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Crescent Energy Fourth Quarter, Full Year 2021 Results

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Crescent Energy Co. announced actual and pro forma financial and operational results for 2021.

Pro forma 2021 financial and operational results are related to the business combination (the "Contango Merger") between Independence Energy LLC ("Independence") and Contango Oil & Gas Company ("Contango") to form Crescent Energy Company ("Crescent" or "the Company"). Actual 2021 financial and operational results include legacy results of Independence, Crescent's financial reporting predecessor, from January 1 through December 6, 2021 and 25 days of Crescent results beginning December 7, 2021.

2021 Pro Forma Highlights:

• Successfully integrated Independence and Contango to form Crescent, a differentiated energy company
• Closed three transactions in the second half of 2021, including two asset acquisitions totaling approximately $140 million and the transformational Contango Merger

Uinta Basin Acquisition and 2022 Outlook:

• Pending $815 million acquisition of high-margin oil assets in the Uinta Basin, expected to close in 1H'22
  • Deal consistent with strategy to acquire high-value and accretive cash flowing assets while maintaining financial strength
• Scales Crescent's production base in the Rockies region and adds multi-year inventory of proven, high-return development locations
• Increased Adj. EBITDAX⁽²⁾ guidance to $1.1-$1.2 billion with $375-$475 million of Levered FCF⁽²⁾
• Expect to pay a $0.17 / share quarterly dividend⁽⁴⁾, post close of Uinta transaction, based on 10% of 2022E Adjusted EBITDAX⁽²⁾ guidance
• Transaction maintains strong balance sheet with expected post close net leverage ratio of 1.4x⁽⁵⁾

Crescent CEO David Rockecharlie said, "2021 was a transformational year for Crescent - we generated significant free cash flow, continued to scale our business, maintained our strong balance sheet and began trading in December as a public company. Although we have a new name and ticker symbol, our business strategy is well established and has been executed consistently over the last decade. The recently announced Uinta acquisition adds significant cash flow and resource upside from high return oil assets in a proven basin at a very attractive entry price. We enter 2022 with strong momentum and a differentiated strategy that is well positioned to create value for our shareholders."

Q4 Dividend

Crescent's Board of Directors approved a quarterly cash dividend of $0.12 per share for the fourth quarter of 2021, or $0.48 per share on an annualized basis. The quarterly dividend is payable on March 31, 2022 to shareholders of record as of the close of business on March 18, 2022.

Commitment to ESG

Crescent continues to advance its sustainability initiatives and has achieved the following milestones since closing the Contango Merger in December 2021:

• Issued its inaugural ESG report in December 2021, with updated disclosures planned for mid-2022
  • Reported key ESG performance metrics according to the Value Reporting Foundation's SASB Standard for Oil & Gas - Exploration & Production
  • Established Crescent's ESG priorities as climate change, environmental, health and safety, water management, community engagement and diversity, equity and inclusion
• Formed an ESG Advisory Council to advise management and the Board on ESG-related topics
• Joined the Oil & Gas Methane Partnership (OGMP) 2.0 initiative to enhance reporting of methane emissions

Operational Update

Crescent produced 116 net MBoe/d for the month of December 2021 on an actual basis. During 2021, Crescent invested approximately $230 million of pro forma development capital to bring online 95 gross (20 net) wells in the Eagle Ford, DJ and Permian basins. Total pro forma operating expense for the year totaled $17.47 per Boe, with pro forma operating expense, excluding production taxes, of $14.53 per Boe.

In 2022, Crescent expects to bring online 32-38 gross operated wells in the Eagle Ford with greater than 90% average working interest. Crescent plans to operate two rigs in the Uinta Basin for the remainder of the year, subject to closing of the transaction.

Financial Position

As of December 31, 2021, the Company had principal amount of indebtedness of $1.0 billion and net debt of approximately $915 million. In February 2022, Crescent issued an additional $200 million aggregate principal amount of its existing senior unsecured notes (the "Tack-On Offering") and used the net proceeds to repay amounts outstanding on its credit facility ("Crescent Credit Facility").

As of December 31, 2021, on a pro forma basis for the Tack-On Offering, Crescent had $700 million of senior unsecured notes and $345 million of outstanding borrowings on the Crescent Credit Facility. Pro forma for the Tack-On Offering, Crescent exited the year with a net debt to 2021 Pro Forma Adjusted EBITDAX⁽²⁾ ratio of 1.3x and a net debt to 2021 Pro Forma Unhedged Adjusted EBITDAX⁽²⁾ ratio of 0.9x.

Upon the closing of the Contango Merger in December, the Company's borrowing base increased to $1.3 billion with an elected commitment of $700 million. Total liquidity as of December 31, 2021 on a pro forma basis for the Tack-On Offering was $463 million, including outstanding letters of credit of $21 million and cash and cash equivalents of $129 million.

Crescent's lenders authorized an increase of the Company's elected commitment amount under the existing revolving credit facility to $1.3 billion from $700 million, contingent upon the closing of the Uinta transaction.

2022 Guidance: Standalone and Pro Forma for the Uinta Acquisition

Initial 2022E guidance is below, on both a standalone basis and combined basis for the pending Uinta Basin acquisition assuming nine months of contribution from the acquisition. Estimates are based on $75/Bbl NYMEX WTI and $3.75/MMBtu Henry Hub pricing: