Crescent Energy to acquire Uinta basin oil assets for $815 million

Crescent Energy Co. agreed to acquire Uinta basin assets from Verdun Oil Co. II LLC for $815 million.
Feb. 16, 2022

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.

About the Author

Mikaila Adams

Managing Editor - News

Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was named Managing Editor - News in 2019. She holds a degree from Texas Tech University.

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