Crescent Energy Co

Crescent Royalty Finance LLC operates as a specialized finance company providing credit facilities to support oil and gas exploration, development, and acquisition activities. The company serves as the borrower under this credit agreement, which establishes a comprehensive financing framework with Wells Fargo Bank, National Association serving as administrative agent and collateral agent alongside multiple joint lead arrangers and bookrunners including BofA Securities, Canadian Imperial Bank of Commerce, Capital One, Fifth Third Bank, JPMorgan Chase Bank, KeyBanc Capital Markets, Mizuho Bank, RBC Capital Markets, and Truist Securities.

The credit facility structure includes revolving commitments and term loan facilities with an aggregate maximum credit amount of one billion dollars and an aggregate elected commitment amount of two hundred thirty million dollars as of the closing date of February 23, 2026. The financing arrangement is secured by oil and gas properties and reserves, with borrowing capacity determined through a borrowing base methodology tied to proved reserves valuations. The facility supports the company's acquisition and development of oil and gas properties, including the Riverbend and Cobra acquisitions referenced in the agreement, as well as working capital and general corporate purposes for the borrower and its subsidiaries.

The credit agreement incorporates sophisticated financial covenants, reserve-based lending mechanics, and extensive representations and warranties typical of reserve-based credit facilities in the energy sector. The agreement includes provisions for letters of credit, interest rate benchmarking tied to Term SOFR with alternative rate mechanisms, and detailed collateral arrangements including mortgages, pledge agreements, and security interests in oil and gas properties. The facility demonstrates the company's focus on financing activities within the upstream oil and gas sector, leveraging reserve-based lending structures that tie borrowing capacity to independently evaluated proved reserves of underlying oil and gas properties.