How are energy investors positioned?
In recent transactions, KKR & Co. Inc. (NYSE:KKR) has sold a significant portion of its holdings in Crescent Energy Co (NYSE:CRGY). On March 10, 2025, KKR disposed of 2,948,723 shares of Class A Common Stock at a price of $9.91 per share, amounting to a total of approximately $29.2 million. This transaction was conducted on behalf of certain unaffiliated limited partners through a broker-dealer, as indicated by the footnotes in the SEC filing.
The shares sold were initially converted from Class B Common Stock and Crescent Energy OpCo LLC Units, which were exchanged for Class A Common Stock prior to the sale. The conversion and sale were part of a broader strategy by Independence Energy Aggregator L.P., a KKR affiliate, to manage its investment in Crescent Energy.
This move follows KKR’s ongoing adjustments in its portfolio, reflecting its strategic decisions in the energy sector. Investors will be watching closely to see how KKR’s divestment impacts Crescent Energy’s market performance and the broader energy investment landscape. Despite recent challenges, InvestingPro analysis reveals strong revenue growth of 23% and projects improved profitability ahead. For detailed insights and additional ProTips on CRGY’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Crescent Energy reported its fourth-quarter 2024 earnings, revealing a significant earnings per share (EPS) beat, posting $1.08 compared to the forecasted $0.4616. Despite the impressive EPS results, the company experienced a slight revenue miss, reporting $875.29 million against the expected $896.62 million. Crescent Energy’s strategic acquisitions, including Ridgemar Energy, were completed successfully, with operational advancements noted in the Eagle Ford and Uinta regions. The firm generated approximately $260 million in free cash flow and reported $535 million in adjusted EBITDA. Crescent Energy announced a dividend of $0.12 per share, maintaining strong cash flow. Looking ahead to 2025, Crescent Energy has set a capital budget between $925 million and $1,025 million, focusing on free cash flow generation and strategic asset management. Analyst discussions highlighted the company’s disciplined growth strategy, with potential $250 million non-core asset divestitures under consideration.
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