Bert Donnes

Bert Donnes inquired about the value creation process for Crescent Royalties, noting that its value isn't fully reflected in current share prices compared to peer multiples. He asked about the next steps for scaling the business and the company's options for eventual monetization. Donnes also asked about Crescent's M&A strategy, specifically whether it's a seller's market requiring aggressive bids or a time to be more selective for lower-priced opportunities.

Answer

CEO David Rockecharlie explained that Crescent Royalties is a core business built over 15 years with world-class assets, significant embedded value, and among the lowest costs in the Lower 48, offering tremendous upside and future growth potential. EVP of Investments Clay Rynd added that this is step one in value creation, with a clear growth pathway and a 20% annual growth rate over the last five years. Regarding M&A, CEO David Rockecharlie stated that 2025 was a transformational year with a successful Permian entry. He emphasized the company's focus on driving value from existing assets, including the royalties, and confirmed they are always active and prepared to be opportunistic in the market.

Bert Donnes asked about Crescent Energy's strategy regarding upstream M&A, specifically whether the company views the current market as a 'seller's market' or one where inventory is drying up, and how this influences their approach to winning bids versus being more selective.

Answer

CEO David Rockecharlie highlighted Crescent's transformational year, successful Permian entry, and focus on internal value creation. He stated that Crescent is always active and prepared to be opportunistic in the M&A market, but their primary focus is on driving value from existing assets and ensuring investors understand all business levers.

Bert Donnes asked about the potential for data center fixed gas price agreements and whether EQT would consider taking equity in a power project. He also inquired if a consortium of smaller E&Ps could still piece together a power deal, or if large scale and midstream are now essential.

Answer

Toby Rice (President and CEO, EQT) reiterated a capital-light approach to vertical integration, accessing value without equity stakes. He stated that power projects are growing in scale (gigawatts, 1.5 Bcf/d), requiring large-scale players with investment-grade balance sheets, making it a 'big player opportunity' where EQT aims to be a 'one-stop shop.'

Bert Donnes asked about the potential for EQT to take equity in power projects related to data center fixed gas price agreements, and if consortiums of smaller E&Ps could still piece together power deals.

Answer

Toby Rice, President and CEO, reiterated EQT's capital-light approach, not taking equity stakes in power projects, but accessing value through infrastructure funded by others. He stated that power projects are only getting bigger (gigawatts, 1.5 Bcf/day gas), requiring large-scale players like EQT with investment-grade balance sheets, making consortiums of smaller E&Ps less viable.