Crescent Energy Company (NYSE: CRGY) has announced the completion of its acquisition of Central Eagle Ford assets from Ridgemar Energy for a total upfront consideration of $905 million. This includes $830 million in cash and 5,454,546 shares of Class A common stock, as well as future oil price contingent consideration, subject to customary purchase price adjustments.
Crescent Energy Company has also stated that it plans to provide 2025 guidance reflecting the acquisition, along with its fourth-quarter and full-year 2024 financial and operating results.
CEO David Rockecharlie expressed his satisfaction with the acquisition, highlighting its accretive nature and its potential to scale the company's core Eagle Ford position. He noted that the acquisition aligns with Crescent's strategy of creating shareholder value through the disciplined acquisition and integration of high-quality assets while maintaining a strong financial profile. The assets acquired are expected to enhance the company's oil-weighted production and extend its low-risk inventory, reinforcing its ability to generate sustained cash flow and returns.
Crescent Energy Company is described as a differentiated U.S. energy company committed to delivering value for shareholders through a disciplined growth through acquisition strategy and consistent return of capital. The company's portfolio comprises low-decline, cash-flow oriented assets, including both mid-cycle unconventional and conventional assets with a long reserve life and deep inventory of high-return development locations in the Eagle Ford and Uinta Basins.
It is also noted that Crescent's leadership consists of an experienced team of investment, financial, and industry professionals with proven investment and operating expertise. The company has a history of executing a consistent strategy focused on cash flow, risk management, and returns.
As a result of this acquisition and the company's overall strategy, Crescent Energy Company is focused on profitable growth and advancing its investment-grade ambitions.
For more information about Crescent Energy Company, individuals are directed to visit their website. The market has reacted to these announcements by moving the company's shares -2.5% to a price of $15.06. Check out the company's full 8-K submission here.
