Crescent Energy Company said it has closed the sale of non-operated Permian Basin assets to an undisclosed private buyer for $83 million in cash, subject to customary post-closing purchase price adjustments.
The assets are located in Reeves County, Texas and had projected full-year 2025 production of approximately 3,000 barrels of oil equivalent (boepd), consisting of around 35 percent oil, the company said in a news release.
Proceeds from the sale will be used to reduce outstanding borrowings on the company’s revolving credit facility, Crescent said.
The transaction has an effective date of December 31, 2024, and Crescent said it plans to update its 2025 outlook to reflect the divestiture alongside its first quarter 2025 financial and operating results.
“We are pleased to announce the closing of this accretive asset sale, which is part of our $250 million pipeline of non-core asset divestitures announced during our year-end earnings,” Crescent CEO David Rockecharlie said. “As both investors and operators, we continually evaluate opportunities to enhance our portfolio, simplify our business and deliver value for investors”.
Earlier in the month, Crescent said it simplified its corporate structure by eliminating the company’s umbrella partnership-C corporation (Up-C) structure through conversion of all remaining class B common stock into class A common stock, effective as of April 4.
As a result of the corporate simplification, all of the company’s stockholders now hold class A common stock, with the same aligned economic and voting interests, the company said in a separate statement.
The company said it expects that simplifying its organizational structure and capitalization table “will unlock shareholder value through reduced complexity, improving clarity of financial presentation, eliminating certain compliance and reporting costs, and enhancing accessibility for a broader pool of future investors”.
KKR retains its existing 10 percent ownership, which is held by an indirect subsidiary of KKR & Co. Inc. for its own account and not through its investment funds. KKR remains a committed long-term investor in Crescent, and as part of the corporate simplification, has agreed to a 180-day lock-up of its shares, according to the statement.
Rockecharlie said, “Today’s announcement is in-line with our strategic goal of simplifying to grow, and we believe our streamlined corporate structure will deliver value to our existing Crescent shareholders while enabling us to expand our investor base and capital markets access”.
Moreover, the corporate simplification is a result of the proactive approach our team has taken during this period of market volatility. With our consistent strategy, strong balance sheet and significant, well-hedged free cash flow generation, we believe we are well-positioned to capitalize on opportunities for long-term value in any environment,” he added.
Crescent describes itself as a differentiated U.S. energy company committed to delivering value for shareholders through a disciplined growth through acquisition strategy and consistent return of capital. The company’s portfolio of low-decline, cash-flow oriented assets is composed of both mid-cycle unconventional and conventional assets with a long reserve life and a deep inventory of high-return development locations in the Eagle Ford and Uinta basins.
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