Declares Cash Dividend of $0.17 per Share
Reaffirms Full Year 2022 Production, Capex, Adj. EBITDAX and LFCF Guidance
HOUSTON--(BUSINESS WIRE)--Crescent Energy Company (NYSE: CRGY), ("Crescent" or the "Company"), today announced financial and operating results for the third quarter of 2022 and a quarterly cash dividend of $0.17 per share. Crescent has provided a supplemental slide deck on its third quarter results, which can be found at www.crescentenergyco.com. The Company plans to host its third quarter conference call and webcast at 10 a.m. CT, Thursday, November 10, 2022. Details can be found in this release.
Third Quarter 2022 Highlights
- Produced 150 MBoe/d, a 6% quarter-over-quarter increase; oil comprised 46% of total third quarter volumes on an equivalent basis
- Reported $555 million of net income and $179 million of Adjusted Net Income(1)
- Generated $359 million of Adjusted EBITDAX(1), $570 million of Unhedged Adjusted EBITDAX(1)
- Announced $144 million of Levered Free Cash Flow(1)
- Exited the third quarter at 1.0x Net LTM Leverage(1), in-line with the Company's long-term target
- Capital investments, excluding acquisitions, were $190 million, in-line with expectations
- Announced positive amendments to its revolving credit facility (the "Credit Facility")
- Completed secondary equity offering, and concurrent buyback of OpCo Units, increasing public equity float by 15%
- Entered into a definitive purchase agreement to sell non-core Permian assets for $80 million, subject to customary purchase price adjustments
- Reaffirms full year 2022 guidance for production, capital expenditures, Adjusted EBITDAX and Levered Free Cash Flow assuming prior pricing assumptions and adjusted for divestitures
- Published second environmental, social and governance ("ESG") report, setting targets for five ESG priority areas, as well as benchmarks for measuring future performance. The document, which can be found on Crescent's website, reports against the Task Force on Climate-related Financial Disclosures ("TCFD") framework and offers guidance on the Company's role in a lower carbon future
Crescent CEO David Rockecharlie said, “Since going public less than a year ago, we’ve executed exceptionally well and advanced our top priorities: generating significant cash flow, completing accretive acquisitions, accessing the capital markets, executing on our high-return, multi-rig development program and publishing our second ESG report. Our year-to-date achievements are a testament to the quality of both our asset base and our people – each of these accomplishments align with our strategy and broader goals to create long-term shareholder value.”
Third Quarter 2022 Results
Crescent reported $555 million of net income and $179 million of Adjusted Net Income(1). The Company generated $359 million of Adjusted EBITDAX(1), $570 million of Unhedged Adjusted EBITDAX(1) and $144 million of Levered Free Cash Flow(1) for the period, a 4% decrease, 11% decrease and 5% increase, respectively, relative to the second quarter.
Costs and expenses, stated on a Boe basis, were generally in-line with Company expectations, despite industry-wide inflationary pressures. Operating costs and operating costs excluding production and other taxes, were both 4% higher relative to the second quarter, and in excess of our operating cost guide, reflecting incremental inflation and infrastructure maintenance as well as overall elevated workover activity. This increase includes $0.46 per Boe of transaction and nonrecurring operating expenses. G&A expense and Adjusted Recurring Cash G&A(1) (includes manager compensation and excludes non-cash equity-based compensation) totaled $1.25 and $1.40 per Boe, a 17% decrease and nominal percent increase relative to the second quarter, respectively.
Crescent produced 150 net MBoe/d in the third quarter (comprised of 46% oil, 13% NGLs, and 41% gas), a 6% increase above the prior quarter, and in-line with the Company's expectations.
Average realized price for the third quarter, excluding the effect of commodity derivatives, totaled $61.65 per Boe, 11% lower than the second quarter. Excluding the effect of commodity derivatives during the quarter, average realized prices by commodity were $86.77 per barrel of oil (95% of WTI), $6.99 per Mcf of gas (95% of Henry Hub) and $35.22 per barrel of NGLs (38% of WTI).
Third quarter capital investments, excluding acquisitions, were $190 million. The Company drilled five gross operated locations in the Uinta and five in the Eagle Ford. In addition, Crescent brought online 13 gross wells in the Uinta. Crescent is planning to operate two rigs (one Uinta, one Eagle Ford) for the remainder of the year.
On November 4, 2022, subsequent to quarter end, Crescent entered into a definitive purchase and sale agreement to divest non-core Permian basin assets in Ector County, Texas for $80 million in cash, subject to customary purchase price adjustments. Closing is expected to occur by year-end 2022. Closing is subject to customary closing conditions. Proceeds are expected to reduce outstanding borrowings on the Company’s Credit Facility. Year to date, the Company has divested non-core assets for combined proceeds in excess of $100 million.
Financial Position
In late September, the Company announced positive amendments to its Credit Facility, effective September 23, 2022. The amendments were approved by the 11 member banks supporting the facility. Highlights include: (i) an 11% borrowing base increase to $2.0 billion from $1.8 billion, (ii) a flat elected commitment amount of $1.3 billion, (iii) a facility term extension through September 2027 and (iv) a 50 bps decrease in the interest rate margin for amounts outstanding on the Credit Facility.
As of September 30, 2022, the Company had total long-term debt of $1.4 billion, consisting of $700 million of senior unsecured notes and $685 million of outstanding borrowings on its revolving credit facility (the "Credit Facility"). Total liquidity as of September 30, 2022, was $625 million, including availability on its revolver ($1.3 billion elected commitment with a $2.0 billion borrowing base), cash and cash equivalents of $22 million, and outstanding letters of credit of $12 million. Crescent exited the quarter with a Net LTM Leverage(1) ratio of 1.0x, in-line with its stated target. The Company expects to generate additional cash flow for the remainder of 2022, which it plans to use to fund its dividend and further strengthen the balance sheet.
Dividend
Consistent with the Company’s framework to return cash to shareholders, the Board approved a third quarter cash dividend of $0.17 per share, payable on December 7, 2022, to shareholders of record as of the close of business on November 23, 2022. Crescent expects to pay a $0.17 per share quarterly dividend for the fourth quarter of 2022, subject to Board approval and applicable law.
Guidance
Crescent reiterates full year 2022 guidance for production, capital, Adj. EBITDAX, and Levered Free Cash Flow, assuming prior pricing assumptions of $100/Bbl WTI and $6/MMBtu Henry Hub, when adjusted for divestitures. Additional guidance details are available in supplemental materials provided on the Company's website.
Risk Management
Crescent utilizes hedges to manage commodity price risks, protect the balance sheet, and ensure returns on invested capital. Crescent is approximately 60% hedged for the remainder of 2022 at the midpoint of its production guidance. Approximately 50% of the Company’s current hedge book was entered into in connection with prior acquisitions. As certain acquisition hedges are rolled off, the Company will more fully participate at market pricing. Complete details on the Company's derivative positions can be found in its investor presentation located at https://ir.crescentenergyco.com/events-presentations/.
Third Quarter 2022 Conference Call Information
Crescent plans to host a conference call to discuss its third quarter 2022 financial and operating results at 10 a.m. CT on Thursday, November 10, 2022. Complete details are below. A webcast replay will be available on the website following the call. Crescent has provided an investor presentation on its third quarter 2022 results on its website, www.crescentenergyco.com.
Date: Thursday, November 10, 2022
Time: 10 a.m. CT (11 a.m. ET)
Conference Dial-In: 877-407-0989 / 201-389-0921 (Domestic / International)
Webcast Link: https://ir.crescentenergyco.com/events-presentations/
About Crescent Energy Company
Crescent is a well-capitalized, U.S. independent energy company with a portfolio of assets in key proven basins across the lower 48 states and substantial cash flow supported by a predictable base of production. Crescent’s core leadership team is a group of experienced investment, financial and industry professionals who continue to execute on the strategy management has employed since 2011. The Company’s mission is to invest in energy assets and deliver better returns, operations and stewardship. For additional information, please visit www.crescentenergyco.com.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on current expectations, including with respect to the Uinta Acquisition. The words and phrases “should”, “could”, “may”, “will”, “believe”, “plan”, “intend”, “expect”, “potential”, “possible”, “anticipate”, “estimate”, “forecast”, “view”, “efforts”, “goal” and similar expressions identify forward-looking statements and express the Company’s expectations about future events. All statements, other than statements of historical facts, included in this communication that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the Company’s control. Such risks and uncertainties include, but are not limited to, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the impact of pandemics such as COVID-19, actions by the Organization of the Petroleum Exporting Countries (“OPEC”) and non-OPEC oil producing countries, the impact of armed conflict, including in Ukraine, the timing and success of business development efforts, sustained cost inflation and central bank policy changes associated therewith, and other uncertainties. Consequently, actual future results could differ materially from expectations. The Company assumes no duty to update or revise its respective forward-looking statements based on new information, future events or otherwise.
Financial Presentation
On December 7, 2021, Crescent was formed through the merger of Independence Energy ("Independence"), and Contango Oil and Gas ("Contango"). Referenced results for the three and nine months ended September 30, 2022, as well as the three months ended June 30, 2022, reflect the combined Company. Referenced results for the three and nine months ended September 30, 2021, reflect only legacy Independence, Crescent's predecessor for financial reporting purposes.
While OpCo Units and corresponding shares of Class B common stock are outstanding in our "Up-C" structure, and in accordance with the terms of our Management Agreement under which Class A shareholders bear only their proportionate share of Manager Compensation, portions of Manager Compensation, income tax provision (benefit) amounts and dividends paid corresponding to such ownership are required to be classified as distributions to redeemable noncontrolling interests rather than G&A expense, income tax provision (benefit), and dividends paid to Class A Common Stock, respectively. We define those redeemable noncontrolling interest ("RNCI") distributions made by OpCo related to (i) Manager Compensation as “Manager Compensation RNCI Distributions,” (ii) income tax provision (benefit) as “Income Tax RNCI Distributions,” and (iii) dividends paid as “Dividend RNCI Distributions.”
To facilitate comparison of our G&A expense, dividends paid to Class A Common Stock, and income tax provision (benefit) to peer companies with varying corporate and management structures, Adjusted EBITDAX, Unhedged Adjusted EBITDAX and Levered Free Cash Flow, for both (i) historical periods since the Merger Transaction and (ii) periods for which we provide guidance, are presented assuming the full redemption of all outstanding OpCo Units for shares of our Class A common stock and a corresponding cancellation of all shares of our Class B Common Stock. Management believes this presentation is most useful to investors, as the full amounts of Manager Compensation as G&A expense, dividends paid to Class A Common Stock, and income tax provision (benefit) are thereby reflected as such.
Crescent Operational Summary |
||||||||
|
For the three months ended |
|||||||
|
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
|||
Average daily net sales volumes: |
|
|
|
|
|
|||
Oil (MBbls/d) |
|
69 |
|
|
64 |
|
|
35 |
Natural gas (MMcf/d) |
|
367 |
|
|
356 |
|
|
235 |
NGLs (MBbls/d) |
|
20 |
|
|
20 |
|
|
17 |
Total (MBoe/d) |
|
150 |
|
|
142 |
|
|
91 |
Average realized prices, before effects of derivative settlements: |
|
|
|
|
|
|||
Oil ($/Bbl) |
$ |
86.77 |
|
$ |
104.23 |
|
$ |
69.46 |
Natural gas ($/Mcf) |
|
6.99 |
|
|
6.40 |
|
|
4.01 |
NGLs ($/Bbl) |
|
35.22 |
|
|
46.98 |
|
|
30.51 |
Total ($/Boe) |
|
61.65 |
|
|
68.96 |
|
|
42.65 |
Average realized prices, after effects of derivative settlements: |
|
|
|
|
|
|||
Oil ($/Bbl) |
$ |
72.55 |
|
$ |
78.84 |
|
$ |
54.10 |
Natural gas ($/Mcf) |
|
3.56 |
|
|
3.51 |
|
|
2.97 |
NGLs ($/Bbl) |
|
32.04 |
|
|
32.15 |
|
|
16.99 |
Total ($/Boe) |
|
46.32 |
|
|
48.37 |
|
|
31.54 |
Expense (per Boe) |
|
|
|
|
|
|||
Operating expense, excluding production and other taxes(2) |
$ |
15.33 |
|
$ |
14.68 |
|
$ |
14.28 |
Production and other taxes |
|
5.18 |
|
|
5.05 |
|
|
3.36 |
Depreciation, depletion and amortization |
|
10.50 |
|
|
10.15 |
|
|
8.74 |
General and administrative expense |
|
1.25 |
|
|
1.52 |
|
|
1.32 |
Non-GAAP expense (per Boe) |
|
|
|
|
|
|||
Adjusted Recurring Cash G&A(1)(3) |
$ |
1.40 |
|
$ |
1.40 |
|
$ |
0.34 |
(1) |
Non-GAAP financial measure. Please see “Reconciliation of Non-GAAP Measures” for discussion and reconciliations of such measures to their most directly comparable financial measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). |
|
(2) |
Operating expense, excluding production and other taxes includes lease operating expense, workover expense, asset operating expense, gathering, transportation and marketing, and midstream operating expense. Includes certain costs that are contractually indexed to commodity prices, such as CO2 purchase costs related to Crescent's CO2 flood asset in Wyoming, and certain gathering and transportation expenses. These contractual commodities indexed operating expenses move in tandem with commodity prices and as commodity prices increase, higher contractual commodity-linked operating costs are offset by higher realizations. Includes certain transaction and non-recurring expenses of $0.46 per Boe, $0.25 per Boe and $0.15 per Boe in September 30, 2022, June 30, 2022 and September 30, 2021, respectively. |
|
(3) |
Crescent defines Adjusted Recurring Cash G&A as General and Administrative Expense, excluding non-cash equity-based compensation and transaction and nonrecurring expenses, and including Manager Compensation RNCI Distributions. Management believes Adjusted Recurring Cash G&A is a useful performance measure because it excludes transaction and nonrecurring expenses and non-cash equity-based compensation and includes Manager Compensation RNCI Distributions, facilitating the ability for investors to compare Crescent's cash G&A expense against peer companies. |
Crescent Income Statement | |||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenues: |
(in thousands, except per share data) |
||||||||||||||
Oil |
$ |
550,823 |
|
|
$ |
222,074 |
|
|
$ |
1,525,899 |
|
|
$ |
627,817 |
|
Natural gas |
|
235,830 |
|
|
|
86,779 |
|
|
|
586,318 |
|
|
|
230,271 |
|
Natural gas liquids |
|
64,810 |
|
|
|
47,322 |
|
|
|
219,853 |
|
|
|
121,613 |
|
Midstream and other |
|
13,494 |
|
|
|
9,553 |
|
|
|
40,231 |
|
|
|
34,017 |
|
Total revenues |
|
864,957 |
|
|
|
365,728 |
|
|
|
2,372,301 |
|
|
|
1,013,718 |
|
Expenses: |
|
|
|
|
|
|
|
||||||||
Lease operating expense |
|
121,554 |
|
|
|
58,338 |
|
|
|
322,752 |
|
|
|
175,966 |
|
Workover expense |
|
21,126 |
|
|
|
2,932 |
|
|
|
56,102 |
|
|
|
7,823 |
|
Asset operating expense |
|
20,791 |
|
|
|
10,810 |
|
|
|
54,653 |
|
|
|
24,306 |
|
Gathering, transportation and marketing |
|
44,757 |
|
|
|
44,634 |
|
|
|
131,271 |
|
|
|
136,056 |
|
Production and other taxes |
|
71,511 |
|
|
|
28,090 |
|
|
|
183,491 |
|
|
|
80,276 |
|
Depreciation, depletion and amortization |
|
145,008 |
|
|
|
73,025 |
|
|
|
375,600 |
|
|
|
233,122 |
|
Exploration expense |
|
1,909 |
|
|
|
754 |
|
|
|
3,848 |
|
|
|
833 |
|
Midstream operating expense |
|
3,550 |
|
|
|
2,518 |
|
|
|
9,972 |
|
|
|
8,848 |
|
General and administrative expense |
|
17,311 |
|
|
|
11,024 |
|
|
|
59,489 |
|
|
|
33,775 |
|
Gain on sale of assets |
|
(127 |
) |
|
|
(1 |
) |
|
|
(5,114 |
) |
|
|
(9,418 |
) |
Total expenses |
|
447,390 |
|
|
|
232,124 |
|
|
|
1,192,064 |
|
|
|
691,587 |
|
Income (loss) from operations |
|
417,567 |
|
|
|
133,604 |
|
|
|
1,180,237 |
|
|
|
322,131 |
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Gain (loss) on derivatives |
|
205,130 |
|
|
|
(282,222 |
) |
|
|
(645,565 |
) |
|
|
(885,032 |
) |
Interest expense |
|
(27,057 |
) |
|
|
(12,984 |
) |
|
|
(68,518 |
) |
|
|
(37,810 |
) |
Other income (expense) |
|
(2,670 |
) |
|
|
(48 |
) |
|
|
(4,472 |
) |
|
|
(54 |
) |
Income from equity affiliates |
|
834 |
|
|
|
— |
|
|
|
4,086 |
|
|
|
— |
|
Total other income (expense) |
|
176,237 |
|
|
|
(295,254 |
) |
|
|
(714,469 |
) |
|
|
(922,896 |
) |
Income (loss) before taxes |
|
593,804 |
|
|
|
(161,650 |
) |
|
|
465,768 |
|
|
|
(600,765 |
) |
Income tax benefit (expense) |
|
(38,455 |
) |
|
|
(393 |
) |
|
|
(34,528 |
) |
|
|
(407 |
) |
Net income (loss) |
|
555,349 |
|
|
|
(162,043 |
) |
|
|
431,240 |
|
|
|
(601,172 |
) |
Less: net (income) loss attributable to Predecessor |
|
— |
|
|
|
160,567 |
|
|
|
— |
|
|
|
585,804 |
|
Less: net (income) loss attributable to noncontrolling interests |
|
(904 |
) |
|
|
1,476 |
|
|
|
(2,087 |
) |
|
|
15,368 |
|
Less: net (income) loss attributable to redeemable noncontrolling interests |
|
(436,084 |
) |
|
|
— |
|
|
|
(341,269 |
) |
|
|
— |
|
Net income (loss) attributable to Crescent Energy |
$ |
118,361 |
|
|
$ |
— |
|
|
$ |
87,884 |
|
|
$ |
— |
|
Net income (loss) per share: |
|
|
|
|
|
|
|
||||||||
Class A common stock – basic |
$ |
2.74 |
|
|
|
|
$ |
2.07 |
|
|
|
||||
Class A common stock – diluted |
$ |
2.74 |
|
|
|
|
$ |
2.07 |
|
|
|
||||
Class B common stock – basic and diluted |
$ |
— |
|
|
|
|
$ |
— |
|
|
|
||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Class A common stock – basic |
|
43,197 |
|
|
|
|
|
42,377 |
|
|
|
||||
Class A common stock - diluted |
|
43,210 |
|
|
|
|
|
42,382 |
|
|
|
||||
Class B common stock – basic and diluted |
|
125,797 |
|
|
|
|
|
126,950 |
|
|
|
Crescent Consolidated Balance Sheet |
|
|
|
||||
(Unaudited) |
|||||||
|
September 30, |
|
December 31, |
||||
|
(in thousands, except share data) |
||||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
22,478 |
|
|
$ |
128,578 |
|
Accounts receivable, net |
|
518,531 |
|
|
|
321,855 |
|
Accounts receivable – affiliates |
|
1,532 |
|
|
|
20,341 |
|
Derivative assets - current |
|
7,120 |
|
|
|
— |
|
Drilling advances |
|
10,220 |
|
|
|
200 |
|
Prepaid and other current assets |
|
20,595 |
|
|
|
8,644 |
|
Total current assets |
|
580,476 |
|
|
|
479,618 |
|
Property, plant and equipment: |
|
|
|
||||
Oil and natural gas properties at cost, successful efforts method |
|
|
|
||||
Proved |
|
7,299,737 |
|
|
|
6,043,602 |
|
Unproved |
|
331,294 |
|
|
|
308,721 |
|
Oil and natural gas properties at cost, successful efforts method |
|
7,631,031 |
|
|
|
6,352,323 |
|
Field and other property and equipment, at cost |
|
177,181 |
|
|
|
144,318 |
|
Total property, plant and equipment |
|
7,808,212 |
|
|
|
6,496,641 |
|
Less: accumulated depreciation, depletion, amortization and impairment |
|
(2,300,795 |
) |
|
|
(1,941,528 |
) |
Property, plant and equipment, net |
|
5,507,417 |
|
|
|
4,555,113 |
|
Goodwill |
|
76,826 |
|
|
|
76,564 |
|
Derivative assets – noncurrent |
|
— |
|
|
|
579 |
|
Investment in equity affiliates |
|
14,509 |
|
|
|
15,415 |
|
Other assets |
|
50,366 |
|
|
|
30,173 |
|
TOTAL ASSETS |
$ |
6,229,594 |
|
|
$ |
5,157,462 |
|
|
|
|
|
||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
596,115 |
|
|
$ |
337,881 |
|
Accounts payable – affiliates |
|
39,962 |
|
|
|
8,675 |
|
Derivative liabilities – current |
|
384,038 |
|
|
|
253,525 |
|
Financing lease obligations – current |
|
2,446 |
|
|
|
1,606 |
|
Other current liabilities |
|
17,324 |
|
|
|
14,438 |
|
Total current liabilities |
|
1,039,885 |
|
|
|
616,125 |
|
Long-term debt |
|
1,372,334 |
|
|
|
1,030,406 |
|
Derivative liabilities – noncurrent |
|
89,343 |
|
|
|
133,471 |
|
Asset retirement obligations |
|
290,122 |
|
|
|
258,102 |
|
Deferred tax liability |
|
141,643 |
|
|
|
82,537 |
|
Financing lease obligations – noncurrent |
|
5,032 |
|
|
|
3,512 |
|
Other liabilities |
|
22,253 |
|
|
|
13,652 |
|
Total liabilities |
|
2,960,612 |
|
|
|
2,137,805 |
|
Commitments and contingencies |
|
|
|
||||
Redeemable noncontrolling interests |
|
2,419,993 |
|
|
|
2,325,013 |
|
Equity: |
|
|
|
||||
Class A common stock, $0.0001 par value; 1,000,000,000 shares authorized, 49,433,154 and 43,105,376 shares issued, and 48,282,163 and 41,954,385 shares outstanding as of September 30, 2022 and December 31, 2021, respectively |
|
5 |
|
|
|
4 |
|
Class B common stock, $0.0001 par value; 500,000,000 shares authorized and 118,645,323 and 127,536,463 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively |
|
12 |
|
|
|
13 |
|
Preferred stock, $0.0001 par value; 500,000,000 shares authorized and 1,000 Series I preferred shares issued and outstanding as of September 30, 2022 and December 31, 2021 |
|
— |
|
|
|
— |
|
Treasury stock, at cost; 1,150,991 shares of Class A common stock as of September 30, 2022 and December 31, 2021 |
|
(18,448 |
) |
|
|
(18,448 |
) |
Additional paid-in capital |
|
801,978 |
|
|
|
720,016 |
|
Retained earnings (accumulated deficit) |
|
61,375 |
|
|
|
(19,376 |
) |
Noncontrolling interests |
|
4,067 |
|
|
|
12,435 |
|
Total equity |
|
848,989 |
|
|
|
694,644 |
|
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY |
$ |
6,229,594 |
|
|
$ |
5,157,462 |
|
Crescent Cash Flow Statement |
|||||||
(Unaudited) |
|||||||
|
Nine Months Ended September 30, |
||||||
|
2022 |
|
2021 |
||||
Cash flows from operating activities: |
(in thousands) |
||||||
Net income (loss) |
$ |
431,240 |
|
|
$ |
(601,172 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities |
|
|
|
||||
Depreciation, depletion and amortization |
|
375,600 |
|
|
|
233,122 |
|
Deferred income tax expense (benefit) |
|
27,428 |
|
|
|
— |
|
(Gain) loss on derivatives |
|
645,565 |
|
|
|
885,032 |
|
Net cash (paid) received on settlement of derivatives |
|
(654,377 |
) |
|
|
(389,142 |
) |
Non-cash equity-based compensation expense |
|
26,306 |
|
|
|
14,054 |
|
Amortization of debt issuance costs and discount |
|
6,431 |
|
|
|
6,809 |
|
Gain on sale of oil and natural gas properties |
|
(5,114 |
) |
|
|
(9,418 |
) |
Restructuring of acquired derivative contracts |
|
(51,994 |
) |
|
|
— |
|
Settlement of acquired derivative contracts |
|
(39,046 |
) |
|
|
— |
|
Other |
|
(6,941 |
) |
|
|
3,256 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(189,512 |
) |
|
|
(67,588 |
) |
Accounts receivable – affiliates |
|
18,809 |
|
|
|
(9,363 |
) |
Prepaid and other current assets |
|
(22,011 |
) |
|
|
27,898 |
|
Accounts payable and accrued liabilities |
|
213,428 |
|
|
|
60,112 |
|
Accounts payable – affiliates |
|
24,560 |
|
|
|
(4,720 |
) |
Other |
|
(3,018 |
) |
|
|
(248 |
) |
Net cash provided by operating activities |
|
797,354 |
|
|
|
148,632 |
|
Cash flows from investing activities: |
|
|
|
||||
Development of oil and natural gas properties |
|
(440,375 |
) |
|
|
(83,697 |
) |
Acquisitions of oil and natural gas properties |
|
(627,539 |
) |
|
|
(65,391 |
) |
Proceeds from the sale of oil and natural gas properties |
|
4,800 |
|
|
|
22,053 |
|
Purchases of restricted investment securities – HTM |
|
(7,175 |
) |
|
|
(6,746 |
) |
Maturities of restricted investment securities – HTM |
|
5,400 |
|
|
|
8,121 |
|
Other |
|
3,955 |
|
|
|
(1,116 |
) |
Net cash used in investing activities |
|
(1,060,934 |
) |
|
|
(126,776 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from the issuance of Senior Notes, after premium, discount and underwriting fees |
|
199,250 |
|
|
|
490,625 |
|
Revolving Credit Facility borrowings |
|
1,118,000 |
|
|
|
386,062 |
|
Revolving Credit Facility repayments |
|
(976,000 |
) |
|
|
(108,000 |
) |
Payment of debt issuance costs |
|
(20,028 |
) |
|
|
(10,880 |
) |
Prior Credit Agreement borrowings |
|
— |
|
|
|
53,900 |
|
Prior Credit Agreement repayments |
|
— |
|
|
|
(804,975 |
) |
Redeemable noncontrolling interest contributions |
|
5,985 |
|
|
|
— |
|
Member distributions and other |
|
(3,784 |
) |
|
|
(35,294 |
) |
Dividend to Class A common stock |
|
(19,301 |
) |
|
|
— |
|
Distributions to redeemable noncontrolling interests related to Class A common stock dividend |
|
(58,705 |
) |
|
|
— |
|
Distributions to redeemable noncontrolling interests related to Manager Compensation |
|
(22,779 |
) |
|
|
— |
|
Distributions to redeemable noncontrolling interests related to income taxes |
|
(17,970 |
) |
|
|
— |
|
Repurchase of redeemable noncontrolling interests related to Equity Transactions |
|
(36,220 |
) |
|
|
— |
|
Repurchase of noncontrolling interest |
|
(4,060 |
) |
|
|
(1,414 |
) |
Noncontrolling interest distributions |
|
(6,326 |
) |
|
|
(546 |
) |
Noncontrolling interest contributions |
|
55 |
|
|
|
35,461 |
|
Net cash provided by (used in) financing activities |
|
158,117 |
|
|
|
4,939 |
|
Net change in cash, cash equivalents and restricted cash |
|
(105,463 |
) |
|
|
26,795 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
135,117 |
|
|
|
41,420 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
29,654 |
|
|
$ |
68,215 |
|
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