Crescent Energy Co

Current report

The integration of SilverBow into Crescent may not be as successful as anticipated, and Crescent may not achieve the intended benefits or do so within the intended timeframe.

Current report

The SilverBow Merger involves numerous operational, strategic, financial, accounting, legal, tax and other risks, including potential liabilities associated with the acquired business. Difficulties in integrating SilverBow into Crescent, and Crescent’s ability to manage the combined company, may result in the combined company performing differently than expected, in operational challenges or in the delay or failure to realize anticipated expense-related efficiencies, and could have an adverse effect on the financial condition, results of operations or cash flows of Crescent. Potential difficulties that may be encountered in the integration process include, among other factors:

Current report

•the inability to successfully integrate the businesses of SilverBow into Crescent, operationally and culturally, in a manner that permits Crescent to achieve the full revenue and cost savings anticipated from the SilverBow Merger;

Current report

•complexities associated with managing a larger, more complex, integrated business;

Current report

•complexities resulting from the different accounting methods of Crescent and SilverBow;

Current report

•the inability to retain key employees and otherwise integrate personnel from the two companies and the loss of key employees;

Current report

•integrating relationships with customers, vendors and business partners;

Current report

•performance shortfalls at one or both of the companies as a result of the diversion of management’s attention caused by integrating SilverBow’s operations into Crescent; and

Current report

•the disruption of, or the loss of momentum in, each company’s ongoing business or inconsistencies in standards, controls, procedures and policies.

Current report

Additionally, the success of the SilverBow Merger will depend, in part, on Crescent’s ability to realize the anticipated benefits and cost savings from combining Crescent’s and SilverBow’s businesses, including operational and other synergies that Crescent believes the combined company will achieve. The anticipated benefits and cost savings of the SilverBow Merger may not be realized fully or at all, may take longer to realize than expected or could have other adverse effects that Crescent does not currently foresee. Some of the assumptions that Crescent has made, such as the achievement of operating synergies, may not be realized.

Previous report

(1)As part of the March 2024 Repurchase, OpCo repurchased 2,300,000 OpCo Units from Independence Energy Aggregator L.P. for $22.7 million in cash, or $9.87 per OpCo Unit, and we cancelled a corresponding number of shares of Class B Common Stock. Following the March 2024 Repurchase, we have $127.3 million remaining under our stock repurchase program.