Crescent Energy Co., Houston, has agreed to acquire incremental working interest in its operated Western Eagle Ford assets, primarily in Dimmit and Webb Counties, Tex., for $250 million in cash. Looking ahead, the company estimates the deal will increase net production by 12,000 boe/d (about 70% liquids) in this year’s fourth quarter, adding about $5 million to capital investments in the quarter.
The deal, through an undisclosed seller, is the second to increase its Eagle Ford shale position this year following the July close of its $600-million acquisition of operatorship interests in the western portion of the play, the company said in a release Sept. 6 (OGJ Online, May 3, 2023).
Combined, Crescent will have increased its legacy 15% non-operated interest to a 63% operated working interest in the acquired assets and will operate about 90% of its broader Eagle Ford position. Crescent Energy sees potential upside from the Austin Chalk and Upper Eagle Ford.
As a result, Crescent Energy has increased its full year 2023 production guidance to 146,000-151,000 boe/d and its capital expenditures budget (excluding acquisitions) to $580-630 million.
The transaction is expected to close in September 2023, subject to customary closing conditions, with an effective date of June 1, 2023.
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