Contango/Crescent Energy - a churn & burn?

Crescent Energy is looking for cash, again. Just this morning offering another $250 million in notes to private investors for 9.25%. Crescent Energy (CRGY) is the result of a reverse merger between KKR&Co’s Independence Energy and Contango Resources. KKR is majority stockholder, appoints all directors, board members, etc. Both Contango and Crescent are managed by KKR Energy Real Assets. Acquisition of Contango through this merger is KKR’s first drift into Oklahoma since buying Samson in 2011 and filing for bankruptcy in 2015. KKR also orchestrated the largest leveraged buyout ($47 billion) in US history in 2007 with TXU Energy, a TX utilities company. TXU filed for bankruptcy in 2014. Today, Oklahoma Sweet is at $71, as with the Samson and TXU acquisitions, KKR is betting on $100 oil, crude at current prices isn’t working for them, if energy prices go down, another KKR enterprise will crash and burn. I have liens filed against Contango/Crescent Energy in Payne County for 10 years of unpaid royalty, I will let you all know how that works out.

1 Like

This topic was automatically closed after 90 days. New replies are no longer allowed.