Crescent Energy Company

Greetings and welcome to the Crescent Energy Q3 2025 results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Reid Gallagher, Investor Relations. Thank you. You may begin.

Good morning, and thank you for joining Crescent's third quarter 2025 conference call. Today's prepared remarks will come from our CEO, David Rockefeller, and our CFO, Randy Kendall. Our Chief Operating Officer and Executive Vice President of Investments will also be available during Q&A. Today's call may contain projections and other forward-looking statements within the meaning of the Federal Securities Clause. These statements are subject to risks and uncertainties, including commodity price volatility, global geopolitical conflict, our business strategies, and other factors that may cause actual results to differ from those expressed or implied in these statements and our other disclosures. We have no obligation to update any forward-looking statements after today's call. In addition, today's discussion may include disclosure regarding non-GAAP financial measures. For reconciliation of historical non-GAAP financial measures to the most directly comparable GAAP measure, please reference our 10Q and earnings press release available under the investor section on our website. With that, I'll hand it over to David.

Good morning and thank you for joining us. Yesterday, Crescent posted financial and operating results for the third quarter. In short, it was another impressive quarter of execution for our business. Our investing and operating performance highlights that we continue to do what we say we will do. As always, I want to begin with a few key points that I hope you take away from this call. First, our business continues to deliver strong results. This quarter, we once again generated significant free cash flow with excellent operating performance. Our results exceeded expectations on all key metrics, and we are enhancing our full-year outlook for the second consecutive quarter. Second, we announced our transformative acquisition of Vital Energy, marking our accretive and scaled entry into the Permian Basin and establishing Crescent as a top 10 U.S. independent oil and gas producer. And finally, we are pleased to announce over $700 million of non-core divestitures signed this quarter, bringing our non-core divestiture program to more than $800 million year-to-date. With these asset sales, we are streamlining our portfolio at very attractive value, and the proceeds will go toward maintaining our strong balance sheet through significant debt reduction. With our successful divestitures and acquisition of Vital, we have enhanced and simplified Crescent's value proposition with more scale, more focus, and more opportunity. Following those key highlights, I will now discuss the quarter in more detail. We produced 253,000 barrels of oil equivalent per day, including 103,000 barrels of oil per day, and generated approximately $204 million of levered free cash flow for the quarter. demonstrating once again the strength of our operating model and our consistent focus on free cash flow generation. Our talented team continues to find ways to win, increasing well productivity alongside continued capital savings, driving even stronger returns for our investors. With these impressive capital efficiencies, we have again enhanced our outlook for the year, increasing free cash flow with flat production from less capital. In the Eagle Fern, where our activity was focused this quarter, we have achieved 15% savings per foot on our capital versus last year's program, along with an impressive rate of change on well productivity, with our 2024 and 2025 wells outperforming prior activity by 20-plus percent. In line with our guidance at the outset of this year, our capital for the remainder of the year is focused on our gassier acreage in the southern and western Eagleford. as we capitalize on the relative strength in the natural gas curve. On top of our outstanding business performance this quarter, we also made a significant step forward on our growth trajectory with our announced acquisition of Vital Energy, creating a top 10 independent U.S. oil and gas producer with line of sight to an investment grade rating. As we progress toward closing, which we expect to occur before year end, we continue to see significant value in the vital assets under our operator show. We expect the vital acquisition to generate immediate accretion across all key metrics and deliver attractive cash-on-cash investment returns exceeding two times multiple invested capital with the valuation covered by vitals existing production base. As always, and in line with our initial announcement, we will apply Crescent's consistent strategy to this acquisition. We plan to high-grade capital allocation on vitals assets by taking activity down to one to two rigs at closing, which will deliver higher free cash flow and returns for investors. This is only a small part of the synergies we outlined in our original announcement, and we now see upside beyond the $90 to $100 million of base case synergies we announced. We have proven our ability to integrate and execute, and we believe there is an opportunity for significant value creation through improved operations on the vital assets that was not included in our underwriting. The vital acquisition is a scaled entry into the Permian Basin and significantly expands Crescent's opportunity for future growth. With more than $60 billion of asset acquisition potential surrounding our pro forma footprint, We have demonstrated our playbook for accretive growth through acquisition in the Eagleford, and we are confident in our ability to continue to scale profitably across our Eagleford and Permian positions. Alongside our vital announcement, we also announced a sizable pipeline of non-core divestitures to accelerate value, streamline our business, and further strengthen our pro forma balance sheet. We are one of the most consistently active operators in the A&D market, and we are pleased to report that we have successfully signed more than $700 million of accretive divestitures this quarter, bringing our year-to-date sales to over $800 million. With the sales announced this quarter encompassing the entirety of our legacy Barnett, conventional Rockies, and mid-continent positions, we've exceeded our expectations in regards to timing as well as valuations. with the total sale value representing more than 5.5 times EBITDA and a significant premium to the year-end approved PV10. The sales also meaningfully enhance the Crescent value proposition as we emerge with a more focused asset portfolio, increased margins, improved break-evens, longer reserve life, and an even stronger balance sheet. Going forward, the combination of our continued strong operational performance The vital acquisition and our successful divestiture program positions Crescent with more scale, more focus, and an even greater opportunity than ever before. Upon closing of our announced transactions, we will operate across three core regions, the Eagleford, the Permian, and the Uinta. With scaled positions in each of these premier regions, we will continue to pursue long-term value for shareholders through strong free cash flow, operational excellence, and profitable growth. With that, I'll turn the call over to Brandi to provide more detail on the quarter.