Crescent Energy CoCRGY

Crescent Energy Co Commitments Disclosure

10-KFiled Feb 25, 20262 min read
Commitments and Contingencies
From time to time, we may be a plaintiff or defendant in a pending or threatened legal proceeding arising in the normal course of business. We are currently unaware of any proceedings that, in the opinion of management, will individually or in the aggregate have a material adverse effect on our financial position, results of operations or cash flows.

We are subject to extensive federal, state and local environmental laws and regulations. These laws regulate the discharge of materials into the environment and may require us to remove or mitigate the environmental effects of the disposal or release of petroleum or chemical substances at various sites. We believe we are currently in compliance with all applicable federal, state and local regulations. Accordingly, no significant liability or loss associated with environmental remediation was recognized as of December 31, 2025 and 2024.

Oil and Natural Gas Transportation and Gathering Agreements

We have entered into certain oil and natural gas transportation and gathering agreements with various pipeline carriers. Under these agreements, we are obligated to ship minimum daily quantities or pay for any deficiencies at a specified rate. We are also obligated under certain of these arrangements to pay a demand charge for firm capacity rights on pipeline systems regardless of the amount of pipeline capacity that we utilize. If we do not utilize the capacity, we can release it to others, thus reducing our potential liability. We recognized $2.0 million, $6.6 million and $15.6 million of transportation expense in our consolidated statements of operations related to minimum volume deficiencies for the years ended December 31, 2025, 2024 and 2023, respectively.

The following table summarizes our future commitments related to these oil and natural gas transportation and gathering agreements as of December 31, 2025:

As of December 31, 2025
(in thousands)
2026$181,680 
2027158,193 
2028135,779 
2029111,615 
203087,508 
Thereafter133,893 
Total minimum future commitments$808,668 
Additional Purchase Commitments

We have committed to purchase a fixed supply of electricity at specified prices through 2029. As of December 31, 2025, future minimum payments under the terms of this agreement are estimated to be $204.7 million.

We have committed to take delivery of processed sand, which is utilized in our completions activities, at specified prices through 2026. As of December 31, 2025, future minimum purchase commitments under the terms of these agreements are estimated to be $20.4 million.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Mar 4, 2024
2022Mar 7, 2023
2021Mar 10, 2022

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

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