Crescent Energy said on Tuesday it would acquire Carnelian Energy Capital-backed Ridgemar Energy’s assets in the Eagle Ford basin in Texas for a cash-and-stock deal of $905 million, further strengthening its position in the basin.
The deal, which is expected to close in the first quarter of 2025, also includes an additional payment of $170 million by Crescent contingent on future oil prices.
Shares of the company were down 3.6% in extended trading.
A consolidation in the U.S. energy sector, which triggered $250 billion worth of deals in 2023, has stretched into this year as companies look for opportunities to deploy their cash hoard and boost their reserves.
This trend has also enabled private equity firms to benefit from selling to companies seeking to increase their inventory, allowing the former to exit oil and gas investments profitably.
“With accelerated synergies captured from the integration of SilverBow and our recent bolt-on acquisition, our full team is ready and eager to add the Ridgemar assets to our core operating footprint in the Eagle Ford,” said Crescent CEO David Rockecharlie.
Reuters reported in November that Carnelian Energy Capital was exploring a sale of Ridgemar.
Crescent Energy, in May this year, bought SilverBow Resources for $2.1 billion, creating the second-largest operator in the Eagle Ford basin.
Houston, Texas-based Ridgemar is one of the top remaining private oil producers in the Eagle Ford, yielding an oil-weighted 20,000 barrels of oil equivalent per day.
The Eagle Ford basin in Southeast Texas represented nearly 13% of deals in the first half of the year compared with the second half last year, according to data from energy consultancy Rystad.
Source: Reuters.com