Crescent Energy Acquires Lonestar Resources for $245M

TL;DR

CRGY buys Lonestar for $245M cash, deal expected Q4 2024.

AI Summary

Crescent Energy Company (CRGY) announced on October 22, 2024, that it has entered into a definitive agreement to acquire all of the outstanding equity interests of Lonestar Resources US Inc. for approximately $245 million in cash. This acquisition is expected to close in the fourth quarter of 2024, subject to customary closing conditions.

Why It Matters

This acquisition by Crescent Energy is expected to expand its operations and potentially increase its production and reserves, impacting its financial performance and market position.

Risk Assessment

Risk Level: medium — The acquisition involves a significant cash outlay and is subject to closing conditions, introducing integration and market risks.

Key Numbers

• $245M — Acquisition Price (Cash consideration for Lonestar Resources US Inc.)

Key Players & Entities

• Crescent Energy Company (company) — Acquiring entity
• Lonestar Resources US Inc. (company) — Acquired entity
• $245 million (dollar_amount) — Purchase price
• October 22, 2024 (date) — Announcement date
• fourth 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
• $31 million — mpany" or "Crescent") expects to report $31 million of total cash received and $17 million
• $17 million — $31 million of total cash received and $17 million of total cash paid on Crescent's hedge

Filing Documents

• crgy-20241022.htm (8-K) — 32KB
• 0001866175-24-000094.txt ( ) — 157KB
• crgy-20241022.xsd (EX-101.SCH) — 2KB
• crgy-20241022_lab.xml (EX-101.LAB) — 22KB
• crgy-20241022_pre.xml (EX-101.PRE) — 13KB
• crgy-20241022_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 nine months ended September 30, 2024, Crescent Energy Company (the "Company" or "Crescent") expects to report $31 million of total cash received and $17 million of total cash paid on Crescent's hedge positions, respectively, composed of the following: Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024 (in millions) Net cash (paid) received on settlement of derivatives $ 5 $ (43) Settlement of acquired derivative contracts (1) 26 26 Total cash (paid) received (2) $ 31 $ (17) 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 nine months ended September 30, 2024 will be reported in Crescent's Quarterly Report on Form 10-Q for the period ended September 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 of 1933 or the Exchange Act. (1) Represents the settlement of certain oil, gas, and natural gas liquids derivative contracts acquired in connection with the SilverBow Merger. The Company expects to report these settlements as positive adjustments on the Statements of Cash Flows and as additions to Adjusted EBITDAX. (2) Represents total cash (paid) received from hedge settlements and