Crescent Energy up, KeyBanc initiates coverage at 'overweight'
27/06/2024 18:15
** Shares of oil and gas company Crescent Energy CRGY.N up
1.1% at $11.75 in afternoon trade
** KeyBanc Securities initiates coverage of CRGY with PT at
$16, rating it "overweight"
** Brokerage says "pro forma model (after Crescent completes
acquisition of SilverBow Resources SBOW.N ) reveals a company
that looks significantly undervalued, on both an absolute basis
and relative to small/mid cap oily peers"
** "The acquisition will further increase the percentage of
Class A shares, relative to total shares. In the current
environment for public E&Ps, scale and liquidity are paramount
and are highly correlated to trading multiple" - brokerage
** KeyBanc sees CRGY becoming the third largest operator in
Eagle Ford basin in south-west Texas, with undeveloped inventory
of over 2,200 locations across the Eagle Ford, and Uinta in Utah
** "Looking to 2026, we expect buybacks to be an important
piece of the cash return framework" - brokerage
** CRGY down 11.3% YTD
(Reporting by Seher Dareen in Bengaluru)
((Seher.Dareen@thomsonreuters.com;))