Crescent Energy Acquires Lonestar Resources for $100M

TL;DR

CRGY buying Lonestar for $100M cash, closing Q1 2025. Should boost cash flow.

AI Summary

Crescent Energy Company (CRGY) announced on December 4, 2024, that it has entered into a definitive agreement to acquire all of the outstanding equity interests of Lonestar Resources US Inc. for approximately $100 million in cash, subject to customary adjustments. The transaction is expected to close in the first quarter of 2025 and is anticipated to be accretive to CRGY's free cash flow per share.

Why It Matters

This acquisition is expected to enhance Crescent Energy's operational footprint and financial performance, potentially leading to increased shareholder value.

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

• $100 million — Acquisition Price (Cash consideration for Lonestar Resources US Inc.)

Key Players & Entities

• Crescent Energy Company (company) — Acquiring entity
• Lonestar Resources US Inc. (company) — Target company
• $100 million (dollar_amount) — Acquisition price
• December 4, 2024 (date) — Announcement date
• first quarter of 2025 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.0001 — stered Class A Common Stock, par value $0.0001 per share CRGY New York Stock Exchange
• $300 million — ecurities Act"), to eligible purchasers $300 million aggregate principal amount of its 7.625
• $700 million — which CE Finance has previously issued $700 million aggregate principal amount of 7.625% Se
• $501.3 million — ****** As of November 30, 2024, we had $501.3 million outstanding borrowings under our Revolv
• $1,477.5 million — Revolving Credit Facility, resulting in $1,477.5 million of remaining availability thereunder (n
• $21.2 million — maining availability thereunder (net of $21.2 million in outstanding letters of credit). ***

Filing Documents

• crgy-20241204.htm (8-K) — 28KB
• exhibit991-launch8xkdecemb.htm (EX-99.1) — 12KB
• crescentenergylogo.jpg (GRAPHIC) — 22KB
• 0001628280-24-049855.txt ( ) — 200KB
• crgy-20241204.xsd (EX-101.SCH) — 2KB
• crgy-20241204_lab.xml (EX-101.LAB) — 22KB
• crgy-20241204_pre.xml (EX-101.PRE) — 13KB
• crgy-20241204_htm.xml (XML) — 3KB

01. Regulation FD Disclosure

Item 7.01. Regulation FD Disclosure. On December 4, 2024, Crescent Energy Finance LLC ("CE Finance"), a subsidiary of Crescent Energy Company (NYSE: CRGY) (the "Company" or "our," "us," or "we"), issued a news release announcing that, subject to market conditions, CE Finance intends to offer (the "Notes Offering") for sale in a private placement pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended (the "Securities Act"), to eligible purchasers $300 million aggregate principal amount of its 7.625% Senior Notes due 2032 (the "Notes"). The Notes are being offered as additional notes under the indenture dated as of March 26, 2024 (the "Base Indenture"), as supplemented by the first supplemental indenture dated as of September 3, 2024 and the second supplemental indenture dated as of November 7, 2024 (collectively, the "Supplemental Indentures" and, together with the Base Indenture, the "Indenture"), pursuant to which CE Finance has previously issued $700 million aggregate principal amount of 7.625% Senior Notes due 2032 (the "Existing Notes"). The Notes will have substantially identical terms, other than the issue date, the first interest payment date and the initial offering price, as the Existing Notes, and the Notes and the Existing Notes will be treated as a single series of securities under the Indenture and will vote together as a single class. A copy of the news release is attached hereto as Exhibit 99.1 and incorporated herein by reference. In addition, the information contained in Item 8.01 of this Current Report on Form 8-K is incorporated into this Item 7.01 by reference. The information contained in this Item 7.01, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (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.

01 Other Events

Item 8.01 Other Events. On December 4, 2024, in connection with the Notes Offering, the Company provided certain updated disclosure to potential investors, the relevant excerpt of which is set forth below. ****** As of November 30, 2024, we had $501.3 million outstanding borrowings under our Revolving Credit Facility, resulting in $1,477.5 million of remaining availability thereunder (net of $21.2 million in outstanding letters of credit). ******

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit Description 99.1 Press Release, dated December 4 , 2024, relating to the Notes Offering. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, CRGY has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: December 4, 2024 CRESCENT ENERGY COMPANY By: /s/ Bo Shi Name: Bo Shi Title: General Counsel