Core Viewpoint - Crescent Energy (CRGY) is expected to report a year-over-year decline in earnings despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated on August 4, with expected earnings of $0.23 per share, reflecting a year-over-year decrease of 25.8% [3]. - Revenues are projected to be $895.46 million, which is an increase of 37.1% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 17.02% higher in the last 30 days, indicating a reassessment by analysts [4]. - Crescent Energy's Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with a positive reading being a strong predictor of an earnings beat [9][10]. - Crescent Energy currently holds a Zacks Rank of 1, but the combination with a 0% Earnings ESP makes it challenging to predict an earnings beat [12]. Historical Performance - In the last reported quarter, Crescent Energy exceeded the expected earnings of $0.47 per share by delivering $0.56, resulting in a surprise of +19.15% [13]. - The company has beaten consensus EPS estimates in all of the last four quarters [14]. Market Reaction Factors - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [15]. - Despite not appearing as a compelling earnings-beat candidate, other market conditions should be considered when evaluating Crescent Energy [17].

Core Viewpoint - Crescent Energy (CRGY) has seen a 3.7% increase in share price over the past four weeks, closing at $8.92, with a potential upside indicated by Wall Street analysts' price targets suggesting a mean estimate of $14.92, representing a 67.3% upside [1] Price Targets - The average of 12 short-term price targets ranges from a low of $10.00 to a high of $20.00, with a standard deviation of $2.75, indicating variability among estimates [2] - The lowest estimate suggests a 12.1% increase from the current price, while the highest estimate indicates a 124.2% upside [2] Analyst Consensus - There is strong agreement among analysts regarding CRGY's ability to report better earnings than previously predicted, which supports the view of potential upside [4] - The Zacks Consensus Estimate for the current year has increased by 13.5% over the past month, with three estimates rising and one falling [12] Zacks Rank - CRGY holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential upside [13] Caution on Price Targets - While price targets are a common metric for investors, relying solely on them for investment decisions may not be wise due to historical inaccuracies in predicting stock price movements [3][7][10]

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Company Performance - Crescent Energy (CRGY) closed at $8.45, reflecting a -3.21% change from the previous day's closing price, underperforming the S&P 500's 0.14% gain [1] - The company has experienced a 7.81% decline in share price over the past month, while the Oils-Energy sector decreased by 0.85% and the S&P 500 increased by 5.35% [1] Earnings Estimates - Crescent Energy is expected to report earnings on August 4, 2025, with an anticipated EPS of $0.18, representing a 41.94% decrease compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projected at $877.96 million, which is a 34.39% increase from the previous year [2] Fiscal Year Projections - For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.37 per share and revenue of $3.65 billion, indicating a -23.03% change in earnings and a +24.67% change in revenue from the prior year [3] Analyst Sentiment - Recent changes in analyst estimates for Crescent Energy may indicate shifting business trends, with positive adjustments reflecting analyst optimism regarding the company's profitability [3][4] Valuation Metrics - Crescent Energy is currently trading at a Forward P/E ratio of 6.38, significantly lower than the industry average of 20.33, suggesting it is trading at a discount [6] - The Alternative Energy - Other industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 155, placing it in the bottom 38% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have generated an average annual return of +25% since 1988 [5] - Crescent Energy currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having increased by 1.62% in the past month [5]

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Crescent Energy (CRGY) . This company, which is in the Zacks Alternative Energy - Other industry, shows potential for another earnings beat.This oil and gas company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past t ...

Exhibit 99.1 UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS On July 30, 2024, Crescent Energy Company, a Delaware corporation ("Crescent"), consummated the merger contemplated by the Agreement and Plan of Merger (the "Merger Agreement"), dated May 15, 2024, between Crescent, SilverBow Resources, Inc., a Delaware corporation ("SilverBow"), Artemis Acquisition Holdings Inc., a Delaware corporation and a direct wholly owned subsidiary of Crescent, Artemis Merger Sub Inc., a Delaware corporation ...

Core Viewpoint - Crescent Energy's stock performance has shown resilience, with a recent increase of 2.73% despite broader market declines, indicating potential investor confidence in the company [1] Company Performance - Crescent Energy is expected to report an EPS of $0.23, reflecting a 25.81% decrease year-over-year, while revenue is anticipated to reach $877.96 million, a 34.39% increase from the previous year [2] - For the full year, earnings are projected at $1.67 per share, down 6.18% from the previous year, with revenue expected to be $3.65 billion, up 24.67% [3] Analyst Estimates - Recent changes in analyst estimates for Crescent Energy are crucial, as they often indicate shifts in near-term business trends, with positive revisions suggesting confidence in performance [3][4] - The Zacks Consensus EPS estimate has increased by 2.07% over the last 30 days, although Crescent Energy currently holds a Zacks Rank of 4 (Sell) [5] Valuation Metrics - Crescent Energy's Forward P/E ratio stands at 5.71, significantly lower than the industry average of 19.9, indicating a potential undervaluation [6] - The Alternative Energy - Other industry, part of the Oils-Energy sector, has a Zacks Industry Rank of 169, placing it in the bottom 32% of over 250 industries [6]

Financial Data and Key Metrics Changes - The company reported free cash flow generation of over $240 million for the quarter, translating to an annualized free cash flow yield of approximately 45% [7][21] - Adjusted EBITDA for the quarter was approximately $530 million, with levered free cash flow of about $242 million [18] - Capital expenditures were $208 million, which was notably better than forecasted due to improved drilling and completion costs [18] Business Line Data and Key Metrics Changes - The company achieved record production of 258,000 barrels of oil equivalent per day [11] - The Eagle Ford development saw a 10% savings in drilling, completions, and facilities costs compared to 2024 [11] Market Data and Key Metrics Changes - Approximately 60% of the company's 2025 oil and natural gas production is hedged at a significant premium to current market pricing [12] - The company maintains a net leverage of 1.5 times, within its publicly stated range of one to 1.5 times [19] Company Strategy and Development Direction - The company emphasizes flexibility in capital allocation, focusing on maximizing free cash flow and returns based on commodity price movements [9][22] - The strategy includes maintaining a low decline and less capital-intensive business model, which allows for durable free cash flow generation [10][22] - The company has closed approximately $90 million in accretive asset sales in 2025 to streamline its portfolio [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform during periods of volatility, highlighting a consistent strategy over the past decade [9][22] - The current market environment is viewed as an opportunity for the company to capitalize on potential acquisitions and enhance its portfolio [14][66] Other Important Information - The company announced a dividend of $0.12 per share and has repurchased approximately $30 million worth of stock year-to-date [20] - The transition to a single class of common shares has simplified the corporate structure, increasing investor accessibility [20][70] Q&A Session Summary Question: Current commodity price environment and capital allocation - Management indicated that capital allocation is focused on returns, with flexibility to adjust based on market conditions [24][26] Question: Expectations for oil volumes and CapEx - Oil production is expected to increase quarter over quarter, with Q2 anticipated to be the highest capital quarter for the year [30] Question: Status of the joint venture - The joint venture has no ongoing capital commitments, allowing for maximum flexibility [35] Question: Role of hedges in decision-making - Hedges are viewed as a separate asset, protecting the balance sheet but not influencing drilling decisions [41][42] Question: Allocating free cash flow between buybacks and debt reduction - The balance sheet and fixed dividend remain top priorities, with buybacks considered opportunistically [43] Question: Market conditions and M&A opportunities - The company is always in the market looking for value and can act quickly on opportunities [50][66] Question: Operating costs and LOE impacts - Operating costs are expected to be highest in Q1 due to winter weather, aligning with expectations [74] Question: Ridgemar acquisition oil mix - The Ridgemar assets are expected to contribute to an increase in oil cut over the year [78] Question: Benefits of eliminating the Up C structure - The simplification of the corporate structure is seen as a value add, streamlining reporting and enhancing investor accessibility [82][70]

Financial Data and Key Metrics Changes - Crescent Energy reported a free cash flow generation of approximately $242 million for Q1 2025, resulting in an annualized free cash flow yield of about 45% [5][19] - Adjusted EBITDA for the quarter was approximately $530 million, with capital expenditures of $208 million, which was notably better than forecasted [15][16] - The company exited the quarter with a net leverage of 1.5 times and approximately $1.4 billion in liquidity [17] Business Line Data and Key Metrics Changes - Crescent achieved record production of 258,000 barrels of oil equivalent per day, exceeding Wall Street expectations [8] - The company brought online 36 gross operated wells in the Eagle Ford and four in the Uinta, all generating strong initial results [16] Market Data and Key Metrics Changes - Crescent has approximately 60% of its 2025 oil and natural gas production hedged at a significant premium to current market pricing, providing stability amid market volatility [9] Company Strategy and Development Direction - The company emphasizes flexibility in capital allocation, focusing on cash flow, risk management, and returns, particularly in a dynamic macro environment [5][10] - Crescent's strategy is built to succeed through commodity cycles, with a focus on generating durable free cash flow and maintaining a lower decline and less capital-intensive business model [6][20] - The company has closed approximately $90 million in accretive asset sales in 2025, streamlining its portfolio and enhancing long-term success [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform during periods of volatility, highlighting the importance of a disciplined capital allocation strategy [10][20] - The current market environment is viewed as an opportunity for growth through M&A, with the company prepared to capitalize on transformative opportunities [11][19] Other Important Information - Crescent announced a dividend of $0.12 per share and has repurchased approximately $30 million worth of stock year-to-date, equating to an attractive 10% annualized yield [18] - The company transitioned to a single class of common shares, simplifying its corporate structure and increasing investor accessibility [18][64] Q&A Session Summary Question: Current commodity price environment and capital allocation - Management indicated that capital allocation is focused on returns, with flexibility to move between oil and gas investments based on market conditions [22][24] Question: Expectations for oil volumes and CapEx - Oil production is expected to increase quarter over quarter, with Q2 anticipated to be the highest capital quarter for the year [28][29] Question: Status of the joint venture - The joint venture is designed for maximum flexibility, with no ongoing capital commitments required [31] Question: Role of hedges in decision-making - Hedges are viewed as a separate asset, protecting the balance sheet but not influencing drilling decisions [36][37] Question: Allocating free cash flow between buybacks and debt reduction - The balance sheet and fixed dividend remain top priorities, with free cash flow allocation being opportunistic and returns-driven [38][39] Question: Market conditions and M&A opportunities - Management noted that while the market may slow down during volatility, they remain active and disciplined in pursuing opportunities [42][44] Question: Operating costs and LOE impacts - Operating costs typically rise in Q1 due to winter weather, but are expected to align with guidance moving forward [66] Question: Benefits of eliminating the Up C structure - The simplification of the corporate structure has streamlined reporting and improved investor accessibility [73][74]

Group 1 - The article focuses on analyzing oil and gas companies, particularly Crescent Energy, to identify undervalued opportunities in the sector [1] - Cash flow is emphasized as a significant priority for management in the oil and gas industry, which is characterized as a cyclical boom-bust market [2] - The analysis includes a breakdown of balance sheets, competitive positions, and development prospects of companies in the oil and gas space [1] Group 2 - The author has a beneficial long position in Crescent Energy shares, indicating a personal investment interest in the company [3] - The article is not intended as investment advice, and investors are encouraged to conduct their own research [4] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the platform's overall stance [5]