Crescent Energy is boosting its stake in a western Eagle Ford asset the E&P spent $600 million acquiring earlier this year. (Source: Shutterstock.com)
Crescent Energy is upping the ante in South Texas with a deal to buy an additional stake in its Eagle Ford Shale assets.
Houston-based Crescent agreed to pay $250 million in cash for incremental working interest in its operated assets in the western Eagle Ford, the E&P announced after markets closed on Sept. 6.
The deal for additional working interest is expected to close this month, Crescent said.
Earlier this summer, Crescent spent about $600 million to acquire operatorship of the asset in Dimmit and Webb counties, Texas, near the U.S.-Mexico border. The deal bolted on around 75,000 contiguous net acres from Mesquite Energy, formerly operating as Sanchez Energy.
In total, the collective $850 million in South Texas M&A is adding 95,000 net acres and approximately 32,000 boe/d of production to Crescent’s portfolio, according to investor materials.
Combined with acquiring operatorship of the asset in July, Crescent will boost its legacy 15% non-operated stake to a 63% working interest in the asset, the company said.
After closing the latest deal, Crescent will operate about 90% of its broader Eagle Ford position.
“We are pleased to further scale our high-quality western Eagle Ford position following the recent acquisition of operatorship of this asset earlier in the quarter,” said Crescent CEO David Rockecharlie in a news release.
“This transaction is consistent with our strategy to grow opportunistically through accretive acquisitions, adding low decline cash flow and high-quality inventory at attractive valuations while maintaining financial strength,” he said.
The current deal is expected to increase net production by an average 12,000 boe/d, the company said. Spending on capital investments is expected to increase by around $5 million in conjunction with the deal, the company said.
Crescent’s full-year 2023 production is expected to range between 146,000 boe/d and 151,000 boe/d—up from the company’s previous guidance of between 143,000 boe/d and 148,000 boe/d for the year.
Capex, excluding spending for acquisitions, is expected to come in between $580 million and $630 million for the year.
RELATED: Crescent Energy Closes Eagle Ford Acquisition
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