Crescent Energy Transitions To Single Class Of Common Stock And Eliminates Up-C Structure

Crescent Energy Company (NYSE:CRGY) ("Crescent" or the "Company"), today announced the simplification of its corporate structure by eliminating the Company's umbrella partnership-C corporation ("Up-C") structure through conversion of all remaining Class B common stock into Class A common stock, effective as of April 4, 2025 (the "Corporate Simplification").

As a result of the Corporate Simplification, all of the Company's stockholders now hold Class A common stock, with the same aligned economic and voting interests. The Company anticipates that simplifying its organizational structure and capitalization table will unlock shareholder value through reduced complexity, improving clarity of financial presentation, eliminating certain compliance and reporting costs, and enhancing accessibility for a broader pool of future investors.

There is no transfer of ownership contemplated in connection with the Corporate Simplification. KKR retains its existing 10% ownership, which is held by an indirect subsidiary of KKR & Co. Inc. for its own account and not through its investment funds. KKR remains a committed long-term investor in Crescent, and as part of this Corporate Simplification, has agreed to a 180-day lock-up of its shares.

Crescent CEO David Rockecharlie said, "Today's announcement is in-line with our strategic goal of simplifying to grow, and we believe our streamlined corporate structure will deliver value to our existing Crescent shareholders while enabling us to expand our investor base and capital markets access.

Moreover, the Corporate Simplification is a result of the proactive approach our team has taken during this period of market volatility. With our consistent strategy, strong balance sheet and significant, well-hedged free cash flow generation, we believe we are well positioned to capitalize on opportunities for long-term value in any environment."