Earnings Labs

Crescent Energy Company (CRGY)

Q3 2019 Earnings Call· Tue, Nov 12, 2019

$13.11

+2.54%

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Transcript

Operator

Operator

Good day, and welcome to the Contango’s Results for Third Quarter 2019 Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Mr. Wilkie Colyer, President and CEO. Please go ahead, sir.

Wilkie Colyer

Management

Thank you. Good morning and welcome to Contango’s third quarter 2019 Earnings Call. My name is Wilkie Colyer, and I’m the President and CEO of Contango. I am joined by Farley Dakan, the company’s Head of Corporate Development; and Joe Grady, the company’s Chief Financial Officer. I hope everyone has had time to read through this morning’s earnings press release, including the cautionary statements regarding forward-looking information and non-GAAP measures that apply to statements on this call. Since our last update call in early August, a lot has happened at Contango. To say that this period of time has been transformative for the company would be an understatement. Since August, we’ve raised equity capital in two transactions and including more than pro-rata support from our largest shareholder, entered into a new five-year credit facility led by JPMorgan; signed agreements and subsequently closed on the assets of Will Energy and White Star Petroleum, and in the process, increased our production and reserve barrel equivalents by 4x and 2.5x, respectively, all while increasing the liquids content of our production. Those numbers, by the way, do not include any nonproducing reserves on either acquisition or any reserves booked whatsoever at Northeast Bullseye. We appointed our largest shareholder, John Goff, as Chairman of the Board of the company, and we hired Will Energy’s former CEO, Farley Daken, to head up corporate development efforts for Contango. In short, we’ve enhanced our reserves, cash flow, liquidity, management team and Board since we last spoke. This progress is a testament to the support of our lenders and shareholders and the hard work of the talented employees at Contango, including those we welcome from Will Energy and White Star. Our very early results from Northeast Bullseye have been encouraging. While we don’t have an IP30 on either well…

Operator

Operator

Thank you. [Operator Instructions] We will take our first question today from John White from Roth Capital. Please go ahead. Your line is open.

John White

Analyst

Good morning. And congratulations on all these transactions. It's really been a transformational quarter for the company. You worked on the balance sheet, and you work on the asset base with what looks like some very nice transactions. Also, appreciate the presentation, all the detail in there, that's very helpful. Looking through the press release, I didn't see any fourth quarter guidance, did I miss that? Or…

Wilkie Colyer

Management

No, you didn't, John. With us trying to get all this stuff closed and brought in and I think, we're still kind of working on those tax numbers. And so we're not prepared to offer that just yet, just given everything we've had going on.

John White

Analyst

That's very understandable.

Wilkie Colyer

Management

John, you get a little perspective from the presentation itself and the contribution that the acquisitions make to the pro forma entity, and we made the comment about production level. But as far as giving comprehensive guidance like what you say, we just don't feel comfortable with doing that so soon after closing the deals.

John White

Analyst

With all that's going on, that's very understandable. And again, appreciate the detailed presentation.

Wilkie Colyer

Management

Absolutely John. I appreciate your time.

Operator

Operator

Thank you. [Operator Instructions] Ladies gentlemen, as we have no further questions, I'd like to turn the call back over to Mr. Colyer for any additional or closing remarks.

Wilkie Colyer

Management

Nothing more from us. I appreciate everybody's time this morning and interest in Contango. And we look forward to updating you after our fourth quarter earnings in early next year. But thanks, again. And if anybody has any follow-ups, you know where to find us.

Operator

Operator

Thank you. Ladies and gentlemen, that will conclude today's conference call. Thank you for your participation. You may now disconnect.