Crescent Energy's Latest Eagle Ford Acquisition Signals Solid Strategy: Why This Analyst Says 'Buy'

Mizuho Securities USA LLC analyst reiterated a Buy rating on the shares of Crescent Energy Company CRGY with an unchanged price target of $18.00.

Last week, Crescent announced its second acquisition of Eagle Ford working interest this year as well as a secondary stock offering.

CRGY will acquire incremental working interests in its existing Western Eagle Ford position for $250 million cash.

In conjunction with the acquisition announcement, CRGY last week announced an upsized 11 million-share offering with an additional 1.65 million-share shoe, added the analyst.

CRGY is further scaling up its operated Eagle Ford position with another working interest bolt-on deal, which the analyst thinks as modestly accretive to valuation and net neutral to NAV.

In the analyst's view, with this deal, CRGY continues to demonstrate it can execute on its acquisition-driven model in the public market arena, which should give investors incremental confidence in the company's differentiated strategy. 

Price Action: CRGY shares are trading higher by 1.06% at $12.43 on the last check Tuesday.