Crescent Energy has agreed to acquire Ridgemar Energy’s Eagle Ford assets in the US in a transaction valued at $905m upfront, with additional payments contingent on future oil price benchmarks.
The acquisition is expected to bolster Crescent Energy’s presence in the Eagle Ford basin, aligning with its recent expansion strategy.
The consideration includes up to $100m in equity to be issued to Ridgemar Energy, with the remainder paid in cash.
The agreement also provides for contingent payments of up to $170m, based on average quarterly West Texas Intermediate (WTI) crude oil prices.
Crescent Energy has committed to pay $15m per quarter in 2026 and $12.5m per quarter in 2027 if average WTI prices meet or exceed $70 per barrel. Additional payments of $15m per quarter in 2026 will apply if WTI prices reach or surpass $75 per barrel.
This acquisition is positioned to enhance Crescent Energy’s footprint in the Eagle Ford region by consolidating assets adjacent to its core Central Eagle Ford operations. The transaction encompasses properties in Frio, Atascosa, La Salle, and McMullen counties in Texas, which are expected to enable operational synergies.
Crescent Energy has been actively acquiring assets in the Eagle Ford basin, completing over $4bn in acquisitions within the past 18 months. The company estimates the latest transaction will be accretive to operating cash flow, levered free cash flow, and net asset value.
Valued at 2.7 times EBITDA, the acquisition is projected to generate significant cash returns and extend Crescent Energy’s inventory of low-risk, high-return drilling locations.
The deal includes approximately 20,000 barrels of oil equivalent per day of production and 140 drilling locations considered competitive for capital investment. The effective date of the transaction is 1 October 2024, and the closing is anticipated in Q1 2025, subject to regulatory approvals and customary closing conditions.
Jefferies acted as Crescent Energy’s financial adviser, with Kirkland & Ellis serving as legal counsel. Ridgemar Energy was advised by RBC Capital Markets, with Vinson & Elkins providing legal counsel.
This agreement follows Crescent Energy’s earlier $2.1bn acquisition of SilverBow Resources in May 2024, a deal that was finalised in July. That transaction positioned Crescent Energy as the second-largest operator in the Eagle Ford basin.
