- Crescent Energy (CRGY, Financial) to simplify corporate structure by converting all Class B common stock into Class A common stock by April 4, 2025.
- The restructuring eliminates the Up-C structure, reducing complexity and improving accessibility for investors.
- KKR retains 10% ownership in the company, with a 180-day lock-up period for its shares.
Crescent Energy (CRGY) has announced a strategic restructuring of its corporate framework, set to be effective from April 4, 2025. The company will convert all remaining Class B common stock into Class A common stock, effectively eliminating its umbrella partnership-C corporation (Up-C) structure. This transition represents a significant step towards simplifying Crescent Energy’s organizational structure, with all stockholders holding Class A common stock, granting them identical economic and voting rights.
This restructuring aims to reduce organizational complexity, improve the clarity of financial presentation, and eliminate certain compliance and reporting costs. By doing so, Crescent Energy anticipates enhanced accessibility for future investors, aligning with its strategic objective of 'simplifying to grow'.
KKR, a key stakeholder, maintains its 10% ownership stake in Crescent Energy and has agreed to a 180-day share lock-up period as part of the restructuring. This commitment signals KKR's confidence in the long-term prospective growth of the company.
Crescent Energy CEO David Rockecharlie expressed confidence that the streamlined corporate structure will not only deliver value to existing shareholders but also expand the company's investor base and capital market access. The company remains focused on leveraging its strong balance sheet and well-hedged free cash flow to capitalize on market opportunities.
With assets primarily located in the Eagle Ford and Uinta basins, Crescent Energy's portfolio includes low-decline, cash-flow oriented assets, designed for steady growth and value generation in the energy sector.
