Cresent Energy (CRGY) Q3 Results - Nov 4

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The Company plans to host a conference call and webcast at 10 a.m. CT on Tuesday, November 5, 2024. Details can be found in this release.

> Third Quarter 2024 Highlights– Continued robust financial performance; generated Operating Cash Flow of $368 million (beat my forecast of $326.9 million Operating Cash Flow) and Levered Free Cash Flow of $158 million.
> Increased second half 2024 guidance, with an enhanced capital outlook and unchanged production, generating incremental free cash flow.
> Demonstrating positive rate-of-change in the Eagle Ford, with an approximately 30% increase in well productivity year-over-year < Good News.
> Increasing SilverBow Resources, Inc. ("SilverBow") synergy targets by more than 20%, with $66 million of annualized uplift realized within three months of closing
> Closed accretive Central Eagle Ford bolt-on on October 1, 2024, adding low decline oil production and high-return inventory in a core operating area
> Opportunistically divested approximately $50 million of non-core assets year-to-date with continued focus on portfolio optimization
> Executed roughly 20% of authorized Share Repurchase Program year-to-date at weighted average share price of $10.07; declared quarterly cash dividend of $0.12 per share, in line with enhanced and simplified shareholder return framework
> Added to the S&P SmallCap 600 Index on October 4, 2024, resulting in increased passive ownership

Crescent CEO David Rockecharlie said, “Crescent's third quarter results reflect continued execution on our
business objectives of growing profitably through acquisitions while capturing additional value from our current
assets. We have raised guidance for the third consecutive quarter this year, driven by further operating
efficiencies and accelerated synergies from the SilverBow acquisition. I am proud of our talented team and the
results they have been able to achieve for our investors.

We are also pleased to be included into the S&P SmallCap 600 Index, reflecting the consistent financial and
operating performance our team has delivered. I am confident in our ability to capitalize on recent successes and
continue our profitable growth trajectory towards our investment grade ambitions.”

Third Quarter Financial and Operating Results

Third quarter production averaged 219 MBoe/d (39% oil and 58% liquids). The Company drilled 22 gross
operated wells (17 in the Eagle Ford and 5 in the Uinta), brought online 37 gross operated wells (27 in the Eagle
Ford and 10 in the Uinta) and incurred capital expenditures (excluding acquisitions) of $211 million. Development
costs continued to improve with accelerated synergy capture from the SilverBow acquisition, operational
efficiency gains and successful rebidding of services. < Q3 production slightly lower than my forecast of 228,000 Boepd, but mix is good.

Crescent reported a net loss of $6 million and $82 million of Adjusted Net Income in the third quarter. < Adjusted Net Income beat my forecast of $46 million. < Q3 included $88.6 million of non-cash equity based compensation and $53.1 million of transaction and other non-recurring expenses.

The Company generated $430 million of Adjusted EBITDAX, $368 million of Operating Cash Flow and $158 million of Levered Free Cash Flow.

Financial Position

Crescent maintains a strong balance sheet and a low leverage profile. During the third quarter, the Company
completed an opportunistic $250 million add-on to the existing 7.375% senior notes due 2033 at 101% of par. As
of September 30, 2024, the Company had a Net LTM Leverage ratio of 1.5x, in-line with its stated leverage
target, and liquidity of $1.5 billion.

On October 1, 2024, Crescent closed a $168 million all-cash bolt-on in the Central Eagle Ford. Following the
closing, the Company had approximately $3.3 billion of long-term debt outstanding.

2024 Outlook

Crescent provided updated second half 2024 guidance pro forma for five months of SilverBow contribution.
Relative to previous second half estimates, the Company announced a ~10% improvement to its second half
2024 capital investment guidance on the same production over the specified period, driven by accelerated
synergy capture, operational efficiencies and successful service cost rebidding.