Crescent Energy Company · NYSE:CRGY
Crescent Energy — Investor Presentation (December 2021)
24 slides from Crescent Energy's investor presentation, Dec 8, 2021
Slide 1: Creating A Differentiated U.S. Energy Company
Exhibit 99.1 December 2021 Creating A Differentiated U.S. Energy Company + C R E S C E N T E N E R G Y
Slide 2: Disclaimer
Disclaimer This presentation relates to Crescent Energy Company (the “Company”) following its recent consummation of the business combination (the “Transaction”) between Independence Energy LLC (“Independence”) and Contango Oil & Gas (“Contango”) and contains “forward-looking statements” within the
Slide 3: Crescent Energy: A Differentiated U.S. Energy Company
Crescent Energy: A Differentiated U.S. Energy Company A Diversified and Well-Capitalized Energy Company with an Investor Mindset and a Focus on Sustainable Value Creation • Substantial Cash Flow Generation Supported by Predictable PDP Base Mid-Con Q2’21: ~12 Mboe/d Rockies Q2’21: ~33 Mboe/d • Attrac
Slide 4: Consistently Executing Our Strategy
Consistently Executing Our Strategy We Seek to Deliver Attractive Risk-Adjusted Investment Returns and Predictable Cash Flows Across Cycles Employing a differentiated business model that combines an investor mindset and deep operational expertise Investing capital with discipline and a focus on cash
Slide 5: Sustainable Value Creation: Our Free Cash Flow Model
Sustainable Value Creation: Our Free Cash Flow Model Stable Asset Base Generates Predictable Free Cash Flow, Supported by Financial Discipline and Growth Through Returns-Driven Investing Cash flow is the foundation of our business, and each dollar flows through our disciplined framework Targeting 1.
Slide 6: Low-Decline Production Base Drives FCF Generation
Low-Decline Production Base Drives FCF Generation Scaled Portfolio of Stable, Low-Decline Production from a Diversified Asset Base Generates Substantial and Predictable Free Cash Flow (1) 2022E PDP Decline vs. Peers • Low-decline FCF from PDP base underpins value and supports growth through flexible
Slide 7: Flexible & Returns-Driven Organic Growth Potential
Flexible & Returns-Driven Organic Growth Potential Balanced Portfolio of Attractive, Low-Risk Reinvestment Opportunities in Key Proven Basins Across The Lower 48 • Extensive low-risk capital opportunity • Attractive & competitive development returns • Minimal drilling (1) Reinvestment Opportunities
Slide 8: An Attractive Market for Consolidation
An Attractive Market for Consolidation Historically Low Equity Capital Formation and An Increasing Supply of Assets and Businesses For Sale Has Created a Unique Market Opportunity (1) (2) Large, Increasing Universe (Capital | $Bn) (Deals ) of Attractive Target Primary Equity Raised $50 $46 200 Priva
Slide 9: Continuing Our Active Acquisition Strategy
Continuing Our Active Acquisition Strategy Differentiated Business Model, Scaled Asset Base & Investment Experience Uniquely Position Crescent to Further Capitalize on the Market Opportunity Consistent Acquisition Strategy Crescent Actively Pursuing Acquisitions Since 2011 Acquisitions Focused on Ac
Slide 10: Disciplined Financial & Risk Management Program
Disciplined Financial & Risk Management Program • Target investment grade credit metrics Prioritize Balance Sheet Strength • Long-term target leverage at or below 1.0x • Disciplined reinvestment of a portion of cash flow Returns Focused Reinvestment Decisions• Deliver full-cycle cash-on-cash returns
Slide 11: Commitment to Financial Strength and Flexibility
Commitment to Financial Strength and Flexibility Continued Commitment to Target Leverage At or Below 1.0x PDP-Cash Flow vs. Debt Maturities Targeting Investment Grade Ability to repay all debt over next ~2.5 years Balance Sheet Metrics (3) with hedged PDP cash flow ($MM) (1) • Current leverage of ~1
Slide 12: Our Dividend Framework
Our Dividend Framework Our EBITDA-Based Dividend Framework is Designed to Deliver a Reliable (1) Return of Capital to Our Shareholders Illustrative Dividend Returning Capital to Shareholders (Assuming $1Bn of EBITDA) is a Key Component of Our ($MM) Strategy Dividend Policy Crescent Framework (% of E
Slide 13: Our Commitment to ESG Progress
Our Commitment to ESG Progress We seek to be a quantitative leader in ESG stewardship. We are currently in the process of establishing a baseline for the combined business and plan to release an inaugural ESG report before year-end Our key guiding principles include the following: We will improve th
Slide 14: Aligned Management & Board with Investor Mindset
Aligned Management & Board with Investor Mindset Uniquely Aligned Management Team with High Insider Ownership and Exclusively Performance-Based Long-Term Incentive Structure David Brandi Todd Ben Clay Bo Rockecharlie Kendall Falk Conner Rynd Shi CEO CFO CAO Executive VP Executive VP General Counsel
Slide 15: Crescent Energy: A Compelling Investment
Crescent Energy: A Compelling Investment A Diversified and Well-Capitalized Energy Company with an Investor Mindset and a Focus on Sustainable Value Creation Unique business model combining an investor mindset & deep operational expertise Investing capital with discipline and a focus on cash flow Ac
Slide 16: Appendix
fe) Crescent Energy Appendix
Slide 17: Our Operating Model
Our Operating Model Employing a Differentiated Business Model that Combines an Investor Mindset and Deep Operational Expertise to Deliver Sustainable Value Creation • Operating through three scaled asset strategies with financial incentives tied directly to cash-on-cash returns • Crescent Energy exe
Slide 18: Our Proactive Hedge Strategy
Our Proactive Hedge Strategy Longer-Term Rolling Hedge Strategy Mitigates Near-Term Price Volatility and Protects Cash Flow and Reinvestment Returns (1) Target Hedge Levels Base PDP: Actively hedge (% of PDP Production) oil, gas, NGLs, basis and 80% CMA roll exposure to protect cash flow and maintai
Slide 19: Our Board of Directors
Our Board of Directors Crescent’s Board of Directors Brings Together a Diverse Group of Seasoned Executives with a Broad Range of Valuable Expertise (1) • Crescent Board comprised of more than 75% Independent Directors • One Director to serve on separate and dedicated ESG Advisory Council John Goff
Slide 20: ESG Advisory Council
ESG Advisory Council Our ESG Advisory Council meets quarterly and advises management and the board on a variety of ESG topics, including environmental, health & safety; climate change & greenhouse gas emissions reduction; water management; community relations; and diversity, equity & inclusion ESG A
Slide 21: Our Current Hedge Book: 2022 - 2024
Our Current Hedge Book: 2022 - 2024 Crude Oil Natural Gas NGLs Hedged Volume Weighted Average Hedged Volume Weighted Average Hedged Volume Weighted Average (MBbl) Price ($ / Bbl) (MMcf) Price ($ / MMBtu) (MBbl) Price ($ / Bbl) Q1 2022 2,985 $61.45 22,534 $2.79 914 $17.20 Q2 2022 2,789 $60.98 21,690
Slide 22: Our "Up-C" Organizational Structure
Our “Up-C” Organizational Structure The Diagram Below Depicts Our Organizational Structure Immediately Following the Closing of the Merger with Contango Oil & Gas Co. • Up-C Investors and Crescent Energy Company (“PubCo”) hold units (“OpCo Units”) Public Up-C in an operating company (“OpCo”) that is
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Six months ended June 30, 2021 (1) ($ In Thousands) Combined Crescent Energy Net income (loss) ($476,064) Adjustments to reconcile to Adjusted EBITDAX: Interest expense 2 7,384 Realized (gain) loss on interest rate derivatives 7 ,022 Income tax (benefit) provision 369 Depreci
Slide 24: Stay Connected.
Stay Connected. Emily Newport IR@crescentenergyco.com 600 Travis Street Suite 7200 Houston, Texas 77002 + 1 (713) 332-7001 www.crescentenergyco.com
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