Crescent Energy Company · NYSE:CRGY
Crescent Energy — Investor Presentation (October 2024)
31 slides from Crescent Energy's investor presentation, October 2024
Slide 1: A Differentiated U.S. Energy Company
Crescent Energy A Differentiated U.S Energy Company October 2024
Slide 2: Disclaimer
Disclaimer The information in this presentation relates to Crescent Energy Company (the “Company” or "Crescent") and contains information that includes or is based upon “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), an
Slide 3: A Differentiated U.S. Energy Company
A Differentiated U.S. Energy Company Combining Strong Operating and Investing Experience to Drive Sustainable Value Creation CRGY at a Glance Scaled & Balanced Portfolio ~$6.3 BN Proved Developed PV-10(1) ~$8.2 BN Total Proved PV-10(1) • Low-decline PDP base ~250 Mboe/d 1H’24 Production • Deep, high
Slide 4: Crescent's Evolution Since IPO
Crescent’s Evolution Since IPO Increasing Scale, Improving Trading Liquidity and Enhancing Credit Profile Through Consistent and Focused Execution Operating Scale Trading Liquidity Corporate Credit Profile EBITDA Production (Mboe/d) ADTV Float Credit Ratings Leverage (Moody’s / S&P / Fitch) ~$30 MM
Slide 5: Scaled and Balanced Asset Portfolio
Scaled and Balanced Asset Portfolio Unique Combination of Stable, Low-Decline Production with Deep Inventory Scaled Advantaged Significant Production Base Decline Rate Inventory (Net Production - Mboe/d) (Base Annual Decline - %) (Gross Locations) ~250 ~32% ~2,200 NGL 17% ~25% ~153 Gas 44% Oil 39% ~
Slide 6: Leading Decline Rate and Reserve Life
Leading Decline Rate and Reserve Life Differentiated Asset Stability Alongside Long-Term Portfolio Duration 25% 11 Years % NTM Decline Rate Proved Reserve Life Peers Replace ~30% More ~45% Longer Reserve Life Production Each Year than Peers First Year PDP Decline vs. Peers 1P Reserve Life vs. Peers(
Slide 7: Substantial Proven Inventory and Resource Potential
Substantial Proven Inventory and Resource Potential High-Quality Locations Generate Compelling Returns Through Cycles Gross Locations Eagle Ford Uinta 20+ Year Other Unrisked Inventory ~2,200 (at Maintenance Activity) 10+ Year Low-Risk Inventory (at Maintenance Activity) ~1,120 ~100 – 120 Wells / Yr
Slide 8: Premier Eagle Ford Position
Premier Eagle Ford Position Top Three Eagle Ford Operator Alongside EOG and ConocoPhillips Leading Eagle Ford Position Eagle Ford Oil Production(1) (Gross Operated - Mboe/d) More than doubled net acres, production and 250 inventory over the last 2 years 200 #3 Gross Oil Producer Uvalde Medina Wilson
Slide 9: Generating Substantial Free Cash Flow
Generating Substantial Free Cash Flow Profitable Base Business Generates Significant Free Cash Flow with Attractive Exposure to Commodity Price Upside >$3.5 BN ~26% 5-Year Cum. Levered FCF(1) % FCF Yield Cumulative LFCF Greater Than CRGY FCF Yield is ~45% Current Market Capitalization Higher Than Pe
Slide 10: Capital Allocation Priorities – Putting Investors First
Capital Allocation Priorities – Putting Investors First #1A 1.0x long-term leverage target Priority Financial Strength Up to 1.5x for accretive acquisitions #1B Returning Capital Priority Fixed Dividend: $0.12 per share per quarter(1) to Shareholders #2 Returns-Driven Investing: A Development B Accr
Slide 11: Doing What We've Said We'd Do for the Last Decade
Doing What We’ve Said We’d Do for the Last Decade Current Past Decade (Average)(1) Commodity Prices Commodity Prices $68.14 / $2.92 $62.07 / $3.15 Capital Allocation Priorities Leverage(2) Leverage Balance Sheet ~1.5x ~1.2x #1A Strength (Target 1.0x – 1.5x) Yield(3) Yield(3) #1B Return of Capital ~4
Slide 12: "BB" Balance Sheet Reflects Financial Strength
“BB” Balance Sheet Reflects Financial Strength Targeting Investment Grade Balance Sheet Metrics Through Cycles Commitment to Balance Sheet Strength Significant Liquidity: (6/30/24 Statistics – Pro Forma for SilverBow Closing) Current liquidity is ~3x our Current Leverage Total >$500 MM target(1) L
Slide 13: Decade-Plus History of Returning Cash to Shareholders
Decade-Plus History of Returning Cash to Shareholders Providing Shareholders with Consistent and Peer-Leading Fixed Dividend Return of Capital Framework: Fixed Dividend Yield Comparison(2) 12 Consecutive #1 4.5% years 4.4% Fixed Dividend: Priority 3.9% of dividend payments(3) • $0.12 / share per qua
Slide 14: Returns-Driven Investing Framework
Returns-Driven Investing Framework Seeking to Compound Capital Over Time at Attractive Rates of Return Cash-on-Cash >2.0x Unlevered MOIC (Multiple of invested capital) Investment Returns(1) Short Payback Period (M&A target <5 years and half-cycle D&C target <3 years) Corporate Strong Equity Ac
Slide 15: Successful Track Record of Accretive Acquisitions
Successful Track Record of Accretive Acquisitions More Than Doubled in Scale Since IPO Through Consistent Execution Focused in Regions Where We Currently Operate Proven Acquisition Strategy(1) (Crescent Acquisitions) • Eagle Ford & Rockies 6 Consistent Underwriting Criteria • Cash-on-cash return
Slide 16: Proven Track Record of Improving Operations and Capturing Synergies
Proven Track Record of Improving Operations and Capturing Synergies Enhanced Operational Performance Drives Incremental M&A Returns ~2,000’ Drilling ~1,750’ ~25%+ ~1,575’ Speed (ft/day) 2022 2023 Current Simul-frac driving recent completion efficiencies Completion ~90,000 ~100,000 ~40%+ ~72,000 Spee
Slide 17: Sector Leading Alignment on Long-Term Value Creation
Sector Leading Alignment on Long-Term Value Creation Crescent’s Board and Management are Strongly Aligned with Shareholders Stock-Based Compensation vs. Peers(1) Management Incentives ~100% Based on Total Shareholder Returns Peer Avg: 97% ~32% 60% 60% • Peers receive time-based 52% 30% 30% awards
Slide 18: "Must-Own" Mid-Cap Positioned for Sustained Value Creation
“Must-Own” Mid-Cap Positioned for Sustained Value Creation Crescent Provides Differentiated Growth and Value • Next 5-year LFCF outlook greater than Substantial Cash Flow Generation current market cap • Current FCF yield trades at a ~45% discount to Mid-Cap peers(1) Attractive Return of • Peer-lea
Slide 19: Appendix
Appendix CRESCENT ENERGY
Slide 20: Reducing Our Emissions Impact
Reducing Our Emissions Impact Our Sustainability Focus Areas CLIMATE ENVIRONMENT SAFETY COMMUNITY WORKFORCE Transparent Reporting to Support Long-Term Goals • Awarded OGMP 2.0 Gold Standard pathway rating in 2023 for the second consecutive year Monitoring and Reducing Emissions • Active leak det
Slide 21: Eagle Ford Asset Overview
Eagle Ford Asset Overview: Premier Position with Attractive Commodity Diversification Asset Detail Operated Central Southern Western Non-Op Net Acres ~160k ~100k ~165k ~33k Live Oak, Atascosa, Webb, La Salle, Dimmit, Webb, Zavala, Frio, Counties McMullen, La McMullen, Live Maverick, La Salle Atascos
Slide 22: Uinta Asset Overview
Uinta Asset Overview: Proven Oil Resource with Multi-Year Development Inventory Asset Detail Uinta Net Acres ~145k Counties Duchesne and Uintah Avg. WI / NRI ~85% / ~70% % Oil ~80% Current 1 Rigs Gross Locations(1) Low-Risk ~250 Total ~650 MOIC(2) >2.0x DC&F ~$950 CRGY (Op) $ / ft Altamont Energy CH
Slide 23: Conventional Asset Base
Conventional Asset Base: Cash Flow Stability with CO2 / CCUS-Related Upside Low Decline EOR Production Crescent Rockies Footprint Provides Stable Cash Flow Stream Crescent CO2 Pipelines CO2 Pipelines Owned by Others Further EOR Potential Across Existing Asset Footprint Crescent EOR Field Crescen
Slide 24: Complementary Minerals Portfolio
Complementary Minerals Portfolio Existing Footprint Provides Substantial Free Cash Flow, Exposure to Cost- Free Organic Growth and Significant Undeveloped Upside Focused Portfolio: Minerals Cash Flow(1) Complements operated Other 13% Eagle Ford assets across Texas and 40% the Rockies Organic Growt
Slide 25: Increasing Float & Trading Liquidity
Increasing Float & Trading Liquidity Transformed the Equity Positioning of the Business Since Going Public CRGY Ownership Private Investors 2% 1% Increased Public Liberty Mutual 14% 21% 16% Float to ~71% of 33% +13% KKR 11% Shares Outstanding Public 20% +23% 15% Shareholders +76% 15% 22% 71% 16%
Slide 26: Our "Up-C" Organizational Structure
Our “Up-C” Organizational Structure • Up-C Investors and Crescent Energy Company (“PubCo”) hold units Up-C Public (“OpCo Units”) in an operating Investors Stockholders company (“OpCo”) that is treated as (Legacy Investors) a partnership for U.S. federal income Class B Class A tax purposes (no tax re
Slide 27: Hedge Position: Liquids
Hedge Position: Liquids Q4 2024 FY 2025(1) FY 2026(2) NYMEX WTI (Bbls, $/Bbl) Swaps Total Volumes 3,280,730 6,441,500 2,476,050 Total Daily Volumes 35,660 17,648 6,784 WA Swap Price $71.93 $72.68 $70.82 Collars Total Volumes 2,806,000 6,123,500 1,003,000 Total Daily Volumes 30,500 16,777 2,748 WA Lo
Slide 28: Hedge Position: Gas
Hedge Position: Gas Remaining 2024 FY 2025 FY 2026 NYMEX Henry Hub (MMBtu, $/MMBtu) Swaps Total Volumes 26,420,370 55,205,000 41,745,000 Total Daily Volumes 287,191 151,247 114,370 WA Swap Price $3.86 $3.97 $3.98 Collars Total Volumes 8,465,000 74,009,000 40,100,000 Total Daily Volumes 92,041 202,76
Slide 29: Adjusted EBITDAX & Levered Free Cash Flow
Adjusted EBITDAX & Levered Free Cash Flow Adjusted EBITDAX & Levered Free Cash Flow Crescent defines Adjusted EBITDAX as net income (loss) before interest expense, income tax expense (benefit), depreciation, depletion and amortization, exploration expense, non-cash gain (loss) on derivatives, impair
Slide 30: Net LTM Leverage & PV-10 Reconciliation
Net LTM Leverage & PV-10 Reconciliation Net LTM Leverage Crescent defines Net LTM Leverage as the ratio of consolidated total debt to consolidated Adjusted EBITDAX as calculated under the credit agreement (the "Credit Agreement") governing Crescent’s Revolving Credit Facility. Management believes Ne
Slide 31: Stay Connected.
Stay Connected. IR@crescentenergyco.com 600 Travis Street Suite 7200 Houston, Texas 77002 + 1 (713) 332-7001 www.crescentenergyco.com
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