Crescent Energy Company · NYSE:CRGY

Crescent Energy — Q3 2022 Earnings Presentation

34 slides from Crescent Energy's earnings presentation, Nov 10, 2022

  1. Slide 1: Solid Execution, Delivering Value

    Solid Execution, Delivering Value Q3 2022 Earnings

  2. Slide 2: Disclaimer

    Disclaimer The information in this presentation relates to Crescent Energy Company (the “Company”) 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 Section 21E

  3. Slide 3: Third Quarter 2022 Highlights

    Third Quarter 2022 Highlights $359 MM / $144 MM 150 Mboe/d / 69 Mbbl/d Adjusted EBITDAX(1) / Q3 Production / Levered FCF(1) Q3 Oil Production $570 MM Unhedged Adjusted EBITDAX(1) 6% QoQ Production $555 MM Net Income 8% QoQ Oil Production $0.17/sh / 5% yield 1.0x / $625 MM Quarterly dividend(2) / Net

  4. Slide 4: Third Quarter 2022 Highlights (Continued)

    Third Quarter 2022 Highlights (Continued) • Produced 150 MBoe/d (59% liquids), a 6% QoQ increase Strong Q3 • Generated $359 MM of Adjusted EBITDAX(1), $570 MM of Unhedged 2022 Adjusted EBITDAX(1) and $144 MM of Levered Free Cash Flow(1) Performance • Operated one rig in the Eagle Ford and 1.5 rigs i

  5. Slide 5: Our First 9 Months as a Public Company

    Our First 9 Months as a Public Company Strong Execution Advances Top Priorities • Creating shareholder value through quarterly dividend and accretive M&A Sustainable • Executed 3 transactions since the CRGY / Contango merger Value Creation announcement, representing ~$1 BN in gross purchase price •

  6. Slide 6: Successful First Follow-On Offering

    Successful First Follow-On Offering: In-Line with Stated Capital Markets Objectives First Marketed Upstream Offering of the Year Transaction Overview: • On September 13, 2022, Crescent completed a 100% secondary public offering of 5.75 MM(1) shares of its Class A common stock at price to public of $

  7. Slide 7: KKR & Co. and John Goff Retained Existing Stakes

    KKR & Co. and John Goff Retained Existing Stakes Well Managed, Pro-Rata Sell Down of Legacy Private Investors CRGY Ownership (as of 7/31) CRGY Ownership (Current) KKR & Co. KKR & Co. 16% 16% John Goff John Goff 6% 6% 169.5 MM 166.9 MM Total Shares Private Total Shares Private Outstanding Investors O

  8. Slide 8: Commitment to Financial Strength and Flexibility

    Commitment to Financial Strength and Flexibility Low Leverage Strategy with 1.0x Long-Term Target Capitalization Table as of 9/30 Targeting Investment Grade Balance ($ in MM, unless noted) Sheet Metrics 9/30/2022 Cash & Cash Equivalents $22 • 1.0x Net LTM Leverage(1) RBL Borrowings 685 • 4.6x PD PV-

  9. Slide 9: Prioritizing Debt Repayment and Maturities

    Prioritizing Debt Repayment and Maturities Total Debt Outstanding & Net LTM Leverage(1) ($MM) Focused on Absolute Debt 1.3x Repayment 1.2x 1.0x Long-term leverage target • Paid down $256 MM of $1,641 $1,529 $1,385 RBL debt since 3/31 $941 $829 $685 • Long-term leverage target of 1.0x $700 $700 $700

  10. Slide 10: Reliable Dividend – Fixed within a Framework

    Reliable Dividend – Fixed within a Framework Adj. EBITDAX-Based Dividend Framework Designed to Deliver Reliable Return of Capital to Our Shareholders(1) 2022 Quarterly Dividend ($ / Share) Dividend Framework Distributes 10% of Adjusted $0.17 $0.17 $0.17 EBITDAX(1) $0.12 • $0.17 per share quarterly d

  11. Slide 11: Operated Eagle Ford Development

    Operated Eagle Ford Development Eagle Ford Asset Map Eagle Ford Update • Running 1 operated rig on the asset today • Represents ~40% of 2022 capital program Estimated FY 2022 Activity • 28 - 30 gross wells spud (~27 - 29 net) • 23 - 25 gross wells brought online (~22 - 24 net) • Driving efficiencies

  12. Slide 12: Operated Uinta Development

    Operated Uinta Development Uinta Asset Map Uinta Update • Running 1 operated rig on the asset today • Represents ~40% of total 2022 capital program Estimated Full Year 2022 Activity • 33 - 36 gross wells spud (~32 - 34 net) • 37 - 39 gross wells brought Optimizing Well Design online (~35 - 37 net) H

  13. Slide 13: Meaningful ESG Progress Since Going Public

    Meaningful ESG Progress Since Going Public • Published ESG reports in December 2021 and September 2022 (2020 and 2021); aligned with SASB and TCFD frameworks Transparency & • Established an ESG Advisory Council for third-party expertise Accountability • Joined OGMP 2.0 Initiative for better methane

  14. Slide 14: Crescent's Publicly Stated ESG Targets

    Crescent’s Publicly Stated ESG Targets Crescent Energy’s Mission is to Invest in Energy Assets and Deliver Better Returns, Operations and Stewardship Listen and respond Aspire to be a Manage and to community and Develop a diverse Work to reduce reduce zero-incident stakeholder and inclusive workplac

  15. Slide 15: Reducing Our Emissions Impact

    Reducing Our Emissions Impact Reduce absolute Scope 1 Maintain methane Joined the leading GHG Emissions emissions at current emissions intensity standard for reporting methane emissions Reduction operations by Targets 50% by 2027 <0.20%  Replacing pneumatic devices and pumps and electrifying operat

  16. Slide 16: Reaffirms Full Year 2022 Production, Capex, Adj. EBITDAX and LFCF Guidance

    Reaffirms Full Year 2022 Production, Capex, Adj. EBITDAX and LFCF Guidance Full Year 2022 Guidance Remains Consistent(1), Adjusted for Asset Divestitures FY 2022 Guidance Assumptions 2022 Guidance • Based on $100 / Bbl WTI and ($100 / Bbl WTI and $6 / MMbtu Henry Hub) $6 / MMbtu Henry Hub(2) Crescen

  17. Slide 17: Appendix

    ©) Crescent Energy Appendix

  18. Slide 18: Crescent Energy: A Differentiated U.S. Energy Company

    Crescent Energy: A Differentiated U.S. Energy Company Well-Capitalized Energy Company with an Investor Mindset and Commitment to Sustainable Value Creation Substantial Cash Flow Disciplined Investment and Focused on Returning Committed to ESG Generation Supported by Accretive Growth Through Capital

  19. Slide 19: Scaled, Low-Decline Assets Drive Sustainable FCF

    Scaled, Low-Decline Assets Drive Sustainable FCF First Year PDP Decline vs. Peers(1) 42% 37% 36% 35% 35% Cash Flow Stability 34% 32% Through: 27% 23% 22% 22% • Low-decline PDP base 19% 16% • Flexible, returns-driven 9% investments • Basin & commodity 1 2 3 4 5 6 7 8 9 10 11 12 13 diversification Ass

  20. Slide 20: 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 requirements provide valuable o

  21. Slide 21: Proven Consolidator – Delivering Accretive Deals with Upside

    Proven Consolidator – Delivering Accretive Deals with Upside Uniquely Positioned to Capitalize on Market Opportunities Focused on Accretive Crescent Consistent Strategy Acquisitions(1) Actively Pursuing Acquisition Strategy Since 2011 Acquisitions with 8 Significant Upside Potential 6 4 • Cash-gener

  22. Slide 22: Crescent Business Model: Sustainable Through Cycles

    Crescent Business Model: Sustainable Through Cycles We Have Maintained Consistent Financial Discipline Over the Past Decade ($/Bbl) ($/MMBtu) Post 2014 Today (1) (2) Industry Average Crescent Energy Crescent Energy Net LTM Leverage (x) 3.0x 1.2x 1.0x (3) Reinvestment Rate (%) 89% 40% 48% Unhedged Re

  23. Slide 23: G&A Costs In-Line with Peers

    G&A Costs In-Line with Peers Crescent Energy Has Access to KKR’s Global Platform and Maintains Attractive G&A Metrics Relative to Peers • Pursuant to a management agreement, an affiliate of KKR provides Crescent with its executive management team and manages all day-to-day operations, including:  C

  24. Slide 24: 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 Company • Up-C Investors and Crescent Energy Company (“PubCo”) hold units (“OpCo Units”) Up-C Public in an operating company (“OpCo”) tha

  25. Slide 25: Crescent Energy Reserves Summary

    Crescent Energy Reserves Summary Year-End Proved Reserves of 598 MMBoe at SEC Pricing Comprised of 55% Liquids and 83% Proved Developed PV-10 ($MM) PV-10 ($MM) Reserve Category Oil (MMBbl) Gas (Bcf) NGL (MMBbl) Total (MMBoe) SEC(1)(2) NYMEX(1)(3) Proved Developed 183 1,497 66 499 $5,038 $6,314 Prove

  26. Slide 26: Summary Hedge Position as of 9/30/22

    Summary Hedge Position as of 9/30/22 ~60% Hedged in 2022 at the Midpoint of the Production Guidance Range WTI Oil Brent Oil Natural Gas NGLs Swaps: Hedged Weighted Hedged Weighted Hedged Weighted Hedged Weighted Volume Average Price Volume Average Price Volume Average Price Volume Average Price (MBb

  27. Slide 27: Per Unit Performance

    Per Unit Performance For the three months ended September 30, 2022 June 30, 2022 March 31, 2022 Average daily net sales volumes: Oil (MBbls/d) 69 64 44 Natural gas (MMcf/d) 367 356 333 NGLs (MBbls/d) 20 20 20 Total (MBoe/d) 150 142 120 Average realized prices, before effects of derivative settlement

  28. Slide 28: Adjusted EBITDAX & Levered Free Cash Flow

    Adjusted EBITDAX & Levered Free Cash Flow Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in thousands) Net income (loss) $555,349 ($162,043) $431,240 ($601,172) Adjustments to reconcile to Adjusted EBITDAX: Interest expense 27,057 12,984 68,518 37,810 Realized

  29. Slide 29: Unhedged Adjusted EBITDAX

    Unhedged Adjusted EBITDAX Unhedged Adjusted EBITDAX Crescent defines Unhedged Adjusted EBITDAX as Adjusted EBITDAX plus realized (gain) loss on commodity derivatives. Management believes Unhedged Adjusted EBITDAX is a useful performance measure because it allows for an effective evaluation of the Co

  30. 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. For purposes of the Cr

  31. Slide 31: 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(1). Management bel

  32. Slide 32: Adjusted Net Income

    Adjusted Net Income Adjusted Net Income Crescent defines Adjusted Net Income as net income (loss), adjusted for certain items. Management believes that Adjusted Net Income is useful to investors in evaluating operational trends of the Company and its performance relative to other oil and gas compani

  33. Slide 33: Adjusted Current Income Tax & Adjusted Dividends Paid

    Adjusted Current Income Tax & Adjusted Dividends Paid Adjusted Current Income Tax Crescent defines Adjusted Current Income Tax as current income tax provision (benefit) plus Income Tax RNCI Distributions. Management believes Adjusted Current Income Tax is a useful performance measure because it refl

  34. Slide 34: 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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