Q2 2024 Crescent Energy Co Earnings Call

Speaker Change: [inaudible]

Operator: Ladies and gentlemen, greetings and welcome to the Crescent Energy Q2 2024 results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Reid Gallagher. Please go ahead. Good morning, and thank you for joining Crescent's second quarter of 2024 conference call.

Operator: Ladies and gentlemen, greetings and welcome to the Crescent Energy Q2, 2020 for results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on a telephone keypad. As a reminder, this conference has been recorded.

Speaker Change: Ladies and gentlemen, greetings and welcome to the Crescent Energy Q2 2024 results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation.

Speaker Change: If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad.

Reed Gallagher: It is now my pleasure to introduce your host, Reed Gallagher.

Speaker Change: As a reminder, this conference is being recorded.

Reed Gallagher: Please go ahead.

Speaker Change: It is now my pleasure to introduce your host, Reid Gallagher. Please go ahead.

Reid Gallagher: Good morning, and thank you for joining Crescent's second quarter 2024 conference call. Our prepared remarks today will come from our CEO, David Rockecharlie, and CFO, Brandi Kendall. Our Chief Accounting Officer, Todd Falk, and our Executive Vice President of Investments, Clay Rind, will also be available during Q&A.

Speaker Change: Good morning, and thank you for joining Crescent's second quarter 2024 conference call. Our prepared remarks today will come from our CEO, David Rockecharlie, and CFO, Brandi Kendall. Our Chief Accounting Officer, Todd Falk, and our Executive Vice President of Investments, Clay Rind, will also be available during Q&A.

Unknown Executive: Today's call may contain projections and other forward-looking statements within the meaning of the Federal Securities Law. These statements are subject to risks and uncertainties, including commodity price volatility, global geopolitical conflict, business strategies, and other factors that may cause actual results to differ from those expressed or implied in these statements and our other disclosures. We have no obligation to update any forward-looking statements after today's call. In addition, today's discussion may include disclosure regarding non-GAAP financial measures. For reconciliation of historical non-GAAP financial measures to the most directly comparable GAAP measure, please refer to our 10-Q and earnings press release, available on our website. With that, I will turn it over to our CEO, David.

Unknown Executive: We have a meeting for the federal securities laws. These statements are subject to risk synonservities, including commodity price volatility. But what do you, political conflict, are business strategies and other factors that may cause the actual result to differ from those expressed for implied in these statements and our other disclosures? We have no obligation to update any forward-looking statements after today's call.

Speaker Change: Today's call may contain projections and other forward-looking statements within the meaning of the federal securities laws.

Speaker Change: These statements are subject to risks and uncertainties, including commodity price volatility, global geopolitical conflict, our business strategies, and other factors that may cause actual results to differ from those expressed or implied in these statements and our other disclosures.

Unknown Executive: In addition, today's discussion may include disclosure regarding non-DAP financial matters. For reconciliation of historical non-DAP financial measures to the most directly comparable GAAP measure, we've referenced our 10-Q and our news press release available on our website.

Speaker Change: We have no obligation to update any forward-looking statements after today's call. In addition, today's discussion may include disclosure regarding non-GAAP financial matters.

Speaker Change: For reconciliation of historical non-GAAP financial measures to the most directly comparable GAAP measure, please reference our 10-Q and earnings press release available on our website. With that, I will turn it over to our CEO, David.

David: With that, I will turn it over to our CEO, David. Good morning, and thank you for joining us. We have another great quarter to go over today, and we're eager to get started. Before we get into the details, I want to begin with a few key points. I hope you take away from this call. First, our standalone business continues to produce strong results, generating significant cash flow and attractive returns on our invested capital. We are increasing standalone guidance for production for the second time this year, and improving our expectations for capital spend, as the team continues to capture efficiencies in our development program.

David Rockecharlie: Good morning, and thank you for joining us. We have another great quarter to go over today, and we're eager to get started. Before we get into the details, I want to begin with a few key points I hope you take away from this call. First, our standalone business continues to produce strong results, generating significant cash flow and attractive returns on our invested capital. We are increasing standalone guidance for production for the second time this year and improving our expectations for capital spend as the team continues to capture efficiencies in our development program. Second, we closed on our transformative acquisition of Silverboe Resources.

David: Good morning, and thank you for joining us.

David: We have another great quarter to go over today, and we're eager to get started.

David: Before we get into the details, I want to begin with a few key points I hope you take away from this call. First, our standalone business continues to produce strong results, generating significant cash flow and attractive returns on our invested capital.

David: We are increasing stand-alone guidance for production for the second time this year, and improving our expectations for capital spend, as the team continues to capture efficiencies in our development program.

David: Second, we closed on our transformative acquisition of Silverbow Resources. We are grateful for the trust from our original Crescent shareholders and our new Silverbow shareholders who voted almost unanimously to approve our merger and elected to take equity consideration in order to participate in the Go Forward Company. Highlighting their belief in the value proposition ahead, this complementary and a creative combination represents another major step forward for our business, creating a premier growth-through-acquisition company with one of the largest positions in the Eagleford. Today, we are focused on rapidly integrating our new assets in personnel and delivering on the significant synergies we've identified.

David: Second, we closed on our transformative acquisition of Silver Bow resources.

David Rockecharlie: We are grateful for the trust from our original Crescent shareholders and our new Silver Bow shareholders who voted almost unanimously to approve our merger and elected to take equity consideration in order to participate in the go-forward company, highlighting their belief in the value proposition ahead. This complementary and accretive combination represents another major step forward for our business, creating a premier growth through acquisition company with one of the largest positions in the Eagle.

David: We are grateful for the trust from our original Crescent shareholders and our new Silver Bow shareholders, who voted almost unanimously to approve our merger and elected to take equity consideration in order to participate in the go-forward company, highlighting their belief in the value proposition ahead.

David: This complimentary and accretive combination represents another major step forward for our business.

David: creating a premier growth through acquisition company with one of the largest positions in the Eagleford.

David Rockecharlie: Today, we are focused on rapidly integrating our new assets and personnel and delivering on the significant synergies we've identified. The SilverBow assets enhance our overall business profile, which combines a substantial base of long-life, low-decline production with a deep inventory of proven development locations to drive advantaged stability of production and free cash flow generation. And, finally, Crescent has never been better positioned.

David: Today we are focused on rapidly integrating our new assets and personnel and delivering on the significant synergies we've identified.

David: The silverbow assets enhance our overall business profile, which combines a substantial base of long life, load decline production, and a deep inventory of proven development locations to drive advanced stability of production and free cash flow generation. And finally, Crescent has never been better positioned. Through disciplined investing in operations, we've delivered profitable growth of both production and cash flow, tripling the size of our business over the last four years, and I'm confident in our ability to continue executing on our strategy going forward.

David: The SilverBow assets enhance our overall business profile, which combines a substantial base of long life, low decline production, and a deep inventory of proven development locations to drive advantaged stability of production and free cash flow generation.

David Rockecharlie: Through disciplined investing and operations, we've delivered profitable growth in both production and cashflow, tripling the size of our business over the last four years. And I'm confident in our ability to continue executing on our strategy going forward. Crescent offers investors a compelling value proposition with a scaled and balanced portfolio of high-quality assets, substantial free cashflow with a disciplined capital allocation framework, and a demonstrated track record of accretive returns-driven growth through M&A.

David: And finally, Crescent has never been better positioned.

David: Through disciplined investing and operations, we've delivered profitable growth of both production and cash flow, tripling the size of our business over the last four years. And I'm confident in our ability to continue executing on our strategy going forward.

David: Award. Crescent offers investors a compelling value proposition, with a scaled and balanced portfolio of high quality assets, substantial free cash flow with the discipline to capital allocation framework, and a demonstrated track record of a creative returns driven growth through M&A. We believe we've established Crescent as a must-own mid-cap company, which uniquely combines the discipline, stability, and capabilities of a large-cap operator with the value and growth potential of a proven mid-cap business. The Silverbow transaction represents a significant step change for our business. Today, we have a leading position in the Eagleford, and we are just getting started.

David: Crescent offers investors a compelling value proposition with a scaled and balanced portfolio of high quality assets, substantial free cashflow with a disciplined capital allocation framework and a demonstrated track record of accretive returns driven growth through M&A.

David Rockecharlie: We believe we've established Crescent as a must-own mid-cap company, which uniquely combines the discipline, stability, and capabilities of a large cap operator with the value and growth potential of a proven mid-cap company. The SilverBow transaction represents a significant step change for our business. Today, we have a leading position in Eagleford, and we are just getting started.

David: We believe we've established Crescent as a must-own mid-cap company, which uniquely combines the discipline, stability, and capabilities of a large-cap operator with the value and growth potential of a proven mid-cap business.

David: The SilverBow transaction represents a significant step change for our business.

David: Today, we have a leading position in the Eagleford, and we are just getting started.

David: Following those quick highlights, I will now discuss things in a bit more detail, beginning with our standalone second quarter results. We had solid financial performance this quarter, beating consensus expectations again on both EBITDA and free cash flow, driven by strong operational execution. Our team continues to deliver impressive results, with another quarter of production outperformance alongside our ongoing improvements in capital costs. With this quarter's outperformance and the consistent execution from our team, we have increased full-year production guidance for the standalone Crescent business for the second consecutive quarter, with lower expected capital expenditures. In the Eagleford, we've continued to build momentum and increase capital efficiency, delivering more production and cash flow for less capital.

David Rockecharlie: Following those quick highlights, I will now discuss things in a bit more detail, beginning with our standalone second quarter results. We had solid financial performance this quarter, beating consensus expectations again on both EBITDA and free cash flow, driven by strong operational execution. Our team continues to deliver impressive results, with another quarter of production outperformance alongside our ongoing improvements in capital costs. With this quarter's outperformance and the consistent execution from our team, we have increased full-year production guidance for the standalone Crescent business for the second consecutive quarter with lower expected capital expenditures. In Eagleford, we've continued to build momentum and increase capital efficiency, delivering more production and cash flow for less capital.

David: Following those quick highlights, I will now discuss things in a bit more detail, beginning with our standalone second quarter results.

David: We had solid financial performance this quarter, beating consensus expectations again on both EBITDA and free cash flow.

David: driven by strong operational execution.

David: Our team continues to deliver impressive results, with another quarter of production outperformance alongside our ongoing improvements in capital costs.

David: With this quarter's outperformance and the consistent execution from our team, we have increased full-year production guidance for the standalone Crescent business for the second consecutive quarter with lower expected capital expenditures.

David: In the Eagleford, we've continued to build momentum and increase capital efficiency.

David: We are seeing meaningful and sustained improvements to well productivity since taking over the assets we acquired in the Western Eagleford last fall, with average production per well roughly doubled the results seen by the prior operator today. We've been able to accomplish this by bringing industry best practices to the field, and we look forward to further demonstrating the quality of the assets we acquired. In addition to the improved well performance, we've captured significant synergies since our Western Eagleford acquisitions, with roughly $60 million in annual cash flow uplift relative to $850 million of combined purchase prices, driven by a number of active initiatives across the field.

David Rockecharlie: We are seeing meaningful and sustained improvements to well productivity since taking over the assets we acquired in Western Eagle Fruit last fall, with average production per well roughly double the results seen by the prior operator today. We've been able to accomplish this by bringing industry best practices to the field, and we look forward to further demonstrating the quality of the assets we acquire. In addition to the improved well performance, we've captured significant synergies since our Western Eagleford acquisition, with roughly $60 million in annual cash flow uplift relative to $850 million in combined purchase price, driven by a number of active initiatives across.

David: Delivering more production and cash flow for less capital.

David: We are seeing meaningful and sustained improvements to well productivity since taking over the assets we acquired in the Western Eagleford last fall, with average production per well roughly double the results seen by the prior operator to date.

David: We've been able to accomplish this by bringing industry best practices to the field and we look forward to further demonstrating the quality of the assets we acquired.

David: In addition to the improved well performance, we've captured significant synergies since our Western Eagleford acquisitions, with roughly $60 million in annual cash flow uplift relative to $850 million of combined purchase price.

David: First and foremost is capital execution, where more efficient operations and the introduction of Cyclefrak have improved well costs by up to 15% versus our underwriting. This, combined with a successful oil blending campaign and active field management, have generated significant incremental cash flow for our investors. We've also begun to see solid results from our Austin Shock development in the Western Eagleford, with early time production generally in line with our lower Eagleford performance and investment returns expected to exceed our two times multiple of invested capital benchmark. We intend to continue to allocate capital to the Austin Shock in this area going forward.

David Rockecharlie: First and foremost is capital execution, where more efficient operations and the introduction of SimulFrac have improved well costs by up to 15% versus our underwriting. This, combined with a successful oil blending campaign and active field management, has generated significant incremental cash flow for our investors. We've also begun to see solid results from our Austin shock development in the western equator, with early-time production generally in line with our lower Eagleford performance and investment returns expected to exceed our two-times multiple of invested capital benchmark. We intend to continue to allocate capital to the Austin Chalk in this area going forward. Moving to point number two, the closing of the Silver Bow acquisition.

David: driven by a number of active initiatives across the field.

David: First and foremost is capital execution, where more efficient operations and the introduction of SimulFrac have improved well costs by up to 15% versus our underwriting.

David: This, combined with a successful oil blending campaign and active field management, have generated significant incremental cash flow for our investors.

David: We've also begun to see solid results from our Austin shock development in the Western Eagle Fruit.

David: with early time production generally in line with our lower Eagleford performance and investment returns expected to exceed our two times multiple of invested capital benchmark.

David: We intend to continue to allocate capital to the Austin Chalk in this area going forward.

David: Moving to point number two, the closing of the Silverbow acquisition. This acquisition is transformative for our business; not only was it one of the most compelling investment opportunities that we've seen in the market. with cash on cash returns and excessive our returns hurdles and immediately accretive to cash flow and NEV per share, but it also provides significant strategic benefits with increased scale, substantial synergy opportunities, enhanced operating capabilities, extended inventory life, and an improved credit profile. This transaction firmly positions Crescent as one of the largest operators in the Eagleford, alongside Conoco Phillips and EOG, with a broader portfolio of low decline, long-life production, and a deep, high-quality inventory that supports compelling returns through cycles.

David Rockecharlie: This acquisition is transformative for our business. Not only was it one of the most compelling investment opportunities we've seen in the market, with cash-on-cash returns in excess of our returns hurdles and immediately accretive to cash flow and NAV per share, but it also provides significant strategic benefits with increased scale, substantial synergy opportunities, enhanced operating capabilities, Extended Inventory Life, and an Improved Credit Profile.

David: Moving to point number two, the closing of the Silver Bow acquisition.

David: This acquisition is transformative for our business.

David: Not only was it one of the most compelling investment opportunities we've seen in the market.

David: But it also provides significant strategic benefits.

David: with Increased Scale.

David: substantial synergy opportunities, enhanced operating capabilities, extended inventory life, and an improved credit profile.

David Rockecharlie: This transaction firmly positions Crescent as one of the largest operators in the Eagleford alongside ConocoPhillips and EOG, with a broader portfolio of low-decline, long-life production and a deep, high-quality inventory that supports compelling returns through the cycle. We were able to close the SilverBow acquisition ahead of schedule, and integration is well underway. We're very optimistic about the future of our business and what we can accomplish with our high-quality asset base and the talented people from both organizations working together.

David: This transaction firmly positions Crescent as one of the largest operators in the Eagleford, alongside ConocoPhillips and EOG.

David: with a broader portfolio of low-decline, long-life production and a deep, high-quality inventory that supports compelling returns through cycles.

David: We were able to close the solar bow acquisition ahead of schedule, and integration is well underway. We're very optimistic about the future of our business and what we can accomplish with our high-quality asset base and the talented people from both organizations working together. With increased scale and significant operational overlap, we see incredible opportunities for needle-moving synergies as a combined company, and we are confident in our ability to create incremental value for our investors. We've already made great strides towards our announced synergy expectations, capturing roughly $35 million, or a third of the high end of our target, ahead of closing through a successful bond offering and improved cost of capital relative to Silverbow standalone.

David: We were able to close the SilverBow acquisition ahead of schedule, and integration is well underway.

David: We're very optimistic about the future of our business and what we can accomplish with our high quality asset base and the talented people from both organizations working together.

David Rockecharlie: With increased scale and significant operational overlap, we see incredible opportunities for needle-moving synergies as a combined company, and we are confident in our ability to create incremental value for our investors. We've already made great strides towards our announced synergy expectations, capturing roughly $35 million, or a third of the high end of our target ahead of closing through a successful bond offering and improved cost of capital relative to Silver Bow alone. Silver Bow's business has also continued to generate strong results since we announced our combination in May, with performance in line or exceeding expectations for the second quarter.

David: With increased scale and significant operational overlap, we see incredible opportunities for needle-moving synergies as a combined company. And we are confident in our ability to create incremental value for our investors.

David: We've already made great strides towards our announced synergy expectations.

David: capturing roughly 35 million dollars or a third of the high end of our target ahead of closing through a successful bond offering and improved cost of capital relative to Silverboe standalone.

David: Silverbow's business has also continued to generate strong results since we announced our combination in May, with performance in line; we're exceeding expectations for the second quarter. Coming together, we believe our business is well-positioned to continue delivering meaningful value from our growth-through-acquisition strategy, combining safe, efficient operations with returns-driven and free cash flow-focused investing. Looking forward, we expect to run four rigs across the combined business for the remainder of the year, with three rigs in the Eagle Fruit and one in the UNTA. We are still in the early days of operational integration and expect capital allocation to remain largely consistent with Crescent's and Silverbow's standalone business plans for the near term.

David: Silver Bow's business has also continued to generate strong results since we announced our combination in May, with performance in line or exceeding expectations for the second quarter.

David Rockecharlie: Together, we believe our business is well-positioned to continue delivering meaningful value from our growth-through-acquisition strategy, combining safe, efficient operations with returns-driven and free-cash-flow-focused investment. Looking forward, we expect to run four rigs across the combined business for the remainder of the year, with three rigs in Eagleford and one in U.N. We are still in the early days of operational integration and expect capital allocation to remain largely consistent with Crescent's and Silverboe's standalone business plans for the near term.

David: Coming together, we believe our business is well positioned to continue delivering meaningful value from our growth through acquisition strategy, combining safe, efficient operations with returns driven and free cash flow focused investing.

David: Looking forward, we expect to run four rigs across the combined business for the remainder of the year, with three rigs in the Eagleford and one in the Uinta.

David: We are still in the early days of operational integration and expect capital allocation to remain largely consistent with Crescent's and Silverboe's standalone business plans for the near term.

David: But we expect to begin realizing both capital and operating cost synergies over the next few quarters as we capture the benefits of the combined asset profile. Crescent has the operational and investing expertise required to execute on our growth through acquisition strategy, and we are looking forward to delivering more value from our existing asset base and future acquisitions. We are approved in growth through acquisition company and currently we have one of the largest pipelines of M&A opportunity in our recent history. The Eagle Fruit, in particular, remains one of the most fragmented basins in the US, and we see meaningful opportunity there.

David Rockecharlie: But we expect to begin realizing both capital and operating cost synergies over the next few quarters as we capture the benefits of the combined asset portfolio. Crescent has the operational and investing expertise required to execute on our growth through acquisition strategy, and we are looking forward to delivering more value from our existing asset base and future acquisitions. We are a proven growth through acquisition company, and currently, we have one of the largest pipelines of M&A opportunity in our recent history. The Eagleford, in particular, remains one of the most fragmented basins in the US, and we see meaningful opportunity there.

David: But we expect to begin realizing both capital and operating cost synergies over the next few quarters as we capture the benefits of the combined asset profile.

David: Crescent has the operational and investing expertise required to execute on our growth through acquisition strategy and we are looking forward to delivering more value from our existing asset base and future acquisitions.

David: We are a proven growth through acquisition company and currently we have one of the largest pipelines of M&A opportunity in our recent history.

David: The Eagleford in particular remains one of the most fragmented basins in the U.S. and we see meaningful opportunity there.

David: With our increased scale, strong operating and financial performance, and solid balance sheet, we have never been better positioned for a creative growth and further value creation over the remainder of 2024 and beyond. Crescent's value proposition has never been clearer as we continue towards our goal of being a valuable and industry-leading investment grade.

David Rockecharlie: With our increased scale, strong operating and financial performance, and solid balance sheet, we've never been better positioned for accretive growth and further value creation over the remainder of 2024 and beyond. Crescent's value proposition has never been clearer as we continue towards our goal of being a valuable and industry-leading investment-grade business. With that, I'll turn the call over to Brandi to provide more detail on the quarter.

David: With our increased scale, strong operating and financial performance, and solid balance sheet, we've never been better positioned for accretive growth and further value creation over the remainder of 2024 and beyond.

David: Crescent's value proposition has never been clearer as we continue towards our goal of being a valuable and industry-leading investment grade business.

Unknown Executive: Business.

Brandi: With that, I'll turn the call over to Brandi to provide more detail on the quarter. Brandi? Thanks, David. Crescent Standal of performance for the quarter builds on our strong first quarter results, with production of 165,000 barrels of oil equivalent per day and significant cash flow, generating 320 million of adjusted EBITDA and 147 million delivered for cash flow. We had 120 million of capital expenditures during the quarter, plus and forecast, with meaningful savings to date. We brought online six growth-operated wells in the Eagleford and five growth-operated wells in the UNSA, all of which are generating strong initial results and are on track to exceed our returns target of two times their capital invested at current commodity prices.

David: With that, I'll turn the call over to Brandi to provide more detail on the quarter. Brandi?

Brandi Kendall: Thanks, David. Crescent's standalone performance for the quarter builds on our strong first quarter results, with production of 165,000 barrels of oil equivalent per day and significant cash flow, generating 320 million of adjusted EBITDA and 147 million in leverage-free cash flow. We had $120 million of capital expenditures during the quarter, less than forecast, with meaningful savings to date. We brought online six growth-operated wells in Eagleford and five growth-operated wells in Uinta, all of which are generating strong initial results and are on track to exceed our returns target of two times our capital invested at current commodity prices.

Brandi: Thanks David. Crescent's standalone performance for the quarter built on our strong first quarter results with production of 165,000 barrels of oil equivalent per day and significant cash flow generating 320 million of adjusted EBITDA and 147 million in leveraged free cash flow.

Brandi: We had $120 million of capital expenditures during the quarter, less than forecast, with meaningful savings to date.

Brandi: We brought online six growth-operated wells in the Eagleford and five growth-operated wells in the Uinta, all of which are generating strong initial results and are on track to exceed our returns target of two times our capital invested at current commodity prices.

Brandi: Turning to our outlets for the remainder of 2024, and David mentioned we increased Dandelion production guidance for the second time this year to 160 to 162.5 thousand barrels of oil equivalent per day, while improving our full-year capital guidance to $550 to $600 million. We also released second half 2024 guidance for our full combined business, pro-forma for the closing of our Silverbow acquisition. This updated guidance reflects five months of Silverbow contribution and highlights the strength of the combined business. At today's commodity prices, we expect to generate substantial free cash flow in 2024 and beyond. In conjunction with our Silverbow acquisition, we were thoughtful about positioning our capital structure to maintain our balance sheet strength and enhance our credit profile.

Brandi Kendall: Turning to our outlook for the remainder of 2024, as David mentioned, we increased standalone production guidance for the second time this year to 160 to 162.5 thousand barrels of oil equivalents per day while improving our full year capital guidance to 550 to 600 million dollars.

Brandi: Turning to our outlook for the remainder of 2024. As David mentioned, we increased standalone production guidance for the second time this year to 160 to 162.5 thousand barrels of oil equivalents per day while improving our full year capital guidance to 550 to 600 million dollars.

Brandi Kendall: We also released second half 2024 guidance for our full combined business, pro forma for the closing of our Silver Bowl acquisition. This updated guidance reflects five months of Silverboat's contribution and highlights the strength of the combined business. At today's commodity prices, we expect to generate substantial free cash flow in 2024 and beyond. In conjunction with our Silver Bowl acquisition, we were thoughtful about positioning our capital structure to maintain our balance sheet strength and enhance our credit profile.

Brandi: We also released second half 2024 guidance for our full combined business, pro forma for the closing of our Silver Bowl acquisition.

Brandi: This updated guidance reflects five months of Silverboat contribution and highlights the strength of the combined business.

Brandi: At today's commodity prices, we expect to generate substantial free cash flow in 2024 and beyond.

Brandi: In conjunction with our Silver Bowl acquisition, we were thoughtful about positioning our capital structure to maintain our balance sheet strength and enhance our credit profile.

Brandi: David already mentioned our successful nose offering to refinance a portion of Silverbow's debt outstanding, and we also secured an upside to our existing credit facility, $2 billion, to ensure significant liquidity and flexibility as we continue to execute on our growth strategy. Today we are within our targeted leverage threshold at 1.5 times with no near-term maturity and believe the increased scale and asset profile to combine business positions Crescent or further cost of capital improvements as we look forward, highlighted by our recent corporate ratings upgrade by Fitch. Alongside earnings last night, we announced another dividend of $0.12 per share under our recently enhanced framework, which provides certainty and simplicity to our shareholders with a pure leading yield of around 4 percent, excluding the impact of our active share buyback program.

Brandi Kendall: David already mentioned our successful notes offering to refinance a portion of Silver Bow's debt outstanding, and we also secured an upside to our existing credit facility of $2 billion to ensure significant liquidity and flexibility as we continue to execute on our growth strategy. Today, we are within our targeted leverage threshold of 1.5 times with no near-term maturity and believe the increased scale and asset profile of the combined business positions Crescent for further cost of capital improvements as we look forward, highlighted by our recent corporate ratings upgrade by Fitch.

Brandi: David already mentioned our successful notes offering to refinance a portion of Silver Bow's debt outstanding. And we also secured an upside to our existing credit facility of $2 billion to ensure significant liquidity and flexibility as we continue to execute on our growth strategy.

Speaker Change: Today we are within our targeted leverage threshold of 1.5 times with no near-term maturity and believe the increased scale and asset profile of the combined business positions crescent for further cost of capital improvements as we look forward, highlighted by our recent corporate ratings upgrade by Fitch.

Brandi Kendall: Alongside earnings last night, we announced another dividend of 12 cents per share under our recently enhanced framework, which provides certainty and simplicity to our shareholders with a peer-leading yield of around 4%, excluding the impact of our active share buyback program. We've exercised 15% of the total $150 million buyback authorization to date, and we continue to view share purchases as an attractive tool in our shareholder return framework. With that, I'll turn the call back over to David. Thank you, Brandi.

Speaker Change: Alongside earnings last night, we announced another dividend of 12 cents per share under our recently enhanced framework, which provides certainty and simplicity to our shareholders with a peer leading yield of around 4%, excluding the impact of our active share buyback program.

Brandi: We've exercised 15 percent of the total $150 million buyback authorization to date, and we continue to view share purchases as an attractive tool in our shareholder return framework.

David: We've exercised 15% of the total $150 million buyback authorization to date, and we continue to view share purchases as an attractive tool in our shareholder return framework. With that, I'll turn the call back over to David.

David: With that, I'll turn the call back over to David. Thank you, Brandy. Before we wrap up, I want to reiterate a few key takeaways from this quarter. First, our standalone business continues to outperform, and we've improved guidance for the second time this year, with increased production for less capital. Our advantage to asset profile combining long-life, low decline production, and high return drilling inventory is generating significant cash flow for our investors. Second, our combination with Silverbow provides significant benefits to all of our shareholders and meaningfully enhances the Crescent value proposition for current and future investors. Crescent now has one of the largest positions in the Eagleford, with opportunity for significant synergies and incremental value.

David Rockecharlie: Brandi, before we wrap up, I want to reiterate a few key takeaways from this quarter. First, our standalone business continues to outperform, and we've improved guidance for the second time this year with increased production for less capital. Our advantaged asset profile combining long life, low decline production, and high return drilling inventory is generating significant cash flow for our event. Second, our combination with SilverBow provides significant benefits to all of our shareholders and meaningfully enhances the Crescent value proposition for current and future investors.

David: Thank you, Brandi. Before we wrap up, I want to reiterate a few key takeaways from this quarter.

David: First, our standalone business continues to outperform, and we've improved guidance for the second time this year with increased production for less capital.

David: Our advantaged asset profile combining long life, low decline production, and high return drilling inventory is generating significant cash flow for our investors.

David: Second, our combination with SilverBow provides significant benefits to all of our shareholders and meaningfully enhances the Crescent value proposition for current and future investors.

David Rockecharlie: Crescent now has one of the largest positions in Eagleford, with opportunity for significant synergies and incremental value. And lastly, we are in a great position, and we are just getting started. We are proud of how we got here, and we've done what we said we would do.

David: Crescent now has one of the largest positions in the Eagleford with opportunity for significant synergies and incremental value.

David: And lastly, we are in a great position, and we are just getting started. We are proud of how we got here, and we've done what we said we would do. Number one, combined operating and investing expertise to deliver strong free cash flow, risk management, and returns on capital. Number two, transformed the business through a creative M&A. Number three, enhanced our peer leading dividend framework. Number four, maintained a strong balance sheet, including achieving double B credit ratings. And number five, accomplished our goal at IPO of establishing a capital markets presence in line with a company of our size.

David: And lastly, we are in a great position and we are just getting started.

David: We are proud of how we got here, and we've done what we said we would do.

David Rockecharlie: Number one, it combined operating and investing expertise to deliver strong free cash flow, risk management, and returns on capital. Number two, it transformed the business through a creative M&A. Number three, enhanced our peer-leading dividend framework. Number four, maintained a strong balance sheet, including achieving double B credit ratings, and number five accomplished our goal at IPO of establishing a capital markets presence in line with a company of our size. We remain focused on continuing to execute, enhancing our business, and generating value for our shareholders.

David: Number one, combined operating and investing expertise to deliver strong free cash flow, risk management, and returns on capital.

David: Number two, transformed the business through a creative M&A.

David: Number three, enhanced our peer-leading dividend framework.

David: Number four, maintained a strong balance sheet, including achieving double B credit ratings.

David: And number five, accomplished our goal at IPO of establishing a capital markets presence in line with a company of our size.

David: We remain focused on continuing to execute, enhancing our business and generating value for our shareholders. We have the unique combination of operating and investing expertise required to execute on our growth through acquisition strategy. And we will continue doing exactly what we've said we're going to do. We believe Crescent offers a uniquely compelling value proposition in our sector. The combined company is the second largest operator in the Eagle Fruit. Crescent is a leading mid cap E&P with a scaled balance portfolio of high quality assets. We generate substantial free cash flow with a disciplined capital allocation framework.

David: We remain focused on continuing to execute, enhancing our business, and generating value for our shareholders.

David Rockecharlie: We have the unique combination of operating and investing expertise required to execute on our growth through acquisition strategy, and we will continue doing exactly what we've said we were going to do. We believe Crescent offers a uniquely compelling value proposition in our sector. The combined company is the second largest operator in the Eagle. Crescent is a leading mid-cap E&P with a scaled, balanced portfolio of high-quality assets. We generate substantial free cash flow with a disciplined capital allocation framework, and we've never been better positioned for future growth through creative returns-driven M&A. Crescent is a great business, and we're just getting started. With that, I'll open it up for Q&A. Operator? Thank you.

David: We have the unique combination of operating and investing expertise required to execute on our growth through acquisition strategy.

David: And we will continue doing exactly what we've said we're going to do.

David: We believe Crescent offers a uniquely compelling value proposition in our sector.

David: The combined company is the second

David: Crescent is a leading mid-cap E&P with a scaled balanced portfolio of high quality assets.

David: We generate substantial free cash flow with a disciplined capital allocation framework.

David: And we've never been better positioned for future growth through a creative, returns-driven M&A.

David: And we've never been better positioned for future growth through a creative, returns-driven M&A.

David: Crescent is a great business, and we're just getting started.

Operator: With that, I'll open it up for Q&A, operator. Thank you. Ladies and gentlemen, we will now be conducting a question-and-answer session. If you'd like to ask a question, please press star and one on your telephone keypad. A confirmation tone will indicate your line is in the question Q. You may press star and two if you'd like to remove your question from the Q. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we will wait for a moment while we poll for questions.

David: Crescent is a great business and we're just getting started.

Speaker Change: With that, I'll open it up for Q&A. Operator?

Operator: Ladies and gentlemen, we will now be conducting a question-and-answer session. If you would like to ask a question, please press star and one on the telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker Change: Thank you.

Speaker Change: Ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press star and one on the telephone keypad.

Speaker Change: A confirmation tone will indicate your line is in the question queue.

Speaker Change: You may press star and two if you would like to remove your question from the queue.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Operator: Ladies and gentlemen, we will wait for a moment while we poll for questions. The first question is from Neal Dingmann with Truist Securities. Please go ahead.

Neil Dingman: The first question is from Neil Dingman. With truest securities, please go ahead.

Speaker Change: The first question is from Neil Dingman with Truist Securities. Please go ahead.

David: Morning, David ran a team of really nice results. David, my first question is on the future, sort of looking at the efficiency gains as you show in the Eagle Fruit around slide seven. And I guess my question there would be, when you look at sort of your future DNC plan that now includes a silver bell in that area, any comments? I'd love to hear what your thoughts are on future efficiency. Could it be just that combination going to add, is it just the continued trajectory of what that legacy business I'd just love to hear how you're thinking about those efficiencies in Eagle Fruit going forward?

Neal Dingmann: Morning, David Mariani, team, really nice results. David, my first question is about the future, sort of looking at the efficiency gains, as you show, and you referred to slide seven. And I guess my question there would be, when you look at sort of your future D&C plan that now includes Silverbell in that area, any comments? I'd love to hear what your thoughts are on future efficiency. Is just that combination going to add? Is it just the continued trajectory of that legacy business? I'd just love to hear how you're thinking about those efficiencies before going forward.

Neil Dingman: Morning, David Ramsey, really nice results. David, my first question is on the future.

Neil Dingman: So I'm looking at the efficiency gains, as you show in the report around slide seven. I guess my question there would be...

Speaker Change: when you look at sort of your future D&C plan that now includes Silverbell in that area.

Speaker Change: Any comments, I'd love to hear what your thoughts are on future efficiency. Is just that combination going to add? Is it just the continued trajectory of what that legacy business? I'd just love to hear how you're thinking about those efficiencies before going forward.

David: Yeah, Neil, thanks for the question. I think I didn't count as I was talking, but one of the things hopefully people hear is that we've executed on synergies in the last Eagle Fruit acquisition that we completed last year. And we see significant opportunity for synergies from the Silver Bow transaction. To your questions specifically, we would expect to continue to get better at what we do. We've tried to bring the best of both together from the two companies. We were able to spend a lot of time at a high level planning for an integration, but we really just closed a week ago, so we've just gotten started taking advantage of the combined company's footprint, expertise, and personnel.

David Rockecharlie: Yeah, hey, Neal, thanks for the question. I think, you know, I didn't count it as I was talking.

David Rockecharlie: But one of the things I hope people hear is that we've executed on Synergies in the last Eagleford acquisition that we completed last year and we see significant opportunity for Synergies from the SilverBow transaction, to your question specifically, and would expect to continue to get better at what we do. We've tried to bring the best of both together from the two companies. We were able to spend a lot of time at a high level planning for an integration, but we really just closed a week ago, so we've just gotten started taking advantage of the combined company's footprint, expertise, and personnel.

Speaker Change: Yeah, hey Neil, thanks for the question. I think, you know, I didn't count it as I was talking, but one of the things hopefully people hear is that we've executed on synergies in the last Eagleford acquisition that we completed last year, and we see significant opportunity.

Speaker Change: for Synergies from the SilverBow transaction.

Speaker Change: to your question specifically, would expect to continue to get better at what we do. We've tried to bring the best of both together from the two companies.

Speaker Change: We were able to spend a lot of time at a high level planning for an integration, but you know, we really just closed a week ago. So we've just gotten started taking advantage of the combined company's footprint, expertise, personnel. So I think we're performing very well at this point, but we see significant opportunities.

David: So I think we're performing very well at this point, but we see. Executive and opportunity for improvement, both in the actual execution, but also in the knowledge base across the evil burden in particular where we're both bringing history and expertise together. And then I think that remains to be seen, but we're very, very optimistic about improving the combined drilling completion practices from both of us. We were both good at what we were doing, but we also had some areas where we were both good in different ways.

David Rockecharlie: So I think we're performing very well at this point, but we see significant opportunities for improvement, both in the actual execution but also in the knowledge base across Eagleford, in particular, where we're both bringing history and expertise together. And then I think that remains to be seen, but we're very, very optimistic about improving the combined drilling and completion practices from both of us. We were both good at what we were doing, but we also had some areas where we were both good in different ways. And so when you bring all that together, I would just tell you I think we're very optimistic and will continue to improve.

Speaker Change: for improvement, both in the actual execution, but also in the knowledge base across the Eagleford in particular, where we're both bringing history and expertise together. And then I think that remains to be seen, but we're very

Speaker Change: Very optimistic about improving the combined

Speaker Change: drilling completion practices from both of us. We were both good at what we were doing, but we also had some areas where we were both good in different ways. And so when you bring all that together, I would just tell you I think we're very optimistic about continuing to work.

David: And so when you bring all that together, I would just tell you I think we're very optimistic about continuing to improve. You're great to hear.

Neal Dingmann: You're great to hear, and then just my follow-up question would be maybe for Brandi just on shareholder return. Well, I know you all plan to continue to focus really on a lot of that debt repayment. But, just wondering, how do you also combine the opportunistic, you know, share repurchases given, you know, how incredibly low it looks like the shares now trade on a multiple basis?

Brandi: And then just my fault would be, maybe for Brandi, just on shareholder return. Well, I know you all plan to continue to focus really on a lot of that debt repayment. Just wondering, how do you also combine the opportunistic share repurchase given how incredibly low it looks like the shares now trade on a multiple basis? You know, it's Brandi. Thanks for the question. So, as you pointed out, the priorities continue to be the base dividend and the balance sheet, but we do have 125 million dollars remaining on the authorization today. And I think you'll see us look to use it opportunistically when our stock is significantly disconnected to in terms of value.

Speaker Change: Improved. Thank you.

Speaker Change: You're great to hear and then just my follow-up would be maybe for Brandi just on shareholder return Well, I know you all plan to continue to focus really a lot of that debt repayment Just wondering how do you also combine the opportunistic, you know share repurchases given, you know How incredibly low it looks like the shares now trade on a multiple basis

Brandi Kendall: Neal, it's Brandi. Thanks for the question. So, as you pointed out, the priorities continue to be the base dividend and the balance sheet. But we do have $125 million remaining on the authorization today, and I think you'll see us look to use it opportunistically when our stock is significantly disconnected from intrinsic value. So an opportunistic tool that we'll look to continue to use going forward.

Speaker Change: [inaudible]

Speaker Change: Brandi, thanks for the question. So as you pointed out, the priorities continue to be the base dividend and the balance sheet. But we do have $125 million remaining on the authorization.

Tim Rezvan: Thank you. The next question is from Tim Rezvan with KeyBank Capital Markets. Please go ahead.

Speaker Change: Today and I think you'll see us look to use it opportunistically when our stock is significantly disconnected to intrinsic

Brandi: So opportunistic tool that we'll look to continue to use going forward. Thank you.

Speaker Change: So opportunistic tool that we'll look to continue to use going forward.

Tim Rezvan: The next question is from Tim Reswan, with Key Bank Capital Markets. Please go ahead.

Brandi: Thank you.

Speaker Change: Thank you. The next question is from Tim Rizwan with KeyBank Capital Markets. Please go ahead.

David: Good morning, folks, and thank you for taking my question. David, I thought you prepared comments where you put a couple of interesting clues out there, talking about your leading position in the Eagle Ferd, but you're just getting started. And then you talked about the large pipeline of M&A activities. So, you know, if the right deal presents itself now or in the near term future, is the organization ready to transact again? Would you believe you're going to need a couple quarters of integration first? Just trying to understand those comments. Thanks.

David Rockecharlie: Good morning, folks. And thank you for taking my question. David, I thought your prepared comments were interesting. You put a couple of interesting clues out there talking about your leading position in Eagleford, but you're just getting started. And then you talked about the large pipeline of M&A activities. So, you know, if the right deal presents itself now or in the near-term future, is the organization ready to transact again? Or do you believe you're going to need a couple quarters of integration first? I'm just trying to understand those comments. Thanks.

Tim Rizwan: Good morning, folks, and thank you for taking my question. David, I thought your prepared comments were interesting. You put a couple interesting clues out there talking about your leading position in Eagleford, but you're just getting started.

Speaker Change: And then you talked about the large pipeline of M&A activities.

Tim Rizwan: If the right deal presents itself now or in the near-term future, is the organization ready to transact again, or do you believe you're going to need a couple quarters of integration first? Just trying to understand those comments. Thanks.

David: Yeah, good morning, Tim. Thanks for the question. Very simply, we feel like we'll be ready to go when the market presents itself. But more specifically, we've had a long history of making acquisitions and integrating them. And I think you have also correctly read that integration for us in the Eagle Ferd has been something we've done multiple times and done well. So, we expect this integration and transition to happen relatively quickly and allow us to be able to both focus on capturing the synergies and making sure things go well. This is an important transaction; it's a large one for us, but also being prepared to offer to opportunistically continue to execute on the M&A strategy.

David Rockecharlie: Yeah, good morning, Tim. Thanks for the question. Very simply, we feel like we'll be ready to go when the market presents itself. But more specifically, we've had a long history of making acquisitions and integrating them. And I think you have also correctly read that integration for us in Eagleford has been something we've done multiple times and done well. So we expect this integration and transition to happen relatively soon. [inaudible] to be here.

Speaker Change: read that integration for us in the Eagleford has been something we've done multiple times and done well. So we expect this integration and transition to happen relatively.

Tim Rezvan: So, I think we feel great about where we are. We're well prepared to make this integration happen, and we're also well prepared to continue to look at the market. Okay, that's that's great. Thanks for that color.

Tim Rezvan: Okay, that's great. Thanks for that color.

Tim Rezvan: As my follow-up, just wanted to ask about leverage in the presentation; I think the number was 1.5 times. That's curious, you know, what your thoughts are on the pace or how kind of rapidly you need to maybe get down two or below one times. And then related to that is running in the portfolio, you might consider selling, for example, the minerals portfolio that would likely transact well above where the equity is today. Thank you.

Brandi Kendall: Then, as my follow-up, I just wanted to ask about leverage in the presentation. I think the number was 1.5 times. I was curious, you know, what your thoughts are on the pace or how kind of rapidly you need to maybe get down to or below one time. And then, related to that, is there anything in the portfolio you might consider selling, for example, the minerals portfolio that would likely transact, you know, well above where the equity is today? Thank you.

Brandi: Tim, I'll start as Brandi from a balancing standpoint. So, I think overall we feel really good with the balance, she says today. We actually just a quarter at one three pro form of silver bow. We're still within our target of one to one and a half times. We've been successful in our really a term out that that that's that so feel good. Again, overall balance sheet and where the maturity is at a range from 28 to 33. Our pro form of business generates a significant amount of cash flow, and we've continued to be an active hedger, which allows the CD lover closer to the one time target over the next handful of quarters.

Brandi Kendall: Hey, Tim, I'll start. It's Brandi from a balance sheet standpoint. So I think overall, we feel really good with where the balance sheet sits today. We exited the quarter at 1-3. Pro forma silver bow, we're still within our target of 1 to 1.5. [inaudible] Our program business generates a significant amount of cash flow, and we've continued to be an active hedger, which allows us to de-lever closer to the one-time target over the next handful of years. I'll maybe pass it to Clay just as it relates to potential divestiture opportunities. Hey, Jim.

David: All they be passive to clay just as it relates to potential divesture opportunities. Hey, Jim, listen, we'd like to say that we're both in the acquisition business and the investor business, and so you've seen us divest assets, particularly non-core assets, over time and do that opportunistically when we think the buyer sees value that we can't capture. We've sold $150 million for the assets over the last 18 months. So, I think you continue to see us look to be in that market where there's value, where there's opportunity. We're not a, you know, for sale or an assets into a tough date, but certainly I think over time stream on the portfolio and can capture and value that way as a quarter what we do.

Speaker Change: of Quarters. I'll maybe pass it to Clay just as it relates to potential divestiture opportunities.

Clay Rind: Hey, Tim. Listen, we like to say that we're both in the acquisition business and the investor business. And so you've seen us divest assets, particularly non-core assets, over time and do that opportunistically when we think the buyer sees value that we can't capture. And we've sold $150 million worth of assets over the last 18 months. So I think you continue to see us look to be in that market, where there's value, where there's opportunity. We're not a, you know, forced seller of assets into a tough tape. But certainly, I think over time, streamlining the portfolio and capturing value that way is core to what we do.

Clay: Hey, Jim.

Clay: Listen, we like to say that we're both in the acquisition business and the investor business. And so you've seen us divest assets, particularly non core assets over time and do that opportunistically when we think

Clay: The buyer sees value that we we can't capture And we've sold 150 million dollars worth of assets over the last 18 months. So I think you continue to see us

Tim Rezvan: Thank you for the comments.

Unknown Executive: Thank you.

Tim Rezvan: Thank you. The next question comes from Oliver Huang with TPHN Company. Please go ahead.

Oliver Wang: The next question comes from Oliver Wang with TPHN Company. Please go ahead. Good morning, David, Brandy, and team, and thanks for taking my questions. Just wanted to start off on the Austin Chalk. The initial results here look encouraging as you've shown in your updated slides, and the Wells Online earlier this year looked at seeing a positive rate of change year of year. On early days, granted it's a pretty small sample set, but was hoping that you all might be able to talk in a little bit more detail about the initial takeaways from your first few wells. And you mentioned in the prepared remarks, David, that it will be garnering capital allocation going forward, but just anyway to kind of speak to or quantify what level of step up we might see over the next 12 to 24 months, especially since Silverbow had done a number of wells in that horizon on their Western acreage.

Oliver Huang: Good morning, David, Brandi, and team, and thanks for taking my questions. I just wanted to start off on the Austin Chalk. The initial results here look encouraging, as you've shown in your updated slides, and the wells online earlier this year looked to have seen a positive rate of change year over year in early days. Granted, it's a pretty small sample set, but I was hoping that you all might be able to talk in a little bit more detail about the initial takeaways from your first few wells.

Speaker Change: Just wanted to start off on the Austin Chalk.

Speaker Change: The initial results here look encouraging, as you've shown in your updated slides, and the wells online earlier this year looked to have seen a positive rate of change year-over-year on early days. Granted, it's a pretty small sample set, but was hoping that you all might be able to talk in a little bit more detail about the initial takeaways from your first few wells.

Oliver Huang: And you mentioned in the prepared remarks, David, that it will be garnering capital allocation going forward, but any way to kind of speak to or quantify what level of step up we might see over the next 12 to 24 months, especially since Silver Bow has done a number of wells in that horizon on their western acreage?

Speaker Change: And you mentioned in the prepared remarks, David, that it will be garnering capital allocation going forward, but just any way to kind of speak to or quantify what level of step up we might see over the next 12 to 24 months, especially since Silver Bow had done a number of wells in that horizon on their western acreage.

Clay: Hey Oliver, it's Clay. I take that. So, you've hit a lot of it, right? I think we're excited about it. Early results are good and encouraging and consistent with our lower Eagle Fird, which I think gives us the consistency to feel good about continuing to allocate capital there. And in particular, as you noted on the heels of Silverbow, that combined Western Eagle Fird position certainly sits in a place where the regular characteristics are strong, which you've also seen the results be very strong across the horizon. So, I think you'll continue to see us prudently allocate capital to the chalk and be thoughtful about it. As we go into 2025 and firm up a capital program there, it would certainly be a piece of it, but that we continue to be excited, and I think there's real opportunity there.

Clay Rind: Hey, Oliver, it's Clay. I can take that. So you've hit on a lot of it, right? I think we're excited about it. Early results are good and encouraging and consistent with our lower Eagleford, which I think gives us the consistency to feel good about continuing to allocate capital there. And in particular, as you noted, on the heels of Silverboe, the combined Western Eagleford position certainly sits in a place where the reservoir characteristics are strong, but you've also seen the results be very strong across the horizon.

Speaker Change: Hey, Oliver, it's Clay. I can take that. So

Clay: You hit a lot of it, right? I think we're excited about it. Early results are good and encouraging and consistent with our lower Eagleford, which I think gives us the consistency to feel good about continuing to allocate capital there. And in particular, as you noted, on the heels of Silverboe, the combined Western Eagleford position certainly sits in a place where

Clay: The reservoir characteristics are strong, but you've also seen the results be very strong across.

Clay Rind: So I think you'll continue to see us prudently allocate capital to the CHOC and be thoughtful about it. And as we go into 2025 and firm up a capital program there, it would certainly be a piece of it. But we continue to be excited and think there's real opportunity there.

Clay: The Horizon. So I think you'll continue to see us prudently allocate capital.

Clay: to the talk and be thoughtful about it. And as we go into 2025 and firm up a capital program there, it would certainly be a piece of it. But.

Clay: that we continue to be excited and think there's there's real opportunity there.

Brandi: Okay, makes sense, and maybe just to follow up on efficiencies and thermal frag driving better cycle times, should we expect for this to drive any sort of meaningful acceleration versus the initial pace of well counts and vision in the forecasting at the start of the year. What was that pretty much already contemplated and just wanted to confirm that these savings are already being, I guess, embedded in the revised lower well cost that you're comes talking about this morning. in the Eagle first.

Oliver Huang: Okay, makes sense. And maybe just to follow up on efficiencies and simulfrac driving better cycle times, should we expect this to drive any sort of meaningful acceleration versus the initial pace of well counts envisioned in the forecasting at the start of the year? Or was that pretty much already contemplated, and I just wanted to confirm that these savings are already being, I guess, embedded in the revised lower well costs that you're kind of talking about this morning?

Speaker Change: Okay, makes sense.

Speaker Change: And maybe just to follow up on efficiencies and simulfrac driving better cycle times, should we expect for this to drive any sort of meaningful acceleration?

Speaker Change: versus the initial pace of well counts envisioned in the forecasting at the start of the year? Or was that pretty much already contemplated and just wanted to confirm that these savings are already being, I guess, embedded in the revised lower well costs that you're kind of talking about this morning in the Eagleford?

Brandi: Hey Oliver, it's Brandi. So yeah, a lot of these savings, both from what we're seeing from a DNC efficiency standpoint, but then also some of the service cost deflation that's captured in the Proforma guidance for the back part of the year, and really with the driver for the improvement in the full year capital guide for the standalone press. Okay, perfect, thanks for the time.

Brandi Kendall: Hey Oliver, it's Brandi. So yeah, a lot of these savings, both from what we're seeing from a DNC efficiency standpoint, but also some of the service cost deflation that's captured in the pro forma guidance for the back part of the year and really was the driver for the improvement in the full year capital guide for the standalone impressive business.

Speaker Change: Hey Oliver, it's Brandi. So yeah, a lot of these savings, both from what we're seeing

Brandi: from a DNC efficiency standpoint, but then also some of the service cost deflation that's captured in the pro forma guidance for the back part of the year, and really was the driver for the improvement in the full year capital guide for the standalone impressive business.

Oliver Huang: Okay, perfect. Thanks for the time.

Unknown Executive: Thank you.

Oliver: Okay, perfect. Thanks for the time.

Michael Scialla: The next question, it's from Michael Scialla with Stephens. Please go ahead. Hi, good morning. It's wanted to go back to slide 10. You've already achieved most of those cost of capital savings. You were anticipating right up front with the Silverbow deal. Just wondering from here, Brandi mentioned the ratings upgrades.

Michael Scialla: The next question is from Michael Scialla with Stephens. Please go ahead.

Speaker Change: Thank you.

Speaker Change: The next question is from Michael Sayala with Stephens, please go ahead.

Michael Scialla: Hi, good morning. I just wanted to go back to slide 10. You've already achieved most of those cost of capital savings you were anticipating right up front with the Silver Bow deal. Just wondering from here, Brandi, as you mentioned the ratings upgrade, is there anything else you can do over the next 12 months to take that up to that $45 million number that you were forecasting for the potential savings there?

Michael Sayala: Hi, good morning.

Michael Sayala: I just wanted to go back to slide 10. You've already achieved most of those cost of capital savings you were anticipating right up front with the silver bow deal.

David: Is there anything else you can do over the next 12 months to take that up to that $45 million number that you were forecasting potential savings there? Okay, my good, good question. I think, and I'm not going to speak on behalf of the rating agencies, but I think more time and continued execution for our business, right, is ultimately the answer just from a, you know, additional ratings movement. I talked about Fitch improving their corporate rating on us, so we now have to double B minus corporate ratings from the agencies. But we capture it a lot of the flow hanging fruit, if you will, with the high yield and then our RBL also contributed to some of the improved cost of capital.

Michael Sayala: Just wondering from here, Brandi, you mentioned the ratings upgrade. Is there anything else you can do over the next 12 months to take that up to that $45 million number that you were forecasting for the potential savings there?

Brandi Kendall: Hey Mike, good question. I think, and I'm not going to speak on behalf of the rating agencies, but I think more time and continued execution for our business, right, is ultimately the answer just from an, you know, additional ratings movement. I talked about Fitch improving their corporate ratings on us, so we now have two double B-minus corporate ratings from the agencies, but we captured a lot of the low-hanging fruit, if you will, with the high yield, and then our RBL also contributed to some of the improved cost of capital.

Brandi: Good question. I think, and I'm not going to speak on behalf of the rating agencies, but I think more time and continued execution for our business, right, is ultimately the answer just from a

Brandi: you know, additional ratings movement. I talked about Fitch improving their corporate rating on us. So we now have to double B minus corporate ratings from the

Brandi: But we captured a lot of the low-hanging fruit, if you will, with the high yield and then

Brandi: Our RBL also contributed to some of the improved cost of capital.

Unknown Executive: Right.

Brandi: Then also one to ask on slide 15, I think you've had in your presentation before, but showing a five-year free cash flow forecast of something that's about 50% above your market cap right now. Based on $75 oil and 350 gas. Keep talking about some of the other assumptions embedded in that five-year forecast.

Michael Scialla: And also, I wanted to ask you about slide 15, which I think you've had in your presentation before, but showing a five-year free cash flow forecast of something that's about 50% above your market cap right now based on $75 oil and 350 gas. Can you talk about some of the other assumptions embedded in that five-year forecast?

Brandi: Right.

Speaker Change: Then also wanted to ask on slide 15, which I think you've had in your presentation before, but

Speaker Change: You're showing a five-year free cash flow forecast of something that's about 50% above your market cap right now based on $75 oil and 350 gas. Can you talk about some of the other assumptions embedded in that five-year forecast?

Brandi: Yeah, it might get this brandy again. It's really just our straightforward existing kind of guidance carried forward. So maintenance program across the pro forma of business taking current service costs and commodity prices just as it relates to, you know, the operating costs inputs. So nothing special in the forecast there, but as you know, right, our business does generate a lot of cash flow, which ultimately gives us a lot of flexibility on how we ultimately use that cash flow.

Brandi Kendall: Yeah, Mike, it's Brandi again. It's really just our straightforward existing kind of guidance, carried forward. So maintenance program across the pro forma business taking current Service Costs and Commodity Prices just as it relates to the operating cost inputs. There's nothing special in the forecast there, but as you know, right, our business does generate a lot of. Cash Flow, which ultimately gives us a lot of flexibility on how we ultimately use that cash flow.

Speaker Change: Yeah, Mike, it's Brandi again. It's really just our straightforward existing kind of guidance.

Speaker Change: Carried forward, so maintenance program across the pro forma business taking current

Speaker Change: service costs and commodity prices, just as it relates to, you know, the operating cost inputs. There's nothing special in the forecast there, but as you know, right, our business does generate a lot of

Speaker Change: which ultimately gives us a lot of flexibility on how we ultimately use that cash flow.

Unknown Executive: Great. Thank you.

Michael Scialla: Great. Thank you.

John Freeman: Thank you. The next question is from John Freeman with Raymond James. Please go ahead.

John Freeman: The next question is from John Freeman with Raymond James. Please go ahead. Good morning. Thanks.

Speaker Change: Great, thank you.

Speaker Change: Thank you. The next question is from John Freeman with Raymond James. Please go ahead.

John Freeman: Good morning, thanks. When looking at the original SilverBow Synergy Guidance on that same slide that Mike was referring to on slide 10, one area that you don't have in there, where you have historically seen some pretty nice improvement is from the marketing uplift, just the better pricing with your marketing efforts. Is that relevant here with SilverBow? And if so, how quickly can that kind of pricing uplift be realized?

Brandi: When looking at the original Soberbo Synergy guidance that on that same slide that that Mike was referring to, I'm slide 10. You know, one area that you all don't have in there. We all have historically seen some pretty nice improvement is from the marketing uplift just the better pricing with y'all's marketing efforts. Is that relevant here with soberbo and if so, how quickly can that kind of pricing up with the real.

John Freeman: Good morning, thanks. When looking at the original Silver Bow Synergy Guidance that

Speaker Change: on that same slide that Mike was referring to in slide 10.

John Freeman: One area that y'all don't have in there, where y'all have historically seen some pretty nice improvement is from the marketing uplift, just the better pricing with y'all's marketing efforts.

Speaker Change: Is that relevant here with SilverBow, and if so, how quickly can that kind of pricing uplift be realized?

Brandi: Hey, Sean, it's Brandi. So, I would say definitely relevant. I thought maybe we'd reiterate David's comment earlier. We're less than a week out from closing. So, not a lot that we can talk about right now, but would expect to be able to update you all on broader synergy, synergy in the next quarter, including whether or not we're able to capture or identify additional areas of synergy here. Got it.

Brandi Kendall: Sean, it's Brandi. So I would say definitely relevant. I'll maybe reiterate David's comment earlier. We're less than a week out from closing. So not a lot that we can talk about right now, but we would expect to be able to update you all on broader synergy next quarter, including, right, whether or not we're able to capture or identify additional areas of synergy.

Speaker Change: Hey John, it's Brandi. So I would say definitely relevant.

Speaker Change: I'll maybe reiterate David's comment earlier. We're less than a week out from from closing. Um, so not a lot that we can talk about right now, but would expect to be able to update you all on on broader synergy.

Speaker Change: Synergies next quarter, including whether or not we're able to capture or identify additional areas of synergies here.

John Freeman: Got it. And then the last follow up for me just on the updated cost per foot on the 825 a foot. Can you kind of characterize kind of is that pretty consistent, kind of across your position? Is some of the leading edge materially lower than that? Do you have some operations on your footprint that's meaningfully above that? Or is that a relatively tight range to get to that 825?

David: And the last thought for me just on the updated cost per foot on the 825 foot, can you kind of characterize kind of is that pretty consistent kind of across your position is like some of the leading edge, like materially lower than that. You have some operations on your footprint. That's meaning if we above that or is that a relatively tight range to get to that at 825 foot.

Speaker Change: Got it.

Speaker Change: The last thought for me just on the updated cost per foot on the 825-a-foot.

Speaker Change: Can you kind of characterize, kind of, is that pretty consistent kind of across your position? Is like some of the leading edge like materially lower than that? Do you have some some operations on your footprint that's

Speaker Change: Meaningfully above that, or is that a relatively tight range to get to that 825 a foot?

David: Yeah, hey, John, it's David. The easiest answer is the kind of all the drilling and completion activities we undertake are pretty similar. So, there's not a huge change. What I would say though is, in some areas, we're able to get more efficiencies because of the number of wells on a pad or because of existing facilities or other things like that. So, in general, pretty tight range, which is probably the easiest answer, but we'd let you know that we're also looking for ways to continue to improve that number. Is definitely part of the work that we're able to now begin on the synergy side.

David Rockecharlie: Yeah, hey, John, it's David. The easiest answer is that all the drilling and completion activities we undertake are pretty similar, so there's not a huge change. What I would say, though, is in some areas, we're able to get more efficiency because of the number of wells on a pad or because of existing facilities or other things like that.

David Ramsey: Yeah, hey John, it's David. The easiest answer is that kind of all the drilling and completion activities we undertake are pretty similar, so there's not a huge change. What I would say though is in some areas

Speaker Change: We're able to get more efficiencies because of the number of wells on a pad or because of existing facilities or other things like that. So, in general, pretty tight range, which is probably the easiest answer, but would let you know that we're also looking for ways to continue to improve.

John Freeman: So, in general, pretty tight range, which is probably the easiest answer, but we'd let you know that we're also looking for ways to continue to improve that number, and it's definitely part of the work that we're able to now begin on the Center District. Great. Thanks.

Speaker Change: That number is definitely part of the work that we're able to now begin on the Synergy side.

John Freeman: Great. Thanks. Thanks for your work.

Unknown Executive: Great. Thanks. Thanks for the order. Thanks, John.

Speaker Change: Great. Thanks. Nice to work with you.

Unknown Executive: Thank you.

David Rockecharlie: Ladies and gentlemen, as there are no further questions, I would now hand the conference over to David Rocker-Charlie for closing comments. Great. Thank you all again for joining us today and for the continued support, and hopefully what came through is the business is doing well and we see significant opportunity going forward. So, we're going to get back to work and look forward to talking to you all again next quarter. Thank you.

David Rockecharlie: Ladies and gentlemen, as there are no further questions, I would now hand the conference over to David Rockecharlie for closing comments.

John Freeman: Thanks, John.

John Freeman: Thank you ladies and gentlemen as there are no further questions I would now hand the conference over to David Rockecharlie for closing comments

David Rockecharlie: Great, thank you all again for joining us today and for the continued support, and hopefully, what came through is that the business is doing well, and we see significant opportunities going forward, so we're going to get back to work and look forward to talking to you all again next quarter.

David Rockecharlie: Great, thank you all again for joining us today and for the continued support and hopefully what came through is the business.

David Rockecharlie: is doing well and we see significant opportunity going forward so we're going to get back to work and look forward to talking to you all again next quarter. Thank you.

Operator: The conference of Crescent Energy has now concluded. Thank you for your participation. You may now disconnect your lines. Thank you.

Operator: The conference of Crescent Energy has now concluded. Thank you for your participation. You may now disconnect your lines.

Speaker Change: Thank you. The conference of Crescent Energy has now concluded. Thank you for your participation. You may now disconnect your lines.