, La Salle, and McMullen counties with potential for meaningful operating efficiencies.
* Attractive valuation at 2.7x EBITDA, making the transaction accretive to Operating Cash Flow, Levered Free Cash Flow, and net asset value, with strong expected cash-on-cash returns.
* Strengthens Crescent's asset portfolio with approximately 20 Mboe/d of high-margin, oil-weighted production and ~140 well-understood, high-return locations that immediately compete for capital and extend Crescent's low-risk inventory life.
* Maintains a strong balance sheet and Investment Grade credit metrics, with Crescent's leverage ratio expected to remain relatively unchanged, and its net debt to trailing 12-month Adjusted EBITDAX ratio expected to be below the Company's publicly stated maximum leverage target of 1.5x.

Crescent Energy CEO David Rockecharlie commented on the acquisition, "This transaction continues to highlight our ability to utilize our investing and operating expertise to identify and acquire high-quality assets, efficiently integrate them into our business and drive additional value through improved operations. With accelerated synergies captured from the integration of SilverBow and our recent bolt-on acquisition, our full team is ready and eager to add the Ridgemar assets to our core operating footprint in the Eagle Ford."



In conclusion, Crescent Energy's acquisition of Central Eagle Ford assets from Ridgemar Energy is a strategic move that aligns with the company's long-term growth strategy and risk management approach. The transaction is expected to be accretive to key financial metrics, strengthen Crescent's asset portfolio, and maintain a strong balance sheet. As Crescent continues to execute its disciplined growth through acquisition strategy, investors can expect the company to deliver value for shareholders through consistent return of capital and profitable growth.