Crescent Energy Co ( CRGY ) inked an agreement to acquire SilverBow Resources Inc ( SBOW ) for $2.1 billion.

While the company has been growing mainly through acquisitions, the purchase of SilverBow Resources ( SBOW ) "is the most impactful to date," according to KeyBanc Capital Markets.

The Crescent Energy ( CRGY ) Analyst: Tim Rezvan initiated coverage of Crescent Energy ( CRGY ) with an Overweight rating and price target of $16.

The Crescent Energy ( CRGY ) Thesis: The acquisition of SilverBow Resources ( SBOW ) will add to Crescent Energy's ( CRGY ) scale and production in the Eagle Ford, Rezvan said in the initiation note.

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The purchase offers "clear synergies that can be attained, both financially (lower cost of capital, lower G&A/boe) and operationally (more simul-frac opportunities, best practices in the field and hydrocarbon optionality in the Eagle Ford)," the analyst wrote.

The 2025 estimates for Crescent Energy's ( CRGY ) free cash flow yield ranks "among the very best of any E&P company under coverage," Rezvan stated.

"The increased size of the Company, in addition to more high-quality inventory, warrants multiple expansion," he added.

CRGY Price Action: Shares of Crescent Energy ( CRGY ) had risen by 0.69% to $11.71 at the time of publication on Thursday.

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