QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Large accelerated filer | ☐ | ☒ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Part I - Financial Information | |||||
Part II - Other Information | |||||
Item 1. Legal Proceedings | |||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | |||||
CRESCENT ENERGY COMPANY | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(Unaudited) | |||||||||||
(in thousands, except share data) | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net | |||||||||||
Accounts receivable – affiliates | |||||||||||
Derivative assets – current | |||||||||||
Drilling advances | |||||||||||
Prepaid expenses | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment: | |||||||||||
Oil and natural gas properties at cost, successful efforts method | |||||||||||
Proved | |||||||||||
Unproved | |||||||||||
Oil and natural gas properties at cost, successful efforts method | |||||||||||
Field and other property and equipment, at cost | |||||||||||
Total property, plant and equipment | |||||||||||
Less: accumulated depreciation, depletion, amortization and impairment | ( | ( | |||||||||
Property, plant and equipment, net | |||||||||||
Investment in equity affiliates | |||||||||||
Other assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
The accompanying notes to financial statements are an integral part of these condensed consolidated financial statements | |||||||||||
CRESCENT ENERGY COMPANY | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(Unaudited) | |||||||||||
(in thousands, except share data) | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | $ | |||||||||
Accounts payable – affiliates | |||||||||||
Derivative liabilities – current | |||||||||||
Financing lease obligations – current | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Derivative liabilities – noncurrent | |||||||||||
Asset retirement obligations | |||||||||||
Deferred tax liability | |||||||||||
Financing lease obligations – noncurrent | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 9) | |||||||||||
Redeemable noncontrolling interests | |||||||||||
Equity: | |||||||||||
Class A common stock, $ | |||||||||||
Class B common stock, $ | |||||||||||
Preferred stock, $ | |||||||||||
Treasury stock, at cost; | ( | ( | |||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Oil | $ | $ | $ | $ | |||||||||||||||||||
Natural gas | |||||||||||||||||||||||
Natural gas liquids | |||||||||||||||||||||||
Midstream and other | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Lease operating expense | |||||||||||||||||||||||
Workover expense | |||||||||||||||||||||||
Asset operating expense | |||||||||||||||||||||||
Gathering, transportation and marketing | |||||||||||||||||||||||
Production and other taxes | |||||||||||||||||||||||
Depreciation, depletion and amortization | |||||||||||||||||||||||
Exploration expense | |||||||||||||||||||||||
Midstream and other operating expense | |||||||||||||||||||||||
General and administrative expense | |||||||||||||||||||||||
(Gain) loss on sale of assets | ( | ( | |||||||||||||||||||||
Total expenses | |||||||||||||||||||||||
Income (loss) from operations | |||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Gain (loss) on derivatives | ( | ( | ( | ||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense) | ( | ( | |||||||||||||||||||||
Income (loss) from equity affiliates | |||||||||||||||||||||||
Total other income (expense) | ( | ( | ( | ||||||||||||||||||||
Income (loss) before taxes | ( | ||||||||||||||||||||||
Income tax benefit (expense) | ( | ( | ( | ||||||||||||||||||||
Net income (loss) | ( | ||||||||||||||||||||||
Less: net (income) loss attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
Less: net (income) loss attributable to redeemable noncontrolling interests | ( | ( | ( | ||||||||||||||||||||
Net income (loss) attributable to Crescent | $ | ( | $ | $ | $ | ||||||||||||||||||
Net income (loss) per share: | |||||||||||||||||||||||
Class A common stock – basic | $ | ( | $ | $ | $ | ||||||||||||||||||
Class A common stock – diluted | $ | ( | $ | $ | $ | ||||||||||||||||||
Class B common stock – basic and diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Class A common stock – basic | |||||||||||||||||||||||
Class A common stock – diluted | |||||||||||||||||||||||
Class B common stock – basic and diluted |
CRESCENT ENERGY COMPANY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Crescent Energy Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Series I Preferred Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Noncontrolling Interest | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend to Class A common stock | — | — | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in deferred taxes related to basis in OpCo (see Note 2) | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment of redeemable noncontrolling interests to redemption amount (see Note 2) | — | — | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of noncontrolling interest | — | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend to Class A common stock | — | — | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in deferred taxes related to basis in OpCo (see Note 2) | — | — | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment of redeemable noncontrolling interests to redemption amount (see Note 2) | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements |
CRESCENT ENERGY COMPANY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Crescent Energy Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Series I Preferred Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Noncontrolling Interest | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend to Class A common stock | — | — | — | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in deferred taxes related to basis differences associated with the Equity Transactions (see Note 2) | — | — | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in equity associated with the Equity Transactions (see Note 1) | ( | ( | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CRESCENT ENERGY COMPANY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Crescent Energy Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Series I Preferred Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Noncontrolling Interest | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | $ | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend to Class A common stock | — | — | — | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity based compensation | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend to Class A common stock | — | — | — | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity based compensation | — | — | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in deferred taxes related to basis differences associated with the Class A Conversion | — | — | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in equity associated with the Class A Conversion | ( | ( | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend to Class A common stock | — | — | — | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity based compensation | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in deferred taxes related to basis differences associated with the Equity Issuance | — | — | — | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in equity associated with the Equity Issuance | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ | ( | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | $ | |||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||||||||
Depreciation, depletion and amortization | |||||||||||
Deferred income tax expense (benefit) | |||||||||||
(Gain) loss on derivatives | |||||||||||
Net cash (paid) received on settlement of derivatives | ( | ( | |||||||||
Non-cash equity-based compensation expense | |||||||||||
Amortization of debt issuance costs and discount | |||||||||||
(Gain) loss on sale of oil and natural gas properties | ( | ||||||||||
Restructuring of acquired derivative contracts | ( | ||||||||||
Settlement of acquired derivative contracts | ( | ( | |||||||||
Other | ( | ( | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Accounts receivable – affiliates | |||||||||||
Prepaid and other current assets | ( | ( | |||||||||
Accounts payable and accrued liabilities | |||||||||||
Accounts payable – affiliates | |||||||||||
Other | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Development of oil and natural gas properties | ( | ( | |||||||||
Acquisitions of oil and natural gas properties | ( | ( | |||||||||
Proceeds from the sale of oil and natural gas properties | |||||||||||
Purchases of restricted investment securities – HTM | ( | ( | |||||||||
Maturities of restricted investment securities – HTM | |||||||||||
Other | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from the issuance of Senior Notes, after premium, discount and underwriting fees | |||||||||||
Revolving Credit Facility borrowings | |||||||||||
Revolving Credit Facility repayments | ( | ( | |||||||||
Payment of debt issuance costs | ( | ( | |||||||||
Proceeds from the Equity Issuance after underwriting fees | |||||||||||
Payment of Equity Issuance costs | ( | ||||||||||
Redeemable noncontrolling interest contributions | |||||||||||
Redeemable noncontrolling interest distributions | ( | ||||||||||
Dividend to Class A common stock | ( | ( | |||||||||
Distributions to redeemable noncontrolling interests related to Class A common stock dividend | ( | ( | |||||||||
Distributions to redeemable noncontrolling interests related to Manager Compensation | ( | ( | |||||||||
Contributions from (distributions to) redeemable noncontrolling interests related to income taxes | ( | ||||||||||
Repurchase of redeemable noncontrolling interests related to Equity Transactions | ( | ||||||||||
Repurchase of noncontrolling interest | ( | ||||||||||
Noncontrolling interest distributions | ( | ( | |||||||||
Noncontrolling interest contributions | |||||||||||
Cash paid for treasury stock acquired for equity-based compensation tax withholding | ( | ||||||||||
Other | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Net change in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ |
As of September 30, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash – current | |||||||||||
Restricted cash – noncurrent | |||||||||||
Total cash, cash equivalents and restricted cash | $ | $ |
Redeemable Noncontrolling Interests | |||||
(in thousands) | |||||
Balance as of December 31, 2022 | $ | ||||
Net income attributable to redeemable noncontrolling interests | |||||
Distributions from OpCo related to Class A common stock dividend, Manager compensation and income taxes | ( | ||||
Accrued OpCo distribution | ( | ||||
Equity-based compensation | |||||
Balance as of March 31, 2023 | $ | ||||
Net income attributable to redeemable noncontrolling interests | |||||
Contributions | |||||
Distributions | ( | ||||
Distributions from OpCo related to Class A common stock dividend, Manager compensation and income taxes, net | ( | ||||
Accrued OpCo distribution | ( | ||||
Equity-based compensation | |||||
Change in redeemable noncontrolling interests associated with the Class A Conversion | ( | ||||
Balance as of June 30, 2023 | $ | ||||
Net income attributable to redeemable noncontrolling interests | ( | ||||
Contributions | |||||
Distributions from OpCo related to Class A common stock dividend, Manager compensation and income taxes, net | ( | ||||
Accrued OpCo distribution | ( | ||||
Equity-based compensation | |||||
Change in redeemable noncontrolling interests associated with the Equity Issuance | ( | ||||
Balance as of September 30, 2023 | $ |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Supplemental cash flow disclosures: | |||||||||||
Interest paid, net of amounts capitalized | $ | $ | |||||||||
Income tax (refunds) payments | ( | ||||||||||
Non-cash investing and financing activities: | |||||||||||
Capital expenditures included in accounts payable and accrued liabilities | $ | $ | |||||||||
Right-of-use assets obtained in exchange for leases | |||||||||||
Production Period | Volumes | Weighted Average Fixed Price | Fair Value | ||||||||||||||||||||
Crude oil swaps (Bbls): | (in thousands) | (in thousands) | |||||||||||||||||||||
WTI | |||||||||||||||||||||||
2023 | $ | $ | ( | ||||||||||||||||||||
2024 | $ | ( | |||||||||||||||||||||
Brent | |||||||||||||||||||||||
2023 | $ | ( | |||||||||||||||||||||
2024 | $ | ( | |||||||||||||||||||||
Crude oil collars – WTI (Bbls): | |||||||||||||||||||||||
2023 | $ | - | $ | ( | |||||||||||||||||||
2024 | $ | - | $ | ( | |||||||||||||||||||
2025 (1) | $ | - | $ | ( | |||||||||||||||||||
Crude oil collars – Brent (Bbls): | |||||||||||||||||||||||
2024 | $ | - | $ | ||||||||||||||||||||
2025 | $ | - | $ | ( | |||||||||||||||||||
Natural gas swaps (MMBtu): | |||||||||||||||||||||||
2023 | $ | ( | |||||||||||||||||||||
2024 | $ | ||||||||||||||||||||||
Natural gas collars (MMBtu): | |||||||||||||||||||||||
2024 | $ | - | $ | ||||||||||||||||||||
2025 | $ | - | $ | ( | |||||||||||||||||||
Crude oil basis swaps (Bbls): | |||||||||||||||||||||||
2023 | $ | ||||||||||||||||||||||
2024 | $ | ||||||||||||||||||||||
Natural gas basis swaps (MMBtu): | |||||||||||||||||||||||
2023 | $( | ||||||||||||||||||||||
2024 | $( | ( | |||||||||||||||||||||
Calendar Month Average ("CMA") roll swaps (Bbls): | |||||||||||||||||||||||
2023 | $ | ( | |||||||||||||||||||||
2024 | $ | ( | |||||||||||||||||||||
Total | $ | ( |
Gross Fair Value | Effect of Counterparty Netting | Net Carrying Value | |||||||||||||||
(in thousands) | |||||||||||||||||
September 30, 2023 | |||||||||||||||||
Assets: | |||||||||||||||||
Derivative assets – current | $ | $ | ( | $ | |||||||||||||
Derivative assets – noncurrent | ( | ||||||||||||||||
Total assets | $ | $ | ( | $ | |||||||||||||
Liabilities: | |||||||||||||||||
Derivative liabilities – current | $ | ( | $ | $ | ( | ||||||||||||
Derivative liabilities – noncurrent | ( | ( | |||||||||||||||
Total liabilities | $ | ( | $ | $ | ( | ||||||||||||
December 31, 2022 | |||||||||||||||||
Assets: | |||||||||||||||||
Derivative assets – current | $ | $ | ( | $ | |||||||||||||
Derivative assets – noncurrent | ( | ||||||||||||||||
Total assets | $ | $ | ( | $ | |||||||||||||
Liabilities: | |||||||||||||||||
Derivative liabilities – current | $ | ( | $ | $ | ( | ||||||||||||
Derivative liabilities – noncurrent | ( | ( | |||||||||||||||
Total liabilities | $ | ( | $ | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Realized gain (loss) on oil positions | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Realized gain (loss) on natural gas positions | ( | ( | ( | ||||||||||||||||||||
Realized gain (loss) on NGL positions | ( | ( | |||||||||||||||||||||
Total realized gain (loss) on derivatives | ( | ( | ( | ( | |||||||||||||||||||
Unrealized gain (loss) on commodity hedges | ( | ||||||||||||||||||||||
Gain (loss) on derivatives | $ | ( | $ | $ | ( | $ | ( |
Fair Value Measurement Using | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||
Derivative assets | $ | $ | $ | $ | |||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||
$ | $ | ( | $ | $ | ( | ||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||
Derivative assets | $ | $ | $ | $ | |||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||
$ | $ | ( | $ | $ | ( |
September 30, 2023 | December 31, 2022 | ||||||||||
(in thousands) | |||||||||||
Accounts payable and accrued liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued lease and asset operating expense | |||||||||||
Accrued capital expenditures | |||||||||||
Accrued general and administrative expense | |||||||||||
Accrued transportation expense | |||||||||||
Accrued revenue and royalties payable | |||||||||||
Accrued interest expense | |||||||||||
Accrued severance taxes | |||||||||||
Other | |||||||||||
Total accounts payable and accrued liabilities | $ | $ |
Debt Outstanding | Letters of Credit Issued | Borrowing Base | Maturity | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||
Revolving Credit Facility | $ | $ | $ | 9/23/2027 | |||||||||||||||||||
— | — | 5/1/2026 | |||||||||||||||||||||
— | — | 2/15/2028 | |||||||||||||||||||||
Less: Unamortized discount, premium and issuance costs | ( | ||||||||||||||||||||||
Total long-term debt | $ | ||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Revolving Credit Facility | $ | $ | $ | 9/23/2027 | |||||||||||||||||||
— | — | 5/1/2026 | |||||||||||||||||||||
Less: Unamortized discount, premium and issuance costs | ( | ||||||||||||||||||||||
Total long-term debt | $ |
As of September 30, 2023 | |||||
(in thousands) | |||||
Balance at beginning of period | $ | ||||
Additions(1) | |||||
Retirements | ( | ||||
Sale | ( | ||||
Revisions | |||||
Accretion expense | |||||
Balance at end of period | |||||
Less: current portion | ( | ||||
Balance at end of period, noncurrent portion | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
ASC 710 profits interest awards | $ | $ | $ | $ | |||||||||||||||||||
ASC 718 liability-classified profits interest awards | ( | ( | |||||||||||||||||||||
ASC 718 equity-classified profits interest awards | |||||||||||||||||||||||
ASC 718 equity-classified RSU awards | |||||||||||||||||||||||
ASC 718 equity-classified PSU awards | |||||||||||||||||||||||
Total expense | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income (loss) | $ | ( | $ | $ | $ | ||||||||||||||||||
Less: net (income) loss attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
Less: net (income) loss attributable to redeemable noncontrolling interests | ( | ( | ( | ||||||||||||||||||||
Net income (loss) attributable to Crescent Energy - basic | ( | ||||||||||||||||||||||
Add: Reallocation of net income attributable to redeemable noncontrolling interest for the dilutive effect of RSUs | |||||||||||||||||||||||
Add: Reallocation of net income attributable to redeemable noncontrolling interest for the dilutive effect of PSUs | |||||||||||||||||||||||
Net income (loss) attributable to Crescent Energy - diluted | $ | ( | $ | $ | $ | ||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average Class A common stock outstanding – basic | |||||||||||||||||||||||
Add: dilutive effect of RSUs | |||||||||||||||||||||||
Add: dilutive effect of PSUs | |||||||||||||||||||||||
Weighted-average Class A common stock outstanding – diluted | |||||||||||||||||||||||
Weighted-average Class B common stock outstanding – basic and diluted | |||||||||||||||||||||||
Net income (loss) per share: | |||||||||||||||||||||||
Class A common stock – basic | $ | ( | $ | $ | $ | ||||||||||||||||||
Class A common stock – diluted | $ | ( | $ | $ | $ | ||||||||||||||||||
Class B common stock – basic and diluted | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Oil | 80 | % | 64 | % | 75 | % | 66 | % | |||||||||||||||
Natural gas | 11 | % | 28 | % | 17 | % | 25 | % | |||||||||||||||
NGLs | 9 | % | 8 | % | 8 | % | 9 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Oil (MBbls) | 6,667 | 6,348 | 17,797 | 16,114 | |||||||||||||||||||
Natural gas (MMcf) | 33,009 | 33,735 | 95,085 | 96,102 | |||||||||||||||||||
NGLs (MBbls) | 2,271 | 1,840 | 5,730 | 5,452 | |||||||||||||||||||
Total (MBoe) | 14,440 | 13,811 | 39,375 | 37,583 | |||||||||||||||||||
Daily average (MBoe/d) | 157 | 150 | 144 | 138 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Oil | 64 | % | 58 | % | 62 | % | 65 | % | |||||||||||||||
Natural gas | 54 | % | 61 | % | 55 | % | 67 | % | |||||||||||||||
NGLs | — | % | 42 | % | 24 | % | 47 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Oil (Bbl): | |||||||||||||||||||||||
Average NYMEX | $ | 82.26 | $ | 91.56 | $ | 77.39 | $ | 98.09 | |||||||||||||||
Realized price (excluding derivative settlements) | 75.70 | 86.77 | 71.37 | 94.69 | |||||||||||||||||||
Realized price (including derivative settlements) (1) | 66.50 | 72.55 | 64.31 | 73.77 | |||||||||||||||||||
Natural Gas (Mcf): | |||||||||||||||||||||||
Average NYMEX | $ | 2.55 | $ | 8.20 | $ | 2.69 | $ | 6.77 | |||||||||||||||
Realized price (excluding derivative settlements) | 2.18 | 6.99 | 3.01 | 6.10 | |||||||||||||||||||
Realized price (including derivative settlements) | 2.38 | 3.56 | 2.97 | 3.41 | |||||||||||||||||||
NGLs (Bbl): | |||||||||||||||||||||||
Realized price (excluding derivative settlements) | $ | 24.10 | $ | 35.22 | $ | 22.88 | $ | 40.33 | |||||||||||||||
Realized price (including derivative settlements) | 24.10 | 32.04 | 26.12 | 29.65 |
Three Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||||
Revenues (in thousands): | |||||||||||||||||||||||
Oil | $ | 504,660 | $ | 550,823 | $ | (46,163) | (8) | % | |||||||||||||||
Natural gas | 72,097 | 235,830 | (163,733) | (69) | % | ||||||||||||||||||
Natural gas liquids | 54,724 | 64,810 | (10,086) | (16) | % | ||||||||||||||||||
Midstream and other | 10,917 | 13,494 | (2,577) | (19) | % | ||||||||||||||||||
Total revenues | $ | 642,398 | $ | 864,957 | $ | (222,559) | (26) | % | |||||||||||||||
Average realized prices, before effects of derivative settlements: | |||||||||||||||||||||||
Oil ($/Bbl) | $ | 75.70 | $ | 86.77 | $ | (11.07) | (13) | % | |||||||||||||||
Natural gas ($/Mcf) | 2.18 | 6.99 | (4.81) | (69) | % | ||||||||||||||||||
NGLs ($/Bbl) | 24.10 | 35.22 | (11.12) | (32) | % | ||||||||||||||||||
Total ($/Boe) | 43.73 | 61.65 | (17.92) | (29) | % | ||||||||||||||||||
Net sales volumes: | |||||||||||||||||||||||
Oil (MBbls) | 6,667 | 6,348 | 319 | 5 | % | ||||||||||||||||||
Natural gas (MMcf) | 33,009 | 33,735 | (726) | (2) | % | ||||||||||||||||||
NGLs (MBbls) | 2,271 | 1,840 | 431 | 23 | % | ||||||||||||||||||
Total (MBoe) | 14,440 | 13,811 | 629 | 5 | % | ||||||||||||||||||
Average daily net sales volumes: | |||||||||||||||||||||||
Oil (MBbls/d) | 72 | 69 | 3 | 4 | % | ||||||||||||||||||
Natural gas (MMcf/d) | 359 | 367 | (8) | (2) | % | ||||||||||||||||||
NGLs (MBbls/d) | 25 | 20 | 5 | 25 | % | ||||||||||||||||||
Total (MBoe/d) | 157 | 150 | 7 | 5 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||||
Expenses (in thousands): | |||||||||||||||||||||||
Operating expense | $ | 270,541 | $ | 283,289 | $ | (12,748) | (4) | % | |||||||||||||||
Depreciation, depletion and amortization | 186,492 | 145,008 | 41,484 | 29 | % | ||||||||||||||||||
General and administrative expense | 43,831 | 17,311 | 26,520 | 153 | % | ||||||||||||||||||
Other operating costs | — | 1,782 | (1,782) | NM* | |||||||||||||||||||
Total expenses | $ | 500,864 | $ | 447,390 | $ | 53,474 | 12 | % | |||||||||||||||
Selected expenses per Boe: | |||||||||||||||||||||||
Operating expense | $ | 18.74 | $ | 20.51 | $ | (1.77) | (9) | % | |||||||||||||||
Depreciation, depletion and amortization | 12.91 | 10.50 | 2.41 | 23 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||||
General and administrative expense (in thousands): | |||||||||||||||||||||||
Recurring general and administrative expense | $ | 13,505 | $ | 9,917 | $ | 3,588 | 36 | % | |||||||||||||||
Transaction and nonrecurring expenses | 834 | 1,558 | (724) | (46) | % | ||||||||||||||||||
Equity-based compensation | 29,492 | 5,836 | 23,656 | 405 | % | ||||||||||||||||||
Total general and administrative expense | $ | 43,831 | $ | 17,311 | $ | 26,520 | 153 | % | |||||||||||||||
General and administrative expense per Boe: | |||||||||||||||||||||||
Recurring general and administrative expense | $ | 0.94 | $ | 0.72 | $ | 0.22 | 31 | % | |||||||||||||||
Transaction and nonrecurring expenses | 0.06 | 0.11 | (0.05) | (45) | % | ||||||||||||||||||
Equity-based compensation | 2.04 | 0.42 | 1.62 | 386 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||||
Gain (loss) on derivatives (in thousands): | |||||||||||||||||||||||
Gain (loss) on commodity derivatives | $ | (252,108) | $ | 205,130 | $ | (457,238) | (223) | % | |||||||||||||||
Gain (loss) on derivatives | $ | (252,108) | $ | 205,130 | $ | (457,238) | (223) | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net income (loss) | $ | (131,102) | $ | 555,349 | $ | (686,451) | (124) | % | |||||||||||||||
Adjustments to reconcile to Adjusted EBITDAX: | |||||||||||||||||||||||
Interest expense | 42,200 | 27,057 | |||||||||||||||||||||
Income tax expense (benefit) | (20,639) | 38,455 | |||||||||||||||||||||
Depreciation, depletion and amortization | 186,492 | 145,008 | |||||||||||||||||||||
Exploration expense | — | 1,909 | |||||||||||||||||||||
Non-cash (gain) loss on derivatives | 197,138 | (416,842) | |||||||||||||||||||||
Non-cash equity-based compensation expense | 29,492 | 5,836 | |||||||||||||||||||||
(Gain) loss on sale of assets | — | (127) | |||||||||||||||||||||
Other (income) expense | (917) | 2,670 | |||||||||||||||||||||
Certain redeemable noncontrolling interest distributions made by OpCo related to Manager Compensation | (7,030) | (9,471) | |||||||||||||||||||||
Transaction and nonrecurring expenses (1) | 7,989 | 8,861 | |||||||||||||||||||||
Settlement of acquired derivative contracts | (13,999) | (15,945) | |||||||||||||||||||||
Adjusted EBITDAX (non-GAAP) | $ | 289,624 | $ | 342,760 | $ | (53,136) | (16) | % | |||||||||||||||
Adjustments to reconcile to Levered Free Cash Flow: | |||||||||||||||||||||||
Interest expense, excluding non-cash deferred financing cost amortization | (35,373) | (24,552) | |||||||||||||||||||||
Current income tax benefit (expense) | 470 | 877 | |||||||||||||||||||||
Tax-related redeemable noncontrolling interest contributions (distributions) made by OpCo | (20) | (803) | |||||||||||||||||||||
Development of oil and natural gas properties | (94,431) | (189,928) | |||||||||||||||||||||
Levered Free Cash Flow (non-GAAP) | $ | 160,270 | $ | 128,354 | $ | 31,916 | 25 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||||
Revenues (in thousands): | |||||||||||||||||||||||
Oil | $ | 1,270,244 | $ | 1,525,899 | $ | (255,655) | (17) | % | |||||||||||||||
Natural gas | 286,172 | 586,318 | (300,146) | (51) | % | ||||||||||||||||||
Natural gas liquids | 131,098 | 219,853 | (88,755) | (40) | % | ||||||||||||||||||
Midstream and other | 37,360 | 40,231 | (2,871) | (7) | % | ||||||||||||||||||
Total revenues | $ | 1,724,874 | $ | 2,372,301 | $ | (647,427) | (27) | % | |||||||||||||||
Average realized prices, before effects of derivative settlements: | |||||||||||||||||||||||
Oil ($/Bbl) | $ | 71.37 | $ | 94.69 | $ | (23.32) | (25) | % | |||||||||||||||
Natural gas ($/Mcf) | 3.01 | 6.10 | (3.09) | (51) | % | ||||||||||||||||||
NGLs ($/Bbl) | 22.88 | 40.33 | (17.45) | (43) | % | ||||||||||||||||||
Total ($/Boe) | 42.86 | 62.05 | (19.19) | (31) | % | ||||||||||||||||||
Net sales volumes: | |||||||||||||||||||||||
Oil (MBbls) | 17,797 | 16,114 | 1,683 | 10 | % | ||||||||||||||||||
Natural gas (MMcf) | 95,085 | 96,102 | (1,017) | (1) | % | ||||||||||||||||||
NGLs (MBbls) | 5,730 | 5,452 | 278 | 5 | % | ||||||||||||||||||
Total (MBoe) | 39,375 | 37,583 | 1,792 | 5 | % | ||||||||||||||||||
Average daily net sales volumes: | |||||||||||||||||||||||
Oil (MBbls/d) | 65 | 59 | 6 | 10 | % | ||||||||||||||||||
Natural gas (MMcf/d) | 348 | 352 | (4) | (1) | % | ||||||||||||||||||
NGLs (MBbls/d) | 21 | 20 | 1 | 5 | % | ||||||||||||||||||
Total (MBoe/d) | 144 | 138 | 6 | 4 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||||
Expenses (in thousands): | |||||||||||||||||||||||
Operating expense | $ | 768,080 | $ | 758,241 | $ | 9,839 | 1 | % | |||||||||||||||
Depreciation, depletion and amortization | 492,879 | 375,600 | 117,279 | 31 | % | ||||||||||||||||||
General and administrative expense | 106,235 | 59,489 | 46,746 | 79 | % | ||||||||||||||||||
Other operating costs | 1,541 | (1,266) | 2,807 | NM* | |||||||||||||||||||
Total expenses | $ | 1,368,735 | $ | 1,192,064 | $ | 176,671 | 15 | % | |||||||||||||||
Selected expenses per Boe: | |||||||||||||||||||||||
Operating expense | $ | 19.51 | $ | 20.17 | $ | (0.66) | (3) | % | |||||||||||||||
Depreciation, depletion and amortization | 12.52 | 9.99 | 2.53 | 25 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||||
General and administrative expense (in thousands): | |||||||||||||||||||||||
Recurring general and administrative expense | $ | 36,526 | $ | 26,232 | $ | 10,294 | 39 | % | |||||||||||||||
Transaction and nonrecurring expenses | 5,061 | 6,951 | (1,890) | (27) | % | ||||||||||||||||||
Equity-based compensation | 64,648 | 26,306 | 38,342 | 146 | % | ||||||||||||||||||
Total general and administrative expense | $ | 106,235 | $ | 59,489 | $ | 46,746 | 79 | % | |||||||||||||||
General and administrative expense per Boe: | |||||||||||||||||||||||
Recurring general and administrative expense | $ | 0.93 | $ | 0.70 | $ | 0.23 | 33 | % | |||||||||||||||
Transaction and nonrecurring expenses | 0.13 | 0.18 | (0.05) | (28) | % | ||||||||||||||||||
Equity-based compensation | 1.64 | 0.70 | 0.94 | 134 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||||
Gain (loss) on derivatives (in thousands): | |||||||||||||||||||||||
Gain (loss) on commodity derivatives | $ | (68,211) | $ | (645,565) | $ | 577,354 | (89) | % | |||||||||||||||
Gain (loss) on derivatives | $ | (68,211) | $ | (645,565) | $ | 577,354 | (89) | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | $ Change | % Change | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net income (loss) | $ | 181,983 | $ | 431,240 | $ | (249,257) | (58) | % | |||||||||||||||
Adjustments to reconcile to Adjusted EBITDAX: | |||||||||||||||||||||||
Interest expense | 102,648 | 68,518 | |||||||||||||||||||||
Income tax expense (benefit) | 4,899 | 34,528 | |||||||||||||||||||||
Depreciation, depletion and amortization | 492,879 | 375,600 | |||||||||||||||||||||
Exploration expense | 1,541 | 3,848 | |||||||||||||||||||||
Non-cash (gain) loss on derivatives | (42,564) | (8,812) | |||||||||||||||||||||
Non-cash equity-based compensation expense | 64,648 | 26,306 | |||||||||||||||||||||
(Gain) loss on sale of assets | — | (5,114) | |||||||||||||||||||||
Other (income) expense | (1,206) | 4,472 | |||||||||||||||||||||
Certain redeemable noncontrolling interest distributions made by OpCo related to Manager Compensation | (23,765) | (29,599) | |||||||||||||||||||||
Transaction and nonrecurring expenses (1) | 14,188 | 25,968 | |||||||||||||||||||||
Settlement of acquired derivative contracts | (48,977) | (39,046) | |||||||||||||||||||||
Adjusted EBITDAX (non-GAAP) | $ | 746,274 | $ | 887,909 | $ | (141,635) | (16) | % | |||||||||||||||
Adjustments to reconcile to Levered Free Cash Flow: | |||||||||||||||||||||||
Interest expense, excluding non-cash deferred financing cost amortization | (93,473) | (62,087) | |||||||||||||||||||||
Current income tax benefit (expense) | (911) | (7,099) | |||||||||||||||||||||
Tax-related redeemable noncontrolling interest contributions (distributions) made by OpCo | 108 | (17,970) | |||||||||||||||||||||
Development of oil and natural gas properties | (444,245) | (468,796) | |||||||||||||||||||||
Levered Free Cash Flow (non-GAAP) | $ | 207,753 | $ | 331,957 | $ | (124,204) | (37 | %) |
September 30, 2023 | December 31, 2022 | ||||||||||
(in thousands) | |||||||||||
Cash and cash equivalents | $ | 228,614 | $ | — | |||||||
Long-term debt | 1,912,187 | 1,247,558 |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Net cash provided by operating activities | $ | 612,900 | $ | 797,354 | |||||||
Net cash used in investing activities | (1,066,238) | (1,060,934) | |||||||||
Net cash provided by financing activities | 705,368 | 158,117 |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
(in thousands) | |||||||||||
Total development of oil and natural gas properties | $ | 444,245 | $ | 468,796 | |||||||
Change in accruals or other non-cash adjustments | 27,030 | (28,421) | |||||||||
Cash used in development of oil and natural gas properties | 471,275 | 440,375 | |||||||||
Cash used in acquisition of oil and natural gas properties | 622,698 | 627,539 | |||||||||
Non-cash acquisition of oil and natural gas properties | — | — | |||||||||
Total expenditures on acquisition and development of oil and natural gas properties | $ | 1,093,973 | $ | 1,067,914 |
Exhibit No. | Description | ||||
2.1 | |||||
2.2 | |||||
2.3 | |||||
3.1 | |||||
3.2 |
CRESCENT ENERGY COMPANY | ||||||||
(Registrant) | ||||||||
November 6, 2023 | /s/ David Rockecharlie | |||||||
David Rockecharlie | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
November 6, 2023 | /s/ Brandi Kendall | |||||||
Brandi Kendall | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Date: November 6, 2023 | /s/ David Rockecharlie | ||||||||||
David Rockecharlie | |||||||||||
Chief Executive Officer |
Date: November 6, 2023 | /s/ Brandi Kendall | ||||||||||
Brandi Kendall | |||||||||||
Chief Financial Officer |
Date: November 6, 2023 | /s/ David Rockecharlie | |||||||||||||
David Rockecharlie | ||||||||||||||
Chief Executive Officer | ||||||||||||||
Date: November 6, 2023 | /s/ Brandi Kendall | |||||||||||||
Brandi Kendall | ||||||||||||||
Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Preferred stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Preferred stock authorized (in shares) | 500,000,000 | 500,000,000 |
Preferred stock issued (in shares) | 1,000 | 1,000 |
Preferred stock outstanding (in shares) | 1,000 | 1,000 |
Class A Common Stock | ||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock issued (in shares) | 89,680,353 | 49,433,154 |
Common stock outstanding (in shares) | 88,608,800 | 48,282,163 |
Treasury stock (in shares) | 1,071,553 | 1,150,991 |
Class B Common Stock | ||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 91,048,124 | 118,645,323 |
Common stock outstanding (in shares) | 91,048,124 | 118,645,323 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenues: | ||||
Total revenues | $ 642,398 | $ 864,957 | $ 1,724,874 | $ 2,372,301 |
Expenses: | ||||
Lease operating expense | 120,791 | 121,554 | 364,796 | 322,752 |
Workover expense | 16,148 | 21,126 | 47,402 | 56,102 |
Asset operating expense | 27,116 | 20,791 | 65,206 | 54,653 |
Gathering, transportation and marketing | 61,722 | 44,757 | 160,650 | 131,271 |
Production and other taxes | 36,475 | 71,511 | 116,223 | 183,491 |
Depreciation, depletion and amortization | 186,492 | 145,008 | 492,879 | 375,600 |
Exploration expense | 0 | 1,909 | 1,541 | 3,848 |
Midstream and other operating expense | 8,289 | 3,550 | 13,803 | 9,972 |
General and administrative expense | 43,831 | 17,311 | 106,235 | 59,489 |
(Gain) loss on sale of assets | 0 | (127) | 0 | (5,114) |
Total expenses | 500,864 | 447,390 | 1,368,735 | 1,192,064 |
Income (loss) from operations | 141,534 | 417,567 | 356,139 | 1,180,237 |
Other income (expense): | ||||
Gain (loss) on derivatives | (252,108) | 205,130 | (68,211) | (645,565) |
Interest expense | (42,200) | (27,057) | (102,648) | (68,518) |
Other income (expense) | 917 | (2,670) | 1,206 | (4,472) |
Income (loss) from equity affiliates | 116 | 834 | 396 | 4,086 |
Total other income (expense) | (293,275) | 176,237 | (169,257) | (714,469) |
Income (loss) before taxes | (151,741) | 593,804 | 186,882 | 465,768 |
Income tax benefit (expense) | 20,639 | (38,455) | (4,899) | (34,528) |
Net income (loss) | (131,102) | 555,349 | 181,983 | 431,240 |
Less: net (income) loss attributable to noncontrolling interests | (48) | (904) | (453) | (2,087) |
Less: net (income) loss attributable to redeemable noncontrolling interests | 78,280 | (436,084) | (169,455) | (341,269) |
Net income (loss) attributable to Crescent Energy - basic | $ (52,870) | $ 118,361 | $ 12,075 | $ 87,884 |
Class A | ||||
Net income (loss) per share: | ||||
Basic (in USD per share) | $ (0.67) | $ 2.74 | $ 0.21 | $ 2.07 |
Diluted (in USD per share) | $ (0.67) | $ 2.74 | $ 0.21 | $ 2.07 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 78,708,800 | 43,196,791 | 58,663,396 | 42,376,668 |
Diluted (in shares) | 78,708,800 | 43,210,315 | 59,141,747 | 42,381,841 |
Class B | ||||
Net income (loss) per share: | ||||
Basic (in USD per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Diluted (in USD per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 91,048,124 | 125,796,892 | 109,244,079 | 126,950,234 |
Diluted (in shares) | 91,048,124 | 125,796,892 | 109,244,079 | 126,950,234 |
Oil | ||||
Revenues: | ||||
Total revenues | $ 504,660 | $ 550,823 | $ 1,270,244 | $ 1,525,899 |
Natural gas | ||||
Revenues: | ||||
Total revenues | 72,097 | 235,830 | 286,172 | 586,318 |
Natural gas liquids | ||||
Revenues: | ||||
Total revenues | 54,724 | 64,810 | 131,098 | 219,853 |
Midstream and other | ||||
Revenues: | ||||
Total revenues | $ 10,917 | $ 13,494 | $ 37,360 | $ 40,231 |
Organization and Basis of Presentation |
9 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Crescent is a growth-oriented U.S. independent energy company engaged in the acquisition, development and operation of oil and natural gas properties. Crescent’s portfolio of low-decline, cash-flow oriented assets comprises both mid-cycle unconventional and conventional assets with a long reserve life and deep inventory of low-risk, high-return development locations in the Eagle Ford and Uinta Basins. Crescent’s leadership is an experienced team of investment, financial and industry professionals that combines proven investment and operating expertise. For more than a decade, Crescent and its predecessors have executed on a consistent growth through acquisition strategy focused on cash flow, risk management and returns. Corporate Structure Our Class A Common Stock is listed on the New York Stock Exchange under the symbol “CRGY.” We are structured as an “Up-C,” with substantially all of our assets and operations held by Crescent Energy OpCo LLC ("OpCo"). Crescent is a holding company, the sole material asset of which consists of units representing limited liability interests in OpCo ("OpCo Units"). Shares of Crescent Class A common stock ("Class A Common Stock") have both voting and economic rights, while holders of Crescent Class B common stock ("Class B Common Stock," together with Class A Common Stock, "Common Stock") have voting (but no economic) rights and hold a corresponding amount of economic, non-voting OpCo Units. OpCo Units may be redeemed or exchanged for Class A Common Stock or, at our election, cash on the terms and conditions set forth in the Amended and Restated Limited Liability Company Agreement of OpCo (“OpCo LLC Agreement”). Additionally, an affiliate of KKR & Co. Inc. ("KKR," and together with its subsidiaries, the "KKR Group") is the sole holder of Crescent's non-economic Series I preferred stock, which entitles the holder thereof to appoint the Board of Directors of Crescent and to certain other approval rights. Equity Issuance In September 2023, we conducted an underwritten public offering of 12.7 million shares of Class A Common Stock at a price to the public of $12.25 per share (not including underwriter discounts and commissions). This includes 1.7 million shares of Class A Common Stock that were issued upon the underwriters exercise of their 30-day option to purchase additional shares to cover over-allotments pursuant to the related underwriting agreement. Following the closing of these transactions (the "Equity Issuance"), shares of our Class A Common Stock represent approximately 49% of our outstanding shares of Common Stock. We received net proceeds of $145.7 million from the Equity Issuance, after deducting underwriting fees and expenses. Class A Conversion On June 30, 2023, an affiliate of KKR redeemed approximately 27.6 million OpCo Units (and we cancelled a corresponding number of shares of Class B Common Stock) for an equivalent number of shares of Class A Common Stock (the "Class A Conversion") and subsequently distributed such shares to certain of its legacy investors in privately-managed funds and accounts on July 3, 2023. We did not receive any proceeds or incur any material expenses associated with the Class A Conversion. Equity Transactions In September 2022, Independence Energy Aggregator L.P., the entity through which certain affiliated entities hold their interests in us, exchanged 6.3 million units representing membership interests in OpCo (together with a corresponding number of shares of our Class B Common Stock) for shares of our Class A Common Stock and agreed to sell 5.8 million shares of our Class A Common Stock at a price to the public of $15.00 per share, or a net price of $14.10 per share after deducting the underwriters' discounts and commissions (the "Offering"). We did not receive any cash proceeds from the Offering. Concurrent with the closing of the Offering, we repurchased an aggregate of approximately 2.6 million OpCo Units from PT Independence Energy Holdings LLC for $36.2 million and cancelled a corresponding number of shares of our Class B Common Stock (the "Concurrent OpCo Unit Purchase," and, together with the Offering, the "Equity Transactions"). As a result of the Equity Transactions, the total number of shares of our Class A Common Stock increased by 6.3 million shares, including 0.6 million shares of our Class A Common Stock that were not included as part of the Offering but rather issued in exchange for shares of Class B Common Stock and distributed in-kind by Independence Energy Aggregator L.P. to affiliates, and the number of shares of our Class B Common Stock decreased by approximately 8.9 million. Redeemable noncontrolling interests decreased by $158.1 million while APIC increased by $121.8 million as a result of the Equity Transactions and to reflect the new ownership of OpCo. Basis of Presentation Our unaudited condensed consolidated financial statements (the “financial statements”) include the accounts of the Company and its subsidiaries after the elimination of intercompany transactions and balances, are presented in accordance with U.S. general accepted accounting principles (“GAAP”) and reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary to present fairly the financial position and results of operations for the respective interim periods. We have no elements of other comprehensive income for the periods presented. These condensed consolidated financial statements should be read in conjunction with the audited combined and consolidated financial statements and notes thereto included in our Annual Report. Crescent is a holding company that conducts substantially all of its business through its consolidated subsidiaries, including (i) OpCo, which at September 30, 2023 is owned approximately 49% by Crescent and approximately 51% by holders of our redeemable noncontrolling interests, and (ii) Crescent Energy Finance LLC, OpCo's wholly owned subsidiary. Crescent and OpCo have no operations, or material cash flows, assets or liabilities other than their investment in Crescent Energy Finance LLC. The assets and liabilities of OpCo represent substantially all of our consolidated assets and liabilities with the exception of certain current and deferred taxes and certain liabilities under the Management Agreement (as defined within NOTE 11 – Related Party Transactions). Certain restrictions and covenants related to the transfer of assets from OpCo are discussed further in NOTE 7 – Debt. The financial statements include undivided interests in oil and natural gas properties. We account for our share of oil and natural gas properties by reporting our proportionate share of assets, liabilities, revenues, costs and cash flows within the accompanying condensed consolidated balance sheets, condensed consolidated statements of operations, and condensed consolidated statements of cash flows.
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Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We use historical experience and various other assumptions and information that are believed to be reasonable under the circumstances in developing our estimates and judgments. Estimates and assumptions about future events and their effects cannot be predicted with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. While we believe that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results may differ from these estimates. Our significant estimates include the fair value of acquired assets and liabilities, oil and natural gas reserves, impairment of proved and unproved oil and natural gas properties and valuation of derivative instruments. Restricted Cash Restricted cash consists of funds earmarked for a special purpose and therefore not available for immediate and general use. The majority of our restricted cash as of September 30, 2023 is composed of (i) our deposit for the October Western Eagle Ford Acquisition and (ii) cash that is contractually required to be restricted to pay for the future abandonment of certain wells in California. Restricted cash is included in Restricted cash and Other assets on our condensed consolidated balance sheets. The following table provides a reconciliation of cash and restricted cash presented on our balance sheets to amounts shown in the statements of cash flows:
Redeemable Noncontrolling Interests Pursuant to the OpCo LLC Agreement, holders of OpCo Units, other than the Company, may redeem all or a portion of their OpCo Units for either (a) shares of Class A Common Stock or (b) at the election of the Company, an approximately equivalent amount of cash as determined pursuant to the terms of the OpCo LLC Agreement. In connection with such redemption, a corresponding number of shares of Class B Common Stock will be cancelled. The cash redemption election is not considered to be within the control of the Company because the holders of Class B Common Stock and their affiliates control the Company through direct representation on the Board of Directors. As a result, we present the noncontrolling interests in OpCo as redeemable noncontrolling interests outside of permanent equity. Redeemable noncontrolling interests are recorded at the greater of the carrying value or redemption amount with a corresponding adjustment to Additional paid-in capital if redemption is considered probable. The cash redemption amount for OpCo Units for this purpose is based on the 10-day volume-weighted average closing price of Class A Common Stock at the end of the reporting period. Changes in the redemption value are recognized immediately as they occur, as if the end of the reporting period was also the redemption date for the instrument, with an offsetting entry to Additional paid-in capital. Additionally, certain other subsidiaries have agreements whereby certain employees have the option to sell their noncontrolling interest in such subsidiaries back to us at fair value and are treated as redeemable noncontrolling interests outside of permanent equity. In September 2023, the proceeds from the Equity Issuance, including the exercise of the underwriters' over-allotment, were contributed by Crescent to OpCo in exchange for 12.7 million OpCo Units. As a result of the additional OpCo Units owned by Crescent, we reclassified $65.8 million from Redeemable noncontrolling interests to Additional paid-in capital. In June 2023, the Class A Conversion reduced the number of shares of our Class B Common Stock outstanding by 27.6 million shares. A corresponding number of OpCo Units were transferred to Crescent, which reduced the value of our redeemable noncontrolling interests by $618.7 million. From December 31, 2022 through September 30, 2023, we recorded adjustments to the value of our redeemable noncontrolling interests as shown below:
Income Taxes Crescent is a holding company, the sole material asset of which consists of OpCo Units. OpCo is a partnership and is generally not subject to U.S. federal and certain state taxes. Crescent is subject to U.S. federal and certain state income taxes on its allocable share of any taxable income of OpCo. For the three and nine months ended September 30, 2023, we recognized income tax benefit of $20.6 million and income tax expense of $4.9 million for an effective tax rate of 13.6% and 2.6%, respectively. For the three and nine months ended September 30, 2022, we recognized income tax expense of $38.5 million and $34.5 million for an effective tax rate of 6.5% and 7.4%, respectively. Our effective tax rate is lower than the U.S. federal statutory income tax rate of 21% primarily due to effects of removing income and losses related to our noncontrolling interests and redeemable noncontrolling interests. We evaluate and update the estimated annual effective income tax rate on a quarterly basis based on current and forecasted operating results and tax laws. Consequently, based upon the mix and timing of our actual earnings compared to annual projections, our effective tax rate may vary quarterly and may make quarterly comparisons not meaningful. The quarterly income tax provision is generally composed of tax expense on income or benefit on loss at the most recent estimated annual effective tax rate. The tax effect of discrete items is recognized in the period in which they occur at the applicable statutory rate. We continually assess the available positive and negative evidence to determine if sufficient future taxable income will be generated to use the existing deferred tax assets. On the basis of this evaluation a valuation allowance is recorded to recognize only the portion of the deferred tax assets that are more likely than not to be realized. The amount of the deferred tax asset considered realizable; however, could be adjusted in the future. We have U.S. federal net operating loss ("NOL") carryforwards and recognized built-in-loss ("RBIL") property which are subject to limitation under Section 382. Pursuant to Sections 382 and 383 of the Internal Revenue Code, utilization of our NOL and RBIL carryforwards is subject to a small annual limitation. These annual limitations may result in the expiration of NOL and RBIL carryforwards prior to utilization and accordingly we have maintained a valuation allowance related to U.S. federal NOL and RBIL carryforwards that we do not believe are recoverable due to these Section 382 limitations. During the three and nine months ended September 30, 2023, we decreased APIC by $13.1 million and $82.8 million, respectively, due to the change in our ownership interests and basis in OpCo as a result of the Equity Issuance and Class A Conversion. As of September 30, 2023 and December 31, 2022, we did not have any uncertain tax positions. Supplemental Cash Flow Disclosures The following are our supplemental cash flow disclosures for the nine months ended September 30, 2023 and 2022:
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Acquisitions and Divestitures |
9 Months Ended |
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Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Western Eagle Ford Acquisitions In July 2023, we consummated the acquisition contemplated by the Purchase and Sale Agreement, dated as of May 2, 2023, between our subsidiary and Comanche Holdings, LLC ("Comanche Holdings") and SN EF Maverick, LLC ("SN EF Maverick," and together with Comanche Holdings, the "Seller"), pursuant to which we agreed to acquire operatorship and incremental working interests (the "July Western Eagle Ford Acquisition") in certain of our existing Western Eagle Ford assets from the Seller for aggregate cash consideration of approximately $593.4 million, including customary purchase price adjustments. We accounted for the July Western Eagle Ford Acquisition as an asset acquisition and recorded additional Property, plant and equipment of $612.7 million, Other current assets of $2.6 million, Accounts payable of $4.6 million, Other current liabilities of $5.0 million, asset retirement liability of $10.5 million and Other liabilities of $1.8 million. In October 2023, we consummated the unrelated acquisition contemplated by the Purchase and Sale Agreement, dated as of August 22, 2023, between our subsidiary and an unaffiliated third party, pursuant to which we agreed to acquire certain incremental working interests in oil and natural gas properties (the "October Western Eagle Ford Acquisition," and together with the July Western Eagle Ford Acquisition, the "Western Eagle Ford Acquisitions") in certain of our existing Western Eagle Ford assets from the seller for aggregate cash consideration of approximately $250.0 million, subject to customary purchase price adjustments. The October Western Eagle Ford Acquisition is expected to be accounted for as an asset acquisition in the fourth quarter of 2023. Uinta Transaction In March 2022, we consummated the acquisition contemplated by the Membership Interest Purchase Agreement dated February 15, 2022 (the transactions contemplated therein, the “Uinta Transaction”) between certain of our subsidiaries, including OpCo, and Verdun Oil Company II LLC, a Delaware limited liability company, pursuant to which we purchased all of the issued and outstanding membership interests of Uinta AssetCo, LLC, a Texas limited liability company that holds all of the development and production assets formerly held by EP Energy E&P Company, L.P. in the State of Utah and certain related obligations. Upon closing of the Uinta Transaction, we paid $621.3 million in cash consideration and transaction fees and assumed certain commodity derivatives. The Uinta Transaction was funded with cash on hand and borrowings under our Revolving Credit Facility (as defined in NOTE 7 – Debt). Subsequent to closing the Uinta Transaction, we recorded $11.1 million in customary purchase price adjustments that increased our total purchase price to $632.4 million during the year ended December 31, 2022. We accounted for the Uinta Transaction as an asset acquisition and recorded an additional $863.6 million of property, plant and equipment, net of acquired commodity derivative liabilities of $179.7 million, accounts payable of $14.3 million and asset retirement liability of $37.2 million. In connection with the closing of the Uinta Transaction, we entered into an amendment to our Revolving Credit Facility to, among other things, increase the borrowing base to $1.8 billion and the elected commitment amount to $1.3 billion (see NOTE 7 – Debt). We incurred financing costs of $13.4 million associated with this amendment, which are recorded as debt issuance costs within Other assets on the condensed consolidated balance sheets. Subsequent to the closing of the Uinta Transaction, we settled certain acquired oil commodity derivative positions and entered into new commodity derivative contracts for 2022 with a swap price of $75 per barrel for a net cost of $54.1 million, including restructuring fees, during the three months ended March 31, 2022. Equity Method Investment In April 2022, our equity method investment, Exaro Energy III, LLC ("Exaro"), entered into a purchase and sale agreement to sell its operations in the Jonah Field in Wyoming. During the year ended December 31, 2022, we received a distribution of $6.8 million primarily as a result of the sale. Chama In February 2022, we contributed all of the assets and prospects in the Gulf of Mexico formerly owned by one of our subsidiaries to Chama Energy LLC ("Chama") in exchange for a 9.4% interest in Chama, which interest was valued at $3.8 million. As a result, we derecognized the assets and liabilities that were contributed to Chama from our condensed consolidated balance sheets and recorded an equity method investment for our interest in Chama, as well as a $4.5 million gain related to the deconsolidation of these assets and liabilities. John Goff, the Chairman of our Board of Directors, holds an approximate interest of 17.5% in Chama, and the remaining interests are held by other non-affiliated investors. Pursuant to the Limited Liability Company Agreement of Chama, we may be required to fund certain workover costs, and we will be required to fund plugging and abandonment costs related to the producing assets we contributed to Chama. Permian Basin Divestiture On November 4, 2022, we entered into a definitive purchase and sale agreement with an unaffiliated third party to sell certain of our non-core producing properties and related oil and natural gas leases in Ector County, Texas in the Permian Basin in exchange for cash consideration, subject to customary purchase price adjustments, of $80.0 million. We consummated this transaction in December 2022 and recorded a loss of $0.9 million.
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives In the normal course of business, we are exposed to certain risks including changes in the prices of oil, natural gas and NGLs which may impact the cash flows associated with the sale of our future oil and natural gas production. We enter into derivative contracts with lenders under our Revolving Credit Facility that consist of either a single derivative instrument or a combination of instruments to manage our exposure to these risks. As of September 30, 2023, our commodity derivative instruments consisted of fixed price and basis swaps and collars which are described below: Fixed Price and Basis Swaps: Fixed price swaps receive a fixed price and pay a floating market price to the counterparty on the notional amount. Our basis swaps fix the basis differentials between the index price at which we sell our production as compared to the index price used in the basis swap. Under a swap contract, we will receive payment if the settlement price is less than the fixed price and will make a payment to the counterparty if the settlement price is greater than the fixed price. Collars: Collars provide a minimum and maximum price on a notional amount of sales volume. Under a collar, we will receive payment if the settlement price is less than the minimum price of the range and make a payment to the counterparty if the settlement price is greater than the maximum price of the range. We would not be required to make a payment or receive payment if the settlement price falls within the range. A portion of our collars give the counterparty an option to cancel the collar prior to the production period as indicated below. The following table details our net volume positions by commodity as of September 30, 2023:
(1) Represents outstanding crude oil collar options exercisable by the counterparty until December 16, 2024. We use derivative commodity instruments and enter into swap contracts that are governed by International Swaps and Derivatives Association ("ISDA") master agreements. The following table shows the effects of master netting arrangements on the fair value of our derivative contracts as of September 30, 2023 and December 31, 2022:
See NOTE 5 – Fair Value Measurements for more information. The amount of gain (loss) recognized in gain (loss) on derivatives in our condensed consolidated statements of operations was as follows for the three and nine months ended September 30, 2023 and 2022:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value MeasurementsGAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Generally, the determination of fair value requires the use of significant judgment and different approaches and models under varying circumstances. Under a market-based approach, we consider prices of similar assets, consult with brokers and experts or employ other valuation techniques. Under an income-based approach, we generally estimate future cash flows and then discount them at a risk-adjusted rate. We classify the inputs used to measure the fair value of our financial assets and liabilities into the following hierarchy: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Quoted market prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active or other than quoted prices that are observable, either directly or indirectly, and can be corroborated by observable market data. Level 3: Unobservable inputs that reflect management’s best estimates and assumptions of what market participants would use in measuring the fair value of an asset or liability. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of significance for a particular input to the fair value measurement requires judgment and may affect our valuation of the fair value assets and liabilities within the fair value hierarchy levels. Recurring Fair Value Measurements The following table presents the fair value of our derivative assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2023 and December 31, 2022 by level within the fair value hierarchy:
Non-Recurring Fair Value Measurements Certain nonfinancial assets and liabilities are measured at fair value on a non-recurring basis. We utilize fair value measurement on a non-recurring basis to value our oil and natural gas properties when the carrying value of such property exceeds the respective undiscounted future cash flows. The inputs used to determine such fair value are primarily based upon internally developed cash flow models, as well as market-based valuations and are classified within Level 3. Significant Level 3 assumptions associated with discounted cash flows include estimates of future prices, production costs, development expenditures, anticipated production, appropriate risk-adjusted discount rates, and other relevant data. Our other non-recurring fair value measurements include the estimates of the fair value of assets and liabilities acquired through business combinations. Oil and natural gas properties are valued based on an income approach using a discounted cash flow model utilizing Level 3 inputs, including internally generated development and production profiles and price and cost assumptions. Net derivative liabilities assumed in acquisitions are valued based on Level 2 inputs similar to the Company's other commodity price derivatives. Other Fair Value Measurements The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to the short-term maturities of these instruments. Our long-term debt obligations under our Revolving Credit Facility also approximate fair value because the associated variable rates of interest are market based. The fair value of the Senior Notes (as defined herein) was approximately $1,553.0 million and $661.5 million as of September 30, 2023 and December 31, 2022, respectively, based on quoted market prices.
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Accounts Payable and Accrued Liabilities |
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Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consisted of the following as of September 30, 2023 and December 31, 2022:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Senior Notes In February 2023, we issued $400.0 million aggregate principal amount of 9.250% senior notes due 2028 (the "Original 2028 Notes") at par. The proceeds of the offering were approximately $391.3 million, after deducting the initial purchasers' discount and offering expenses. We used the proceeds therefrom to repay a portion of our outstanding balance under our Revolving Credit Facility (as defined herein). In July 2023, we issued an additional $300.0 million aggregate principal amount of 2028 Notes (the "July 2028 Notes"). The proceeds of the offering were approximately $287.5 million, after deducting the initial purchasers' discount and offering expenses, but excluding accrued interest payable by purchasers of the July 2028 Notes, which we used to repay a portion of outstanding borrowings under our Revolving Credit Facility. In September 2023, we issued an additional $150.0 million aggregate principal amount of 2028 Notes (the "September 2028 Notes," and together with the Original 2028 Notes and the July 2028 Notes, the "2028 Notes"). The proceeds of the offering were approximately $148.0 million after deducting the initial purchasers' discount and offering expenses, but excluding accrued interest payable by purchasers of the September 2028 Notes, which we used to repay a portion of outstanding borrowings under our Revolving Credit Facility. The July 2028 Notes and the September 2028 Notes are treated as a single series of securities under the indenture governing the Original 2028 Notes, will vote together as a single class with the Original 2028 Notes, and have substantially identical terms, other than the issue date and the issue price, as the Original 2028 Notes. The 2028 Notes bear interest at an annual rate of 9.250%, which is payable on February 15 and August 15 of each year and mature on February 15, 2028. We may, at our option, redeem all or a portion of the 2028 Notes at any time on or after February 15, 2025 at certain redemption prices. In addition, prior to February 15, 2025, we may redeem some or all of the 2028 Notes at a price equal to 100% of the principal amount thereof, plus a “make-whole” premium, plus accrued and unpaid interest, if any, to, but excluding the redemption date. In May 2021, we issued $500.0 million aggregate principal amount of 7.250% senior notes due 2026 (the "Original 2026 Notes") at par. In February 2022, we issued an additional $200.0 million aggregate principal amount of 7.250% senior notes due 2026 at 101% of par (the "Additional 2026 Notes," and together with the Original 2026 Notes, the "2026 Notes"). Both issuances of the 2026 Notes are treated as a single series, will vote together as a single class, and have identical terms and conditions, other than the issue date, the issue price and the first interest payment. The 2026 Notes bear interest at an annual rate of 7.25%, which is payable on May 1 and November 1 of each year and mature on May 1, 2026. We may, at our option, redeem all or a portion of the 2026 Notes at any time at certain redemption prices. The 2026 Notes and the 2028 Notes (collectively, the "Senior Notes") are our senior unsecured obligations and the Senior Notes and the related guarantees rank equally in right of payment with the borrowings under our Revolving Credit Facility and any of our other future senior indebtedness and senior to any of our future subordinated indebtedness. The Senior Notes are guaranteed on a senior unsecured basis by each of our existing and future subsidiaries that will guarantee our Revolving Credit Facility. The Senior Notes and the guarantees are effectively subordinated to all of our secured indebtedness (including all borrowings and other obligations under our Revolving Credit Facility) to the extent of the value of the collateral securing such indebtedness and structurally subordinated in right of payment to all existing and future indebtedness and other liabilities (including trade payables) of any future subsidiaries that do not guarantee the Senior Notes. The indentures governing the Senior Notes contain covenants that, among other things, limit the ability of our restricted subsidiaries to: (i) incur or guarantee additional indebtedness or issue certain types of preferred stock; (ii) pay dividends or distributions in respect of its equity or redeem, repurchase or retire its equity or subordinated indebtedness; (iii) transfer or sell assets; (iv) make investments; (v) create certain liens; (vi) enter into agreements that restrict dividends or other payments from any non-Guarantor restricted subsidiary to it; (vii) consolidate, merge or transfer all or substantially all of its assets; (viii) engage in transactions with affiliates; and (ix) create unrestricted subsidiaries. If we experience certain kinds of changes of control accompanied by a ratings decline, holders of the Senior Notes may require us to repurchase all or a portion of their notes at certain redemption prices. The Senior Notes are not listed, and we do not intend to list the notes in the future, on any securities exchange, and currently there is no public market for the notes. Revolving Credit Facility Overview We are party to a senior secured reserve-based revolving credit agreement (as amended, restated, amended and restated or otherwise modified to date, the "Revolving Credit Facility") with Wells Fargo Bank, N.A., as administrative agent for the lenders and letter of credit issuer, and the lenders from time to time party thereto. From time to time, we have entered into amendments to the Revolving Credit Facility, which have (i) increased our elected commitment amount from $700.0 million to $1.3 billion, (ii) increased our borrowing base from $1.3 billion to $2.0 billion, (iii) increased our maximum credit amount from $1.5 billion to $3.0 billion, (iv) extended the maturity date from May 6, 2025 to September 23, 2027 and (v) reduced the applicable margin by 0.50% so that loans under the Revolving Credit Facility will be priced based on a secured overnight financing rate (“SOFR”) plus 2.35% to 3.35% or an adjusted base rate plus 1.25% to 2.25%, in each case, based on utilization of the Revolving Credit Facility. Our Revolving Credit Facility contains terms that if certain conditions regarding our outstanding Senior Notes exist in January 2026, it will mature in January 2026 prior to the extended maturity date. In connection with the closing of the July Western Eagle Ford Acquisition, we redetermined our Revolving Credit Facility, which reaffirmed our borrowing base at $2.0 billion with an elected commitment amount of $1.3 billion. At September 30, 2023, we had $392.0 million of borrowings and $11.4 million in letters of credit outstanding under the Revolving Credit Facility. The obligations under the Revolving Credit Facility remain secured by first priority liens on substantially all of the Company’s and the guarantors’ tangible and intangible assets, including without limitation, oil and natural gas properties and associated assets and equity interests owned by the Company and such guarantors. In connection with each redetermination of the borrowing base, the Company must maintain mortgages on at least 85% of the net present value, discounted at 9% per annum (“PV-9”) of the oil and natural gas properties that constitute borrowing base properties. The Company’s domestic direct and indirect subsidiaries are required to be guarantors under the Revolving Credit Facility, subject to certain exceptions. The borrowing base is subject to semi-annual scheduled redeterminations on or about April 1 and October 1 of each year, as well as (i) elective borrowing base interim redeterminations at our request not more than twice during any consecutive 12-month period or the required lenders not more than once during any consecutive 12-month period and (ii) elective borrowing base interim redeterminations at our request following any acquisition of oil and natural gas properties with a purchase price in the aggregate of at least 5.0% of the then effective borrowing base. The borrowing base will be automatically reduced upon (i) the issuance of certain permitted junior lien debt and other permitted additional debt, (ii) the sale or other disposition of borrowing base properties if the aggregate PV-9 of such properties sold or disposed of is in excess of 5.0% of the borrowing base then in effect and (iii) early termination or set-off of swap agreements (a) the administrative agent relied on in determining the borrowing base or (b) if the value of such swap agreements so terminated is in excess of 5.0% of the borrowing base then in effect. Interest Borrowings under the Revolving Credit Facility bear interest at either (i) a U.S. dollar alternative base rate (based on the prime rate, the federal funds effective rate or an adjusted SOFR, plus an applicable margin or (ii) SOFR, plus an applicable margin, at the election of the borrowers. The applicable margin varies based upon our borrowing base utilization then in effect. The fee payable for the unused revolving commitments is 0.5% per year and is included within interest expense on our condensed consolidated statements of operations. Our weighted average interest rate on loan amounts outstanding as of September 30, 2023 and December 31, 2022 was 8.00% and 6.98%, respectively. Covenants The Revolving Credit Facility contains certain covenants that restrict the payment of cash dividends, certain borrowings, sales of assets, loans to others, investments, merger activity, commodity swap agreements, liens and other transactions without the adherence to certain financial covenants or the prior consent of our lenders. We are subject to (i) maximum leverage ratio and (ii) current ratio financial covenants calculated as of the last day of each fiscal quarter. The Revolving Credit Facility also contains representations, warranties, indemnifications and affirmative and negative covenants, including events of default relating to nonpayment of principal, interest or fees, inaccuracy of representations or warranties in any material respect when made or when deemed made, violation of covenants, bankruptcy and insolvency events, certain unsatisfied judgments and change of control. If an event of default occurs and we are unable to cure such default, the lenders will be able to accelerate maturity and exercise other rights and remedies. Letters of Credit From time to time, we may request the issuance of letters of credit for our own account. Letters of credit accrue interest at a rate equal to the margin associated with SOFR borrowings. At September 30, 2023 and December 31, 2022, we had letters of credit outstanding of $11.4 million and $9.8 million, respectively, which reduce the amount available to borrow under our Revolving Credit Facility. Total Debt Outstanding The following table summarizes our debt balances as of September 30, 2023 and December 31, 2022:
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Asset Retirement Obligations |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligations | Asset Retirement Obligations Our ARO liabilities are based on our net ownership in wells and facilities and management’s estimate of the costs to abandon and remediate those wells and facilities together with management’s estimate of the future timing of the costs to be incurred. The following table summarizes activity related to our ARO liabilities for the nine months ended September 30, 2023:
(1) For the nine months ended September 30, 2023, our ARO additions primarily related to properties acquired in the July Western Eagle Ford Acquisition. See NOTE 3 – Acquisitions and Divestitures for additional information.
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Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, we may be a plaintiff or defendant in a pending or threatened legal proceeding arising in the normal course of business. In accordance with ASC 450, Contingencies, an accrual is recorded for a material loss contingency when its occurrence is probable and damages are reasonably estimable based on the anticipated most likely outcome or the minimum amount within a range or possible outcomes. Legal proceedings are inherently unpredictable, and unfavorable resolutions can occur. Assessing contingencies is highly subjective and requires judgement about uncertain future events. When evaluating contingencies related to legal proceedings, we may be unable to estimate losses due to a number of factors, including potential defenses, the procedural status of the matter in question, the presence of complex legal and/or factual issues, and the ongoing discovery and/or development of information important to the matter. We are unable to make an estimate of the range of reasonably possible losses related to our contingencies, but we are currently unaware of any proceedings that, in the opinion of management, will individually or in the aggregate have a material adverse effect on our financial position, results of operations or cash flows. We are subject to extensive federal, state and local environmental laws and regulations. These laws and regulations regulate the discharge of materials into the environment and may require us to remove or mitigate the environmental effects of the disposal or release of petroleum or chemical substances at various sites. We believe we are currently in compliance with all applicable federal, state and local laws and regulations. Accordingly, no liability or loss associated with environmental remediation was recognized as of September 30, 2023.
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Incentive Compensation Arrangements |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incentive Compensation Arrangements | Incentive Compensation Arrangements Overview We and certain of our subsidiaries have entered into incentive compensation award agreements to grant profits interests, restricted stock units ("RSUs"), performance stock units ("PSUs") and other incentive awards to our employees, our Manager, and non-employee directors. The following table summarizes compensation expense we recognized in connection with our incentive compensation awards for the periods indicated:
Equity-classified RSU Awards During the nine months ended September 30, 2023, we granted 140,856 equity-classified RSUs under the Crescent Energy Company 2021 Equity Incentive Plan to certain directors, officers and employees. Each RSU represents the contingent right to receive one share of Class A Common Stock. The grant date fair value was $11.31 per RSU, and the RSUs will vest over a period of to three years, with equity-based compensation expense recognized ratably over the applicable vesting period. Compensation cost for these awards is presented within General and administrative expense on the condensed consolidated statements of operations with a corresponding credit to Additional paid-in capital and Redeemable noncontrolling interest on the condensed consolidated balance sheets. In addition, during the three and nine months ended September 30, 2023 we had 85,827 shares vest related to outstanding RSU awards. Equity-classified PSU Awards During the three and nine months ended September 30, 2023, in conjunction with the Equity Issuance, Class A Conversion and RSU award vesting, the number of shares of our Class A Common Stock increased by 12.7 million and 40.3 million shares, respectively. As a result, the number of equity-classified PSU target Class A Shares granted under the Crescent Energy Company 2021 Manager Incentive Plan increased by 1.3 million and 4.0 million shares for the three and nine months ended September 30, 2023, respectively. We accounted for this increase as a change in estimate and recognized additional expense of $9.7 million and $27.7 million for the three and nine months ended September 30, 2023, respectively.
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Related Party Transactions |
9 Months Ended |
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Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions KKR Group Management Agreement We have entered into a management agreement (the "Management Agreement") with KKR Energy Assets Manager LLC (the "Manager"). Pursuant to the Management Agreement, the Manager provides the Company with its senior executive management team and certain management services. The Management Agreement has an initial term of three years and shall renew automatically at the end of the initial term for an additional three-year period unless the Company or the Manager elects not to renew the Management Agreement. As consideration for the services rendered pursuant to the Management Agreement and the Manager’s overhead, including compensation of the executive management team, the Manager is entitled to receive compensation ("Manager Compensation") on a quarterly basis equal to our pro rata share (based on our relative ownership of OpCo) of an annual $55.5 million fee. The amount borne by us will increase over time as our ownership percentage of OpCo increases. In addition, as our business and assets expand, Manager Compensation may increase by an amount equal to 1.5% per annum of the net proceeds from all future issuances of our equity securities (including in connection with acquisitions) and increased by $2.2 million during the three months ended September 30, 2023 in conjunction with our Equity Issuance. However, incremental Manager Compensation will not apply to the issuance of our shares upon the redemption or exchange of OpCo Units. During the three and nine months ended September 30, 2023, we recorded general and administrative expense of $6.8 million and $16.8 million, respectively, and made cash distributions of $7.3 million and $26.2 million, respectively, to our redeemable noncontrolling interests related to the Management Agreement. In addition, at September 30, 2023 we accrued $7.0 million distribution to redeemable noncontrolling interests that will be paid during the fourth quarter of 2023. During the three and nine months ended September 30, 2022, we recorded general and administrative expense of $3.8 million and $10.4 million, respectively, and made cash distributions of $10.0 million and $22.8 million, respectively, to our redeemable noncontrolling interests related to the Management Agreement. At September 30, 2023 and December 31, 2022, we had $13.9 million and $13.3 million, respectively, included within Accounts payable – affiliates on our condensed consolidated balance sheets associated with the Management Agreement. Additionally, the Manager is entitled to receive incentive compensation ("Incentive Compensation") under which the Manager is targeted to receive 10% of our outstanding Class A Common Stock based on the achievement of certain performance-based measures. The Incentive Compensation consists of five tranches that settle over a five-year period beginning in 2024, and each tranche relates to a target number of shares of Class A Common Stock equal to 2% of the outstanding Class A Common Stock as of the time such tranche is settled. So long as the Manager continuously provides services to us until the end of the performance period applicable to a tranche, the Manager is entitled to settlement of such tranche with respect to a number of shares of Class A Common Stock ranging from 0% to 4.8% of the of the outstanding Class A Common Stock at the time each tranche is settled. During the three and nine months ended September 30, 2023, we recorded general and administrative expense of $20.8 million and $54.0 million, respectively, related to Incentive Compensation. During the three and nine months ended September 30, 2022, we recorded general and administrative expense of $7.8 million and $15.6 million, respectively, related to Incentive Compensation. See NOTE 10 – Incentive Compensation Arrangements for more information. KKR Funds From time to time, we may invest in upstream oil and gas assets alongside EIGF II and/or other KKR funds ("KKR Funds") pursuant to the terms of the Management Agreement. In these instances, certain of our consolidated subsidiaries enter into Master Service Agreements ("MSA") with entities owned by KKR Funds, pursuant to which our subsidiaries provide certain services to such KKR Funds, including the allocation of the production and sale of oil, natural gas and NGLs, collection and disbursement of revenues, operating expenses and general and administrative expenses in the respective oil and natural gas properties, and the payment of all capital costs associated with the ongoing operations of the oil and natural gas assets. Our subsidiaries settle balances due to or due from KKR Funds on a monthly basis. The administrative costs associated with these MSAs are allocated by us to KKR Funds based on (i) an actual basis for direct expenses we may incur on their behalf or (ii) an allocation of such charges between the various KKR Funds based on the estimated use of such services by each party. As of September 30, 2023 and December 31, 2022, we had a related party receivable of $0.1 million and $0.8 million, respectively, included within Accounts receivable – affiliates and a related party payable of $23.1 million and $14.0 million, respectively, included within Accounts payable – affiliates on our condensed consolidated balance sheets associated with KKR Funds transactions. Other Transactions During the three and nine months ended September 30, 2023, we incurred $1.5 million and $2.6 million, respectively, in fees to KKR Capital Markets LLC ("KCM"), an affiliate of KKR Group, in connection with transactions relating to the 2028 Notes, respectively. During the nine months ended September 30, 2022, we incurred $0.7 million in fees to KCM in connection with transactions relating to the 2026 Notes. We recorded these fees as debt issuance costs within Long-term debt on the condensed consolidated balance sheets. During the nine months ended September 30, 2022, we paid an additional $1.5 million in fees to KCM related to the amendment to our Revolving Credit Facility, which increased our borrowing base and elected commitment amount in connection with the Uinta Transaction. We recorded these fees as debt issuance costs within Other assets on the condensed consolidated balance sheets. See NOTE 7 – Debt. During the three and nine months ended September 30, 2023, we paid KCM $2.2 million in underwriter discounts and commissions in connection with the Equity Issuance. During the three and nine months ended September 30, 2022, KCM received $1.3M from the proceeds of the transactions in underwriter discounts and commissions in connection with the Equity Transactions. We did not receive any cash proceeds. Refer to further discussion in NOTE 1 – Organization and Basis of Presentation regarding the Equity Transactions. In March 2023, we signed a ten-year office lease with an affiliate of Crescent Real Estate LLC. John C. Goff, the Chairman of our Board of Directors, is affiliated with Crescent Real Estate LLC. The terms of the lease provide for annual base rent of approximately $0.3 million, increasing over the term of the lease, and the payment by one of our subsidiaries of certain other customary expenses. Upon lease commencement in April 2023, we recorded a $2.4 million right-of-use asset in Other assets, an operating lease liability of $0.1 million in Other current liabilities and $2.3 million in Other liabilities on the condensed consolidated balance sheets.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share We have two classes of common stock in the form of Class A Common Stock and Class B Common Stock. Our shares of Class A Common Stock are entitled to dividends and shares of Class B Common Stock do not have rights to participate in dividends or undistributed earnings. However, shareholders of Class B Common Stock receive pro rata distributions from OpCo through their ownership of OpCo Units. We apply the two-class method for purposes of calculating earnings per share. The two-class method determines earnings per share of Common Stock and participating securities according to dividends or dividend equivalents declared during the period and each security's respective participation rights in undistributed earnings and losses. Net income (loss) per share - diluted excludes the effect of 4.2 million PSUs for the three and nine months ended September 30, 2022 that were antidilutive. The following table sets forth the computation of basic and diluted net income (loss) per share:
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Subsequent Events |
9 Months Ended |
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Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend On November 6, 2023, the Board of Directors approved a quarterly cash dividend of $0.12 per share, or $0.48 per share on an annualized basis, to be paid to shareholders of our Class A Common Stock with respect to the third quarter of 2023. The quarterly dividend is payable on December 4, 2023 to shareholders of record as of the close of business on November 20, 2023. OpCo unitholders will also receive a distribution based on their pro rata ownership of OpCo Units. The payment of quarterly cash dividends is subject to management’s evaluation of our financial condition, results of operations and cash flows in connection with such payments and approval by our Board of Directors. Management and the Board of Directors will evaluate any future changes in cash dividends on a quarterly basis.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
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Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (52,870) | $ 118,361 | $ 12,075 | $ 87,884 |
Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationOur unaudited condensed consolidated financial statements (the “financial statements”) include the accounts of the Company and its subsidiaries after the elimination of intercompany transactions and balances, are presented in accordance with U.S. general accepted accounting principles (“GAAP”) and reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary to present fairly the financial position and results of operations for the respective interim periods. |
Basis of Consolidation | Basis of PresentationOur unaudited condensed consolidated financial statements (the “financial statements”) include the accounts of the Company and its subsidiaries after the elimination of intercompany transactions and balances, are presented in accordance with U.S. general accepted accounting principles (“GAAP”) and reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary to present fairly the financial position and results of operations for the respective interim periods. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We use historical experience and various other assumptions and information that are believed to be reasonable under the circumstances in developing our estimates and judgments. Estimates and assumptions about future events and their effects cannot be predicted with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. While we believe that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results may differ from these estimates. Our significant estimates include the fair value of acquired assets and liabilities, oil and natural gas reserves, impairment of proved and unproved oil and natural gas properties and valuation of derivative instruments.
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Restricted Cash | Restricted Cash Restricted cash consists of funds earmarked for a special purpose and therefore not available for immediate and general use. The majority of our restricted cash as of September 30, 2023 is composed of (i) our deposit for the October Western Eagle Ford Acquisition and (ii) cash that is contractually required to be restricted to pay for the future abandonment of certain wells in California. Restricted cash is included in Restricted cash and Other assets on our condensed consolidated balance sheets.
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Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Pursuant to the OpCo LLC Agreement, holders of OpCo Units, other than the Company, may redeem all or a portion of their OpCo Units for either (a) shares of Class A Common Stock or (b) at the election of the Company, an approximately equivalent amount of cash as determined pursuant to the terms of the OpCo LLC Agreement. In connection with such redemption, a corresponding number of shares of Class B Common Stock will be cancelled. The cash redemption election is not considered to be within the control of the Company because the holders of Class B Common Stock and their affiliates control the Company through direct representation on the Board of Directors. As a result, we present the noncontrolling interests in OpCo as redeemable noncontrolling interests outside of permanent equity. Redeemable noncontrolling interests are recorded at the greater of the carrying value or redemption amount with a corresponding adjustment to Additional paid-in capital if redemption is considered probable. The cash redemption amount for OpCo Units for this purpose is based on the 10-day volume-weighted average closing price of Class A Common Stock at the end of the reporting period. Changes in the redemption value are recognized immediately as they occur, as if the end of the reporting period was also the redemption date for the instrument, with an offsetting entry to Additional paid-in capital. Additionally, certain other subsidiaries have agreements whereby certain employees have the option to sell their noncontrolling interest in such subsidiaries back to us at fair value and are treated as redeemable noncontrolling interests outside of permanent equity. In September 2023, the proceeds from the Equity Issuance, including the exercise of the underwriters' over-allotment, were contributed by Crescent to OpCo in exchange for 12.7 million OpCo Units. As a result of the additional OpCo Units owned by Crescent, we reclassified $65.8 million from Redeemable noncontrolling interests to Additional paid-in capital. In June 2023, the Class A Conversion reduced the number of shares of our Class B Common Stock outstanding by 27.6 million shares. A corresponding number of OpCo Units were transferred to Crescent, which reduced the value of our redeemable noncontrolling interests by $618.7 million.
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Income Taxes | Income TaxesCrescent is a holding company, the sole material asset of which consists of OpCo Units. OpCo is a partnership and is generally not subject to U.S. federal and certain state taxes. Crescent is subject to U.S. federal and certain state income taxes on its allocable share of any taxable income of OpCo. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and restricted cash presented on our balance sheets to amounts shown in the statements of cash flows:
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Schedule of Restricted Cash and Restricted Cash Equivalents | The following table provides a reconciliation of cash and restricted cash presented on our balance sheets to amounts shown in the statements of cash flows:
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Schedule of Redeemable Noncontrolling Interest | From December 31, 2022 through September 30, 2023, we recorded adjustments to the value of our redeemable noncontrolling interests as shown below:
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Schedule of Supplemental Cash Flow | The following are our supplemental cash flow disclosures for the nine months ended September 30, 2023 and 2022:
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Derivatives (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table details our net volume positions by commodity as of September 30, 2023:
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Schedule of Offsetting Assets | The following table shows the effects of master netting arrangements on the fair value of our derivative contracts as of September 30, 2023 and December 31, 2022:
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Schedule of Offsetting Liabilities | The following table shows the effects of master netting arrangements on the fair value of our derivative contracts as of September 30, 2023 and December 31, 2022:
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Schedule of Derivative Contracts on Operations | The amount of gain (loss) recognized in gain (loss) on derivatives in our condensed consolidated statements of operations was as follows for the three and nine months ended September 30, 2023 and 2022:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the fair value of our derivative assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2023 and December 31, 2022 by level within the fair value hierarchy:
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Accounts Payable and Accrued Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consisted of the following as of September 30, 2023 and December 31, 2022:
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt Balances | The following table summarizes our debt balances as of September 30, 2023 and December 31, 2022:
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Asset Retirement Obligations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Change in Asset Retirement Obligations | The following table summarizes activity related to our ARO liabilities for the nine months ended September 30, 2023:
(1) For the nine months ended September 30, 2023, our ARO additions primarily related to properties acquired in the July Western Eagle Ford Acquisition. See NOTE 3 – Acquisitions and Divestitures for additional information.
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Incentive Compensation Arrangements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity-Based Compensation Expense | The following table summarizes compensation expense we recognized in connection with our incentive compensation awards for the periods indicated:
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Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Net Income (Loss) per Share | The following table sets forth the computation of basic and diluted net income (loss) per share:
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Summary of Significant Accounting Policies - Cash and Restricted Cash (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 228,614 | $ 0 | $ 22,478 | |
Restricted cash – current | 33,422 | 8,000 | 0 | |
Restricted cash – noncurrent | 5,298 | 7,176 | ||
Total cash, cash equivalents and restricted cash | $ 267,334 | $ 15,304 | $ 29,654 | $ 135,117 |
Summary of Significant Accounting Policies - Adjustments to Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||
Beginning balance | $ 2,039,063 | $ 2,607,169 | $ 2,436,703 | $ 2,436,703 | ||
Net income attributable to redeemable noncontrolling interests | (78,280) | 52,067 | 195,668 | $ 436,084 | 169,455 | $ 341,269 |
Contributions | 529 | 709 | ||||
Distributions | (417) | |||||
Distributions from OpCo related to Class A common stock dividend, Manager compensation and income taxes, net | (10,962) | (14,098) | (20,183) | |||
Accrued OpCo distribution | (7,030) | (7,264) | (9,471) | |||
Equity-based compensation | 11,383 | 19,629 | 4,452 | |||
Change in redeemable noncontrolling interests associated with the Class A Conversion | (209,167) | (618,732) | ||||
Change in redeemable noncontrolling interests associated with the Equity Issuance | (65,841) | |||||
Ending balance | $ 1,888,862 | $ 2,039,063 | $ 2,607,169 | $ 1,888,862 |
Summary of Significant Accounting Policies - Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
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Supplemental cash flow disclosures: | ||
Interest paid, net of amounts capitalized | $ 83,918 | $ 44,072 |
Income tax (refunds) payments | (1,430) | 7,864 |
Non-cash investing and financing activities: | ||
Capital expenditures included in accounts payable and accrued liabilities | 71,543 | 78,080 |
Right-of-use assets obtained in exchange for leases | $ 23,756 | $ 8,365 |
Derivatives - Netting Arrangements (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Assets: | ||
Gross Fair Value | $ 57,960 | $ 32,218 |
Effect of Counterparty Netting | (53,682) | (17,340) |
Net Carrying Value | 4,278 | 14,878 |
Liabilities: | ||
Gross Fair Value | (328,252) | (394,052) |
Effect of Counterparty Netting | 53,682 | 17,340 |
Net Carrying Value | (274,570) | (376,712) |
Derivative assets – current | ||
Assets: | ||
Gross Fair Value | 35,699 | 21,880 |
Effect of Counterparty Netting | (31,421) | (7,002) |
Net Carrying Value | 4,278 | 14,878 |
Derivative assets – noncurrent | ||
Assets: | ||
Gross Fair Value | 22,261 | 10,338 |
Effect of Counterparty Netting | (22,261) | (10,338) |
Net Carrying Value | 0 | 0 |
Derivative liabilities – current | ||
Liabilities: | ||
Gross Fair Value | (274,620) | (319,977) |
Effect of Counterparty Netting | 31,421 | 7,002 |
Net Carrying Value | (243,199) | (312,975) |
Derivative liabilities – noncurrent | ||
Liabilities: | ||
Gross Fair Value | (53,632) | (74,075) |
Effect of Counterparty Netting | 22,261 | 10,338 |
Net Carrying Value | $ (31,371) | $ (63,737) |
Fair Value Measurements - Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financial Liabilities: | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Derivative liabilities – current, Derivative liabilities – noncurrent | Derivative liabilities – current, Derivative liabilities – noncurrent |
Fair Value, Recurring | ||
Financial assets: | ||
Derivative assets | $ 57,960 | $ 32,218 |
Financial Liabilities: | ||
Derivative liabilities | (328,252) | (394,052) |
Fair Value, Recurring | Level 1 | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Financial Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Financial assets: | ||
Derivative assets | 57,960 | 32,218 |
Financial Liabilities: | ||
Derivative liabilities | (328,252) | (394,052) |
Fair Value, Recurring | Level 3 | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Financial Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Fair value based on quoted market prices | $ 1,553.0 | $ 661.5 |
Accounts Payable and Accrued Liabilities (Details) - Nonrelated Party - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Supplier Finance Program [Line Items] | ||
Accounts payable | $ 105,675 | $ 104,343 |
Accrued lease and asset operating expense | 70,026 | 58,375 |
Accrued capital expenditures | 48,701 | 76,246 |
Accrued general and administrative expense | 18,490 | 13,688 |
Accrued transportation expense | 62,744 | 31,525 |
Accrued revenue and royalties payable | 161,437 | 160,775 |
Accrued interest expense | 32,751 | 11,672 |
Accrued severance taxes | 53,966 | 55,496 |
Other | 11,472 | 12,570 |
Total accounts payable and accrued liabilities | $ 565,262 | $ 524,690 |
Debt - Summary of Debt Balances (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Feb. 28, 2023 |
Dec. 31, 2022 |
May 31, 2021 |
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Less: Unamortized discount, premium and issuance costs | $ (29,813) | $ (11,891) | ||
Total long-term debt | 1,912,187 | 1,247,558 | ||
Letters of Credit Issued | 11,419 | 9,770 | ||
Letter of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 392,000 | 559,449 | ||
Borrowing Base | 2,000,000 | |||
Senior Notes | 7.25% Senior Notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 700,000 | $ 700,000 | ||
Senior Notes | 9.25% Senior Notes due 2028 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 9.25% | 9.25% | ||
Long-term debt, gross | $ 850,000 | |||
Senior Notes | 7.25 Senior Notes Due 2028 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 7.25% | 7.25% |
Asset Retirement Obligations (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at beginning of period | $ 365,614 | |
Additions | 16,272 | |
Retirements | (8,835) | |
Sale | (1,627) | |
Revisions | 1,681 | |
Accretion expense | 20,477 | |
Balance at end of period | 393,582 | |
Less: current portion | (21,010) | |
Balance at end of period, noncurrent portion | $ 372,572 | $ 346,868 |
Earnings Per Share - Narrative (Details) shares in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2022
shares
|
Sep. 30, 2023
class
|
Sep. 30, 2022
shares
|
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Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Number of classes of equity | class | 2 | ||
ASC 718 equity-classified PSU awards | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Effective antidilutive shares (in shares) | shares | 4.2 | 4.2 |
Subsequent Events (Details) - Subsequent Event |
Nov. 06, 2023
$ / shares
|
---|---|
Subsequent Event [Line Items] | |
Common stock dividends paid per share (in USD per share) | $ 0.12 |
Common stock dividends declared per share (in USD per share) | 0.12 |
Annual common stock dividends per share (in USD per share) | $ 0.48 |
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