Crescent Energy Co. closed its acquisition of operatorship and incremental working interest in its existing Eagle Ford assets for approximately $600 million cash, subject to customary purchase price adjustments, the company said July 10.

The deal, announced in May, will bolt-on assets in the Eagle Ford Shale from Mesquite Energy Inc., which formerly operated as Sanchez Energy. The Mesquite Energy assets are 100% operated and span approximately 75,000 contiguous net acres, primarily located in Dimmit and Webb counties, Texas.

Following closing, Crescent assumed operatorship of its existing western Eagle Ford acreage and plans to maintain a one-rig development program on the asset through the remainder of the year. For the second half of 2023, the company estimates the acquisition will increase net production by 19,000 boe/d to 21,000 boe/d and capital investments by approximately $45 million to $55 million.

Crescent plans to provide detailed pro forma guidance for 2023 in conjunction with its second quarter earnings release in August.

“We continue to execute on our long-term strategy, which includes opportunistically growing our footprint in the Eagle Ford through accretive M&A while maintaining financial strength and enhancing our capital markets presence,” Crescent CEO David Rockecharlie said. “These transactions demonstrate our continued focus on delivering long-term value to investors through increased scale and improved trading liquidity."

In addition, the company's public float increased to 46% from 29% with the previously announced conversion of approximately 28 million private shares to Class A public shares. Both transactions closed on July 3, 2023.

Concurrent with closing, Crescent's lenders reaffirmed the company’s borrowing base under its revolving credit facility at $2 billion, with an elected commitment amount of $1.3 billion. As of June 30, the company had $250 million of outstanding borrowings under the revolving credit facility. Pro forma for the closing of the acquisition, Crescent has approximately $790 million outstanding under the revolving credit facility and over $500 million of liquidity.