Crescent Energy announces accretive Central Eagle Ford bolt-on acquisition

The company states: “Crescent Energy (CRGY) announced the signing of a definitive agreement to acquire Eagle Ford assets from Ridgemar Energy for upfront consideration of $905 million plus future oil price contingent consideration, subject to customary purchase price adjustments. The acquisition is directly offset Crescent’s core Central Eagle Ford position and builds upon its significant acquisition activity in the Eagle Ford over the past 18 months, totaling more than $4 billion of accretive M&A. The transaction, which has an effective date of October 1, is expected to close in the first quarter of 2025, subject to customary closing conditions. The base upfront consideration of $905 million consists of up to $100 million of equity issued to the seller and the remainder in cash. The future oil price contingent consideration of up to $170 million consists of payments by Crescent to seller of (i) $15 million per quarter in 2026 and $12.5 million per quarter in 2027 for which the average quarterly WTI price is greater than or equal to $70 per bbl; and (ii) an additional $15 million per quarter in 2026 for which the average quarterly WTI price is greater than or equal to $75 per bbl.”