Crescent Energy (NYSE): $8.78, -3.41%

CAREERS    OWNERS    VENDORS    CONTACT US
  • ABOUT
    • About Us
    • Executive Team
    • Board of Directors
  • OPERATIONS
  • SUSTAINABILITY
  • INVESTORS
    • Financial Library
    • Press Releases
    • Events & Presentations
    • SEC Filings
    • Committee Composition
    • Email Alerts
    • Analyst Coverage

July 10, 2023

Crescent Energy Closes Accretive Western Eagle Ford Acquisition

Maintains Strong Financial Position with Reaffirmation of Revolving Credit Facility Terms

Completes Previously Announced Class A Share Conversion Increasing Public Float to 46%

HOUSTON–(BUSINESS WIRE)–Crescent Energy Company (NYSE: CRGY) today announced the closing of its previously announced acquisition of operatorship and incremental working interest in its existing Western Eagle Ford assets for a total cash consideration of approximately $600 million, subject to customary purchase price adjustments. In addition the Company’s public float increased to 46% from 29% with the previously announced conversion of approximately 28 million private shares to Class A public shares. Both transactions closed on July 3, 2023.

Crescent CEO David Rockecharlie said, “We continue to execute on our long-term strategy, which includes opportunistically growing our footprint in the Eagle Ford through accretive M&A while maintaining financial strength and enhancing our capital markets presence. These transactions demonstrate our continued focus on delivering long-term value to investors through increased scale and improved trading liquidity.”

Western Eagle Ford Acquisition

Following closing, Crescent assumed operatorship of its existing Western Eagle Ford acreage and plans to maintain a one-rig development program on the asset through the remainder of the year. For the second half of 2023, the Company estimates the acquisition will increase net production by 19 – 21 MBoe/d and capital investments by approximately $45 – $55 million. Crescent plans to provide detailed pro forma guidance for 2023 in conjunction with its second quarter earnings release in August.

Financial Position Update

Concurrent with closing, Crescent’s lenders reaffirmed the borrowing base under its revolving credit facility (the “Revolving Credit Facility”) at $2.0 billion with an elected commitment amount of $1.3 billion. As of June 30, 2023, the Company had $250 million of outstanding borrowings under the Revolving Credit Facility. Pro forma for the closing of the acquisition, Crescent has approximately $790 million outstanding under the Revolving Credit Facility and over $500 million of liquidity.

Class A Conversion

Following the completion of the previously announced Class A share conversion, approximately 28 million private Class B shares / OpCo Units have been converted to Class A public shares and such shares have been distributed to certain legacy investors in privately-managed funds and accounts. The Company has 76 million Class A shares outstanding, and the combined total of Class A and Class B shares outstanding remains 167 million. The Class A shares distributed to such investors are subject to customary legal trading restrictions associated with restricted stock. Certain KKR-managed funds and accounts continue to hold indirect interests in Class B shares / OpCo Units. In addition KKR’s balance sheet retains its existing 16% ownership, which is held by an indirect subsidiary of KKR & Co. Inc. for its own account and not through its investment funds. KKR remains a long-term investor and has reiterated that it has no present intention of selling the shares in the Company it holds for its own account.

About Crescent Energy

Crescent is a well-capitalized, U.S. independent energy company with a portfolio of proven, low-decline assets across the lower 48 states that generate substantial cash flow supported by a predictable base of production. Crescent’s leadership team is a proven team of investment, financial and industry professionals. Together, they have executed a consistent strategy for more than a decade. The Company’s mission is to invest in energy assets and deliver better returns through strong operations and stewardship. For additional information, please visit www.crescentenergyco.com.

Cautionary Statement Regarding Forward-Looking Information

This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on current expectations, including with respect to the proposed transaction. The words and phrases “should”, “could”, “may”, “will”, “believe”, “think”, “plan”, “intend”, “expect”, “potential”, “possible”, “anticipate”, “estimate”, “forecast”, “view”, “efforts”, “target”, “goal” and similar expressions identify forward-looking statements and express the Company’s expectations about future events. All statements, other than statements of historical facts, included in this communication that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the Company’s control. Such risks and uncertainties include, but are not limited to, weather, political, economic and market conditions, including the ongoing effects of inflation and a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the impact of pandemics such as COVID-19, actions by the Organization of the Petroleum Exporting Countries (“OPEC”) and non-OPEC oil producing countries, the timing and success of business development efforts, and other uncertainties. Consequently, actual future results could differ materially from expectations. The Company assumes no duty to update or revise its forward-looking statements based on new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230710976580/en/

Emily Newport
IR@crescentenergyco.com

Source: Crescent Energy

Crescent Energy

Crescent Energy Company
600 Travis, Suite 7200
Houston, Texas 77002
United States
+1 (713) 337-4600

About
About Us

Executive Team

Board of Directors

Operations
Sustainability
Investors

Financial Library

Press Releases

Events & Presentation

SEC Filings

Corporate Governance

Contact & Email Alerts

Analyst Coverage

Careers
Owners
Vendors
Contact Us

© Copyright 2024. Crescent Energy. Terms And Conditions | Privacy Policy | Cookie Policy

  • Follow
×

Todd Falk

Chief Accounting Officer

Todd Falk has served as Crescent Energy Company’s Chief Accounting Officer since December 2021, prior to which he served as Vice President, Finance of Crescent’s predecessor entity. Mr. Falk joined KKR in 2018 and is a Managing Director and Chief Accounting Officer of KKR’s Energy Real Assets business. Prior to joining KKR, Mr. Falk served as Director of Finance and Controller of Vitruvian Exploration. Mr. Falk began his career at Deloitte, where as a senior manager he assisted clients with complex financial reporting issues, specializing in initial public offerings and other interactions with the SEC. Mr. Falk has over 18 years of finance and accounting experience in the energy industry, is a Certified Public Accountant and holds a B.S., magna cum laude, in Accounting and an M.S. in Finance from Texas A&M University.

 
×

Clay Rynd

Executive Vice President, Investments

Clay Rynd has served as Crescent Energy Company’s Executive Vice President of Investments since December 2021, prior to which he served as Executive Vice President of Crescent’s predecessor entity. Mr. Rynd joined KKR in 2015 and is currently a Managing Director on the Energy Real Assets team. Prior to joining KKR, Mr. Rynd was with Tudor, Pickering, Holt & Co. in the investment banking division, where he focused primarily on strategic advisory and M&A transactions for companies across the energy sector. Prior to that, he worked within the equity research division at Tudor, Pickering, Holt & Co. Mr. Rynd holds a B.A. in both Economics and History from Texas A&M University.

 
×

Brandi Kendall

Chief Financial Officer and Member of the Board of Directors

Brandi Kendall has served as Crescent Energy Company’s Chief Financial Officer and a director on Crescent’s Board since December 2021, prior to which she served as Chief Financial Officer and member of the Board of Crescent’s predecessor entity. Ms. Kendall joined KKR in 2013 and is currently a Managing Director. Prior to joining KKR, Ms. Kendall served as director, finance and planning at Marlin Midstream and finance associate at NFR Energy. Ms. Kendall began her career in the energy investment banking industry, having held positions at JP Morgan and Tudor, Pickering, Holt & Co. Ms. Kendall earned a BA in Economics, Managerial Studies and Kinesiology from Rice University.

 
×

Bo Shi

General Counsel

Bo Shi has served as Crescent Energy Company’s General Counsel and Corporate Secretary since December 2021, prior to which he served as General Counsel of Crescent’s predecessor entity. Prior to joining the Company, Mr. Shi worked as a Senior Associate at Vinson & Elkins L.L.P and Senior Counsel at IPSCO Tubulars Inc. Mr. Shi received a J.D. from Harvard Law School and a B.A. in Political Science and Policy Studies from Rice University.

 
×

David Rockecharlie

Chief Executive Officer and Member of the Board of Directors

David C. Rockecharlie has served as Crescent Energy Company’s Chief Executive Officer and a director on Crescent’s Board since December 2021, prior to which he served as Chief Executive Officer and a member of the Board of Crescent’s predecessor entity. Mr. Rockecharlie joined KKR in 2011 and is currently a Partner and Head of KKR’s Energy Real Assets business and Chairman of KKR’s Energy Investment Committee. Prior to joining KKR, Mr. Rockecharlie was co-founder and co-CEO of RPM Energy, LLC, a privately-owned oil and gas company. Previously, Mr. Rockecharlie served as co-head of Jefferies & Company’s Energy Investment Banking Group and before that was an executive with El Paso Corp., where he led a variety of corporate activities. Mr. Rockecharlie began his career as an energy investment banker with S.G. Warburg and Donaldson, Lufkin & Jenrette. Mr. Rockecharlie received an A.B., magna cum laude, from Princeton University.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
In case of sale of your personal information, you may opt out by using the link Do not sell my personal information.
Manage PreferencesAccept
Manage Cookie Preferences

Privacy Overview

Crescent Energy uses cookies, including third-party cookies, on this website. Cookies are small text files that websites send to your computer or other devices connected to the Internet. Cookies perform a number of useful functions, including identifying your browser and monitoring your use of a website. Some of these cookies are strictly necessary for the proper functioning of this website.

First-party cookies are those cookies that are placed by Crescent Energy. Third-party cookies are placed by another company, such as, for example, our third-party service providers.

Cookies on our website are classified into two different categories: Strictly Necessary Cookies and Analytics Cookies.
Strictly Necessary
Always Enabled
These cookies are necessary for our websites to function and cannot be switched off. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms.
Performance Cookies
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our websites. They help us to know which pages are the most and least popular and see how visitors move around the sites.
CookieDurationDescription
_ga1 yearThis cookie name is associated with Google Universal Analytics - which is a significant update to Google's more commonly used analytics service. This cookie is used to distinguish unique users by assigning a randomly generated number as a client identifier. It is included in each page request in a site and used to calculate visitor, session and campaign data for the sites analytics reports. By default it is set to expire after 2 years, although this is customisable by website owners.
_ga_xxxxxxxxxx1 yearUsed by Google Analytics to identify and track an individual session with your device.
ENL-ADCsessionDescription is currently not available.
Unknown Cookies
Save & Accept