Crescent Energy Company · NYSE:CRGY

Crescent Energy — Q4 2023 Earnings Presentation

33 slides from Crescent Energy's earnings presentation, Mar 5, 2024

  1. Slide 1: FY'23 Results Conference Call

    FY’23 Results Conference Call March 2024

  2. Slide 2: Disclaimer

    Disclaimer The information in this presentation relates to Crescent Energy Company (the “Company” or “CRGY”) 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”), and Se

  3. Slide 3: A Differentiated U.S. Energy Company

    A Differentiated U.S. Energy Company Disciplined Growth Strategy that Combines an Investor Mindset and Deep Operational Expertise CRGY at a Glance Cash Flow $4.4 Bn Proved Developed PV-10(1) $5.6 Bn Total Proved PV-10(1) • Substantial Cash Flow Rockies ~40% of ‘24E Production 149 Mboe/d ‘23 Producti

  4. Slide 4: 2023 Recap: Delivering On All Strategic Priorities

    2023 Recap: Delivering On All Strategic Priorities ✓ Strong Financial • Consistent “beat and raise” Performance • Every metric meeting or exceeding increased guidance ✓ Operational Execution • Improved costs and well performance • Positioned for continued capital efficiencies in 2024 ✓ Environmental

  5. Slide 5: Executing Our Consistent Strategy

    Executing Our Consistent Strategy Substantial Large, Low Decline Cash Flow Generation Base Production $1,023 MM Adj. EBITDAX(1) 149 Mboe/d Production $310 MM Levered FCF(1) 45% Oil / 60% Liquids Attractive Balance Sheet Return of Capital Strength $0.12/sh Fixed Quarterly Dividend(2) 1.3x Net LTM Lev

  6. Slide 6: Outperformance Drives Significant Free Cash Flow

    Outperformance Drives Significant Free Cash Flow Higher Full Year Production and Cash Flow for Less Capital Spend (Mboe/d) 2023 Production ✓ Production Outperformance: 149 Solid Eagle Ford and Uinta 130 - 138 well performance Initial (3) WEGF Operational 2023 ✓ Guidance Acquisitions Outperformance A

  7. Slide 7: Efficiencies Offsetting Inflation and Enhancing Margins

    Efficiencies Offsetting Inflation and Enhancing Margins Drilling and Completion Efficiencies Improving Well Costs and Increasing Returns ~2,000’ Drilling Speed (ft/day) +25% ~1,575’ 2022 Current ~90,000 Completion ~72,000 Speed (fluid bbl/day) +25% 2022 Current ~$1,000 Well Costs ~$900 (DC&F) ($/ft)

  8. Slide 8: Positioned for Continued Outperformance in 2024

    Positioned for Continued Outperformance in 2024 Year-Over-Year Production Growth with Flat Capex Profile Highlights Differentiated Asset Base 2023 2024 YoY % Actuals Guidance Change Total +6% Production 149 155 – 160 (Mboe/d) Capital Expenditures ($MM) $578 $550 – $625 +2% CRESCENT ENERGY 8

  9. Slide 9: Peer Leading Decline Rate and Capital Efficiency

    Peer Leading Decline Rate and Capital Efficiency Low Decline Production = Greater Capital Efficiency First Year PDP Decline vs. Peers(2) ✓ 41% Industry Leading Decline 38% 38% 36% 34% 33% Rate: Peers Replace ~50% 30% 29% 29% Peer Avg: 31% More Production Each Year 24% 19% 9% Significantly More Capit

  10. Slide 10: Sustainability Progress: 27% Reduction in Scope 1 GHG Emissions

    Sustainability Progress: 27% Reduction in Scope 1 GHG Emissions Our Sustainability DIVERSITY & Focus Areas CLIMATE ENVIRONMENT SAFETY COMMUNITY INCLUSION ✓ Transparent Reporting to Support Long-Term Goals • Published 2022 Sustainability Report • Awarded OGMP 2.0 Gold Standard pathway rating in 2023

  11. Slide 11: Track Record of Opportunistic and Value-Oriented Acquisitions

    Track Record of Opportunistic and Value-Oriented Acquisitions True Investors Pursuing an Opportunistic and Value-Oriented Acquisition Strategy Targeting Cash Generative Assets in Proven U.S. Onshore Basins ✓ Consistent Approach to Acquisition Underwriting Crescent Consistent Acquisition Strategy(1)

  12. Slide 12: Early Outperformance on Western Eagle Ford Acquisition

    Early Outperformance on Western Eagle Ford Acquisition Improved Capital Efficiency and Synergies Driving Incremental Returns • Expect to generate $30 - $50 MM(1) of incremental 2024 cash flow vs acquisition forecast • ~$1.50/bbl uplift in Eagle Ford oil barrels due to achieved marketing synergies Re

  13. Slide 13: Updated Uinta Well Design Drives Improved Performance

    Updated Uinta Well Design Drives Improved Performance Increased Completions Without an Increase in Overall D&C Costs, Drives Capital Efficiencies Optimizing Improving Driving Capital Operations Well Performance(1) Efficiencies(2) (Avg Proppant Intensity - lbs/ft) (Avg Cum. Boe/ft) ($ / Boe) ~3,000 l

  14. Slide 14: Improving Equity Market Positioning in 2023

    Improving Equity Market Positioning in 2023 Consistent Focus on Improving Trading Liquidity Leading to Increased Shareholder Demand Crescent Energy Ownership Detail ✓ Increased public float Private Investors to ~51% of shares 34% outstanding KKR 55% Public Shareholders +76% 15% ✓ Simplifying corpora

  15. Slide 15: 12-Yr Track Record of Returning Capital to Shareholders

    12-Yr Track Record of Returning Capital to Shareholders Framework Provides Certainty and Simplicity to Shareholders Updated Return of Capital Framework: Fixed Dividend Yield Comparison(1) 4.3% Consecutive 12 years Priority #1 Fixed Dividend: $0.12 / share per quarter of dividend payments(2) 2.8% 2.9

  16. Slide 16: "IG" Quality Balance Sheet Reflects Financial Strength

    “IG” Quality Balance Sheet Reflects Financial Strength Targeting Investment Grade Balance Sheet Metrics Through Cycles Commitment to Balance Sheet Strength ✓ Maintain Ample Liquidity: Current Leverage Total Current liquidity is ~2x our Leverage(1) Target / Max Liquidity(2) >$500 MM target 1.3x 1.0x

  17. Slide 17: Appendix

    ©) Crescent Energy Appendix

  18. Slide 18: 2024 Outlook

    2024 Outlook Guidance Capital Expenditures ($70 / Bbl WTI and $3.00 / MMbtu Henry Hub) Other (4) Non-Op D&C 2% Capital Full Year 2024 8% Expenditures Total Production (Mboe/d) 155 – 160 $550 - $625 MM Realized Prices (Oil % of WTI / Gas % of HHUB) Low/mid ~90% / mid ~80% ~50% Texas Capital Expenditu

  19. Slide 19: Capital Allocation Priorities

    Capital Allocation Priorities Priority #1A Financial Strength Target max 1.5x leverage in an acquisition scenario Target 1.0x long-term leverage Priority #1B Returning Capital to Shareholders Fixed Dividend: $0.12 per share per quarter(1) Returns-Driven Investing: A B Priority #2 Target >2.0x MOIC(2

  20. Slide 20: Balanced Exposure Across Basins and Commodities

    Balanced Exposure Across Basins and Commodities Asset Base Provides Attractive, Long-Term Commodity Price Exposure Thoughtful Portfolio Construction Balanced Exposure(1) • Portfolio provides stable, low decline • Core operating areas in Texas and the production and cash flow with deep Rockies invent

  21. Slide 21: Eagle Ford Asset Overview

    Eagle Ford Asset Overview: Scaled Position Across Oil / Condensate Window Asset Detail Operated Central Western Non-Op Net Acres ~82,000 ~124,000 ~33,000 Atascosa and Dimmit, Webb Zavala, Frio, Counties Frio and La Salle Atascosa, Webb Avg. ~95% / ~72% ~63% / ~47% ~38% / ~30% WI / NRI(1) % Oil(1) ~8

  22. Slide 22: Western Eagle Ford Inventory Compares Favorably vs. Basin Average

    Western Eagle Ford Inventory Compares Favorably vs. Basin Average High-Quality Inventory with Strong Recent Performance ✓ Recoveries In-Line with In-Basin Average Asset Well Performance(1) (EUR Boe / ft) Oil EUR / ft Total EUR / ft • Higher oil weighting drives higher margins 75 ✓ Attractive Returns

  23. Slide 23: Uinta Asset Overview

    Uinta Asset Overview: Proven Oil Resource with Multi-Year Development Inventory Asset Detail Uinta Net Acres ~145,000 Counties Duchesne and Uintah Avg. WI / NRI ~85% / ~70% % Oil ~65% % HBP ~85% Current 1 Rigs Gross Locations(1) Low-Risk 250 Total 650 MOIC(2) >2.0x DC&F ~$900 CRGY (Op) $ / ft Altamo

  24. Slide 24: Crescent Energy Reserves Summary

    Crescent Energy Reserves Summary ~64% Liquids and ~80% Proved Developed YE 2023 Proved Reserves Summary PV-10 ($MM) Reserve Category Oil (MMbbl) Gas (Bcf) NGL (MMbbl) Total (MMboe) SEC(1)(2) Proved Developed 177 1,033 87 436 $4,375 Proved Undeveloped 74 144 14 112 1,191 Total Proved Reserves 250 1,1

  25. Slide 25: Our "Up-C" Organizational Structure

    Our “Up-C” Organizational Structure • Up-C Investors and Crescent Energy Company (“PubCo”) hold units Up-C (“OpCo Units”) in an operating Investors Public 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

  26. Slide 26: Hedge Position: Oil

    Hedge Position: Oil Q1’24 Q2’24 Q3’24 Q4’24 FY 2025(1) NYMEX WTI (Bbls, $/Bbl) Swaps Total Volumes 3,956,250 3,827,100 2,271,480 1,966,630 -- Total Daily Volumes 43,475 42,056 24,690 21,376 -- WA Swap Price $66.239 $67.906 $68.108 $69.029 -- Collars Total Volumes -- -- 1,794,000 1,794,000 1,460,000

  27. Slide 27: Hedge Position: Gas

    Hedge Position: Gas Q1’24 Q2’24 Q3’24 Q4’24 FY 2025 NYMEX Henry Hub (MMBtu, $/MMBtu) Swaps Total Volumes 10,219,720 10,216,210 10,323,800 10,320,370 -- Total Daily Volumes 112,305 112,266 112,215 112,178 -- WA Swap Price $3.69 $3.69 $3.69 $3.69 -- Collars Total Volumes 4,550,000 4,550,000 4,600,000

  28. Slide 28: Per Unit Performance

    Per Unit Performance Year ended For the three months ended December 31, 2023 December 31, 2023 December 31, 2022 September 30, 2023 Average daily net sales volumes: Oil (Mbbls/d) 67 71 63 72 Natural gas (MMcf/d) 358 386 352 359 NGLs (Mbbls/d) 23 30 18 25 Total (Mboe/d) 149 165 139 157 Average realiz

  29. 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

  30. Slide 30: Adjusted EBITDAX & Levered Free Cash Flow (Cont'd)

    Adjusted EBITDAX & Levered Free Cash Flow (Cont’d) For the three months ended December 31, 2023 December 31, 2022 (in thousands) Net income (loss) $ 140,008 $ 49,360 Adjustments to reconcile to Adjusted EBITDAX: Interest expense 43,159 27,419 Income tax expense (benefit) 18,328 1,763 Depreciation, d

  31. Slide 31: 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

  32. Slide 32: Adjusted Recurring Cash G&A

    Adjusted Recurring Cash G&A Adjusted Recurring Cash G&A Crescent defines Adjusted Recurring Cash G&A as general and administrative expense, excluding non- cash equity-based compensation and transaction and nonrecurring expenses, and including Manager Compensation RNCI Distributions. Management belie

  33. Slide 33: Stay Connected.

    Stay Connected. Brandi Kendall IR@crescentenergyco.com 600 Travis Street Suite 7200 Houston, Texas 77002 + 1 (713) 332-7001 www.crescentenergyco.com

Crescent Energy Company — Q4 2023 Earnings Presentation on 6ix