Crescent Energy Company · NYSE:CRGY
Crescent Energy — Q3 2024 Earnings Presentation
30 slides from Crescent Energy's earnings presentation, Nov 5, 2024
Slide 1: Q3'24 Earnings Presentation
Q3’24 Earnings Presentation November 2024
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
Slide 3: Delivering On Strategic Priorities
Delivering On Strategic Priorities ✓ Robust Financial Performance • Continued outperformance vs. expectations • Reaffirming production guidance on ~10% less capital ✓ Solid Operational • Improving D&C costs and increasing well productivity Execution • Integration ahead of schedule; increased synergy
Slide 4: CRGY Performance: Strong Q3 Results, Substantial Cash Flow Generation
CRGY Performance: Strong Q3 Results Substantial Large, Low Decline Cash Flow Generation Base Production $430 MM Adj. EBITDAX(1) 219 Mboe/d $158 MM Levered FCF(1) 39% Oil / 58% Liquids Attractive Balance Sheet Return of Capital Strength $0.12/sh Fixed Quarterly Dividend(2) 1.5x Net LTM Leverage(1)(4)
Slide 5: Capital Efficiencies and Accelerated Synergies Drive Enhanced Outlook
Capital Efficiencies and Accelerated Synergies Drive Enhanced Outlook Increased Guidance for the Third Consecutive Quarter this Year Updated 2H’24 Outlook Prior Current 2H’24 Outlook Outlook Change Avg. Daily Production 232 - 241 232 - 241 (Mboe/d) Capital Expenditures $460 - $510 $425 - $455 ($ MM)
Slide 6: Eagle Ford Quarterly Highlights
Eagle Ford Quarterly Highlights: Premier Position with Attractive Commodity Diversification Scaled Footprint with Significant Incremental Growth Opportunity Eagle Ford Acreage ✓ Acreage Increasing Year-Over-Year Well Productivity ✓ Continued D&C Cost Improvement with Focused Execution CRGY (Op) h CR
Slide 7: Strong Eagle Ford Momentum: Positive Rate of Change
Strong Eagle Ford Momentum: Positive Rate of Change Increasing Returns with Positive Well Productivity Trajectory CRGY Well Performance Relative Rate of Change vs. EF Peers (Avg Cum. Prod/ft)(1) (Avg Cum. Prod/ft – ’24 TiLs vs. ’22-’23 Avg)(1)(2) ‘22 & ‘23 Program Average 2024 Program CRGY EF PubCo
Slide 8: Continued D&C Cost Improvement with Focused Execution
Continued D&C Cost Improvement with Focused Execution Operational Efficiencies and Synergy Capture Drive 10% Improvement in Eagle Ford Well Costs Better Drilling Times Completion Efficiencies Lower D&C Costs (ft/day) (fluid bbl/day) ($/ft) ~ 2,100 ~ 105,000 $875 ~ 90,000 $800 ~ 1,600 (1) (1) Legacy
Slide 9: Applying Operational Best Practices to Lower D&C Costs
Applying Operational Best Practices to Lower D&C Costs First U-Turn Wells on Legacy CRGY Assets and First Simulfrac on Legacy SBOW Assets Expected in Q4 U-Turn Wells Completion Techniques Simulfrac Zipper Dual Well Completion vs. Independent Completion Averaging ~2,200 ft/day Averaging ~1,700 ft/day
Slide 10: Seamless Integration: Increasing SilverBow Synergy Target
Seamless Integration: Increasing SilverBow Synergy Target Initial Synergy Expectation Already Achieved with Efficient Integration to Date ($ MM) Initial Captured Revised Synergy Progress Target To-Date Target • Fully realized cost-of-capital savings from Cost of $25 - 45 ~$36 ~$36 successful HY offe
Slide 11: Continued Outperformance from Western EF Acquisitions
Continued Outperformance from Western EF Acquisitions Improved Operations and Cash Flow Drive Significant Incremental Returns; $260 MM of Synergy PV-10 on $850 MM of Combined Purchase Price Well Performance Synergy Capture (Cumulative Production – Boe/ft)(1) (Annual Cash Flow / 5 Yr PV-10 - $ MM) CR
Slide 12: Uinta Quarterly Highlights
Uinta Quarterly Highlights: Proven Oil Resource with Multi-Year Development Inventory Acquired Asset in Q1’22 for Production Value; Driving Incremental Returns Through Attractive Development Uinta Acreage ✓ Development Program Generating Attractive Returns • Activity to date generating 2.0x+ MOIC ✓
Slide 13: Prudently Developing Uinta's Resource Potential
Prudently Developing Uinta’s Resource Potential ✓ Industry Actively Delineating Significant Attractive Stacked Resource Play Stacked Pay Resource Prospective Benches Peers ✓ Monitoring Offset Operator Data Without Committing At-Risk CRGY Capital Garden Gulch Upper Douglas Creek Middle Douglas Creek
Slide 14: Successful Track Record of Accretive Acquisitions
Successful Track Record of Accretive Acquisitions More Than Doubled in Scale Since Public Listing 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-
Slide 15: Closed Accretive Central Eagle Ford Bolt-On 10/1
Closed Accretive Central Eagle Ford Bolt-On 10/1 Low Decline Oil Production and High-Return Inventory Offset Existing EF Assets Central Eagle Ford Acreage ✓ Strong Investment Frio Atascosa Returns & Accretive to Key Financial Metrics ✓ Complementary Operations Directly Offset Core Position La Salle
Slide 16: "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 ✓ Maintain Ample Liquidity: Current liquidity is ~3x our Current Leverage Total Leverage(1) Target / Max Liquidity(2) >$500 MM target 1.5x 1.0x / 1.5x ~
Slide 17: 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) Consecutive 12 years Priority Fixed Dividend: #1 4.3% of dividend payments(3) 3.9% 4.0% • $0.12 / share per qua
Slide 18: Transformed Equity Positioning Since Public Listing
Transformed Equity Positioning Since Public Listing Recent S&P 600 Inclusion Generating Stable, Passive Ownership; Index Weighting to Expand as Float Increases Public Float Trading Liquidity ~71% ~$30 MM ~25% ~$4 MM (1) (1) Public Listing Current Public Listing Current Increase in Public Float Incre
Slide 19: Appendix
©) Crescent Energy Appendix
Slide 20: 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 - Mbbls/d) More than doubled net acres, production and 250 inventory over the last 2 years 200 #3 Gross Oil Producer Uvalde Medina Wilso
Slide 21: Eagle Ford Asset Detail
Eagle Ford Asset Detail: 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 Atascosa,
Slide 22: Uinta Asset Detail
Uinta Asset Detail: Proven Oil Resource with Multi-Year Development Inventory Asset Detail Uinta Net Acres ~145k Counties Duchesne and Uintah Avg. WI / NRI ~85% / ~70% % Oil(1) ~80% Current 1 Rigs Gross Locations(2) Low-Risk ~250 Total ~650 MOIC(3) >2.0x DC&F ~$950 $ / ft ’24 Avg. Lateral ~10,000’ H
Slide 23: 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 24: Hedge Position: Gas
Hedge Position: Gas Q4 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 287,178 151,247 114,370 WA Swap Price $3.91 $3.97 $3.98 Collars Total Volumes 8,465,000 74,009,000 40,100,000 Total Daily Volumes 92,011 202,764 109,8
Slide 25: Per Unit Performance
Per Unit Performance For the three months ended September 30, 2024 September 30, 2023 June 30, 2024 Average daily net sales volumes: Oil (Mbbls/d) 86 72 73 Natural gas (MMcf/d) 554 359 372 NGLs (Mbbls/d) 40 25 30 Total (Mboe/d) 219 157 165 Average realized prices, before effects of derivative settle
Slide 26: 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, loss from extinguishment of debt, income tax expense (benefit), depreciation, depletion and amortization, exploration expense, non-cash
Slide 27: Adjusted EBITDAX & Levered Free Cash Flow (Cont'd)
Adjusted EBITDAX & Levered Free Cash Flow (Cont’d) For the three months ended September 30, 2024 September 30, 2023 (in thousands) Net income (loss) ($5,579) $(131,102) Adjustments to reconcile to Adjusted EBITDAX: Interest expense 61,840 42,200 Loss from extinguishment of debt 36,513 — Income tax e
Slide 28: 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 29: 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 equity- based compensation and transaction and nonrecurring expenses, and including cash distributions initiated by Manager Compensation. We include "
Slide 30: Stay Connected.
Stay Connected. IR@crescentenergyco.com 600 Travis Street Suite 7200 Houston, Texas 77002 + 1 (713) 332-7001 www.crescentenergyco.com
Crescent Energy Company — Q3 2024 Earnings Presentation on 6ix