On January 9, Phillip Jungwirth, an analyst at BMO Capital Markets, began coverage of Crescent Energy Company (NYSE:CRGY) with a Market Perform rating and a $10 price target. Jungwirth noted improved margins and cost structure from the company's asset streamlining but expressed caution about the 2026 outlook, which faces headwinds including a reduction in legacy Vital production to a sustainable baseline. Potential oil price volatility might also affect de-leveraging plans.
Earlier, Crescent Energy Finance LLC, a wholly-owned subsidiary, issued two series of senior unsecured notes. One series totals $294.8 million due July 31, 2029, with a 7.75% coupon, and the other totals $237.2 million due October 15, 2030, with a 9.75% coupon. Existing subsidiary guarantors under the group's revolving credit facility unconditionally and fully guarantee both issuances on a senior unsecured basis. The listed parent company and the OpCo do not provide this guarantee.
The Crescent 2029 and 2030 notes were issued in unregistered exchange offers for existing Vital notes. They include standard high-yield features such as change-of-control repurchase rights, optional redemption schedules, acceleration upon events of default, and leverage- and payout-restricting covenants. Supplemental indentures for the Vital notes became effective on December 12, 2025, eliminating certain restrictive covenants. These actions reshaped the company's overall capital structure and covenant package for noteholders.
Crescent Energy Company operates as an energy company engaged in the production and exploration of natural gas, crude oil, and natural gas liquids across the United States. It primarily operates in Texas and the Rocky Mountain region.