Crescent Energy Company CRGY has announced the acquisition of Ridgemar Energy's Eagle Ford assets in Texas. The company stated that the cash-and-stock deal is valued at $905 million. Per the terms of the deal, Crescent Energy may have to pay an additional $170 million, subject to future oil prices. The deal is anticipated to be closed in the first quarter of 2025.
The acquisition should further expand CRGY’s footprint in the Eagle Ford basin, one of the most prolific basins in the United States. Crescent Energy has achieved operational synergies following the integration of SilverBow Resources into its portfolio. The company acquired SilverBow Resources for approximately $2.1 billion earlier this year. Following the success of its prior acquisition, the company is eager to add Ridgemar Energy’s assets to its portfolio to expand and strengthen its presence in the Eagle Ford Basin.
Ridgemar Energy, backed by private equity firm Carnelian Energy Capital, is one of the largest private oil-producing companies operating in the Eagle Ford. The company produces approximately 20,000 barrels of oil equivalent per day.
The U.S. energy sector has experienced an ongoing wave of consolidation, with companies utilizing their resources to expand their oil and gas reserves. This trend has resulted in deals worth more than $250 billion in 2023. This trend has also benefited private equity firms backing energy companies as they can profitably sell off their investments due to the increased demand from companies looking to boost their reserves and grow their inventory.
CRGY’s Zacks Rank and Key Picks
Currently, CRGY carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Smart Sand, Inc. SND, FuelCell Energy FCEL and Nine Energy Service NINE, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained oil and gas market demand, SND is expected to see growing demand for its services, providing a positive outlook.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for NINE’s services is anticipated to increase, which should position the company for growth in the long run.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpFuelCell Energy, Inc. (FCEL) : Free Stock Analysis Report
Smart Sand (SND) : Free Stock Analysis Report
Nine Energy Service, Inc. (NINE) : Free Stock Analysis Report
Crescent Energy Company (CRGY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
