Crescent Power Firm stated it has closed the sale of non-operated Permian Basin property to an undisclosed non-public purchaser for $83 million in money, topic to customary post-closing buy value changes.
The property are positioned in Reeves County, Texas and had projected full-year 2025 manufacturing of roughly 3,000 barrels of oil equal (boepd), consisting of round 35 p.c oil, the corporate stated in a information launch.
Proceeds from the sale will likely be used to scale back excellent borrowings on the corporate’s revolving credit score facility, Crescent stated.
- Advertisement -
The transaction has an efficient date of December 31, 2024, and Crescent stated it plans to replace its 2025 outlook to mirror the divestiture alongside its first quarter 2025 monetary and working outcomes.
“We’re happy to announce the closing of this accretive asset sale, which is a part of our $250 million pipeline of non-core asset divestitures introduced throughout our year-end earnings,” Crescent CEO David Rockecharlie stated. “As each traders and operators, we frequently consider alternatives to reinforce our portfolio, simplify our enterprise and ship worth for traders”.
Earlier within the month, Crescent stated it simplified its company construction by eliminating the corporate’s umbrella partnership-C company (Up-C) construction by means of conversion of all remaining class B widespread inventory into class A typical inventory, efficient as of April 4.
On account of the company simplification, the entire firm’s stockholders now maintain class A typical inventory, with the identical aligned financial and voting pursuits, the corporate stated in a separate assertion.
The corporate stated it expects that simplifying its organizational construction and capitalization desk “will unlock shareholder worth by means of diminished complexity, bettering readability of monetary presentation, eliminating sure compliance and reporting prices, and enhancing accessibility for a broader pool of future traders”.
KKR retains its present 10 p.c possession, which is held by an oblique subsidiary of KKR & Co. Inc. for its personal account and never by means of its funding funds. KKR stays a dedicated long-term investor in Crescent, and as a part of the company simplification, has agreed to a 180-day lock-up of its shares, in line with the assertion.
Rockecharlie stated, “Immediately’s announcement is in-line with our strategic purpose of simplifying to develop, and we consider our streamlined company construction will ship worth to our present Crescent shareholders whereas enabling us to develop our investor base and capital markets entry”.
Furthermore, the company simplification is a results of the proactive method our workforce has taken throughout this era of market volatility. With our constant technique, robust stability sheet and vital, well-hedged free money movement technology, we consider we’re well-positioned to capitalize on alternatives for long-term worth in any atmosphere,” he added.
Crescent describes itself as a differentiated U.S. power firm dedicated to delivering worth for shareholders by means of a disciplined progress by means of acquisition technique and constant return of capital. The corporate’s portfolio of low-decline, cash-flow oriented property consists of each mid-cycle unconventional and traditional property with an extended reserve life and a deep stock of high-return improvement places within the Eagle Ford and Uinta basins.
To contact the creator, e-mail rocky.teodoro@rigzone.com
Generated by readers, the feedback included herein don’t mirror the views and opinions of Rigzone. All feedback are topic to editorial overview. Off-topic, inappropriate or insulting feedback will likely be eliminated.
