Posts  / CRGY  / #POST-225855
REDDIT

Crescent Energy is ripe and ready to get picked

Instead of a long AI slop text here are the reasons Crescent Energy just got a new shareholder (me).

\- trades at x4 FCF

\- great low decline acerage especially in Eagle Ford Tier 1 locations near supermajors like COP and EOG

\- long reserve life (1bn barrels) of 10+ years and options to drill for 10+ more years

\- hedged against geopolitical conflict by beeing a pure domestic powerhouse

\- insiderbuys and no sells even after recent runup

\- designed to be sold by private equity (KKR)

\- minerals interest are high margin low capex yet not considered in valuation -> rerating to even half of TPL levels would offer insane value

\- they are cleaning up the balancesheet by refinancing debt to great conditions often seen before a buyout

\- still utilizing synergies of the Vital Energy acquisition

\- one of few attractive mid cap players now to be swallowed

TLDR: If you are a oil supermajor Crescent Energy seems like a great decent sized quick snack without a lot of considerations and a management willing to cash in.