The preparation of financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We use historical experience and various other assumptions and information that are believed to be reasonable under the circumstances in developing our estimates and judgments. Estimates and assumptions about future events and their effects cannot be predicted with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional

information is obtained and as our operating environment changes. While we believe that the estimates and assumptions used in the preparation of the financial statements are appropriate, actual results may differ from these estimates. Our significant estimates include the fair value of acquired assets and liabilities, oil and natural gas reserves, impairment of proved and unproved oil and natural gas properties, valuation of derivative instruments and income taxes.

Restricted cash consists of funds earmarked for a special purpose and therefore not available for immediate and general use. Our restricted cash is composed of cash that is contractually required to be restricted for a variety of purposes including to fund acquisitions or to pay for the future abandonment of certain wells. Restricted cash is presented separately in current assets while the noncurrent portion is included in Other assets on our condensed consolidated balance sheets.


	As of March 31,
	2026		2025
	(in thousands)
Cash and cash equivalents	$	9,775	$	6,255
Restricted cash – current	5,428		3,247
Restricted cash – noncurrent	17,400		14,250
Total cash, cash equivalents and restricted cash	$	32,603	$	23,752

CEC is a holding company and its sole material asset is OpCo Units. OpCo is a partnership and is generally not subject to U.S. federal and certain state taxes. Crescent is subject to U.S. federal and certain state taxes on its allocable share of any taxable income of OpCo. For the three months ended March 31, 2026, we recognized income tax benefit of $82.3 million for an effective tax rate of 16.4%. For the three months ended March 31, 2025, we recognized income tax expense of $2.6 million for an effective tax rate of 30.7%. Our effective tax rate for the three months ended March 31, 2026 was lower primarily due to the permanent difference recognized in conjunction with the performance stock units granted to our Manager ("Manager PSUs") that vested during the three months ended March 31, 2026. Our effective tax rate for the three months ended March 31, 2025 was higher due to temporary timing differences of certain deductions and a higher state tax rate due to the apportionment changes created by the Ridgemar Acquisition.

We evaluate and update the estimated annual effective income tax rate on a quarterly basis based on current and forecasted operating results and tax laws. Consequently, based upon the mix and timing of our actual earnings compared to annual projections, our effective tax rate may vary quarterly and may make quarterly comparisons not meaningful. The quarterly income tax provision is generally composed of tax expense on income or benefit on loss at the most recent estimated annual effective tax rate. The tax effect of discrete items is recognized in the period in which they occur at the applicable statutory rate.

We continually assess the available positive and negative evidence to determine if sufficient future taxable income will be generated to use the existing deferred tax assets. On the basis of this evaluation, a valuation allowance is recorded to recognize only the portion of the deferred tax assets that are more likely than not to be realized. The amount of the deferred tax asset considered realizable; however, could be adjusted in the future.

We have U.S. federal net operating loss ("NOL") carryforwards and recognized built-in-loss ("RBIL") property that are subject to limitation under Section 382 of the U.S. Internal Revenue Code of 1986, as amended ("IRC"). Pursuant to Sections 382 and 383 of IRC, utilization of our NOL and RBIL carryforwards is subject to an annual limitation. These annual limitations may result in the expiration of U.S. federal NOL and RBIL carryforwards prior to utilization. Accordingly, we have maintained a valuation allowance related to U.S. federal NOL and RBIL carryforwards that we do not believe are recoverable due to these limitations under Section 382 of IRC.


	Three Months Ended March 31,
	2026		2025
	(in thousands)
Supplemental cash flow disclosures:
Interest paid, net of amounts capitalized	$	109,626	$	95,599
Income tax payments (refunds)	(876)		1,614
Non-cash investing and financing activities:
Capital expenditures included in accounts payable and accrued liabilities	$	238,168	$	188,896

Equity consideration for acquisitions	—		82,145
Vital purchase price allocation adjustment	11,728		—
Right-of-use assets obtained in exchange for leases	9,407		3,055