Crescent Energy to Acquire SilverBow Resources Creating a Leading Growth Through Acquisition Company with Premier Eagle Ford Position May 2024
Disclaimer No Offer or Solicitation: This communication relates to a proposed business combination transaction (the Transaction) between Crescent Energy Company (Crescent) and SilverBow Resources, Inc. (SilverBow). This communication is…
Must-Own Mid-Cap Positioned for Sustained Value Creation Substantial Focused Operations & Cash Flow Generation Scaled Asset Portfolio Next 5 year FCF(1)(5) pro forma mkt cap 250 Mboe/d 2024E prod(2) (40% oil) 2.1 BN 2024E…
Transaction Overview SilverBow shareholders will receive 3.125 shares of Crescent Class A common stock for each share of SilverBow common stock, with a cash election alternative to receive 38 per share in cash Transaction (up to a…
Offering Compelling Value for All Shareholders Accretive Combination Creates Leading Growth Through Acquisition Company with Premier Eagle Ford Position High-Quality, Scaled and Complementary Assets: Combination creates the 2nd…
The Combined Company Will Be a Leader in the Eagle Ford Complementary Combination Positions Crescent as One of the Largest Operators in the Eagle Ford Alongside ConocoPhillips & EOG Leading Eagle Ford Position Gross Operated EF…
High-Quality, Scaled and Complementary Asset Portfolio SilverBows Complementary Assets Enhance Combined Business Profile Core footprint across the Eagle Ford & Rockies Rockies(1) 30% of 24E Production 30% of 24E Capital Program…
Maintaining a Leading Decline Rate and Reserve Life Differentiated Asset Stability Alongside Long-Term Portfolio Duration 25% 11 Years % NTM Decline Rate Proved Reserve Life Peers Replace 40% More 35% Longer Reserve Life than…
Increasing Proven Inventory and Resource Potential Deep, High-Quality Inventory That Generates Compelling Returns Through Cycle Gross Locations Crescent SilverBow 20+ Year Unrisked Inventory 2,200 10+ Year Low-Risk Inventory (at…
Focused on Free Cash Flow Generation Profitable Base Business Generates Significant Free Cash Flow with Attractive Exposure to Commodity Price Upside 5-Year Cumulative Levered FCF Outlook(1) (BN) 6.0 Market Capitalization 4.2…
Capital Allocation Priorities - Putting Investors First Priority 1A Financial Strength Up to 1.5x leverage in an acquisition scenario Target 1.0x long-term leverage Priority 1B Returning Capital to Shareholders Fixed…
Clear Pathway to Investment Grade Rating Increased Scale Improves Credit Profile and Creates Potential for Further Improved Cost of Capital Improving Cost of Capital (Average Yield to Worst) 12.00% Maintaining Ample Liquidity:…
Decade-Plus History of Returning Cash to Shareholders Combination Provides SilverBow Shareholders with Consistent and Peer- Leading Fixed Dividend Updated Return of Capital Framework: Fixed Dividend Yield Comparison(3) Consecutive…
Announced Synergies Can Drive Significant Value Scaled Enterprise with Large Footprint of Adjacent Assets Creates Meaningful Opportunity for Efficiency and Value Creation Synergy Value Potential Expect 65-100 MM of Annual Synergies…
Crescents Proven Track Record of Improving Operations Crescent Efficiency Gains Drive Operational Synergy Expectations 2,000 Drilling 1,575 1,750 Speed (ft/day) 25%+ 2022 2023 Current Simul-frac driving recent completion…
Enhanced Scale Supports Efficient Operations Combined Company Focused on Peer-Leading Organizational Efficiency Acquisition combines significant operating and investing expertise from both companies The combined company maintains…
Scaled Enterprise Primed for Sustainable Value Creation Attractive Combination of Scale, Balance Sheet Strength and Advantaged Capital Markets Positioning Pro Forma Business ( in millions, unless otherwise noted) + Enterprise Value…
Well-Positioned Among Quality Mid-Cap Peers 2024E Net Production Total Enterprise Value (Mboe/d) (BN) 250 6.0 160 4.0 90 2.0 9 8 7 6 5 4 3 2 1 9 8 7 6 5 4 3 2 1 Status Status Pro Status Status Pro Quo Quo Forma Quo Quo…
Proven Track Record of Returns-Driven Growth Through M&A Crescent has Demonstrated its Ability to Acquire and Integrate Businesses Proven Acquisition Strategy(2) Consistent Underwriting Crescent Acquisitions Focused on Generating…
Improved Operations and Synergies Drive Incremental Returns Demonstrated History of Acquiring Assets and Improving Performance WEF Outperformance(1) 100% Increase in Western (Well Performance - Avg Cum. Boe/ft) Eagle Ford Well…
Capital Markets Tailwinds Driving Increased Demand Crescent has Driven a Systematic Improvement in Capital Markets Access and Positioning Since Going Public At IPO Pro Forma Increase (12/7/2021) CRGY Increased Public Float % 25% 68%…
Creating a Must-Own Mid-Cap Company Pro Forma Crescent Provides the Stability of a Large Cap Operator 10-Yr Avg. Leverage Dividend Track Record 10-Yr Avg. Reinvestment (Consecutive Years)(2) 2.8x 12 12 107% 93% 10 1.9x 67% 1.5x…
Appendix
The Combined Company Will Be Led by a Strong, Experienced Management Team Crescent Management has Executed on a Consistent Strategy Focused on Cash Flow, Risk Management and Returns for More than a Decade David Rockecharlie Brandi…
and Overseen by a Highly Qualified Board of Directors David Rockecharlie John Goff Brandi Kendall Claire Farley SBOW Nominees Chief Executive Officer Independent Chair Chief Financial Officer Independent Director Two New Directors…
CRGY Management is Strongly Aligned with Shareholders Peer-Leading Long-Term Insider Stock-Based Compensation(1) Ownership 3% 97% 1 40% 60% 11% held by KKRs Balance Sheet 2 40% 60% 20% held by independent members 3 48% 52% 4 70%…
Crescent and SilverBow Have a Shared Commitment to Safe and Responsible Operations The Combined Company Will Continue to Focus Efforts on Delivering Better Returns, Operations and Stewardship Listen and respond to Develop a Aspire…
Pro Forma Hedge Position: Liquids Q324 Q424 FY 2025(1) FY 2026 NYMEX WTI (Bbls, /Bbl) Swaps Total Volumes 3,603,100 3,280,730 4,069,000 1,746,050 Total Daily Volumes 39,164 35,660 11,148 4,784 WA Swap Price 71.28 71.93 72.61 69.00…
Pro Forma Hedge Position: Gas Q324 Q424 FY 2025 FY 2026 NYMEX Henry Hub (MMBtu, /MMBtu) Swaps Total Volumes 26,423,800 26,420,370 55,205,000 41,745,000 Total Daily Volumes 287,215 287,178 151,247 114,370 WA Swap Price 3.70 3.91…
Non-GAAP Measures Present value (discounted at PV-10) is not a financial measure calculated in accordance with GAAP because it does not include the effects of income taxes on future net revenues. PV-10 does not represent an estimate of…
Stay Connected. Brandi Kendall IRcrescentenergyco.com 600 Travis Street Suite 7200 Houston, Texas 77002 + 1 (713) 332-7001 www.crescentenergyco.com
Loading...
