Crescent Energy Company Q4 FY2025 earnings call

• Focus on NAV per share and free cash flow per share accretion as core focuses. • Diligently work on the DMC aspect to reduce well costs and see improvement opportunities. • Emphasize the value of slowing down for better operational planning and capital efficiency. • Highlight synergies from Vital integration, with over 40 million already captured and aiming for 190 million in synergies. • Prioritize the balance sheet and base dividend while being opportunistic with share repurchase and focusing on operational efficiency improvement.

In the Permian, the fourth - quarter applied oil rate was nearly 70,000 barrels per day. Vital has had no new wells since early October, leading to a flat oil production cadence in 2026. In the Eagleford, extending laterals and increasing pad sizes have been implemented to boost capital efficiency. The Uinta asset is seen as having significant optionality with strong return potential and great resource potential.

• Expect relatively flat oil volumes in the Eagleford and Permian throughout 2026. • Aim to reduce the corporate base decline to 25% or below in the next 12 to 18 months. • Synergies will be realized gradually over 2026. • Expect to be below one and a half times leverage by year - end for minerals acquisitions.

Q: Regarding synergies from the Vital acquisition, can you provide details on the savings seen and the expectation to reach 190 million?

A: Largely, it includes overhead, duplicative public company expenses, and cost of capital synergies. 50 of the 100% increase in synergies is ops - related, and the remaining 50 is additional overhead, incremental marketing synergies, and further cost of capital reduction. Synergies will be realized over 2026.

Q: How does Crescent prioritize shareholder return among the base dividend, shareholder returns, and debt reduction in 2026?

A: The balance sheet and base dividend are top priorities, with deleveraging being prioritized while retaining flexibility, and the share repurchase is opportunistic.

Q: Does the spotlight on Crescent Royalties change the thinking about leverage?

A: No fundamental change, the long - term target continues, and it is expected to be below one and a half times leverage by year - end for minerals acquisitions.

Q: What is driving the step - up in laterals in the Eagleford and its impact on DNC cost per foot?

A: Building scale in the Eagleford allows for extending laterals, and increasing pad sizes to 70% simulfrac, which pushes capital efficiency higher.

Q: How should we think about the optionality of the Uinta asset?

A: It is entirely HVP, can deliver strong returns in a normalized oil market, has great resource potential, and can expand operationally slowly.

Q: Could we plateau at a higher level if the environment is constructive?

A: It depends on the rate of return, as development activity can be allocated to the best return, and there are oil opportunities in multiple basins.