Crescent Energy Company

Greetings and welcome to the Crescent Energy Q4 2025 results 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 Reid Gallagher, Investor Relations. Thank you. You may begin.

Good morning, and thank you for joining Crescent's fourth quarter and full year 2025 conference call. Today's prepared remarks will come from our CEO, David Robert Charlie, and our CFO, Brady 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 meeting of the Federal Security Council. other disclosures. We have no obligation to update any forward review 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 10-K 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. 2025 was a transformational year for Crescent. Our team delivered strong performance by executing on our consistent strategy and capitalizing on our leading combination of investing and operating skills. As a result, we entered 2026 better positioned than ever with more scale, more focus, and more opportunity. As always, I'd like to begin with three key takeaways. First, our base business continues to deliver impressive results. In 2025, we generated significant free cash flow, exceeded expectations on both production and capital, and demonstrated the durability of our investing and operating model. And we are bringing that significant momentum into our 2026 plan. Second, we are now a focused and scaled operator in three premier basins, the Eagleford, the Permian, and the Uinta. And we see tremendous upside potential across our portfolio. Our investing and divesting activity materially upgraded the quality and scale of our portfolio. In total, we executed nearly $5 billion of transactions in 2025, closing over $4 billion of acquisitions at less than three times EBITDA and divesting nearly $1 billion of non-core assets at over five times EBITDA. This is how we compound value. recycling capital out of non-core positions and into higher return, scalable assets where we can apply our operational playbook to drive value for years to come. You have seen us successfully execute our strategy in Eagleford. Over multiple years, we have built a top three position while generating strong returns and hundreds of millions of annual synergies. It is just the beginning for us in the Permian, but we are off to a strong start and we are doubling our original synergy target. And third, our equity value proposition is even more compelling. We will continue to build long-term value through strong free cash flow and returns from our base business, but we also have significant upside catalysts embedded in our business. We are excited to introduce one of those key catalysts today, our world-class minerals platform, Crescent Royalties. Let me now discuss our strong fourth quarter in more detail. We produced 268,000 barrels of oil equivalent per day for the quarter, including 106,000 barrels of oil per day, and generated approximately $239 million of levered free cash flow. In the fourth quarter, our activity was focused predominantly in the Eagleford gas and condensate windows to capitalize on strength in the natural gas curve. Early performance has been strong, and our ability to allocate capital across both oil and gas-weighted inventory enhances the durability of our returns in a volatile commodity environment. Operationally, we continue to raise the bar across our asset base. Over the past year, we've increased drilling and completion efficiencies, extended lateral lengths, and expanded the use of SimulTrack operations across our footprint. These initiatives drove a 15% reduction in drilling and completion cost per foot year over year, and contributed to full-year CapEx outperformance. Our operational expertise is foundational to our strategy of buying assets and making them better, and we intend to apply the same proven playbook to our newly acquired Permian assets, which gives us confidence in our increased synergy targets. Our entry into the Permian was a defining step in Crescent's evolution. Today, we operate scaled positions across three premier basins, the Eagle Fruit, the Permian, and the Uinta, which is complemented by a substantial and world-class minerals portfolio. This combination provides inventory depth, commodity flexibility, and a durable free cash flow profile that positions us to outperform through cycles. Turning to our new Permian assets, integration has progressed seamlessly. As we've spent more time with the assets, our conviction in the value creation opportunity has increased. This acquisition remains one of the most compelling we've evaluated, with immediate accretion across key metrics and highly attractive cash-on-cash returns. Importantly, our synergy targets are now 100% higher than what we underwrote. which meaningfully enhances expected investment returns. That increase reflects clearer visibility into incremental operational efficiencies, overhead optimization, marketing improvements, and additional balance sheet opportunities as we implement the Crescent Playbook. Looking ahead to 2026, our plan reflects the consistent execution of our long-term free cash flow strategy. Our focus is on maximizing free cash flow while maintaining operational and capital allocation flexibility. We expect to run a six- to seven-rig program across our asset footprint. Four rigs in the Eagleford will span multiple phase windows, providing flexibility to pursue the highest returns across commodity cycles. One rig in the Uinta will target our core Ute-Land-Ute formation and continue prudent delineation of the upside across our significant resource base. following the success of our Eastern JV. And in the Permian, consistent with our acquisition announcement, we are right-sizing capital and operational intensity with a disciplined one to two rig program. Our upgraded portfolio, enhanced capital efficiency, and commodity flexibility position us to generate some of the strongest development returns we have seen in recent years, despite the current commodity price volatility. In addition to upgrading our operating portfolio, we're excited to announce the formation of Crescent Royalties. This is a major milestone in our strategy to build a leading royalty business. We have been active buyers of minerals and royalties assets for nearly 15 years, and have built one of the largest and most established minerals and royalties platforms in the sector, anchored by a core position in Eagleford under world-class operators. Today, our minerals portfolio contributes approximately $160 million of annual cash flow. By placing these assets within a dedicated capital structure, we enhance strategic flexibility and create additional pathways for long-term value recognition. With Crescent's differentiated knowledge, experience, and sourcing pipeline, we see meaningful opportunity to continue scaling this platform in a value-accretive manner. Our transformation in 2025 was significant and a testament to the power of our consistent strategy. We are relentlessly focused on building a great business with a great team that talented people feel proud to be a part of. With our success in 2025, we are well positioned to continue on our trajectory with more scale, more focus, and more opportunity than ever before. With that, I'll turn the call over to Brandy.