Gerdes Energy raises PT on Crescent Energy after Ridgemar deal
04/12/2024 11:46
** Brokerage Gerdes Energy Research raises PT on oil and gas
producer Crescent Energy CRGY.N by $2 to $21
** New PT represents nearly a 39% premium to stock's last
close
** Brokerage raises PT due to greater asset scale and market
capitalization, and consequently a lower cost-of-capital,
largely resulting from the Ridgemar Energy deal and associated
partial equity financing
** "Given the greater asset scale and increased equity
capitalization... CRGY’s cost of capital has decreased by ~175
bps" - Gerdes adds
** Co on Tues said it would buy Carnelian Energy
Capital-backed Ridgemar Energy's assets in the Eagle Ford basin
in Texas for $905 mln in a cash-and-stock deal and commenced a
18 mln share offering to fund the transaction
** CRGY shares were down 5% at $14.36 in premarket trading
** As of last close, stock has gained 14.6% YTD
(Reporting by Vallari Srivastava in Bengaluru)
((Srivastava.Vallari@thomsonreuters.com;))