Crescent Energy to acquire operated interest in Western Eagle Ford assets

Crescent Energy Company announced that it has entered into a definitive purchase agreement to acquire operatorship and incremental working interest in its existing Western Eagle Ford assets from Mesquite Energy, Inc. for total consideration of $600M in cash, subject to customary purchase price adjustments. The accretive acquisition is consistent with Crescent’s strategy of acquiring high-value, cash flowing assets while maintaining financial strength. The transaction is expected to close early in the third quarter of 2023, subject to customary closing conditions. Crescent CEO David Rockecharlie said, "This acquisition cements our position as a leading consolidator in the Eagle Ford and is consistent with the low-risk, acquire and exploit strategy that we’ve employed for the past decade. We know these assets well as an active non-operated owner for the last six years and see meaningful upside potential through increased scale and operatorship. As operator, we look forward to engaging with all stakeholders to improve performance and maximize value across this high-quality asset base." The asset is 100% operated with approximately 75,000 contiguous net acres, primarily located in Dimmit and Webb counties, Texas. The transaction is expected to close early in the third quarter of 2023, subject to customary closing conditions, with an effective date of March 1, 2023. In conjunction with the signing of the transaction, the Company entered into additional hedges in-line with its risk-management strategy. The Company expects to update its 2023 outlook incorporating the acquisition upon closing.