Crescent Energy plans $500 million senior notes offering

HOUSTON - Crescent Energy Company (NYSE: CRGY) announced Monday that its subsidiary Crescent Energy Finance LLC intends to offer $500 million in Senior Notes due 2034 through a private placement to eligible purchasers under Rule 144A and Regulation S of the Securities Act. The company, currently valued at $2.4 billion, operates with total debt of approximately $3.6 billion as of Q1 2025, according to InvestingPro data.

The notes will be guaranteed on a senior unsecured basis by all subsidiaries that guarantee the company’s existing notes and revolving credit facility indebtedness.

According to the company’s press release statement, proceeds from the offering will fund a concurrent tender offer to purchase up to $500 million of the company’s outstanding 9.250% Senior Notes due 2028. Any remaining proceeds will be used to repay amounts under the revolving credit facility or for general corporate purposes.

The tender offer is subject to certain conditions, including the completion of this offering, while the notes offering itself is not contingent on the tender offer’s consummation.

The notes and related guarantees have not been registered under the Securities Act and will be offered only to qualified institutional buyers under Rule 144A and to persons outside the United States under Regulation S.

Crescent Energy describes itself as a U.S. energy company with assets concentrated in Texas and the Rockies.

The offering comes amid a complex economic environment for energy companies, with factors such as interest rates and commodity price volatility potentially influencing capital market activities.

This private placement represents a significant debt refinancing move for Crescent Energy as it manages its capital structure.

In other recent news, Crescent Energy reported its Q1 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.56, compared to the forecasted $0.48. The company also exceeded revenue projections, reporting $950.17 million against the expected $941.57 million. Crescent Energy achieved record production levels, reaching 258,000 barrels of oil equivalent per day, and reported an adjusted EBITDA of $530 million. Piper Sandler initiated coverage on Crescent Energy with an Overweight rating, citing the company’s strategic focus on expanding its presence in the Eagle Ford and shifting towards gas activity. Meanwhile, Raymond James maintained its Strong Buy rating, highlighting Crescent Energy’s robust financial health and growth prospects. The firm expects Crescent Energy’s production to remain steady at 255,000 barrels of oil equivalent per day in 2026, with a capital expenditure of about $1 billion. Crescent Energy has completed $3 billion in acquisitions over the past two years and aims to double its size through further acquisitions. The company continues to focus on operational efficiency and cost management, contributing to its ability to surpass earnings expectations.

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