Investing.com -- Moody's Ratings has revised its outlook on Crescent Energy Co (NYSE: CRGY) to positive from stable while affirming its Ba3 Corporate Family Rating, signaling confidence that the energy producer will successfully de-lever following its massive asset expansion. The action comes immediately after Crescent announced a $3.85 billion all-cash acquisition of Eagle Ford Basin assets from Devon Energy Corporation, a transaction that significantly increases scale while temporarily elevating financial leverage.

To finance the purchase, Crescent secured a $2 billion bridge facility commitment alongside a $1 billion primary equity offering, balancing immediate funding needs against long-term capital structure goals. Moody's Vice President Jonathan Teitel noted that the positive outlook reflects both the enhanced operational scale in the Eagle Ford and expectations that robust, hedge-supported free cash flow will enable substantial debt reduction over the next 12 to 18 months.

The Devon transaction positions Crescent to expand production to approximately 400 thousand barrels of oil equivalent per day, pushing its operating footprint well past similarly rated exploration and production peers. However, analysts at Moody's cautioned that the acquisition appears fully valued and materially increases near-term debt loads, interrupting the company's recent deleveraging momentum.

Mitigating these leverage risks, Crescent has locked in substantial commodity hedges for 2027 at higher crude prices, creating a structural cash flow buffer dedicated to debt paydown. Moody's expects the Houston-based producer to proactively refinance its temporary bridge commitments with long-term capital, preserving a pristine liquidity profile that currently includes SGL-1 top-tier liquidity and $2 billion in committed credit facility availability.

Upgrades to Crescent's credit rating over the next year to 18 months will hinge on executing post-acquisition debt reduction, maintaining conservative financial policies, and sustaining retained cash flow relative to total debt above 50%. Conversely, any failure to reduce leverage as projected, coupled with operational weakness or falling debt coverage metrics, could prompt a reversal in credit sentiment.

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