Crescent Energy has announced the signing of a definitive agreement to acquire Eagle Ford assets from Ridgemar Energy for an upfront consideration of $905m.
The deal, with an effective date of 1 October, is expected to close in Q1 2025, subject to customary conditions.
The transaction’s initial payment of $905m includes a maximum of $100m in equity, with the balance paid in cash. Additionally, the future contingent payments related to oil prices could reach up to $170m.
The acquisition strengthens Crescent's position in the Central Eagle Ford and adds to its $4bn of mergers and acquisitions in the region over the past 18 months.
Earlier in May, Crescent Energy acquired SilverBow Resources for $2.1bn, becoming the second-largest operator in the Eagle Ford basin.
Crescent CEO David Rockecharlie said: “This transaction continues to highlight our ability to utilise our investing and operating expertise to identify and acquire high-quality assets, efficiently integrate them into our business and drive additional value through improved operations.
“With accelerated synergies captured from the integration of SilverBow and our recent bolt-on acquisition, our full team is ready and eager to add the Ridgemar assets to our core operating footprint in the Eagle Ford.
“These assets contribute meaningful scale, enhance Crescent’s cash margins, increase our oil-weighting and extend our low-risk inventory life, all at an attractive and highly accretive valuation.”
The acquisition is expected to enhance Crescent’s existing presence in Frio, Atascosa, La Salle and McMullen counties, offering the potential for substantial operational efficiencies.
It bolsters Crescent's asset portfolio by adding approximately 20 million barrels of oil equivalent per day of high-margin, oil-focused production and around 140 well-defined, high-return locations.
Jefferies acted as the financial advisor for Crescent during the acquisition, while Kirkland & Ellis provided legal counsel.
Meanwhile, RBC Capital Markets was the financial advisor for Ridgemar Energy, with Vinson & Elkins serving as legal counsel.
