# EDGAR Filing Document

**Accession Number:** 0001866175
**File Stem:** 0001193125-23-003629
**Filing Date:** 2023-1
**Character Count:** 37236
**Document Hash:** 836598134fcedff01b8538d25a58e27f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-003629.hdr.sgml**: 20230106

**ACCESSION NUMBER**: 0001193125-23-003629

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230106

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230106

**DATE AS OF CHANGE**: 20230106

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Crescent Energy Co
- **CENTRAL INDEX KEY:** 0001866175
- **STANDARD INDUSTRIAL CLASSIFICATION:** CRUDE PETROLEUM & NATURAL GAS [1311]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41132
- **FILM NUMBER:** 23515607

**BUSINESS ADDRESS:**
- **STREET 1:** 600 TRAVIS STREET
- **STREET 2:** SUITE 7200
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77002
- **BUSINESS PHONE:** (713) 481-7782

**MAIL ADDRESS:**
- **STREET 1:** 600 TRAVIS STREET
- **STREET 2:** SUITE 7200
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77002

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** IE PubCo Inc.
- **DATE OF NAME CHANGE:** 20210607

?xml version="1.0" encoding="utf-8" ? 8-K

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### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

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### FORM 8-K

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#### CURRENT REPORT

#### PURSUANT TO SECTION 13 OR 15(D)

#### OF THE SECURITIES EXCHANGE ACT OF 1934

#### Date of report (Date of earliest event reported): January 6, 2023

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## Crescent Energy Company

#### (Exact Name of Registrant as Specified in its Charter)

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| | | |
|:---|:---|:---|
| **Delaware** | **001-41132** | **87-1133610** |
| **(State or Other Jurisdiction**<br> **of incorporation)** | **(Commission**<br> **File Number)** | **(I.R.S. Employer**<br> **Identification No.)** |

---

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| | |
|:---|:---|
| **600 Travis Street, Suite 7200**<br> **Houston, Texas** | **77002** |
| **(Address of Principal Executive Office)** | **(Zip Code)** |

---

(713) 337-4600

#### Registrant's Telephone Number, including Area Code

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br> **Symbol(s)** | **Name of each exchange**<br> **on which registered** |
| Class A Common Stock, par value $0.0001 per share | CRGY | The New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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| | |
|:---|:---|
| **Item 2.02.** | **Results of Operations and Financial Condition.**  |

---

This Current Report on Form 8-K (this "Current Report") provides a pro forma statements of operations of Crescent Energy Company (the "Company") for the nine months ended September 30, 2022 and the year ended December 31, 2021, as described in Item 9.01 below and which is incorporated into this Item 2.02 by reference, giving effect to the acquisition contemplated by the Membership Interest Purchase Agreement, dated February 15, 2022, by and among certain of the Company's subsidiaries, including Crescent Energy OpCo LLC and Verdun Oil Company II LLC, a Delaware limited liability company, pursuant to which the Company purchased all of the issued and outstanding membership interests of Javelin Uinta, LLC, a Texas limited liability company that holds certain exploration and production assets located in the State of Utah (such transaction, the "Uinta Acquisition"), as if it has been consummated on January 1, 2021.

In addition, to the extent required, the information contained in Item 8.01 of this Current Report on Form 8-K is incorporated into this Item 2.02 by reference.

The information contained in this Item 2.02 shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act.

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| | |
|:---|:---|
| **Item 7.01.** | **Regulation FD Disclosure.**  |

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The information contained in Item 8.01 of this Current Report on Form 8-K is incorporated into this Item 7.01 by reference.

The information contained in this Item 7.01 shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act or the Exchange Act.

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| | |
|:---|:---|
| **Item 8.01** | **Other Events.**  |

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*Pro Forma Financial Statements* 

This Current Report on Form 8-K provides a pro forma statements of operations, as described in Item 9.01 below, which is incorporated into this Item 8.01 by reference.

*Registration Statement* 

On or about the date of this Current Report on Form 8-K, the Company intends to file a Registration Statement on Form S-3 (the "Registration Statement") relating to the proposed offering by the Company and certain selling stockholders of shares of Class A common stock, par value $0.0001 per share, and other securities described therein. The Registration Statement will incorporate this Current Report, including the pro forma statements of operations, as described in Item 9.01, by reference.

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.**  |

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(b) Pro Forma Financial Information

The following unaudited pro forma condensed combined financial information of the Company, giving effect to the Uinta Acquisition, attached as Exhibit 99.1 hereto:

• Unaudited Pro Forma Condensed Combined Statement of Operations for the nine months ended September 30, 2022;

• Unaudited Pro Forma Condensed Combined Statement of Operations for the year ended December 31, 2021; and

• Notes to the Unaudited Pro Forma Condensed Combined Financial Statements.

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(d) Exhibits.

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| | |
|:---|:---|
| **Exhibit<br>No.** | **Description** |
| 99.1 | [Unaudited pro forma condensed combined statements of operations for the nine months ended September 30, 2022 and the year ended December 31, 2021.](d424205dex991.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

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#### SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: January 6, 2023

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| | |
|:---|:---|
| **CRESCENT ENERGY COMPANY** | **CRESCENT ENERGY COMPANY** |
| By: | /s/ Bo Shi |
| Name: | Bo Shi |
| Title: | General Counsel |

---

## Exhibit 99.1

**Exhibit 99.1** 

**UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS** 

On March 30, 2022, Crescent Energy Company ("Crescent" or the "Company"), consummated the acquisition contemplated by the Membership Interest Purchase Agreement (the "Purchase Agreement") dated February 15, 2022, by and among certain of the Company's subsidiaries, including Crescent Energy OpCo LLC ("OpCo"), and Verdun Oil Company II LLC, a Delaware limited liability company, pursuant to which the Company purchased all of the issued and outstanding membership interests of Javelin Uinta, LLC, a Texas limited liability company that holds certain exploration and production assets (the "Uinta Basin Assets") located in the State of Utah (such transactions contemplated by the Purchase Agreement, collectively, the "Uinta Acquisition").

The following unaudited pro forma condensed combined financial statements (the "pro forma financial statements") have been prepared from the respective historical consolidated financial statements of Crescent for the nine months ended September 30, 2022 and for the year ended December 31, 2021 and the statements of revenues and direct operating expenses of the Uinta Basin Assets for the period from January 1, 2022 through March 30, 2022 and for the year ended December 31, 2021, adjusted to give effect to the Uinta Acquisition as if it had been consummated on January 1, 2021.

The following pro forma financial statements are based on, and should be read in conjunction with, the historical unaudited consolidated financial statements for the three and nine months ended September 30, 2022 included in the Company's Quarterly Report on Form 10-Q and the historical audited combined and consolidated financial statements for the year ended December 31, 2021 included in the Company's Annual Report on Form 10-K and the statements of revenues and direct operating expenses of the Uinta Basin Assets for the period from January 1, 2022 through March 30, 2022 and for the year ended December 31, 2021 included as Exhibit 99.1 included in the Company's Current Report on Form 8-K dated May 18, 2022. Additionally, the unaudited pro forma condensed combined statement of operations for the year ended December 31, 2021 is based on, and should be read in conjunction with, the unaudited pro forma condensed combined financial statement for the year ended December 31, 2021 included in the Company's Current Report on Form 8-K dated April 8, 2022.

The accompanying pro forma financial statements were derived by making certain transaction accounting adjustments to the historical and pro forma financial statements noted above. The adjustments are based on currently available information and certain estimates and assumptions. Therefore, the actual impact of the Uinta Acquisition may differ from the adjustments made to the pro forma financial statements. However, management believes that the assumptions provide a reasonable basis for presenting the significant effects for the periods presented as if the Uinta Acquisition had been consummated earlier, and that all adjustments necessary to present fairly the pro forma financial statements have been made. The pro forma adjustments have been made solely for the purpose of providing the unaudited pro forma financial statements presented below.

The pro forma financial statements and related notes are presented for illustrative purposes only and should not be relied upon as an indication of the financial condition or the operating results that the Company would have achieved if the Purchase Agreement had been entered into and the Uinta Acquisition had taken place on January 1, 2021. The pro forma financial statements do not reflect future events that may occur after the consummation of the Uinta Acquisition, including, but not limited to, the anticipated realization of ongoing savings from potential operating efficiencies, asset dispositions, cost savings, or economies of scale that the Company may achieve with respect to the combined operations. As a result, future results may vary significantly from the results reflected in the pro forma financial statements and should not be relied on as an indication of the future results of the Company.

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**Unaudited Pro Forma Condensed Combined Statement of Operations** 

**For the Nine Months Ended September 30, 2022** 

**(in thousands, except per share data)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Crescent**<br>**(Historical)** | **Uinta Basin<br>Assets**<br>**(Historical)** | **Uinta Acquisition<br>Transaction<br>Adjustments** | **Crescent Pro<br>Forma<br>Combined** |
|  **Revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil | $1525899 | $132160 | $— | $1658059 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 586318 | 15664 |  | 601982 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas liquids | 219853 |  |  | 219853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Midstream and other | 40231 |  |  | 40231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total revenues** | 2372301 | 147824 |  | 2520125 |
|  **Expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating expense | 748269 | 17407 |  | 765676 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion and amortization | 375600 |  | 25537 &nbsp;&nbsp;&nbsp;&nbsp;(a) | 401137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exploration expense | 3848 |  |  | 3848 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Midstream operating expense | 9972 |  |  | 9972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expense | 59489 |  |  | 59489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on sale of assets | (5114) |  |  | (5114) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total expenses** | 1192064 | 17407 | 25537 | 1235008 |
|  **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on derivatives | (645565) |  |  | (645565) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (68518) |  |  | (68518) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income (expense) | (4472) |  |  | (4472) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) from equity affiliates | 4086 |  |  | 4086 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total other income (expense)** | (714469) |  |  | (714469) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) before taxes | 465768 | 130417 | (25537) | 570648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax benefit (expense) | (34528) |  | (6446) (b) | (40974) |
|  **Net income (loss)** | 431240 | 130417 | (31983) | 529674 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: net (income) loss attributable to noncontrolling interests | (2087) |  |  | (2087) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: net (income) loss attributable to redeemable noncontrolling interests | (341269) |  | (78919) (c) | (420188) |
|  **Net income (loss) attributable to Crescent** | $87884 | $130417 | $(110902) | $107399 |
|  **Net Loss per Share:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common stock – basic | $2.07 |  |  | $2.53 &nbsp;&nbsp;&nbsp;&nbsp;(d) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common stock – diluted | $2.07 |  |  | $2.53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B common stock – basic and diluted | $— |  |  | $— |
|  **Weighted Average Common Shares Outstanding** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common stock – basic | 42377 |  |  | 42377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A common stock – diluted | 42382 |  |  | 42382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B common stock – basic and diluted | 126950 |  |  | 126950 |

---

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**Unaudited Pro Forma Condensed Combined Statement of Operations** 

**For the Year Ended December 31, 2021** 

**(in thousands, except per share data)** 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Crescent Pro Forma<br>Combined Prior to<br>Uinta Acquisition** | **Uinta Basin<br>Assets**<br>**(Historical)** | **Uinta Acquisition<br>Transaction<br>Adjustments** | **Crescent Pro<br>Forma<br>Combined** |
|  **Revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oil | $1112024 | $292034 | $— | $1404058 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas | 550791 | 37925 |  | 588716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural gas liquids | 235600 |  |  | 235600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Midstream and other | 69421 |  |  | 69421 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total revenues** | 1967836 | 329959 |  | 2297795 |
|  **Expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating expense | 795466 | 48456 |  | 843922 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation, depletion and amortization | 416160 |  | 79613 &nbsp;&nbsp;&nbsp;&nbsp;(a) | 495773 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment and abandonment of oil and natural gas properties | 761 |  |  | 761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exploration expense | 1661 |  |  | 1661 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Midstream operating expense | 15355 |  |  | 15355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expense | 171327 |  |  | 171327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of assets | (9232) |  |  | (9232) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total expenses** | 1391498 | 48456 | 79613 | 1519567 |
|  **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on derivatives | (970659) |  |  | (970659) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (73698) |  |  | (73698) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on extinguishment of debt | 3369 |  |  | 3369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income (expense) | 5926 |  |  | 5926 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) from equity method investments | (1529) |  |  | (1529) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total other income (expense)** | (1036591) |  |  | (1036591) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income (loss) before taxes | (460253) | 281503 | (79613) | (258363) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax benefit (expense) | 25561 |  | (12408) (b) | 13153 |
|  **Net income (loss)** | (434692) | 281503 | (92021) | (245210) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: net (income) loss attributable to noncontrolling interests | 3570 |  |  | 3570 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: net (income) loss attributable to redeemable noncontrolling interests | 333598 |  | (151916) (c) | 181682 |
|  **Net income (loss) attributable to Crescent** | $(97524) | $281503 | $(243937) | $(59958) |
|  **Net Loss per Share:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A - basic and diluted | $(2.32) |  |  | $(1.43) (d) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B - basic and diluted | $— |  |  | $— |
|  **Weighted Average Common Shares Outstanding** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A - basic and diluted | 41954 |  |  | 41954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B - basic and diluted | 127536 |  |  | 127536 |

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**Notes to unaudited pro forma condensed combined financial statements** 

**NOTE 1 – Basis of pro forma presentation** 

The pro forma financial statements have been derived from the historical financial statements of Crescent and statements of revenues and direct operating expenses for the Uinta Basin Assets. Additionally, the pro forma statement of operations for the year ended December 31, 2021 has been derived from certain pro forma financial statements included in the Company's Current Report on Form 8-K dated April 8, 2022. The pro forma statements of operations for the nine months ended September 30, 2022 and for the year ended December 31, 2021 give effect to the Uinta Acquisition as if it occurred on January 1, 2021.

The statements of revenues and direct operating expenses for the Uinta Basin Assets, which are being presented in accordance with Article 3-05 of Regulation S-X, represent abbreviated financial statements that include less information about the historical business associated with the Uinta Basin Assets or about our current and future results as the owner of the Uinta Basin Assets than full financial statements. For example, the statements of revenues and direct operating expenses do not include information about capital structure, interest expense, entity-level taxes, or depreciation, depletion and amortization.

The pro forma financial statements reflect pro forma adjustments that are based on available information and certain assumptions that management believes are reasonable. However, actual results may differ from those reflected in these statements. In management's opinion, all adjustments known to date that are necessary to present fairly the pro forma information have been made. The pro forma financial statements do not purport to represent what the combined entity's results of operations would have been if the Uinta Acquisition had actually occurred on the date indicated above, nor are they indicative of Crescent's future results of operations.

These pro forma financial statements should be read in conjunction with Crescent's historical financial statements for the three and nine months ended September 30, 2022 and for the year ended December 31, 2021 included in the Company's Quarterly Report on Form 10-Q and Annual Report on Form 10-K, respectively.

**NOTE 2 – Purchase price allocation** 

In March 2022, Crescent consummated the acquisition contemplated by the Purchase Agreement, pursuant to which Crescent purchased all of the issued and outstanding membership interests of Javelin Uinta, LLC, a Texas limited liability company that holds the Uinta Basin Assets. Upon closing of the Uinta Acquisition, Crescent paid $621.3 million in cash consideration and transaction fees and assumed certain commodity derivatives. The Uinta Acquisition was funded with cash on hand and borrowings under Crescent's Revolving Credit Facility. The Uinta Acquisition was accounted for as an asset acquisition, with Crescent recording $852.5 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.

**NOTE 3 – Adjustments to the pro forma financial statement** 

The pro forma financial statements have been prepared to illustrate the effect of the Uinta Acquisition and have been prepared for informational purposes only.

The preceding pro forma financial statements have been prepared in accordance with Article 11 of Regulation S-X as amended by the final rule, Release No. 33-10786 "Amendments to Financial Disclosures about Acquired and Disposed Businesses." Release No. 33-10786 replaces the existing pro forma adjustment criteria with simplified requirements to depict the accounting for the transaction ("Transaction Accounting Adjustments") and allows for supplemental disclosure of the reasonably estimable synergies and other transaction effects that have occurred or are reasonably expected to occur ("Management Adjustments"). Management has elected not to disclose Management Adjustments.

The pro forma provision for income taxes does not necessarily reflect the amounts that would have resulted had the combined company filed consolidated income tax returns during the periods presented.

The pro forma net income (loss) per share amounts presented in the pro forma statements of operations are based upon the number of shares of Crescent Class A Common Stock and Crescent Class B Common Stock outstanding, assuming the Uinta Acquisition occurred on January 1, 2021.

*Pro forma statement of operations adjustments* 

The adjustments included in the pro forma statements of operations for the nine months ended September 30, 2022 and for the year ended December 31, 2021 are as follows:

(a) Reflects the pro forma depletion expense calculated in accordance with the successful efforts method of
accounting for oil and gas properties totaled $25.5 million and $79.6 million for the nine months ended September 30, 2022 and for the year ended December 31, 2021, respectively.

(b) Reflects the income tax effect of the pro forma adjustments presented. The tax rate applied to the pro forma
adjustments was the estimated combined federal and state statutory rate, after the effect of noncontrolling interests, of 6.1% for the nine months ended September 30, 2022 and for the year ended December 31, 2021. The effective rate of the
Company could be significantly different (either higher or lower) depending on a variety of factors.

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(c) Reflects the impact of the allocation of net income (loss) attributable to redeemable noncontrolling interests
for the portion of OpCo not owned by Crescent.

(d) Reflects the impact of the allocation of net income (loss) attributable to Crescent on the computation of basic
and diluted net income (loss) per share.

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**NOTE 4 – Supplemental pro forma oil and natural gas reserves information** 

*Oil and natural gas reserves* 

The following tables present the estimated pro forma combined net proved developed and undeveloped oil, natural gas, and NGLs reserves information as of December 31, 2021 for our consolidated operations, along with a summary of changes in quantities of net remaining proved reserves for the year ended December 31, 2021 for our consolidated operations. Immaterial amounts for proved developed oil, natural gas, and NGLs of our equity affiliates totaling 3,665 MBoe as of December 31, 2021 have been omitted from presentation below. The estimates below are in certain instances presented on a "barrels of oil equivalent or "Boe" basis. To determine Boe in the following tables, natural gas is converted to a crude oil equivalent at the ratio of six Mcf of natural gas to one barrel of crude oil equivalent.

The following estimated pro forma oil and natural gas reserves information is not necessarily indicative of the results that might have occurred had the Uinta Acquisition been completed on January 1, 2021 and is not intended to be a projection of future results. Future results may vary significantly from the results reflected because of various factors, including those discussed in "Risk Factors" included in the Company's Annual Report on Form 10-K.

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| | | | |
|:---|:---|:---|:---|
|  | **Oil and Condensate (MBbls)** | **Oil and Condensate (MBbls)** | **Oil and Condensate (MBbls)** |
|  | **Crescent Pro Forma<br>Combined Prior To<br>Uinta Acquisition** | **Uinta Basin<br>Assets**<br>**(Historical)** | **Crescent Pro<br>Forma<br>Combined** |
|  Proved Developed and Undeveloped Reserves as of: |  |  |  |
|  December 31, 2020 | 208978 | 24785 | 233763 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revisions of previous estimates | 11137 | 5737 | 16874 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Extensions, discoveries, and other additions | 7763 | 17394 | 25157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales of reserves in place | (854) |  | (854) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of reserves in place |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Production | (16864) | (4992) | (21856) |
|  December 31, 2021 | 210160 | 42924 | 253084 |
|  Proved Developed Reserves as of: |  |  |  |
|  December 31, 2020 | 127038 | 13877 | 140915 |
|  December 31, 2021 | 158091 | 24871 | 182962 |
|  Proved Undeveloped Reserves as of: |  |  |  |
|  December 31, 2020 | 81940 | 10908 | 92848 |
|  December 31, 2021 | 52069 | 18054 | 70122 |

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| | | | |
|:---|:---|:---|:---|
|  | **Natural Gas (MMcf)** | **Natural Gas (MMcf)** | **Natural Gas (MMcf)** |
|  | **Crescent Pro Forma<br>Combined Prior To<br>Uinta Acquisition** | **Uinta Basin<br>Assets**<br> **(Historical)** | **Crescent Pro<br>Forma<br>Combined** |
|  Proved Developed and Undeveloped Reserves as of: |  |  |  |
|  December 31, 2020 | 1266894 | 64985 | 1331879 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revisions of previous estimates | 343306 | 30165 | 373471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Extensions, discoveries, and other additions | 17705 | 59517 | 77222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales of reserves in place | (26226) |  | (26226) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of reserves in place |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Production | (131726) | (15338) | (147064) |
|  December 31, 2021 | 1469953 | 139329 | 1609282 |
|  Proved Developed Reserves as of: |  |  |  |
|  December 31, 2020 | 1192020 | 46038 | 1238058 |
|  December 31, 2021 | 1404570 | 92094 | 1496664 |
|  Proved Undeveloped Reserves as of: |  |  |  |
|  December 31, 2020 | 74874 | 18947 | 93821 |
|  December 31, 2021 | 65383 | 47235 | 112618 |

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| | | | |
|:---|:---|:---|:---|
|  | **NGLs (MBbls)** | **NGLs (MBbls)** | **NGLs (MBbls)** |
|  | **Crescent Pro Forma<br>Combined Prior To<br>Uinta Acquisition** | **Uinta Basin<br>Assets**<br>**(Historical)** | **Crescent Pro<br>Forma<br>Combined** |
|  Proved Developed and Undeveloped Reserves as of: |  |  |  |
|  December 31, 2020 | 64838 |  | 64838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revisions of previous estimates | 19046 |  | 19046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Extensions, discoveries, and other additions | 2179 |  | 2179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales of reserves in place | (1972) |  | (1972) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of reserves in place |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Production | (7598) |  | (7598) |
|  December 31, 2021 | 76493 |  | 76493 |
|  Proved Developed Reserves as of: |  |  |  |
|  December 31, 2020 | 52936 |  | 52936 |
|  December 31, 2021 | 66402 |  | 66402 |
|  Proved Undeveloped Reserves as of: |  |  |  |
|  December 31, 2020 | 11902 |  | 11902 |
|  December 31, 2021 | 10091 |  | 10091 |

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| | | | |
|:---|:---|:---|:---|
|  | **Total (Mboe)** | **Total (Mboe)** | **Total (Mboe)** |
|  | **Crescent Pro Forma<br>Combined Prior To<br>Uinta Acquisition** | **Uinta Basin<br>Assets**<br>**(Historical)** | **Crescent Pro<br>Forma<br>Combined** |
|  Proved Developed and Undeveloped Reserves as of: |  |  |  |
|  December 31, 2020 | 484950 | 35615 | 520565 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revisions of previous estimates | 87401 | 10765 | 98166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Extensions, discoveries, and other additions | 12893 | 27314 | 40207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales of reserves in place | (7197) |  | (7197) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of reserves in place |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Production | (46402) | (7548) | (53950) |
|  December 31, 2021 | 531645 | 66146 | 597791 |
|  Proved Developed Reserves as of: |  |  |  |
|  December 31, 2020 | 378628 | 21549 | 400177 |
|  December 31, 2021 | 458588 | 40220 | 498808 |
|  Proved Undeveloped Reserves as of: |  |  |  |
|  December 31, 2020 | 106322 | 14066 | 120388 |
|  December 31, 2021 | 73057 | 25926 | 98983 |

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*Standardized measure of discounted future net cash flows* 

The following tables present the estimated pro forma standardized measure of discounted future net cash flows (the "pro forma standardized measure") at December 31, 2021. The pro forma standardized measure information set forth below gives effect to the Uinta Acquisition as if it had been completed on January 1, 2021. Uinta Acquisition Transaction Adjustments reflect adjustments related to the tax effects resulting from the Uinta Acquisition. The disclosures below were determined by referencing the "Standardized Measure of Discounted Future Net Cash Flows" for the year ended December 31, 2021 reported in the Company's Current Report on Form 8-K dated April 8, 2022. An explanation of the underlying methodology applied, as required by SEC regulations, can be found within the historical financial statements. The calculations assume the continuation of existing economic, operating and contractual conditions at December 31, 2021. Immaterial amounts for the pro forma standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves of our equity affiliates totaling $23.2 million as of December 31, 2021 have been omitted from presentation below.

The following estimated pro forma standardized measure is not necessarily indicative of the results that might have occurred had the Uinta Acquisition been completed on January 1, 2021 and is not intended to be a projection of future results. Future results may vary significantly from the results reflected because of various factors, including those discussed in "Risk Factors" included in the Company's Annual Report on Form 10-K.

The pro forma standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves of our consolidated operations as of December 31, 2021 is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  | **Crescent Pro Forma<br>Combined Prior To<br>Uinta Acquisition** | **Uinta Basin<br>Assets**<br>**(Historical)** | **Uinta Acquisition<br>Transaction<br>Adjustments** | **Crescent Pro<br>Forma<br>Combined** |
|  Future cash inflows | $21063117 | $2707561 | $— | $23770678 |
|  Future production costs | (10194648) | (620982) |  | (10815630) |
|  Future development costs (1) | (1477562) | (562182) |  | (2039744) |
|  Future income taxes | (352136) |  | (39750) | (391886) |
|  Future net cash flows | 9038771 | 1524397 | (39750) | 10523418 |
|  Annual discount of 10% for estimated timing | (4080471) | (470276) | 12612 | (4538135) |
|  Standardized measure of discounted future net cash flows as of December 31, 2021 | $4958300 | $1054121 | $(27138) | $5985283 |

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<sup>(1)</sup> Future development costs include future abandonment and salvage costs.

*Changes in standardized measure* 

The changes in the pro forma standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves of our consolidated operations for the year ended December 31, 2021 are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|  | **Crescent Pro Forma<br>Combined Prior To<br>Uinta Acquisition** | **Uinta Basin<br>Assets**<br>**(Historical)** | **Uinta Acquisition<br>Transaction<br>Adjustments** | **Crescent Pro<br>Forma<br>Combined** |
|  Balance at December 31, 2020 | $1713753 | $192031 | $— | $1905784 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in prices and production costs | 4153142 | 397038 |  | 4550180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in future development costs | 97435 | (1740) |  | 95695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales and transfers of oil and natural gas produced, net of production expenses | (1148889) | (281503) |  | (1430392) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Extensions, discoveries, additions and improved recovery, net of related costs | 190585 | 460629 |  | 651214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of reserves in place |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales of reserves in place | (53004) |  |  | (53004) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revisions of previous quantity estimates | (209591) | 210529 |  | 938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Previously estimated development costs incurred | 95879 | 23447 |  | 119326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in taxes | 835 |  | (27138) | (26303) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion of discount | 169784 | 19203 |  | 188987 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in timing and other | (51629) | 34487 |  | (17142) |
|  Balance at December 31, 2021 | $4958300 | $1054121 | $(27138) | $5985283 |

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