Crescent Energy Closes Accretive Western Eagle Ford Acquisition
- Crescent Energy has successfully completed the acquisition of Western Eagle Ford assets, strengthening its position in the region.
- The company's public float has increased to 46% from 29% with the conversion of private shares to Class A public shares, enhancing trading liquidity.
- The acquisition is expected to increase net production by 19-21 MBoe/d and capital investments by $45-$55 million for the second half of 2023.
- None.
Maintains Strong Financial Position with Reaffirmation of Revolving Credit Facility Terms
Completes Previously Announced Class A Share Conversion Increasing Public Float to
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
Financial Position Update
Concurrent with closing, Crescent’s lenders reaffirmed the borrowing base under its revolving credit facility (the “Revolving Credit Facility”) at
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
About Crescent Energy
Crescent is a well-capitalized,
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
FAQ
What acquisition did Crescent Energy Company complete?
What is the total cash consideration for the acquisition?
What is the current public float of Crescent Energy Company?
What are the expected impacts of the acquisition on net production and capital investments?