![Crescent Energy Ups Interest in Western Eagle Ford Position](/sites/default/files/styles/hart_news_article_image_640/public/image/2023/09/crescent-energy-ups-interest-western-eagle-ford-position.jpg?itok=cIPt_GVi)
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.
![Crescent Energy Ups Interest in Western Eagle Ford Position](/sites/default/files/inline-images/Crescent%20Eagle%20Ford%20Map.jpg)
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
Recommended Reading
E&P BW Energy Undergoes ‘Technical’ Ownership Restructuring
2024-05-08 - The restructuring will not involve any change to the ultimate control of BW Energy as the shares currently held by BW Group will be sold to BW Energy Holdings.
Wood Mackenzie Appoints Jason Liu as CEO
2024-05-07 - Liu replaces former CEO Mark Brinin, who is departing to pursue other opportunities, Wood Mackenzie said.
Hess Midstream Subsidiary Plans Private Offering of Senior Notes
2024-05-08 - The proposed issuance is not expected to have a meaningful impact on Hess Midstream’s leverage and credit profile, according to Fitch Ratings.
Exxon Appoints Maria Jelescu Dreyfus to Board
2024-05-08 - Dreyfus is CEO and founder of Ardinall Investment Management, a sustainable investment firm, and currently serves on the board of Cadiz Inc. and Canada-based pension fund CDPQ.
OFS Sector Loses Jobs, but Trade Org Says Growth Potential Remains
2024-05-08 - According to analysis by the Energy Workforce & Technology Council, the OFS job market may still have potential for growth despite a slight decrease in the sector in April.