Declares Cash Dividend of $0.12 per Share, Consistent with Return of Capital Framework

Continues Opportunistic Growth Through Western Eagle Ford Bolt-On Acquisition

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

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. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax burden, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDAX. The Company’s presentation of Adjusted EBITDAX should not be construed as an inference that its results will be unaffected by unusual or nonrecurring items. Crescent’s computations of Adjusted EBITDAX may not be identical to other similarly titled measures of other companies. In addition, the Revolving Credit Facility and the Senior Notes include a calculation of Adjusted EBITDAX for purposes of covenant compliance.

Crescent defines Levered Free Cash Flow as Adjusted EBITDAX less interest expense, excluding non-cash deferred financing cost amortization, realized gain (loss) on interest rate derivatives, current income tax benefit (expense), Tax RNCI Distributions and development of oil and natural gas properties. Levered Free Cash Flow does not take into account amounts incurred on acquisitions or proceeds received from asset sales. Levered Free Cash Flow is not a measure of performance as determined by GAAP. Levered Free Cash Flow is a supplemental non-GAAP performance measure that is used by Crescent’s management and external users of its financial statements, such as industry analysts, investors, lenders and rating agencies. Management believes Levered Free Cash Flow is a useful performance measure because it allows for an effective evaluation of operating and financial performance and the ability of the Company’s operations to generate cash flow that is available to reduce leverage or distribute to equity holders. Levered Free Cash Flow 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, or as an indicator of actual operating performance or investing activities. The Company’s computations of Levered Free Cash Flow may not be comparable to other similarly titled measures of other companies.

The following table reconciles Adjusted EBITDAX (non-GAAP) and Levered Free Cash Flow (non-GAAP) to net income (loss), the most directly comparable financial measure calculated in accordance with GAAP:

Reconciliation of Operating Cash Flow to Levered Free Cash Flow (non-GAAP)

The table below reconciles net cash provided by operating activities to Levered Free Cash Flow:

Adjusted Net Income

Crescent defines Adjusted Net Income as net income (loss), adjusted for certain items. Management believes that Adjusted Net Income is useful to investors in evaluating operational trends of the Company and its performance relative to other oil and gas companies. Adjusted Net Income is not a measure of financial performance under GAAP and should not be considered in isolation or as a substitute for net income as an indicator of financial performance.

The following table presents a reconciliation of Adjusted Net Income (non-GAAP) to net income (loss), the most directly comparable financial measure calculated in accordance with GAAP:

Adjusted Recurring Cash G&A

Crescent defines Adjusted Recurring Cash G&A as general and administrative expense, excluding non-cash equity-based compensation and transaction and nonrecurring expenses, and including Manager Compensation RNCI Distributions. Management believes Adjusted Recurring Cash G&A is a useful performance measure because it facilitates the ability for investors to compare Crescent's cash G&A expense against peer companies. As discussed elsewhere, these adjustments are made to Adjusted EBITDAX and Levered Free Cash Flow for historical periods and periods for which we present guidance.

Adjusted Current Income Tax

Crescent defines Adjusted Current Income Tax as current income tax provision (benefit) plus Income Tax RNCI Distributions. Management believes Adjusted Current Income Tax is a useful performance measure because it reflects as tax provision (benefit) the amount of cash distributed for taxes that is otherwise classified as redeemable noncontrolling interest distributions, facilitating the ability for investors to compare Crescent’s tax provision (benefit) against peer companies, and is included in the Company’s Levered Free Cash Flow calculation for historical periods and for periods for which guidance is provided.

Adjusted Dividends Paid

Crescent defines Adjusted Dividends Paid as Dividend to Class A Common Stock plus Dividend RNCI Distributions. Management believes Adjusted Dividends Paid is a useful performance measure because it reflects the full amount of cash distributed for dividends that is otherwise classified as distributions to redeemable noncontrolling interests, facilitating the ability for investors to compare Crescent’s dividends paid against peer companies.

Net LTM Leverage

Crescent defines Net LTM Leverage as the ratio of consolidated total debt to consolidated Adjusted EBITDAX as calculated under the credit agreement (the "Credit Agreement") governing Crescent’s Revolving Credit Facility. Management believes Net LTM Leverage is a useful measurement because it takes into account the impact of acquisitions. For purposes of the Credit Agreement, (i) consolidated total debt is calculated as total principal amount of Senior Notes, plus borrowings on our Revolving Credit Facility and unreimbursed drawings under letters of credit, less cash and cash equivalents and (ii) consolidated Adjusted EBITDAX includes certain adjustments to account for EBITDAX contributions associated with acquisitions the Company has closed within the last twelve months. Adjusted EBITDAX is a non-GAAP financial measure.

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