Crescent Energy Co. agreed to acquire incremental working interest in its existing western Eagle Ford assets from Mesquite Energy Inc. for $600 million in cash.
The asset is 100% operated with about 75,000 contiguous net acres, primarily in Dimmit and Webb counties, Tex., the company said in a release May 2.
Pro forma for the transaction, Crescent will increase its interests to a 50% operated working interest from its legacy 15% non-operated interest and operate about 90% of its Eagle Ford position.
The deal also provides potential upside from the Austin Chalk and Upper Eagle Ford while operatorship provides opportunity for capital efficiency improvements, the company said.
With the deal, Crescent grows its base of predictable cash flow with current production of about 20,000 boe/d (70% liquids) and a 12-month decline rate of 17%, the company continued.
Mesquite Energy was formed in June 2020, emerging from the 2019 Chapter 11 restructuring of Sanchez Energy Corp. which saw the company eliminate substantially all its $2.3 billion debt (OGJ Online, June 30, 2020).
Cresent Energy’s deal with Mesquite Energy is expected to close early in this year’s third quarter, subject to customary closing conditions.