Crescent Energy down after $300 mln equity offering to fund Ridgemar deal
04/12/2024 13:24
** Crescent Energy's CRGY.N shares down 4.2% at $14.50 premarket after acquisition-related equity offering priced ** Houston-based oil and gas producer late Tues said it sold 21.5 mln shares at $14, which equates to $301 mln gross raise ** Offering size boosted from 18 mln shares, priced at 7.5% discount to last sale ** Co to use net offering proceeds to fund $905 mln buy of Ridgemar Energy's Eagle Ford basin assets ** With ~228.3 mln shares outstanding, Crescent has ~$3.5 bln market cap ** Reacting to the news, Gerdes Energy Research raises its PT on CRGY to $21, citing greater asset scale and market capitalization, and lower cost-of-capital, largely due to the deal being financed with equity ** Wells Fargo, KKR, Raymond James and Evercore leading the offering ** Crescent's external manager is a subsidiary of KKR & Co KKR.N ** Through Tues, CRGY up 32% over the past three months, putting stock up ~15% YTD (Reporting by Lance Tupper in New York and Vallari Srivastava in Bengaluru Lance Tupper is a Reuters market analyst. The views expressed are his own) ((lance.tupper@tr.com 1-646-279-6380))