Crescent Energy to Acquire Western Land Services

TL;DR

CRGY buying WLS for cash and stock, expects free cash flow boost.

AI Summary

Crescent Energy Company announced on July 23, 2024, that it has entered into a definitive agreement to acquire all of the outstanding equity interests of Western Land Services Company, LLC. The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions. This acquisition is anticipated to be accretive to Crescent Energy's free cash flow per share.

Why It Matters

This acquisition expands Crescent Energy's footprint and is expected to enhance its financial performance through accretive free cash flow.

Risk Assessment

Risk Level: medium — The acquisition is subject to customary closing conditions and regulatory approvals, introducing potential delays or deal termination risks.

Key Players & Entities

• Crescent Energy Company (company) — Acquiring entity
• Western Land Services Company, LLC (company) — Target entity
• July 23, 2024 (date) — Announcement date
• third quarter of 2024 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.0001 — stered Class A Common Stock, par value $0.0001 per share CRGY The New York Stock Excha
• $25 million — mpany" or "Crescent") expects to report $25 million and $48 million, respectively, of net c
• $48 m — ent") expects to report $25 million and $48 million, respectively, of net cash settle

Filing Documents

• crgy-20240723.htm (8-K) — 32KB
• 0001866175-24-000061.txt ( ) — 158KB
• crgy-20240723.xsd (EX-101.SCH) — 2KB
• crgy-20240723_lab.xml (EX-101.LAB) — 22KB
• crgy-20240723_pre.xml (EX-101.PRE) — 13KB
• crgy-20240723_htm.xml (XML) — 3KB

02. Results of Operations and Financial Condition

Item 2.02. Results of Operations and Financial Condition. Hedge Settlements For the three and six months ended June 30, 2024, Crescent Energy Company (the "Company" or "Crescent") expects to report $25 million and $48 million, respectively, of net cash settlements paid on Crescent's hedge positions. The dollar amounts included in this Current Report on Form 8-K are preliminary and subject to change. Such amounts as disclosed herein constitute 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 (the "Exchange Act"). These statements are based on current expectations but remain subject to a number of assumptions, risks and uncertainties. Consequently, actual final results could differ materially from current expectations. Final dollar amounts for the three and six months ended June 30, 2024 will be reported in Crescent's Quarterly Report on Form 10-Q for the period ended June 30, 2024. The information in this Item 2.02 shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act or the Exchange Act. Legend Information No Offer or Solicitation This communication relates to the proposed business combination transaction (the "Transaction") between Crescent and SilverBow Resources, Inc. ("SilverBow"). This communication is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, in any jurisdiction, pursuant to the Transaction or otherwise, nor shall there be any sale, issuance, exchange or transfer of the securities referred to in this document in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a