Financial Performance - Total revenues for the three months ended March 31, 2025, reached $950.2 million, a 45% increase from $657.5 million in the same period of 2024 [177]. - Oil revenue increased by $145.8 million (31%) due to a 43% rise in sales volumes, primarily driven by the SilverBow Merger and Ridgemar Acquisition [177]. - Natural gas revenue surged by $107.5 million (134%), attributed to a 63% increase in sales volumes and a 46% rise in realized prices [178]. - NGL revenue rose by $40.6 million (61%), driven by a 68% increase in sales volumes [179]. - Total sales volume increased by 8,129 MBoe, reaching 23,217 MBoe for the three months ended March 31, 2025, compared to 15,088 MBoe in 2024 [171]. - Adjusted EBITDAX increased by $216.1 million, or 69%, to $529.5 million, driven by additional production from acquisitions [192][194]. - Levered Free Cash Flow increased by $175.5 million, or 265%, to $241.6 million, primarily due to increased Adjusted EBITDAX [194]. - Net cash provided by operating activities increased by $153.3 million, or 83%, to $337.1 million [193]. Expenses and Costs - Operating expenses rose by $99.3 million (33%) to $403.5 million, influenced by increased production from acquisitions [181]. - Depreciation, depletion, and amortization expenses increased by $106.0 million (60%) due to higher production levels [182]. - Lease and asset operating expense increased by $30.0 million, or 18%, to $8.27 per Boe, driven by higher production from the SilverBow Merger and Ridgemar Acquisition [184]. - Gathering, transportation, and marketing expense rose by $35.7 million, or 51%, to $4.53 per Boe, primarily due to the SilverBow Merger and Ridgemar Acquisition [184]. - Production and other taxes increased by $27.9 million, or 86%, to $2.60 per Boe, driven by higher oil and gas revenues [184]. - General and administrative expense increased by $14.1 million, or 33%, totaling $56.77 million, with recurring G&A rising by 115% [185][186]. - Interest expense rose by $30.5 million, or 71%, to $73.2 million, primarily due to higher average debt balances from acquisitions [187]. Acquisitions and Mergers - The company acquired Ridgemar (Eagle Ford) LLC for $812.5 million in cash and issued 5.5 million shares of Class A Common Stock, with potential contingent earn-out consideration of up to $170.0 million [154]. - The company completed the SilverBow Merger, issuing 51.6 million shares of Class A Common Stock and paying $382.4 million in cash to former SilverBow shareholders [155]. - The company acquired additional interests in oil and gas properties in Webb County, Texas for approximately $21.2 million in January 2025 [156]. - Cash used for the acquisition of oil and natural gas properties in Q1 2025 was $864.7 million, significantly higher than $19.5 million in Q1 2024, primarily due to the Ridgemar Acquisition [223]. Impairments and Adjustments - For the three months ended March 31, 2025, the company recorded an impairment expense of $45.6 million related to oil and natural gas properties [147]. - Impairment expense of $45.6 million was recorded for the three months ended March 31, 2025, related to assets held for sale [183]. - The company recorded a decrease of $34.1 million in redeemable noncontrolling interests as a result of the March 2025 Class A Redemption [152]. Capital Expenditures and Funding - The company expects to fund its 2025 capital program through cash flow from operations, with flexibility to defer expenditures based on market conditions [164]. - Total expenditures on acquisition and development of oil and natural gas properties for the three months ended March 31, 2025, amounted to $1.15 billion, compared to $156.3 million in the same period of 2024 [223]. - The company’s capital program for 2025 is expected to be funded through cash flow from operations, with capital expenditures being regularly reviewed and adjusted based on various factors [222]. Debt and Financing - Long-term debt increased to $3,596,870 thousand as of March 31, 2025, compared to $3,049,255 thousand as of December 31, 2024 [199]. - The company issued $750 million of 7.375% senior notes due 2033 in June 2024 and an additional $250 million in September 2024, raising approximately $981.8 million in total proceeds [203]. - The company issued $700 million of 7.625% senior notes due 2032 in March 2024 and an additional $400 million in December 2024, raising approximately $1,080.7 million in total proceeds [206]. - As of March 31, 2025, the elected commitment amount under the Revolving Credit Facility was approximately $2.0 billion, with $546.5 million of outstanding borrowings [215]. - The borrowing base under the Revolving Credit Facility was $2.6 billion as of March 31, 2025, with a weighted average interest rate of 6.34% on outstanding loans [216][217]. - The company expects to maintain compliance with covenants under its debt agreements based on planned capital spending and forecasted cash flows [199]. Cash Flow and Dividends - Cash and cash equivalents decreased to $6,255 thousand as of March 31, 2025, from $132,818 thousand as of December 31, 2024 [199]. - Net cash used in investing activities surged by $899.5 million, or 571%, to $(1,056,923) thousand for the three months ended March 31, 2025, primarily due to $845.1 million for acquisitions related to the Ridgemar Acquisition [201]. - Net cash provided by financing activities was $502,653 thousand for the three months ended March 31, 2025, compared to $(23,867) thousand for the same period in 2024 [202]. - The company paid a quarterly cash dividend of $0.12 per share on March 26, 2025, with an annualized dividend of $0.48 per share [225][226]. - Management will evaluate future increases in cash dividends on a quarterly basis, considering current economic conditions and financial performance [227]. Market Conditions and Economic Factors - The company experienced significant inflationary pressures, impacting operating costs and capital expenditures, with the U.S. inflation rate remaining elevated through 2024 and early 2025 [149]. - The effective tax rate increased to 30.7% in Q1 2025 from 11.5% in Q1 2024, primarily due to increased ownership of OpCo and higher state tax rates [190]. - The company plans to continue entering into derivative contracts to hedge against commodity price fluctuations [174]. - The company plans to continue economic hedging arrangements to mitigate commodity price volatility and protect margins [197]. - As of March 31, 2025, the company's derivative portfolio had an aggregate notional value of approximately $3.1 billion, with a net liability of $79.1 million for commodity derivative contracts [239]. - A hypothetical 10% increase in commodity prices would change the net commodity derivative position by approximately $214.7 million, while a 10% decrease would change it by approximately $171.5 million [240].

Crescent Energy Company (CRGY) is set to report first-quarter 2025 results on May 5, after the closing bell.The Zacks Consensus Estimate for first-quarter earnings is pegged at 47 cents per share, implying an increase of 2.2% from the year-ago reported number. It witnessed two downward estimate movements in the past 30 days. The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $937.1 million, suggesting a 42.5% uptick from the year-ago actuals. Image Source: Zacks Investment Resear ...

Core Viewpoint - Crescent Energy Company (CRGY) has seen its stock price decline over 50% since January, reflecting concerns over global recession and oil demand expectations, with the company underperforming its peers [1][4]. Company Overview - Crescent Energy is a Houston-based exploration and production firm focused on the Eagle Ford and Uinta basins, emphasizing free cash flow generation and disciplined capital allocation [4]. - The company owns approximately 74,000 net royalty acres and is involved in enhanced oil recovery projects, aiming for stable production and shareholder returns [4]. Recent Developments - In 2024, Crescent executed five acquisitions totaling over $3 billion, significantly expanding its Eagle Ford footprint and positioning itself among the top three producers in the basin [5]. - The company reported a 100% year-over-year increase in free cash flow, generating $259 million in Q4, exceeding Wall Street expectations [5]. - Crescent's production guidance for 2025 is set at 254,000–264,000 BOE/d, with planned capital spending of around $975 million [5]. Strategic Moves - The acquisition of SilverBow Resources has provided operational synergies, lower general and administrative costs, and better access to dry gas assets, enhancing Crescent's ability to navigate commodity price volatility [6]. - Management's capital allocation strategy includes opportunistic divestitures and selective mergers and acquisitions, balancing growth with financial prudence [6]. Challenges and Risks - EPS estimates for Crescent have declined sharply, with projections for 2025 and 2026 falling by approximately 22% and 27%, respectively, raising concerns over profitability and margin compression [8][9]. - The underperformance in the Uinta basin, despite promising initial results, poses a risk as the region remains underdeveloped and may become a capital drain [10]. - Crescent's current EV/EBITDA multiple of 3.04 is higher than its peers, raising questions about its valuation amidst execution risks and market unpredictability [11]. Conclusion - Despite Crescent Energy's expansion and improved free cash flow metrics, the stock faces significant execution risks and valuation concerns, making its future path less certain compared to peers [14].

The latest trading session saw Crescent Energy (CRGY) ending at $11.46, denoting a -1.63% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.08%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 0.52%.Heading into today, shares of the oil and gas company had lost 22.39% over the past month, lagging the Oils-Energy sector's loss of 1.36% and the S&P 500's loss of 7.33% in that time.Analysts and investors alike will be keeping a close eye on ...

Core Viewpoint - Crescent Energy (CRGY) has experienced a significant decline of 23.2% over the past four weeks, but it is now positioned for a potential trend reversal as it is in oversold territory, supported by analysts' expectations of better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with a reading below 30 typically indicating this condition [2]. - CRGY's current RSI reading is 13.61, suggesting that the heavy selling pressure may be exhausting itself, indicating a potential trend reversal [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that earnings estimates for CRGY have been raised, resulting in a 0.2% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6]. - CRGY holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [7].

Group 1 - Crescent Energy (CRGY) has experienced significant selling pressure, resulting in a 17.3% decline over the past four weeks, but analysts anticipate better earnings than previously predicted [1] - The stock is currently in oversold territory, indicated by an RSI reading of 17.67, suggesting a potential trend reversal is imminent [5] - Over the last 30 days, the consensus EPS estimate for CRGY has increased by 0.2%, indicating a positive trend in earnings estimate revisions which typically leads to price appreciation [6] Group 2 - CRGY holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [7]

Financial Data and Key Metrics Changes - Crescent Energy Company reported approximately $535 million of adjusted EBITDA and $259 million in levered free cash flow for Q4 2024, with capital expenditures of $221 million, better than forecast [29][30] - The company generated approximately $260 million of free cash flow for the quarter, exceeding Wall Street expectations [12][29] - The company exited the year with net leverage of 1.4 times, within the publicly stated range of 1 to 1.5 times [30] Business Line Data and Key Metrics Changes - In Q4, Crescent Energy brought online 15 growth operated wells in the Eagle Ford and five in the Uinta, all generating strong initial results [30] - The company reported significant improvements in operating costs, with Q4 operating expenses close to $11.50 per BOE [46] Market Data and Key Metrics Changes - The company expects production in 2025 to be between 254,000 to 264,000 barrels of oil equivalent per day, with capital expenditures projected at $925 million to $1.025 billion [24] - The company noted that oil realizations improved from the low nineties to the mid-nineties due to better marketing strategies and synergy capture [45] Company Strategy and Development Direction - Crescent Energy aims to maximize free cash flow generation and returns for investors through a flexible operational plan that includes both oil and gas weighted development [9][22] - The company plans to run four to five rigs in 2025, focusing on capitalizing on recent natural gas pricing tailwinds [24] - The company is committed to disciplined growth through acquisitions, having completed five transactions totaling over $3 billion in 2024 [21][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to capitalize on future opportunities, emphasizing a disciplined approach to capital allocation and operational efficiency [10][25] - The management team highlighted that 2024 was a transformational year, with expectations for continued outperformance in 2025 [33][34] Other Important Information - Crescent Energy announced a dividend of $0.12 per share, contributing to an attractive 4% annualized yield for 2024 [30][31] - The company has a meaningful pipeline of non-core assets under evaluation for opportunistic divestiture, with a public target of $250 million for potential divestitures [28][64] Q&A Session Summary Question: Insights on 2025 capital allocation - Management indicated that the capital allocation for 2025 will focus on maximizing returns across their operational portfolio, with a slight increase in gas drilling due to stronger gas prices [39][40] Question: Drivers behind improved OpEx and oil realizations - Management attributed the improved oil realizations to better marketing strategies and synergy capture, while the lower operating expenses were driven by operational improvements and one-off items [42][46] Question: Future growth and acquisition strategy - Management confirmed satisfaction with past acquisitions and indicated that while they see opportunities for growth, they will remain disciplined and focused on high-quality acquisitions [50][54] Question: Non-core asset divestiture opportunities - Management highlighted a $250 million pipeline for divestitures, indicating that there are larger opportunities available compared to the $50 million divested in 2024 [60][64] Question: Resource potential in Uinta - Management expressed excitement about the resource potential in the Uinta basin, indicating a cautious approach to capital allocation while gathering data [67][88] Question: Path to achieving investment grade status - Management stated that achieving investment grade status would likely require doubling the production base while maintaining strong financial metrics [79][80] Question: Timing of divestitures based on commodity prices - Management indicated that they will evaluate the timing of divestitures based on market conditions and the potential to streamline their portfolio [91][95]

Crescent Energy Company (NYSE:CRGY) Q4 2024 Earnings Conference Call February 27, 2025 11:00 AM ET Company Participants Reid Gallagher - Investor Relations David Rockecharlie - Chief Executive Officer Brandi Kendall - Chief Financial Officer Clay Rynd - Executive Vice President-Investments Conference Call Participants Oliver Huang - TPH Neal Dingmann - Truist Securities Tim Rezvan - KeyBanc Capital Marketing Michael Scialla - Stephens John Abbott - Wolfe Research Michael Furrow - Pickering Energy John Freem ...

FY 2024 Earnings Presentation February 2025 Disclaimer The information in this presentation relates to Crescent Energy Company (the "Company," "Crescent," "we," "us," "our" or "CRGY") and contains information that includes or is based upon "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this ...

Core Viewpoint - Crescent Energy (CRGY) reported quarterly earnings of $0.56 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, but slightly down from $0.58 per share a year ago, indicating an earnings surprise of 115.38% [1][2] Financial Performance - The company posted revenues of $875.29 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.75%, compared to $657.73 million in the same quarter last year [2] - Over the last four quarters, Crescent Energy has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - Crescent Energy shares have declined approximately 6.3% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.54, with expected revenues of $959.19 million, and for the current fiscal year, the EPS estimate is $2.21 on revenues of $3.88 billion [7] - The estimate revisions trend for Crescent Energy is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Alternative Energy - Other industry, to which Crescent Energy belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]