How are energy investors positioned?
HOUSTON - Crescent Energy Company (NYSE:CRGY), with a market capitalization of $2.4 billion and current EBITDA of $1.45 billion, announced Monday that its subsidiary Crescent Energy Finance LLC has priced $600 million of 8.375% Senior Notes due 2034 in a private placement to eligible purchasers. The offering size was increased from the previously announced $500 million. According to InvestingPro data, the company operates with a significant debt burden, with total debt standing at $3.6 billion.
The notes will mature on January 15, 2034, with interest payable semi-annually on January 15 and July 15, beginning January 15, 2026. Priced at par, the notes will be guaranteed on a senior unsecured basis by all subsidiaries that guarantee the company’s existing notes and revolving credit facility. The company’s current ratio of 0.78 indicates potential liquidity challenges, as highlighted in InvestingPro’s analysis.
The offering is expected to close on July 8, 2025, subject to customary closing conditions.
According to the company, proceeds will fund a tender offer to purchase a portion of its outstanding 9.250% Senior Notes due 2028, with any remaining funds used to repay revolving credit facility debt or for general corporate purposes.
The new 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 non-U.S. persons under Regulation S.
Crescent Energy describes itself as a U.S. energy company with assets primarily in Texas and the Rockies. Despite recent challenges, analysts remain optimistic, with five analysts recently revising earnings estimates upward. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which covers this and 1,400+ other US equities.
The information in this article is based on a company press release statement and does not constitute an offer to sell securities or solicitation of an offer to buy the 2028 Notes in the tender offer.
In other recent news, Crescent Energy reported its Q1 2025 earnings, surpassing analysts’ expectations with an earnings per share 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. Additionally, Crescent Energy achieved record production levels, reaching 258,000 barrels of oil equivalent per day. In a strategic financial move, Crescent Energy announced a $500 million senior notes offering, with proceeds intended to fund a tender offer to purchase outstanding notes and repay amounts under the revolving credit facility. 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 leveraging counter-cyclical mergers and acquisitions opportunities. Raymond James maintained its Strong Buy rating, highlighting Crescent Energy’s robust free cash flow and production forecasts. The company continues to focus on operational efficiency and cost management, contributing to its ability to surpass earnings expectations. These developments underscore Crescent Energy’s strategic maneuvers in a complex economic environment for energy companies.
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