Core Insights - Crescent Energy Company has successfully completed its fall borrowing base redetermination, resulting in an increase in its borrowing base and an extension of the credit facility's tenor, reflecting strong support from its bank syndicate and financial discipline [1][3][6] Credit Facility Highlights - The elected commitment amount has been reaffirmed at $2.0 billion - The borrowing base has increased by 50%, from $2.6 billion to $3.9 billion - The maturity of the credit facility has been extended to five years, resulting in no near-term debt maturities and a weighted average maturity of 6.4 years - The pricing grid has been reduced by 25 basis points, from 200–300 basis points to 175–275 basis points [6] Synergy Capture - Crescent Energy has realized approximately $12 million in total synergy capture, which is roughly 13% of the midpoint of its $90–$100 million synergy range associated with the Vital Energy transaction - The early synergies are primarily driven by lower interest expenses, unused commitment fees, and reduced administrative costs [3][6] Company Overview - Crescent Energy is a differentiated U.S. energy company focused on delivering value for shareholders through a disciplined growth strategy and consistent return of capital - The company has a long-life, balanced portfolio that combines stable cash flows from low-decline production with high-quality development inventory, primarily focused in Texas and the Rocky Mountain region [4]

Group 1 - Crescent Energy (CRGY) closed at $8.25, reflecting a -1.9% change from the previous day, underperforming the S&P 500's gain of 0.53% [1] - Over the last month, Crescent Energy's shares decreased by 4.21%, while the Oils-Energy sector lost 3% and the S&P 500 gained 0.71% [1] Group 2 - Crescent Energy is expected to report earnings on November 3, 2025, with an anticipated earnings per share (EPS) of $0.33, indicating a year-over-year decline of 15.38% [2] - The Zacks Consensus Estimate for revenue is projected at $894.28 million, representing a 20.06% increase from the previous year [2] Group 3 - Full-year Zacks Consensus Estimates for Crescent Energy forecast earnings of $1.61 per share and revenue of $3.62 billion, reflecting year-over-year changes of -9.55% and +23.43%, respectively [3] - Recent changes to analyst estimates for Crescent Energy are important as they indicate the evolving nature of near-term business trends [3] Group 4 - The Zacks Rank system, which evaluates estimate revisions, indicates that these changes are correlated with near-term share price momentum [4] - Crescent Energy currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the past month [5] Group 5 - Crescent Energy has a Forward P/E ratio of 5.22, which is significantly lower than the industry average Forward P/E of 21.22 [6] - The Alternative Energy - Other industry, part of the Oils-Energy sector, has a Zacks Industry Rank of 187, placing it in the bottom 25% of over 250 industries [6]

Core Points - Crescent Energy Company (NYSE: CRGY) plans to host a conference call and webcast to discuss its third quarter 2025 financial and operating results [1] - The conference call is scheduled for 10 a.m. CT on Tuesday, November 4, 2025 [1] - The financial results will be released after market close on Monday, November 3, 2025 [1] - Supplemental slides will be available on the company's website [1]

Core Insights - Crescent Energy Company (NYSE:CRGY) experienced a share price decline of 7.47% from September 26 to October 3, 2025, ranking it among the energy stocks that lost the most during that week [1] - The company is involved in the exploration and production of crude oil, natural gas, and natural gas liquids in the United States, primarily focusing on Texas and the Rocky Mountain region [2] - In August, Crescent Energy announced an all-stock acquisition of Vital Energy valued at approximately $3.1 billion, including debt, which is expected to close by year-end [4] Financial Performance - Crescent Energy's share price had previously increased over 16% in the month leading up to the recent decline, driven by heightened tensions between Russia and Ukraine, which raised expectations for supply cuts and higher prices [3] - The acquisition of Vital Energy is projected to boost the company's FY 2026 revenues by 43% year-over-year to $5.3 billion, with production volume anticipated to rise by 46% to 386,000 barrels of oil equivalent per day [4] - The recent drop in WTI crude oil prices to a four-month low is attributed to increased output from OPEC+ and concerns over a potential US government shutdown, impacting market conditions [3]

Group 1 - The article discusses the analysis of oil and gas companies, specifically Crescent Energy, focusing on identifying undervalued companies in the sector [1] - The formation of Crescent Energy involved a partnership with KKR, aimed at leveraging opportunities in the cyclical oil and gas industry [2] - The industry is characterized as a boom-bust cycle, requiring patience and experience for successful investment [2] Group 2 - The article emphasizes the importance of thorough analysis, including balance sheets, competitive positioning, and development prospects of companies in the oil and gas sector [1]

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Group 1 - Crescent Energy (CRGY) closed at $8.50, reflecting a +1.07% change from the previous day, outperforming the S&P 500's gain of 0.44% [1] - Over the past month, Crescent Energy's shares declined by 15.39%, underperforming the Oils-Energy sector's gain of 3.62% and the S&P 500's gain of 4.03% [1] Group 2 - The upcoming earnings release for Crescent Energy is anticipated to show an EPS of $0.32, indicating a 17.95% decline year-over-year, while revenue is expected to reach $900.88 million, up 20.94% from the prior year [2] - For the fiscal year, earnings are projected at $1.53 per share and revenue at $3.63 billion, reflecting changes of -14.04% and +23.8% respectively from the previous year [3] Group 3 - Recent analyst estimate revisions for Crescent Energy suggest a direct correlation with stock price performance, indicating potential optimism about the business outlook [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Crescent Energy at 3 (Hold), with a 6.29% decline in the Zacks Consensus EPS estimate over the past month [5] Group 4 - Crescent Energy is currently trading at a Forward P/E ratio of 5.51, which is significantly lower than the industry average Forward P/E of 20.16 [6] - The Alternative Energy - Other industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 180, placing it in the bottom 28% of over 250 industries [6]

[Financial & Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Crescent Energy reported a strong second quarter of 2025, achieving record production of 263 MBoe/d and generating significant cash flow, successfully reducing costs, executing accretive transactions, repaying debt, and returning capital to shareholders, leading to an enhanced full-year outlook Q2 2025 Financial and Operational Metrics | Metric | Q2 2025 Value | | :--- | :--- | | Average Production | 263 MBoe/d | | Oil Production | 108 Mbo/d | | Net Income | $162 million | | Adjusted Net Income | $110 million | | Adjusted EBITDAX | $514 million | | Operating Cash Flow | $499 million | | Levered Free Cash Flow | $171 million | | Capital Expenditures | $265 million | - Key operational and strategic achievements in Q2 2025 include: - Improved drilling, completion, and facilities (DC&F) costs by approximately **15%** in South Texas and the Uinta compared to 2024 - Repaid approximately **$200 million** of debt using excess free cash flow - Repurchased approximately **$28 million** of shares at an average price of **$7.88** - Simplified corporate structure by eliminating the Up-C structure[6](index=6&type=chunk) [Strategic Activities](index=2&type=section&id=Strategic%20Activities) During the quarter, Crescent continued its portfolio optimization strategy by closing a $72 million minerals acquisition and divesting approximately $110 million in non-core assets year-to-date, while maintaining its shareholder return program through a quarterly dividend and opportunistic share repurchases [Acquisitions and Divestitures](index=2&type=section&id=Acquisitions%20and%20Divestitures) Crescent closed a $72 million accretive minerals acquisition to scale its existing portfolio, with year-to-date divestitures of non-core assets reaching $110 million, including the sale of non-operated assets in the Permian and Eagle Ford basins, as part of a larger $250 million divestiture pipeline - On July 31, 2025, Crescent closed an accretive acquisition of complementary minerals assets for approximately **$72 million**[7](index=7&type=chunk) - Year-to-date, the company has divested approximately **$110 million** of non-core assets, including: - **$83 million** from non-operated Permian Basin assets (closed April 22, 2025) - **$22 million** from non-operated Eagle Ford Basin assets (closed July 30, 2025)[8](index=8&type=chunk) [Shareholder Return](index=2&type=section&id=Shareholder%20Return) The company declared a Q2 2025 cash dividend of $0.12 per share, and additionally repurchased $28 million of its Class A common stock at a weighted average price of $7.88 per share, leaving approximately $86 million available under its $150 million share repurchase program - The Board of Directors approved a Q2 2025 cash dividend of **$0.12 per share**, payable on September 2, 2025[11](index=11&type=chunk) - During Q2, the company repurchased approximately **$28 million** of shares, with **$86 million** remaining under the authorized **$150 million** Share Repurchase Program[12](index=12&type=chunk) [Enhanced 2025 Outlook](index=2&type=section&id=Enhanced%202025%20Outlook) Crescent has enhanced its full-year 2025 guidance, reducing its capital expenditure forecast by approximately 3% while maintaining production targets, and significantly improving the cash tax outlook to 0% of Adjusted EBITDAX, largely due to the new 'One Big Beautiful Bill Act' 2025 Full-Year Outlook Comparison | Metric | Prior 2025 Outlook | Current 2025 Outlook | Change vs. Midpoint | | :--- | :--- | :--- | :--- | | Total Production (MBoe/d) | 251 - 261 | 251 - 261 | 0% | | Capital Expenditures ($MM) | $925 - $1,025 | $910 - $990 | ($25 MM) / (~3%) | | Cash Taxes (% of Adj. EBITDAX) | 2.0% - 5.0% | 0% | (100%) | - The improved outlook reflects ongoing operational efficiencies, modest activity acceleration, and a more favorable tax outlook due to the 'One Big Beautiful Bill Act' (OBBBA) signed into law on July 4, 2025[9](index=9&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The company's financial statements reflect significant year-over-year growth in production and revenue, driven by acquisitions and operational performance, with net income for Q2 2025 at $162.5 million, total assets at $9.86 billion, and strong operating cash flow of $836.1 million for the first six months of 2025 [Operational Summary](index=5&type=section&id=Crescent%20Operational%20Summary) In Q2 2025, total average daily production increased to 263 MBoe/d from 165 MBoe/d in Q2 2024, a 59% increase, and while realized prices for oil and NGLs before derivatives were lower year-over-year, operating expenses per Boe decreased from $19.61 to $16.31, demonstrating improved cost efficiency Operational Summary: Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Production (MBoe/d) | 263 | 165 | +59.4% | | Oil Production (MBbls/d) | 108 | 73 | +47.9% | | Realized Price ($/Boe, pre-hedges) | $35.96 | $41.27 | -12.9% | | Operating Expense ($/Boe) | $16.31 | $19.61 | -16.8% | [Income Statement](index=6&type=section&id=Crescent%20Condensed%20Consolidated%20Income%20Statement) For Q2 2025, Crescent reported total revenues of $898.0 million, up from $653.3 million in Q2 2024, driven by higher production volumes, with net income attributable to Crescent Energy at $153.2 million ($0.61 per basic share), a significant increase from $37.5 million ($0.34 per basic share) in the prior-year quarter, aided by a large gain on derivatives Condensed Consolidated Income Statement (Thousands) | (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $897,983 | $653,283 | | Income from Operations | $79,635 | $119,384 | | Net Income | $162,498 | $70,205 | | Net Income Attributable to Crescent | $153,221 | $37,547 | | EPS (Class A, basic) | $0.61 | $0.34 | [Balance Sheet](index=7&type=section&id=Crescent%20Condensed%20Consolidated%20Balance%20Sheet) As of June 30, 2025, Crescent's total assets stood at $9.86 billion, up from $9.16 billion at year-end 2024, with total liabilities increasing to $5.36 billion from $4.79 billion, primarily due to a rise in long-term debt to $3.37 billion, while total equity grew to $4.50 billion, strengthened by the elimination of redeemable noncontrolling interests following the corporate simplification Condensed Consolidated Balance Sheet (Thousands) | (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $753,271 | $788,088 | | Property, Plant and Equipment, net | $8,980,400 | $8,145,054 | | **Total Assets** | **$9,856,686** | **$9,160,649** | | Total Current Liabilities | $851,595 | $827,363 | | Long-term Debt | $3,373,595 | $3,049,255 | | **Total Liabilities** | **$5,357,962** | **$4,792,689** | | **Total Equity** | **$4,498,724** | **$3,139,631** | [Cash Flow Statement](index=9&type=section&id=Crescent%20Condensed%20Consolidated%20Cash%20Flow%20Statement) For the six months ended June 30, 2025, net cash from operating activities was $836.1 million, a significant increase from $470.7 million in the same period of 2024, with net cash used in investing activities at $1.27 billion, primarily for property acquisitions and development, and financing activities providing $213.4 million in net cash Condensed Consolidated Cash Flow Statement (Thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $836,080 | $470,696 | | Net cash used in investing activities | ($1,269,111) | ($286,562) | | Net cash provided by (used in) financing activities | $213,380 | $594,461 | [Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) The company provides reconciliations for key non-GAAP metrics used by management and investors to evaluate performance, with Q2 2025 Adjusted EBITDAX at $513.9 million, Levered Free Cash Flow at $170.9 million, Adjusted Net Income at $110.3 million, and a Net LTM Leverage ratio of 1.5x as of June 30, 2025 [Adjusted EBITDAX and Levered Free Cash Flow](index=10&type=section&id=Adjusted%20EBITDAX%20and%20Levered%20Free%20Cash%20Flow) Adjusted EBITDAX for Q2 2025 was $513.9 million, up from $319.8 million in Q2 2024, and after accounting for interest, taxes, and capital expenditures, the company generated $170.9 million in Levered Free Cash Flow for the quarter, compared to $146.9 million in the prior-year period Adjusted EBITDAX and Levered Free Cash Flow Reconciliation (Thousands) | (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income (loss) | $162,498 | $70,205 | | **Adjusted EBITDAX (non-GAAP)** | **$513,854** | **$319,774** | | **Levered Free Cash Flow (non-GAAP)** | **$170,875** | **$146,933** | [Adjusted Net Income](index=12&type=section&id=Adjusted%20Net%20Income) Adjusted Net Income, which excludes items like unrealized derivative gains/losses and non-cash compensation, was $110.3 million ($0.43 per share) for Q2 2025, representing a significant increase from the $56.2 million ($0.31 per share) reported in Q2 2024 Adjusted Net Income Reconciliation (Thousands) | (in thousands, except EPS) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income (loss) | $162,498 | $70,205 | | **Adjusted Net Income (non-GAAP)** | **$110,255** | **$56,155** | | **Adjusted EPS** | **$0.43** | **$0.31** | [Net LTM Leverage](index=13&type=section&id=Net%20LTM%20Leverage) As of June 30, 2025, Crescent's Net LTM Leverage ratio, calculated as net debt divided by LTM Adjusted EBITDAX under its credit agreement, was 1.5x, based on net debt of $3.37 billion and LTM Adjusted EBITDAX of $2.28 billion Net LTM Leverage Calculation (Millions) | (in millions) | June 30, 2025 | | :--- | :--- | | Net Debt | $3,371 | | LTM Adjusted EBITDAX for Leverage Ratio | $2,284 | | **Net LTM Leverage** | **1.5x** |

Group 1 - Crescent Energy Company (NYSE:CRGY) is identified as a stock with high upside potential, with Alyeska Investment Group L.P. increasing its stake by 452.3% during the first quarter, acquiring 1,298,155 shares worth $17,817,000 [1] - The debt-free acquisition of Vital Energy positions Crescent Energy among the top ten independent companies in its market, with potential net output estimated at 397 Mboe per day, including 258 Mboe per day from Crescent Energy [2] - Crescent Energy is targeting key regions such as the Permian Basin, Eagle Ford Basin, and Uinta Basin, which will provide investors with stable production and financial solidity [2] Group 2 - Crescent Energy Company, based in Texas, focuses on exploring and producing crude oil, natural gas, and natural gas liquids, having been founded in 2011 [4] - The collaboration with Sable Offshore (SOC) is expected to yield immediate cost savings of $90 million to $100 million, along with long-term synergies of $150 million to $215 million annually, indicating a positive outlook for Crescent Energy [3]

Industry Overview - The energy sector is experiencing a potential transformation due to slowing demand growth for certain energy products and a shift away from fossil fuels by investors, leading companies to cut exploration budgets [1][2] - Geopolitical conflicts in major fossil fuel regions, such as the Middle East and Venezuela, are exacerbating the situation, with analysts focusing on mid-size energy companies that may emerge as significant players [2] Company Highlights: Crescent Energy - Crescent Energy, with a market capitalization of over $2 billion, is focused on sustainable cash flow generation through high-quality reservoirs and disciplined capital efficiency [3][4] - The company reported a second-quarter earnings beat, exceeding EPS estimates by $0.20 and generating revenue that surpassed predictions by nearly $30 million, driven by record production of 263 kboe/d [4] - Crescent achieved $171 million in free cash flow for the latest quarter while reducing operational costs at its largest mines [5] - The firm is strategically positioned in the nutrient-rich Permian Basin, benefiting from favorable regulations, and has seen a decrease in short interest by over 7% in the last month [6] Company Highlights: Matador Resources - Matador Resources, with a market cap under $6 billion, focuses on upstream operations in the Permian Basin and has seen a 31% year-over-year production increase [7][8] - The company has achieved record free cash flow and increased its full-year guidance, alongside cost reductions that contributed to a nearly 5% stock gain over the past six months [8] - Matador is expanding its midstream operations, with its San Mateo operation achieving 99% uptime in the last quarter, and analysts rate the stock as a Buy with a consensus price target suggesting about 43% upside potential [9] Company Highlights: Northern Oil and Gas - Northern Oil and Gas operates in the Williston Basin and reported a strong second quarter with a 26% year-over-year revenue growth and $126 million in free cash flow [11][12] - The company has increased its net wells in process by 70% sequentially and closed on approximately 2,600 net acres, indicating rapid expansion [12] - Six out of eleven analysts view Northern Oil and Gas shares as a Buy, with potential upside of 49% based on price estimates [13]