Crescent Energy Co (CRGY): announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

8 Oct 2021business combination▼ BadMajor

Much more than consents: this amendment set the 15 October record date and, for the first time, spelled out what the KKR-affiliated external manager would be paid -- incentive compensation in five annual tranches, each targeting 2% of the Class A shares and settling anywhere from 0% to 240% of that -- alongside a $53.3 million fee carve-out. It also disclosed a fifth shareholder suit over the deal (Provost v. Contango, filed 21 September in the Southern District of New York) and conceded that 12,613 MBoe of Independence's proved undeveloped reserves carried a negative PV-10 at SEC prices.

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13 Sept 2021business combination● Neutral

Amendment No. 1 to the Contango/Independence registration, whose substantive addition is the tax opinion the SEC needs before a stock-for-stock deal can go effective, plus further director consents. The economics it describes are as first filed - 0.2000 new shares per Contango share, about 75% of the combined company to Independence's owners - and Jefferies' June 7 fairness opinion was already attached to the July version as Annex G.

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26 July 2021business combination● NeutralMajor

IE PubCo's first registration statement for the combination that became Crescent Energy: KKR-backed Independence Energy LLC folded together with listed Contango Oil & Gas through a chain of mergers, with Contango holders receiving 0.2000 shares of the new company for each Contango share. Independence's owners come out with roughly 75% of the combined equity and all of the Class B stock that carries no economics but does carry control; Contango holders have no dissenters' rights and Jefferies gave their board the only fairness opinion.

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