Crescent Energy Announced Acquisition of High-Margin Oil Assets in the Uinta Basin

Crescent Energy Company announced that it has entered into a definitive purchase agreement with Verdun Oil Company II LLC to acquire oil assets in the Uinta Basin previously owned by EP Energy for $815 million, subject to customary purchase price adjustments. The all-cash transaction, expected to close in the first half of 2022, will be funded through the company’s revolving credit facility and cash on hand. Closing is subject to customary closing conditions, including certain regulatory approvals. The acquisition is consistent with Crescent’s strategy to acquire high-value & accretive, cash flowing assets while maintaining financial strength.

Acquisition Consistent with Crescent’s Strategy:

• Highly Accretive Oil Acquisition Expands Rockies Asset Base: Acquisition multiple of <2.0x 2022E Adj. EBITDAX generates ~55% accretion to annualized cash flow per share and ~30% accretion to annualized free cash flow per share
• Low-Risk Assets with Strong Production and Cash flow: Increasing annualized Adjusted EBITDAX by $400 - $465 million at $75/Bbl NYMEX WTI pricing, ~85% of which is from existing production and current drilled but uncompleted wells
• Proven Opportunity for Disciplined Reinvestment: Multi-year inventory of high value, oil-weighted development opportunities; planning to operate two rigs on the assets in 2022 post-closing
• Enhances Key Asset Portfolio Characteristics: Maintains peer-leading decline rate (~21% pro forma), expands production from the Rockies & Eagle Ford to ~65% of total production base, increases percent operated to ~70% based on 2022 expected production
• Maintains Financial Strength and Increases Scale: Adding meaningful scale to the business while maintaining modest leverage (pro forma 1.4x Net Debt / LTM Adj. EBITDAX)

The transaction will be funded with borrowings under Crescent’s revolving credit facility and cash on hand. Crescent’s lenders authorized an increase of the Company’s elected commitment amount under the existing revolving credit facility to $1.3 billion from $700 million, contingent upon the closing of the transaction. The Company’s current liquidity pro forma for the elected commitment amount increase is $1.1 billion. In conjunction with signing of the transaction, the Company entered into additional oil swaps consistent with its risk-management strategy for invested capital.