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]

Core Insights - Crescent Energy reported revenue of $950.17 million for the quarter ended March 2025, reflecting a 44.5% increase year-over-year [1] - The company's EPS was $0.56, up from $0.46 in the same quarter last year, with an EPS surprise of +19.15% compared to the consensus estimate of $0.47 [1] Financial Performance - Revenue exceeded the Zacks Consensus Estimate of $937.06 million, resulting in a surprise of +1.40% [1] - Average daily net sales volumes totaled 258 million barrels of oil equivalent, slightly below the analyst estimate of 259.04 million [4] - Natural gas sales volumes averaged 655 million cubic feet, slightly above the estimate of 652.47 million cubic feet [4] - Oil sales volumes averaged 102 million barrels, close to the estimate of 102.48 million barrels [4] - Natural gas liquids sales volumes averaged 47 million barrels, exceeding the estimate of 44.3 million barrels [4] Pricing Metrics - Average sales price per barrel for natural gas liquids was $25.43, above the estimate of $24.29 [4] - Average sales price per thousand cubic feet for natural gas was $3.18, compared to the estimate of $3.13 [4] - Average sales price per barrel for oil and condensate was $67.64, slightly above the estimate of $67.61 [4] - Average realized prices per barrel for natural gas liquids after derivative settlements were $25.13, exceeding the estimate of $24.25 [4] Revenue Breakdown - Revenues from natural gas reached $187.44 million, significantly above the estimate of $173.27 million, representing a year-over-year increase of +134.5% [4] - Revenues from oil were $619.66 million, slightly below the estimate of $637.78 million, with a year-over-year increase of +30.8% [4] - Revenues from natural gas liquids were $107.58 million, surpassing the estimate of $97.50 million [4] - Revenues from midstream and other operations totaled $35.50 million, above the estimate of $31.05 million [4] Stock Performance - Crescent Energy shares returned +10.2% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

Core Viewpoint - Crescent Energy (CRGY) reported quarterly earnings of $0.56 per share, exceeding the Zacks Consensus Estimate of $0.47 per share, and showing an increase from $0.46 per share a year ago, representing an earnings surprise of 19.15% [1][2] Financial Performance - The company posted revenues of $950.17 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.40%, and up from $657.47 million year-over-year [2] - Over the last four quarters, Crescent Energy has exceeded consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Crescent Energy shares have declined approximately 41% since the beginning of the year, compared to a decline of 3.3% for the S&P 500 [3] - The company's earnings outlook is uncertain, with current consensus EPS estimates at $0.26 for the upcoming quarter and $1.66 for the current fiscal year, with revenues expected to be $898.17 million and $3.7 billion respectively [7] Industry Context - The Alternative Energy - Other industry, to which Crescent Energy belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Crescent Energy's stock performance [5]

Financial Performance - Crescent Energy's Q1 2025 Adjusted EBITDAX was approximately $530 million[11] - The company generated approximately $242 million in Levered Free Cash Flow during Q1 2025[11] - The company repurchased approximately $30 million of shares YTD at an average price of $826 per share[10] - The company has ~$14 billion in liquidity as of March 31, 2025[11] Operational Highlights - Q1 2025 net production averaged approximately 258 Mboe/d, with approximately 40% oil and approximately 58% liquids[11] - Eagle Ford net production was approximately 165 Mboe/d with approximately 40% oil in Q1 2025[32] - Uinta net production was approximately 23 Mboe/d with approximately 63% oil in Q1 2025[39] Capital Allocation and Returns - The company offers an approximately 6% fixed dividend yield and an approximately 7% yield inclusive of buybacks[10] - The company closed approximately $90 million of non-core divestitures YTD[10, 42] 2025 Outlook - The company anticipates 2025 capital expenditures between $925 million and $1025 million[61] - The company expects total production to be between 251 and 261 Mboe/d in 2025, adjusted for divestitures[61]