Crescent Energy (CRGY) Merger Update - July 31

[dan_s]

Yesterday Crescent Energy Company (NYSE: CRGY) ("Crescent" or the "Company"), announced the closing of its acquisition of SilverBow Resources, Inc. ("SilverBow"). The transaction was closed ahead of schedule, and Crescent plans to provide pro forma second half 2024 guidance reflecting the acquisition, as well as issue its second quarter 2024 financial and operating results, after market close on August 5, 2024. A conference call is planned for August 6, 2024.

The SilverBow integration is well underway with approximately $35 million of the previously announced $65 – $100 million in annual synergies captured to date through an improved cost of capital resulting in reduced interest expense.

Crescent Energy is a leading growth through acquisition company primed for sustainable value creation with a focused portfolio of high-quality and long-life assets, an attractive, returns-driven financial framework and strong balance sheet, led by a management team executing on the same strategy for more than a decade. The combined portfolio of assets positions the company for substantial free cash flow generation with balanced and attractive exposure to commodity price upside. < KKR backs this Company, which is SIGNIFICANT.

Crescent Energy Offers a Compelling Value Proposition

– Combined company is the second largest operator in the Eagle Ford

– Creates leading mid-cap E&P with scaled, balanced portfolio of high-quality assets

– Substantial free cash flow generation with disciplined capital allocation framework

– Well-positioned for further growth through accretive, returns-driven M&A

"Today is an exciting day for Crescent. We are well positioned to create value, and I am grateful for the trust from our original Crescent and new SilverBow shareholders, each of whom voted with an overwhelming majority to approve our merger and to take equity consideration and participate in the go-forward company," said Crescent CEO David Rockecharlie. "Through disciplined investing and operations, we have delivered profitable growth, tripling the size of our business over the last four years. We have created a premier growth through acquisition platform by executing on our cash flow and returns-oriented strategy. Today, we are focused on rapidly integrating our new assets and personnel and continuing to deliver on the significant synergies we’ve identified to strengthen returns. We are highly confident in our ability to execute and demonstrate Crescent’s value proposition as a leading mid-cap company."

Pursuant to the consideration election mechanics of the transaction, SilverBow shareholders elected to receive in aggregate approximately $358 million in total cash consideration as part of the transaction. Crescent issued approximately 52 million shares of Class A common stock to fund the non-cash portion of the consideration. As of closing, former SilverBow shareholders own approximately 23% of the combined company on a fully diluted basis.

[dan_s]

https://finance.yahoo.com/news/crescent-finalises-2-1bn-acquisition-083634350.html

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If you took the all-stock deal, you should see 3.125 shares of CRGY for each share of SBOW you held in your brokerage this week. It sometimes takes a couple of days.