During Monday’s extended trading session, Crescent Energy Company (NYSE: CRGY) shares showed a noteworthy comeback, jumping 5.88% to $10.98. The stock finished at $10.37, a decrease of 3.17% during regular trading hours, which was somewhat mitigated by this comeback. The recent volatility in CRGY stock price follows a significant equity move by the company.
Crescent Energy Made An Equity Move
Last week, Crescent Energy announced that its subsidiary, Crescent Energy Finance, has set the pricing for a $250 million private placement offering of 7.375% Senior Notes, with a principal amount that matures in 2033. The offering, which is priced at 101% of par plus accrued interest from June 14, 2024, was anticipated to complete on September 9, 2024, subject to typical closing circumstances.
The company’s revolving credit facility’s outstanding amounts are to be reduced using the net revenues from this transaction. These Notes will be classified as a single series with previously issued notes of the same kind, and they are being issued in accordance with the current indenture dated June 14, 2024.
Eagle Ford’s Strategic Acquisition
Crescent Energy has finalized an agreement to buy assets from a private operator in the Eagle Ford region for $168 million, subject to customary adjustments to the acquisition price. This deal is in addition to the stock offering. It is expected that this transaction, which became effective on May 1, 2024, will close this month, subject to the usual closing requirements.
The deal expands on Crescent Energy’s considerable purchase activity in the Central Eagle Ford region over the previous 18 months, which included the most recent acquisition of SilverBow Resources Inc., and strengthens the company’s assets in the area.
CRGY Seeing Growth And Expansion Prospects
The purchase fits Crescent Energy’s plan to increase its presence in the Eagle Ford, where it sees significant growth potential and profitable returns on investment.
Crescent Energy hopes to strengthen its position in this important oil-producing region and increase returns by combining high-quality land and low-decline oil production with its current operations.