Crescent Energy Company · NYSE:CRGY
Crescent Energy — Investor Presentation (January 2022)
26 slides from Crescent Energy's investor presentation, Jan 20, 2022
Slide 1: A Differentiated U.S. Energy Company
Exhibit 99.2 January 2022 (NYSE: CRGY) 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”) and contains “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. All statem
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 • Attractive Growth Through 10% Q3’21 YTD Production
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: Initial 2022 Guidance
Initial 2022 Guidance (1) 2022 Program Generates $325 - $375 MM of Levered Free Cash Flow Capital Allocation Commentary Initial 2022 Guidance ($75 / Bbl WTI and $3.75 / MMbtu Henry Hub) • Operated: 32 –38 gross wells online (>90% WI), with approximately 33% online in the first quarter Full Year 2022
Slide 11: Disciplined Financial & Risk Management Program
Disciplined Financial & Risk Management Program • Target investment grade credit metrics Prioritize Balance Sheet Strength • Long-term target leverage at or below 1.0x • Disciplined reinvestment of a portion of cash flow Returns Focused Reinvestment Decisions• Deliver full-cycle cash-on-cash returns
Slide 12: Commitment to Financial Strength and Flexibility
Commitment to Financial Strength and Flexibility Low Leverage Strategy with 1.0x Long-Term Target (4) Pro Forma Capitalization Table as of 9/30 Targeting Investment Grade ($ in MM, unless noted) Cash & Cash Equivalents $67 Balance Sheet Metrics RBL Borrowings $397 7.25% Senior Notes 500 (1) Total Pr
Slide 13: Our Reliable Dividend Framework
Our Reliable Dividend Framework Our Adj. EBITDAX-Based Dividend Framework is Designed to Deliver a (1) Reliable Return of Capital to Our Shareholders Illustrative Dividend Dividend framework distributes (Assuming $1Bn of Adj. EBITDAX) 10% of Adjusted EBITDAX ($MM) Dividend Policy • Projected quarter
Slide 14: Our Commitment to ESG Improvement
Our Commitment to ESG Improvement Shared Commitment to Developing Industry-Leading ESG Programs and Continually Improving ESG Performance Crescent Energy’s ESG highlights and priorities: Published inaugural 2020 ESG Work to reduce greenhouse gas emissions report • Reported on key ESG performance met
Slide 15: 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 16: 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 17: Appendix
fe) Crescent Energy Appendix
Slide 18: 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 19: Crescent Energy Reserves Overview
Crescent Energy Reserves Overview Year-End Proved Reserves of 532 MMBoe at SEC Pricing Comprised of 54% Liquids and 86% Proved Developed (1) (1) Reserve Category Oil (MBbl) Gas (MMcf) NGL (MBbl) Total (MBoe) PV-0 ($MM) PV-10 ($MM) Proved Developed 158,091 1,404,570 66,402 458,587 $7,495 $4,305 Prove
Slide 20: Our Proactive Hedge Strategy
Our Proactive Hedge Strategy 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 maintain prudent leverage 0
Slide 21: 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 22: 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 23: Summary Hedge Position as of 12/31/2021
Summary Hedge Position as of 12/31/2021 ~66% Hedged in 2022 at the Midpoint of the Production Guidance Range WTI Oil Brent Oil Natural Gas NGLs Hedged Weighted Hedged Weighted Hedged Weighted Hedged Weighted Volume Average Price Volume Average Price Volume Average Price Volume Average Price (MBbl) (
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”) Public Up-C in an operating company (“OpCo”) tha
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation For the nine months ended (in thousands) September 30, 2021 Net loss $(678,112) Adjustments to reconcile to Adjusted EBITDAX: Interest expense 47,270 Realized loss on interest rate derivatives 7,373 Income tax benefit (41,859) Depreciation, depletion and amortization 300,285
Slide 26: 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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