Crescent Energy Completes Acquisition of Central Eagle Ford Assets
Crescent Energy Company a prominent U.S. energy company, has successfully completed the acquisition of Central Eagle Ford assets from Ridgemar Energy. This deal, valued at $905 million, includes an upfront payment of $830 million in cash and the issuance of 5,454,546 shares of Class A common stock. Additionally, the acquisition features future oil price-contingent consideration, along with customary purchase price adjustments.
The closing of this transaction marks a significant milestone in Crescent’s strategy to expand its operations in the Eagle Ford region, a crucial area for its long-term growth. Crescent Energy‘s CEO, David Rockecharlie, expressed satisfaction with the acquisition, highlighting its importance in scaling the company’s core Eagle Ford position. He also welcomed the addition of talented new members to Crescent’s team. “This acquisition demonstrates our disciplined approach to creating shareholder value by combining our investing and operational expertise,” said Rockecharlie. “We continue to focus on acquiring and integrating high-quality assets while maintaining a strong financial profile.”
The acquisition is expected to further strengthen Crescent’s oil-weighted production profile and extend its low-risk inventory. This, in turn, will bolster the company’s ability to generate sustained cash flow and deliver attractive returns for its shareholders. Looking ahead, Crescent will incorporate the impact of this acquisition into its 2025 guidance, along with its fourth-quarter and full-year financial and operational results for 2024.
Crescent’s Growth Strategy and Vision
Crescent Energy is committed to delivering long-term value to its shareholders through a strategic focus on disciplined growth and consistent capital returns. The company has built a robust portfolio of assets that prioritize low-decline, cash-flow-generating operations. This includes both unconventional and conventional assets, which are located in some of the most productive basins in the U.S., such as the Eagle Ford and Uinta basins.
The leadership team at Crescent Energy brings a wealth of experience, with a deep understanding of both the financial and operational aspects of the energy industry. For more than a decade, Crescent and its predecessors have executed a consistent strategy centered around cash flow optimization, risk management, and maximizing returns. The company’s business model revolves around finding and acquiring undervalued assets that have high potential for long-term development, while also keeping a keen eye on maintaining a strong financial position.
Crescent’s acquisition strategy is guided by its expertise in both investment and operational excellence, enabling the company to integrate new assets efficiently and with a focus on creating value. By doing so, Crescent enhances its oil-weighted production profile, adds to its development inventory, and improves its ability to generate free cash flow, all of which support its commitment to delivering strong returns for shareholders.
The Eagle Ford Region: A Key Focus for Crescent
The Eagle Ford Shale, located primarily in South Texas, is one of the most prolific oil and gas fields in the United States. This region has seen significant investment from both major oil companies and independent producers due to its large reserves of oil and natural gas. Crescent Energy’s acquisition of assets in Central Eagle Ford significantly increases its exposure to this high-quality, oil-rich basin.
Crescent’s decision to focus on the Eagle Ford is strategic. The basin is known for its low-risk development opportunities and its ability to produce high-margin oil and natural gas. With the acquisition of these additional assets, Crescent is poised to strengthen its position in one of the nation’s most active and productive energy regions.
The integration of these assets will not only enhance Crescent’s operational scale but will also provide the company with a larger inventory of high-return development locations. This will support Crescent’s strategy of pursuing organic growth while maintaining a focus on cost-effective, low-risk projects that generate consistent returns. As the company expands its footprint in the Eagle Ford, it will continue to benefit from the region’s robust infrastructure and strong market access, ensuring that Crescent remains well-positioned to capitalize on the region’s potential.
A Disciplined Approach to Acquisitions
Crescent Energy’s acquisition of the Central Eagle Ford assets is a prime example of the company’s disciplined approach to growth. The deal reflects Crescent’s focus on acquiring high-quality assets that fit within its broader portfolio and align with its strategic objectives. By using a combination of cash and stock for the transaction, Crescent maintains financial flexibility while also aligning the interests of its shareholders with the long-term success of the acquired assets.
Crescent’s leadership emphasizes maintaining a balance between growth and financial prudence. This approach ensures that the company continues to enhance its portfolio while also preserving a strong balance sheet. As Crescent expands its operations, the company remains committed to generating strong cash flow, optimizing operational efficiency, and creating value for its shareholders.
Financial and Operational Outlook
Crescent Energy plans to provide updated guidance for 2025, taking into account the newly acquired assets in Central Eagle Ford. This will be part of the company’s regular financial and operational reporting, which will include results for both the fourth quarter and full year of 2024. As Crescent moves forward with the integration of the acquired assets, it will continue to monitor market conditions and make strategic decisions that support its long-term growth trajectory.
The company’s strong financial position, bolstered by its disciplined growth strategy and focus on high-quality assets, provides a solid foundation for future growth. Crescent’s leadership team remains focused on driving profitability through its diverse portfolio and maintaining a flexible approach to capital allocation.
About Crescent Energy Company
Crescent Energy is a leading U.S. energy company that focuses on delivering shareholder value through a disciplined growth-through-acquisition strategy. With a portfolio of low-decline, cash-flow-oriented assets, Crescent Energy primarily operates in the Eagle Ford and Uinta basins. The company’s portfolio includes a combination of unconventional and conventional assets with a long reserve life and a deep inventory of high-return development locations.
Crescent’s leadership team brings extensive experience in investment, financial management, and operational expertise. This depth of knowledge has enabled Crescent to execute a consistent strategy over the years, focused on maximizing cash flow, managing risk, and delivering attractive returns for its shareholders.
Forward-Looking Statements
This communication contains forward-looking statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements reflect Crescent Energy’s current expectations regarding future events and are based on assumptions that may not be accurate. Forward-looking statements involve risks and uncertainties, including changes in market conditions, fluctuations in commodity prices, potential regulatory changes, and the ability to successfully integrate acquired assets. As such, actual results may differ materially from those anticipated in these statements. Crescent Energy assumes no obligation to update these forward-looking statements based on new information or events.
In conclusion, Crescent Energy’s acquisition of Central Eagle Ford assets is a significant step in the company’s ongoing growth strategy. The deal strengthens Crescent’s position in the highly productive Eagle Ford basin and sets the stage for continued success in the years to come. Through disciplined growth, operational excellence, and a commitment to creating value for shareholders, Crescent is well-positioned for the future of the energy sector.
