Crescent Energy ( NYSE: CRGY ) -5.5% in Wednesday's trading after Bank of America downgraded shares to Underperform from Neutral with a $14 price target, seeing few catalysts to support further upside beyond a call on oil prices or possibly accretive acquisitions.
BofA's John Abbott sees Crescent Energy ( CRGY ) at a relative disadvantage vs. peers as "a complex governance structure including a management fee arrangement with KKR that we expect may impair full market recognition of value and a portfolio of assets that we see as potentially less appealing vs. other operators, specifically those with larger core positions in more highly visible shale plays."
BofA also views Crescent Energy's ( CRGY ) return of capital program based solely on variable dividends as disadvantaged compared to other names that can provide more certainty of future returns.
The company also announced plans Wednesday to raise $400M in a debt offering .
For further details see:
Crescent energy cut to Sell equivalent at BofA on 'complexity overhang'