Crescent Energy Company has announced the closing of its previously announced acquisition of Uinta Basin assets. Total cash consideration at closing was approximately $690 million.
“The Uinta transaction clearly demonstrates Crescent’s competitive strengths and ability to deliver shareholder value through accretive acquisitions. We continue to see significant opportunity in today’s market to create long-term value for our shareholders through consolidation.”
Crescent CEO David Rockecharlie said, “We are excited to close this highly accretive transaction and expand our Rockies position. We were able to acquire these assets at a compelling valuation while maintaining our financial strength and flexibility. The transaction adds significant cash flow and a multi-year inventory of high-quality oil-weighted undeveloped locations to our existing asset base.”
Crescent Chairman John Goff said, “The Uinta transaction clearly demonstrates Crescent’s competitive strengths and ability to deliver shareholder value through accretive acquisitions. We continue to see significant opportunity in today’s market to create long-term value for our shareholders through consolidation.”
The Uinta transaction was funded on the Company’s revolving credit facility (the “Credit Facility”). At closing, Crescent’s lenders increased the borrowing base under the Credit Facility to $1.8 billion with an elected commitment amount of $1.3 billion, an increase of $600 million from the prior elected commitment amount of $700 million.
Crescent acquired approximately 30 MBoe/d (~65% oil) and approximately 145,000 contiguous net acres in the Uinta. The Company plans to operate two rigs on the Uinta assets for the remainder of the year. Crescent today reiterated its previously announced 2022 capital investment plan as well as production and cost guidance. The $600-$700 million 2022 capital program is allocated 80%-85% to its operated assets in the Eagle Ford and Uinta basins.
Including contribution from the acquired Uinta assets, Crescent’s pro forma year-end 2021 proved reserves totaled 598 MMBoe, of which 83% were proved developed and 55% were liquids, and proved PV-10 was $6.2 billion utilizing SEC pricing. The first year decline rate of Crescent’s proved developed producing reserves is 22%, based on production type curves used in the Company’s third party reserve reports.
For more information visit crescentenergyco.com
