Form 4: KKR Group Sells 13.8 Million Shares of Crescent Energy (CRGY) in Public Offering

KKR Group Partnership L.P. and related entities sold 13.8 million shares of Crescent Energy Co (CRGY) Class A Common Stock at $9.87 per share in an underwritten public offering.

Summary

• KKR Group Partnership L.P. and related entities, including KKR Group Holdings Corp., KKR Group Co. Inc., KKR & Co. Inc., KKR Management LLP, Henry R. Kravis, and George R. Roberts, filed a Form 4 detailing changes in their beneficial ownership of Crescent Energy Co (CRGY).
• On March 11, 2024, IE Aggregator completed the OpCo Unit Repurchase pursuant to a Repurchase Agreement, dated March 6, 2024.
• 2,300,000 units of Crescent Energy OpCo LLC ('OpCo') were transferred to the Issuer by the Reporting Person and an equal number of shares of Class B Common Stock subsequently forfeited by the Reporting Person and canceled by the Issuer in exchange for $9.87 per unit of OpCo.
• IE Aggregator converted 13,800,000 shares of Class B Common Stock and OpCo LLC Units into 13,800,000 shares of Class A Common Stock.
• IE Aggregator then sold these 13,800,000 shares of Class A Common Stock at $9.87 per share in an underwritten public offering.
• Following these transactions, the reporting persons continue to indirectly hold a significant number of Class B Common Stock (35,134,496 shares) and Crescent Energy OpCo LLC Units (35,134,496 units).

Sentiment

Score: 5

Explanation: Neutral sentiment. The document primarily reports transactions related to share sales and conversions. There is no explicit positive or negative commentary on the company's performance or future prospects.

Industry Context

This transaction reflects a significant share sale by a major holder in Crescent Energy, which could influence market perception and trading activity of the stock. It's important to monitor how the market absorbs this supply and whether it signals any shift in KKR's long-term investment strategy in the company.

Comparison to Industry Standards

• It is difficult to compare this transaction to industry standards without knowing the specific reasons behind KKR's sale.
• However, large secondary offerings are common in the energy sector, especially after periods of strong performance or when private equity firms look to monetize their investments.
• Comparable transactions would include similar sized offerings by other major shareholders in publicly traded energy companies, such as sales by private equity firms in companies like Viper Energy Partners (VNOM) or Black Stone Minerals (BSM).

Related Party Transactions

• The OpCo Unit Repurchase involves a transaction between IE Aggregator, OpCo, and Crescent Energy Co, indicating a related-party dealing.

Stakeholder Impact

• The sale of a significant block of shares could create short-term price volatility for shareholders.
• The transaction could also impact the perception of Crescent Energy by other investors and stakeholders.

Key Dates