Crescent Energy Co. agreed to acquire Uinta basin assets from Verdun Oil Co. II LLC for $815 million, and post-closing, plans to operate two rigs in the basin for the remainder of the year with capital of $225-275 million. Crescent’s revised 2022 capital budget is expected to be $600-700 million.
The assets, previously owned by EP Energy, include over 400 producing vertical and horizontal wells. The deal provides Crescent with more than 145,000 contiguous net acres (>85% held-by-production), primarily in Duchesne and Uintah counties, Utah. The assets are operated with an average working interest of ~83% and average royalty rates less than ~20%.
The all-cash transaction is expected to close in first-half 2022, subject to customary closing conditions, including certain regulatory approvals.
KKR & Co. businesses Independence Energy LLC and Contango Oil & Gas Co. last year agreed to merge (OGJ Online, June 8, 2021). Upon completion in December, the merged company formed Crescent Energy Co.