Crescent Energy Reports First Quarter 2023 Financial and Operating Results
Declares Cash Dividend of $0.12 per Share, Consistent with Return of Capital Framework
Continues Opportunistic Growth Through Western Eagle Ford Bolt-On Acquisition
HOUSTON–(BUSINESS WIRE)–Crescent Energy Company (NYSE: CRGY) today announced financial and operating results for the first quarter of 2023 and declared a quarterly cash dividend for the period of $0.12 per share. Crescent has provided a supplemental slide deck on its first quarter results, which can be found at www.crescentenergyco.com. The Company plans to host a conference call and webcast at 10 a.m. CDT, Thursday, May 11, 2023. Details can be found in this release.
First Quarter 2023 Highlights
- Reported $256 million of net income and $54 million of Adjusted Net Income(1)
- Generated $232 million of Adjusted EBITDAX(1) and $240 million of Operating Cash Flow
- Produced 137 MBoe/d; oil and liquids composed of 43% and 57% of volumes, respectively
- Capital investments totaled $202 million, in line with expectations for the year; annual capex guidance unchanged
- Exited the first quarter at 1.0x Net LTM Leverage(1), in line with the Company’s long-term target
- Greater than $1 billion of liquidity at quarter-end, following successful $400 million opportunistic high yield offering in February
- Announced an accretive Western Eagle Ford bolt-on acquisition of operated interest in existing non-operated assets from Mesquite Energy, which is expected to close early in the third quarter, subject to customary closing conditions
Crescent CEO David Rockecharlie said, “We had solid results in the first quarter and continued to execute on our proven business model that provides a stable, low-risk base business and opportunistic growth through our acquisition strategy. Our average daily production was in the upper half of our annual outlook range, and we continued to deliver operational efficiencies. Our strong operational performance and debt reduction during last year’s period of higher commodity prices positioned us well to be opportunistic in today’s market. Our recent Eagle Ford bolt-on acquisition adds long-life production and significantly expands our development inventory at an attractive valuation. We believe this acquisition meaningfully enhances the value of our business through increased scale and operatorship in a core area for Crescent.”
First Quarter 2023 Results
Crescent reported $256 million of net income and $54 million of Adjusted Net Income(1) in the first quarter. The Company generated $232 million of Adjusted EBITDAX(1) and $240 million of Operating Cash Flow for the period. Levered Free Cash Flow(1) for the period was $1 million, as drilling and completion efficiencies moved a larger portion of the annual capex program into the end of the first quarter. However, annual capex guidance remains unchanged.
First quarter production averaged 137 net MBoe/d (composed of 43% oil and 57% liquids). The slight decrease quarter-over-quarter was primarily related to winter weather. Average realized prices per Boe for the first quarter, including and excluding the effect of commodity derivatives, were $43.10 and $46.94, respectively. Crescent’s average realized natural gas price, excluding derivative settlements, totaled $5.14 per MMBtu for the quarter, a 150% premium to Henry Hub, driven by exposure to West Coast markets.
First quarter operating expense and adjusted operating expense excluding production and other taxes(1), stated on a per Boe basis, were $22.12 and $16.57, respectively. Operating expenses were impacted by higher-cost residue gas related to increased natural gas prices, which were more than offset by higher realized prices. Adjusting for these costs, Crescent’s adjusted operating expense per Boe was in line with expectations. G&A expense and Adjusted Recurring Cash G&A(1) (includes Manager Compensation and excludes non-cash equity-based compensation) each totaled $21 million.
Crescent operated one rig in the Uinta and one rig in the Eagle Ford during the first quarter and incurred capital investments of $202 million. The Company drilled 15 gross operated wells (seven in the Eagle Ford and eight in the Uinta) and brought online 18 gross operated wells (13 in the Eagle Ford and five in the Uinta). Per-well capital costs were in line with expectations and wells were brought online slightly ahead of schedule driven by operational efficiencies, including faster drill times. Crescent reaffirmed its $575 – $650 million 2023 capital budget, which takes into account accelerated first quarter activity and excludes any additional activity related to the Western Eagle Ford bolt-on acquisition.
Financial Position
Crescent maintains a strong balance sheet and a low leverage profile. As of March 31, 2023, the Company had total long-term debt of $1.3 billion, a Net LTM Leverage(1) ratio of 1.0x, in-line with its stated long-term target and liquidity of $1.1 billion.
In February 2023, the Company issued $400 million aggregate principal amount of 9.250% Senior Unsecured Notes due 2028 (together with the 7.250% Senior Unsecured Notes due 2026, the “Senior Notes”) and used net proceeds to repay amounts outstanding on its revolving credit facility (the “Revolving Credit Facility”). The offering demonstrated Crescent’s commitment to balance sheet strength and increased its liquidity.
Return of Capital
Consistent with the Company’s framework to return cash to shareholders, the Company’s board of directors (the “Board”) approved a first quarter cash dividend of $0.12 per share, which is in-line with Crescent’s fixed-within-a-framework policy to distribute 10% of Adjusted EBITDAX at guidance pricing. The first quarter cash dividend is payable on June 7, 2023, to shareholders of record as of the close of business on May 24, 2023. Any payment of future dividends is subject to Board approval and other factors.
Risk Management
Crescent utilizes hedges to manage commodity price risks, support the balance sheet and protect returns on invested capital. Consistent with its strategy, the Company added hedges in connection with the signing of the Western Eagle Ford acquisition to protect returns on invested capital. Complete details on the Company’s derivative positions can be found in its investor presentation located at https://ir.crescentenergyco.com/events-presentations/.
Western Eagle Ford Bolt-On
On May 2, 2023, Crescent announced that it had entered into a definitive purchase agreement to acquire operatorship and incremental working interest in its existing Western Eagle Ford assets from Mesquite Energy, Inc. for total consideration of $600 million in cash, subject to customary purchase price adjustments. The accretive acquisition is consistent with Crescent’s strategy of acquiring high-value, cash flowing assets while maintaining financial strength and is expected to close early in the third quarter of 2023, subject to customary closing conditions. The Company expects to update its 2023 outlook to incorporate the acquisition upon closing.
First Quarter 2023 Conference Call Information
Crescent plans to host a conference call to discuss its first quarter 2023 financial and operating results at 10 a.m. CDT on Thursday, May 11, 2023. Complete details are below. A webcast replay will be available on the website following the call. Crescent has provided an investor presentation on its first quarter 2023 results on its website, www.crescentenergyco.com.
Date: Thursday, May 11, 2023
Time: 10 a.m. CDT (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 low-decline assets in proven regions across the lower 48 states that generate 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 through strong 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 Transaction. 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; uncertainties inherent in estimating natural gas and oil reserves and in projecting future rates of production; our hedging strategy and results; federal and state regulations and laws; the impact of pandemics such as COVID-19; actions by the Organization of the Petroleum Exporting Countries (“OPEC”) and non-OPEC oil-producing countries, including recent production cuts by OPEC; the impact of armed conflict, including in Ukraine; the impact of disruptions in the bank and capital markets; the timing and success of business development efforts, including acquisition and disposition opportunities; our reliance on our external manager; 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 March 30, 2022, Crescent closed the acquisition of Uinta Basin assets (the “Uinta Transaction”). Referenced results for the three months ended March 31, 2022 do not include contribution from the Uinta Basin assets before closing.
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 and Levered Free Cash Flow, for both (i) historical periods 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 |
|||||||
|
|
March 31, 2023 |
|
March 31, 2022 |
|
December 31, 2022 |
|||
|
Average daily net sales volumes: |
|
|
|
|
|
|||
|
Oil (MBbls/d) |
|
59 |
|
|
44 |
|
|
63 |
|
Natural gas (MMcf/d) |
|
351 |
|
|
333 |
|
|
352 |
|
NGLs (MBbls/d) |
|
19 |
|
|
20 |
|
|
18 |
|
Total (MBoe/d) |
|
137 |
|
|
120 |
|
|
139 |
|
Average realized prices, before effects of derivative settlements: |
|
|
|
|
|
|||
|
Oil ($/Bbl) |
$ |
69.99 |
|
$ |
93.47 |
|
$ |
77.06 |
|
Natural gas ($/Mcf) |
|
5.14 |
|
|
4.77 |
|
|
5.58 |
|
NGLs ($/Bbl) |
|
24.84 |
|
|
38.97 |
|
|
29.15 |
|
Total ($/Boe) |
|
46.94 |
|
|
54.28 |
|
|
52.50 |
|
Average realized prices, after effects of derivative settlements: |
|
|
|
|
|
|||
|
Oil ($/Bbl)(3) |
$ |
62.83 |
|
$ |
68.36 |
|
$ |
66.97 |
|
Natural gas ($/Mcf) |
|
4.61 |
|
|
3.11 |
|
|
3.48 |
|
NGLs ($/Bbl) |
|
29.21 |
|
|
24.81 |
|
|
29.85 |
|
Total ($/Boe) |
|
43.10 |
|
|
38.02 |
|
|
42.74 |
|
Expense (per Boe) |
|
|
|
|
|
|||
|
Operating expense |
$ |
22.12 |
|
$ |
20.27 |
|
$ |
19.92 |
|
Depreciation, depletion and amortization |
|
11.92 |
|
|
9.16 |
|
|
12.29 |
|
General and administrative expense |
|
1.73 |
|
|
2.08 |
|
|
1.99 |
|
Non-GAAP expense (per Boe) |
|
|
|
|
|
|||
|
Adjusted operating expense, excluding production and other taxes(1)(2) |
$ |
16.57 |
|
$ |
14.87 |
|
$ |
14.65 |
|
Adjusted Recurring Cash G&A(1) |
|
1.69 |
|
|
1.69 |
|
|
1.73 |
| Crescent Income Statement | |||||||
|
(Unaudited) |
|||||||
|
|
For the three months ended |
||||||
|
(in thousands, except per share data) |
March 31, 2023 |
|
March 31, 2022 |
||||
|
Revenues: |
|
|
|
||||
|
Oil |
$ |
372,336 |
|
|
$ |
372,509 |
|
|
Natural gas |
|
162,021 |
|
|
|
143,311 |
|
|
Natural gas liquids |
|
42,523 |
|
|
|
71,179 |
|
|
Midstream and other |
|
13,257 |
|
|
|
11,911 |
|
|
Total revenues |
|
590,137 |
|
|
|
598,910 |
|
|
Expenses: |
|
|
|
||||
|
Lease operating expense |
|
130,954 |
|
|
|
94,823 |
|
|
Workover expense |
|
12,571 |
|
|
|
9,959 |
|
|
Asset operating expense |
|
22,218 |
|
|
|
16,619 |
|
|
Gathering, transportation and marketing |
|
47,403 |
|
|
|
48,276 |
|
|
Production and other taxes |
|
54,923 |
|
|
|
46,484 |
|
|
Depreciation, depletion and amortization |
|
146,483 |
|
|
|
99,019 |
|
|
Exploration expense |
|
— |
|
|
|
91 |
|
|
Midstream operating expense |
|
3,779 |
|
|
|
3,078 |
|
|
General and administrative expense |
|
21,238 |
|
|
|
22,522 |
|
|
(Gain) loss on sale of assets |
|
— |
|
|
|
(4,790 |
) |
|
Total expenses |
|
439,569 |
|
|
|
336,081 |
|
|
Income (loss) from operations |
|
150,568 |
|
|
|
262,829 |
|
|
Other income (expense): |
|
|
|
||||
|
Gain (loss) on derivatives |
|
150,310 |
|
|
|
(673,486 |
) |
|
Interest expense |
|
(29,320 |
) |
|
|
(16,524 |
) |
|
Other income (expense) |
|
250 |
|
|
|
(1,499 |
) |
|
Income (loss) from equity affiliates |
|
163 |
|
|
|
948 |
|
|
Total other income (expense) |
|
121,403 |
|
|
|
(690,561 |
) |
|
Income (loss) before taxes |
|
271,971 |
|
|
|
(427,732 |
) |
|
Income tax benefit (expense) |
|
(16,360 |
) |
|
|
21,725 |
|
|
Net income (loss) |
|
255,611 |
|
|
|
(406,007 |
) |
|
Less: net (income) loss attributable to noncontrolling interests |
|
(149 |
) |
|
|
(470 |
) |
|
Less: net (income) loss attributable to redeemable noncontrolling interests |
|
(195,668 |
) |
|
|
321,477 |
|
|
Net income (loss) attributable to Crescent Energy |
$ |
59,794 |
|
|
$ |
(85,000 |
) |
|
Net income (loss) per share: |
|
|
|
||||
|
Class A common stock – basic |
$ |
1.24 |
|
|
$ |
(2.03 |
) |
|
Class A common stock – diluted |
$ |
1.24 |
|
|
$ |
(2.03 |
) |
|
Class B common stock – basic and diluted |
$ |
— |
|
|
$ |
— |
|
|
Weighted average shares outstanding: |
|
|
|
||||
|
Class A common stock – basic |
|
48,282 |
|
|
|
41,954 |
|
|
Class A common stock – diluted |
|
48,665 |
|
|
|
41,954 |
|
|
Class B common stock – basic and diluted |
|
118,645 |
|
|
|
127,536 |
|
|
Crescent Consolidated Balance Sheet |
|||||||
|
(Unaudited) |
|||||||
|
|
March 31, |
|
December 31, |
||||
|
|
(in thousands, except share data) |
||||||
|
ASSETS |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
2,930 |
|
|
$ |
— |
|
|
Accounts receivable, net |
|
467,592 |
|
|
|
457,071 |
|
|
Accounts receivable – affiliates |
|
2,771 |
|
|
|
2,681 |
|
|
Derivative assets – current |
|
19,460 |
|
|
|
14,878 |
|
|
Drilling advances |
|
10,541 |
|
|
|
14,655 |
|
|
Prepaid and other current assets |
|
36,747 |
|
|
|
27,454 |
|
|
Total current assets |
|
540,041 |
|
|
|
516,739 |
|
|
Property, plant and equipment: |
|
|
|
||||
|
Oil and natural gas properties at cost, successful efforts method |
|
|
|
||||
|
Proved |
|
7,308,862 |
|
|
|
7,113,819 |
|
|
Unproved |
|
307,925 |
|
|
|
314,255 |
|
|
Oil and natural gas properties at cost, successful efforts method |
|
7,616,787 |
|
|
|
7,428,074 |
|
|
Field and other property and equipment, at cost |
|
191,531 |
|
|
|
176,831 |
|
|
Total property, plant and equipment |
|
7,808,318 |
|
|
|
7,604,905 |
|
|
Less: accumulated depreciation, depletion, amortization and impairment |
|
(2,303,470 |
) |
|
|
(2,167,135 |
) |
|
Property, plant and equipment, net |
|
5,504,848 |
|
|
|
5,437,770 |
|
|
Derivative assets – noncurrent |
|
8,548 |
|
|
|
— |
|
|
Investment in equity affiliates |
|
12,602 |
|
|
|
15,038 |
|
|
Other assets |
|
45,670 |
|
|
|
50,302 |
|
|
TOTAL ASSETS |
$ |
6,111,709 |
|
|
$ |
6,019,849 |
|
|
|
|
|
|
||||
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable and accrued liabilities |
$ |
566,156 |
|
|
$ |
524,690 |
|
|
Accounts payable – affiliates |
|
39,513 |
|
|
|
27,652 |
|
|
Derivative liabilities – current |
|
154,149 |
|
|
|
312,975 |
|
|
Financing lease obligations – current |
|
3,543 |
|
|
|
3,341 |
|
|
Other current liabilities |
|
22,755 |
|
|
|
25,091 |
|
|
Total current liabilities |
|
786,116 |
|
|
|
893,749 |
|
|
Long-term debt |
|
1,244,587 |
|
|
|
1,247,558 |
|
|
Derivative liabilities – noncurrent |
|
19,578 |
|
|
|
63,737 |
|
|
Asset retirement obligations |
|
353,674 |
|
|
|
346,868 |
|
|
Deferred tax liability |
|
163,196 |
|
|
|
147,348 |
|
|
Financing lease obligations – noncurrent |
|
7,149 |
|
|
|
7,412 |
|
|
Other liabilities |
|
13,763 |
|
|
|
14,183 |
|
|
Total liabilities |
|
2,588,063 |
|
|
|
2,720,855 |
|
|
Commitments and contingencies |
|
|
|
||||
|
Redeemable noncontrolling interests |
|
2,607,169 |
|
|
|
2,436,703 |
|
|
Equity: |
|
|
|
||||
|
Class A common stock, $0.0001 par value; 1,000,000,000 shares authorized, 49,433,154 shares issued, and 48,282,163 shares outstanding as of March 31, 2023 and December 31, 2022 |
|
5 |
|
|
|
5 |
|
|
Class B common stock, $0.0001 par value; 500,000,000 shares authorized and 118,645,323 shares issued and outstanding as of March 31, 2023 and December 31, 2022 |
|
12 |
|
|
|
12 |
|
|
Preferred stock, $0.0001 par value; 500,000,000 shares authorized and 1,000 Series I preferred shares issued and outstanding as of March 31, 2023 and December 31, 2022 |
|
— |
|
|
|
— |
|
|
Treasury stock, at cost; 1,150,991 shares of Class A common stock as of March 31, 2023 and December 31, 2022 |
|
(18,448 |
) |
|
|
(18,448 |
) |
|
Additional paid-in capital |
|
806,399 |
|
|
|
804,587 |
|
|
Retained earnings (accumulated deficit) |
|
113,543 |
|
|
|
61,957 |
|
|
Noncontrolling interests |
|
14,966 |
|
|
|
14,178 |
|
|
Total equity |
|
916,477 |
|
|
$ |
862,291 |
|
|
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY |
$ |
6,111,709 |
|
|
$ |
6,019,849 |
|
| Crescent Cash Flow Statement | |||||||
|
(Unaudited) |
|||||||
|
|
Three Months Ended March 31, |
||||||
|
|
2023 |
|
2022 |
||||
|
Cash flows from operating activities: |
(in thousands) |
||||||
|
Net income (loss) |
|
255,611 |
|
|
$ |
(406,007 |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities |
|
|
|
||||
|
Depreciation, depletion and amortization |
|
146,483 |
|
|
|
99,019 |
|
|
Deferred income tax expense (benefit) |
|
15,848 |
|
|
|
(26,675 |
) |
|
(Gain) loss on derivatives |
|
(150,310 |
) |
|
|
673,486 |
|
|
Net cash (paid) received on settlement of derivatives |
|
(47,157 |
) |
|
|
(175,801 |
) |
|
Non-cash equity-based compensation expense |
|
7,605 |
|
|
|
11,115 |
|
|
Amortization of debt issuance costs and discount |
|
1,050 |
|
|
|
1,597 |
|
|
(Gain) loss on sale of oil and natural gas properties |
|
— |
|
|
|
(4,790 |
) |
|
Restructuring of acquired derivative contracts |
|
— |
|
|
|
(51,994 |
) |
|
Settlement of acquired derivative contracts |
|
(18,647 |
) |
|
|
— |
|
|
Other |
|
(5,125 |
) |
|
|
(2,781 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
||||
|
Accounts receivable |
|
(8,952 |
) |
|
|
(179,180 |
) |
|
Accounts receivable – affiliates |
|
(90 |
) |
|
|
15,206 |
|
|
Prepaid and other current assets |
|
(4,586 |
) |
|
|
(14,469 |
) |
|
Accounts payable and accrued liabilities |
|
34,681 |
|
|
|
174,512 |
|
|
Accounts payable – affiliates |
|
11,861 |
|
|
|
23,611 |
|
|
Other |
|
1,818 |
|
|
|
442 |
|
|
Net cash provided by operating activities |
|
240,090 |
|
|
|
137,291 |
|
|
Cash flows from investing activities: |
|
|
|
||||
|
Development of oil and natural gas properties |
|
(190,478 |
) |
|
|
(93,816 |
) |
|
Acquisitions of oil and natural gas properties |
|
(11,353 |
) |
|
|
(620,342 |
) |
|
Proceeds from the sale of oil and natural gas properties |
|
4,890 |
|
|
|
764 |
|
|
Purchases of restricted investment securities – HTM |
|
(1,780 |
) |
|
|
(1,800 |
) |
|
Maturities of restricted investment securities – HTM |
|
1,800 |
|
|
|
1,800 |
|
|
Other |
|
1,808 |
|
|
|
— |
|
|
Net cash used in investing activities |
|
(195,113 |
) |
|
|
(713,394 |
) |
|
Cash flows from financing activities: |
|
|
|
||||
|
Proceeds from the issuance of Senior Notes, after premium, discount and underwriting fees |
|
394,000 |
|
|
|
199,250 |
|
|
Revolving Credit Facility borrowings |
|
218,000 |
|
|
|
771,000 |
|
|
Revolving Credit Facility repayments |
|
(613,400 |
) |
|
|
(373,000 |
) |
|
Payment of debt issuance costs |
|
(2,621 |
) |
|
|
(13,081 |
) |
|
Dividend to Class A common stock |
|
(8,208 |
) |
|
|
(5,035 |
) |
|
Distributions to redeemable noncontrolling interests related to Class A common stock dividend |
|
(20,171 |
) |
|
|
(15,323 |
) |
|
Distributions to redeemable noncontrolling interests related to Manager Compensation |
|
(9,471 |
) |
|
|
(2,726 |
) |
|
Distributions to redeemable noncontrolling interests related to income taxes |
|
(54 |
) |
|
|
— |
|
|
Noncontrolling interest distributions |
|
(924 |
) |
|
|
(645 |
) |
|
Noncontrolling interest contributions |
|
3 |
|
|
|
1,533 |
|
|
Other |
|
(826 |
) |
|
|
(456 |
) |
|
Net cash (used in) provided by financing activities |
|
(43,672 |
) |
|
|
561,517 |
|
|
Net change in cash, cash equivalents and restricted cash |
|
1,305 |
|
|
|
(14,586 |
) |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
15,304 |
|
|
|
135,117 |
|
|
Cash, cash equivalents and restricted cash, end of period |
$ |
16,609 |
|
|
$ |
120,531 |
|
Reconciliation of Non-GAAP Measures
This release includes financial measures that have not been calculated in accordance with GAAP. These non-GAAP measures include Adjusted EBITDAX, Levered Free Cash Flow, Adjusted Net Income, Adjusted Recurring Cash G&A, Adjusted Current Income Tax, Adjusted Dividends Paid and Net LTM Leverage. These supplemental non-GAAP performance measures are used by Crescent’s management and external users of its financial statements, such as industry analysts, investors, lenders and rating agencies. These non-GAAP measures should be read in conjunction with the information contained in Crescent’s audited combined and consolidated financial statements prepared in accordance with GAAP.
Adjusted EBITDAX and Levered Free Cash Flow
Crescent defines Adjusted EBITDAX as net income (loss) before interest expense, realized (gain) loss on interest rate derivatives, income tax expense (benefit), depreciation, depletion and amortization, exploration expense, non-cash gain (loss) on derivative contracts, impairment expense, non-cash equity-based compensation, gain (loss) on sale of assets, other (income) expense, Manager Compensation RNCI Distributions, transaction and nonrecurring expenses and settlement of acquired derivative contracts. Management believes Adjusted EBITDAX is a useful performance measure because it allows for an effective evaluation of the Company’s operating performance when compared against its peers, without regard to financing methods, corporate form or capital structure. The Company adjusts net income (loss) for the items listed above in arriving at Adjusted EBITDAX because these amounts can vary substantially within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income (loss) as determined in accordance with GAAP, of which such measure is the most comparable GAAP measure.
Contacts
Emily Newport
