Crescent Energy to offer $300M in senior notes

This announcement is based on a press release statement and contains forward-looking statements that are subject to risks, uncertainties, and assumptions. As with any investment in securities, potential buyers are cautioned to consider these risks and to not place undue reliance on forward-looking statements. For deeper insights into CRGY's valuation and financial metrics, investors can access detailed analysis through InvestingPro, which provides comprehensive financial health scores and expert-curated investment tips. For deeper insights into CRGY's valuation and financial metrics, investors can access detailed analysis through InvestingPro, which provides comprehensive financial health scores and expert-curated investment tips.

The offering of these Additional Notes, which are an extension of the $700 million of the same rate and maturity issued earlier on March 26, 2024, is not contingent upon Crescent Energy's concurrent public offering of Class A Common Stock or the completion of its acquisition of Ridgemar (Eagle Ford (NYSE:F)) LLC. However, the company has expressed its intention to use the combined proceeds from both the notes offering and the equity offering to fund the cash consideration for the Ridgemar Acquisition.

Should the acquisition not proceed, Crescent Energy has stated that the proceeds from the notes offering will be used to reduce the outstanding borrowings under its revolving credit facility or for general corporate purposes. The notes are set to mature on April 1, 2032, and will pay interest semi-annually with the first interest payment for the Additional Notes scheduled for April 1, 2025.

The sale of these unregistered securities will be conducted under Rule 144A and Regulation S of the Securities Act of 1933, meaning they cannot be sold within the United States absent registration or an exemption from registration requirements.

Crescent Energy, a U.S. energy company, focuses its asset portfolio primarily in Texas and the Rockies. The company has demonstrated strong performance with revenue growth of 12.6% in the last twelve months and is trading near its 52-week high of $15.54. InvestingPro analysis reveals 8 additional key insights about CRGY's financial health and growth prospects, available in the comprehensive Pro Research Report, part of the coverage of 1,400+ US stocks.

This announcement is based on a press release statement and contains forward-looking statements that are subject to risks, uncertainties, and assumptions. As with any investment in securities, potential buyers are cautioned to consider these risks and to not place undue reliance on forward-looking statements.

In other recent news, Crescent Energy Company has announced a public offering of 18 million shares of its Class A common stock, with the intention of funding its upcoming $905 million acquisition of Ridgemar (Eagle Ford) LLC. The offering is being managed by Wells Fargo (NYSE:WFC) Securities, LLC, KKR Capital Markets LLC, Raymond (NS:RYMD) James & Associates, Inc., and Evercore Group L.L.C. The acquisition, expected to close in the first quarter of 2025, is part of Crescent's strategy to expand its presence in the Eagle Ford area.

Crescent Energy's third quarter results for 2024 showed record production levels of 219,000 barrels of oil equivalent per day, surpassing previous expectations. The company also revised its production outlook upward for the third consecutive quarter, with anticipated capital expenditures ranging from $425 million to $455 million for the remainder of the year. The company reported an adjusted EBITDA of approximately $430 million and a levered free cash flow of $160 million.

These recent developments reflect Crescent Energy's commitment to disciplined capital allocation and sustainable growth for long-term shareholder value. The company continues to explore strategic mergers and acquisitions, while maintaining a solid balance sheet, with net leverage standing at 1.5 times.

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