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HOUSTON - Crescent Energy Company (NYSE:CRGY), a U.S.-based energy firm with a market capitalization of $2.09 billion, has finalized the sale of its non-operated assets in the Permian Basin for $83 million in cash, with customary adjustments post-closing. According to InvestingPro data, the company operates with a significant debt burden of $3.06 billion, making this sale particularly strategic. The assets, situated in Reeves County, Texas, were anticipated to produce roughly 3 Mboe/d in 2025, with oil accounting for about 35% of this output. The proceeds from this divestiture are slated for reducing the company’s debt under its revolving credit facility. Despite recent challenges, including a 33% decline in stock price over the past six months, analysts maintain optimism with a consensus target suggesting significant upside potential.
The transaction, effective as of December 31, 2024, is part of Crescent’s previously mentioned plan to sell $250 million worth of non-core assets. This update follows the company’s year-end earnings announcement and is expected to be reflected in Crescent’s revised 2025 outlook, which will be presented with its first-quarter financial and operating results of 2025.
Crescent’s CEO, David Rockecharlie, expressed satisfaction with the sale, noting it as accretive and aligned with the company’s strategy to streamline operations and maximize shareholder value. He highlighted the ongoing efforts to evaluate and optimize Crescent’s portfolio. The company maintains a notable 5.93% dividend yield and has achieved impressive revenue growth of 23% over the last twelve months.
Crescent Energy operates with a focus on disciplined growth through acquisitions and a consistent return of capital to shareholders. The company’s asset portfolio includes unconventional and conventional resources within the Eagle Ford and Uinta basins, characterized by low decline rates and a substantial inventory of development locations.
The company’s leadership team boasts a combination of investment, financial, and industry expertise, with a track record of executing a strategy centered on cash flow, risk management, and returns over the past decade. For deeper insights into Crescent Energy’s financial health and detailed analysis, investors can access comprehensive research reports and additional ProTips through InvestingPro’s extensive coverage of over 1,400 US stocks.
This sale marks a strategic move for Crescent as it continues to adjust its asset base and financial position. The information is based on a press release statement from Crescent Energy.
In other recent news, Crescent Energy’s financial activities have drawn attention with several updates. The company expects to report approximately $7 million in cash from hedge positions for the first quarter ending March 31, 2025, as detailed in its SEC filing. This includes a positive adjustment from the settlement of acquired derivative contracts related to the SilverBow Merger. Meanwhile, Crescent Energy has completed a corporate structure simplification by converting all Class B common stock into Class A, a move designed to align shareholder interests and enhance financial transparency. Analysts have been actively revising their outlooks on Crescent Energy. JPMorgan reiterated a Neutral rating with a $12 price target, noting the company’s strong free cash flow profile despite underperformance compared to peers. Mizuho has adjusted its price target to $14, citing Crescent Energy’s capital reallocation towards dry gas assets in the Eagle Ford region. Raymond James maintained a Strong Buy rating but lowered its price target from $23 to $18, influenced by Crescent’s shift towards gas production and a decrease in oil prices. These developments reflect Crescent Energy’s strategic financial management and evolving market strategies.
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