Form 4: KKR Sells 6 Million Shares of Crescent Energy (CRGY) at $10.74 per Share

KKR Group Partnership L.P. and related entities sold 6 million shares of Crescent Energy Co (CRGY) Class A Common Stock at $10.74 per share on April 1, 2024, while converting a corresponding amount of Class B Common Stock and OpCo LLC Units.

Summary

• On April 1, 2024, KKR Group Partnership L.P., along with related entities, engaged in transactions involving Crescent Energy Co (CRGY) securities.
• 6,000,000 shares of Class B Common Stock and OpCo LLC Units were converted into 6,000,000 shares of Class A Common Stock.
• Simultaneously, 6,000,000 shares of Class A Common Stock were sold at a price of $10.74 per share.
• Following these transactions, the reporting persons indirectly hold 29,134,496 shares of Class B Common Stock, 6,000,000 shares of Class A Common Stock, and 29,134,496 Crescent Energy OpCo LLC Units through Independence Energy Aggregator L.P. and KKR Upstream Associates LLC.
• The reporting persons disclaim beneficial ownership of the reported securities except to the extent of their pecuniary interest.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing detailing a transaction. It doesn't inherently convey positive or negative sentiment, but rather provides factual information about share sales. The sentiment is neutral.

Management Comments

• The reporting persons disclaim beneficial ownership of the securities reported herein, except to the extent of such Reporting Person's pecuniary interest therein.
• The filing of this statement shall not be deemed to be an admission that, for purposes of Section 16 of the Securities Exchange Act of 1934 or otherwise, the Reporting Persons are the beneficial owners of any securities reported herein.

Industry Context

Form 4 filings are standard disclosures for significant transactions by company insiders and major shareholders, providing transparency to the market regarding their investment activities. KKR's sale of shares is a notable transaction given their substantial ownership in Crescent Energy.

Comparison to Industry Standards

• Form 4 filings are a standard regulatory requirement for insiders and large shareholders in publicly traded companies, ensuring transparency in the market.
• KKR's transaction is similar to other large shareholders adjusting their positions in portfolio companies, such as private equity firms like Apollo Global Management or The Carlyle Group making similar filings for their holdings.
• The sale of shares under Rule 144 is a common practice, allowing for the orderly disposition of securities without requiring full registration, similar to transactions seen with other energy companies like APA Corporation or Devon Energy.

Stakeholder Impact

• The sale of shares by a major shareholder like KKR could potentially influence the market's perception of Crescent Energy, impacting current shareholders.
• The transaction provides transparency to the market regarding KKR's investment activities.

Key Dates