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- Crescent Energy Acquires Eagle Ford Assets for $168 Million
Crescent Energy Acquires Eagle Ford Assets for $168 Million
Slice of Energy Team
September 06, 2024
Key Highlights:
$168M acquisition builds on Crescent’s recent SilverBow acquisition and expands its Central Eagle Ford footprint.
30 oil-weighted core development locations added with potential for increased operating efficiencies.
5,300 net royalty acres and 3,500 surface acres enhance operating flexibility and margins.
Accretive to Operating Cash Flow and Levered Free Cash Flow, with unlevered returns exceeding Crescent’s 2.0x MOIC target.
Leverage ratio remains below the 1.5x maximum target, maintaining Crescent’s strong balance sheet.
Source (Business Wire)
Notable Quote:
“We are adding low-decline oil production and high-quality acreage adjacent to our existing position, with meaningful opportunity to further increase returns through improved operating efficiency.”
Our Take:
Crescent Energy’s strategic $168 million acquisition in the Eagle Ford region reinforces the company’s disciplined approach to growth. By acquiring low-decline oil production assets directly adjacent to its current holdings, Crescent is set to enhance its operational efficiencies and scale its presence in the region. The move aligns with Crescent’s long-term goal of delivering superior shareholder value, evidenced by its robust balance sheet and focus on high-return investments. With additional hedges entered to mitigate risk, Crescent continues to demonstrate a calculated approach to growth, poised to capitalize on further opportunities within its core operating areas.