Crescent Energy Announces Accretive Eagle Ford Bolt-On; Acquires Operated Interest in Existing Non-Operated Assets

Crescent Energy Company (NYSE: CRGY) (“Crescent” or the “Company”) today announced that it has entered into a definitive purchase agreement to acquire operatorship and incremental working interest in its existing Western Eagle Ford assets from Mesquite Energy, Inc. for total consideration of $600 million in cash, subject to customary purchase price adjustments. The accretive acquisition is consistent with Crescent’s strategy of acquiring high-value, cash flowing assets while maintaining financial strength. The transaction is expected to close early in the third quarter of 2023, subject to customary closing conditions. Additional details have been posted on Crescent’s website at ir.crescentenergyco.com. A conference call to discuss the transaction, as well as the Company’s first quarter financial and operating results, is planned for 10 a.m. CT on May 11, 2023. Participation details are included within this release.

HIGHLIGHTS

• Attractive purchase price and immediately accretive to financial metrics – Crescent is acquiring more than $700 million of proved developed producing PV-10⁽¹⁾ value and expects the transaction to be immediately accretive to key per share metrics, including operating cash flow, free cash flow and net asset value

• Enhances Eagle Ford scale and operational control – Acquisition of operatorship and incremental working interest in existing non-operated assets significantly enhances Crescent’s scale in the Eagle Ford. Expanded operational control provides opportunity for meaningful improvement in capital efficiencies, asset performance and basin-wide synergies. Pro forma for the transaction, Crescent will increase its legacy ~15% non-operated interest to a ~50% operated working interest in the acquired assets and operate approximately 90% of its Eagle Ford position

• Low decline production with substantial cash flow and reserves – Acquisition grows Crescent’s large base of predictable cash flow with current production of approximately 20 Mboe/d (70% liquids) and a 12-month decline rate of 17%

• Large, proven inventory with significant resource upside – Addition of high-value locations nearly doubles Crescent’s operated Eagle Ford inventory with substantial potential upside from the Austin Chalk and Upper Eagle Ford

• Maintains strong balance sheet and Investment Grade credit metrics – Crescent’s leverage ratio is expected to remain relatively unchanged and below its publicly stated maximum leverage target of 1.5x⁽²⁾

Crescent CEO David Rockecharlie said, “This acquisition cements our position as a leading consolidator in the Eagle Ford and is consistent with the low-risk, acquire and exploit strategy that we’ve employed for the past decade. We know these assets well as an active non-operated owner for the last six years and see meaningful upside potential through increased scale and operatorship. As operator, we look forward to engaging with all stakeholders to improve performance and maximize value across this high-quality asset base.”