Crescent Energy Co(CRGY) - 2024 Q4 - Annual Report

Reserves and Production - As of December 31, 2024, the company had 709.3 net MMBoe of proved reserves, with approximately 63% being liquids, reflecting a Standardized Measure of $5.7 billion[80]. - The company’s net proved reserves in the Eagle Ford are 497.2 MMBoe, with production of 38,708 MBoe in 2024[100]. - The company’s net proved reserves in the Rockies are 113.8 MMBoe, with production of 21,479 MBoe in 2024[100]. - As of December 31, 2024, net proved reserves include 297,690 MBbls of oil, 1,595,059 MMcf of natural gas, and 145,716 MBbls of NGLs, totaling 709,251 MBoe, representing a 29.3$137.7 million, alongside $1,223.1 million in net cash provided by operating activities and$1,598.3 million of Adjusted EBITDAX[80]. - The total revenues for the year ended December 31, 2024, were $2,930,919 thousand, an increase of 23$2,382,602 thousand in 2023[533]. - Oil revenues reached $2,130,418 thousand, up from$1,750,961 thousand in 2023, reflecting a growth of 22%[533]. - The company reported a net income (loss) from operations of $218,462 thousand, a decrease of 33$324,740 thousand in 2023[533]. - Crescent Energy reported a net loss of $137.68 million for the current period, compared to a net income of$321.99 million in the previous period[534]. - The net income attributable to Crescent Energy was $(114.61) million, with a basic and diluted loss per share of$(0.88) compared to earnings of $1.02 and$2.20 in the prior periods[534]. - The company experienced a significant increase in retained earnings, reaching $1.63 billion as of December 31, 2023, up from$720.02 million in 2021[537]. - Crescent Energy's total equity increased to $1.73 billion by the end of 2023, reflecting a growth from$862.29 million in 2022[537]. Cash Flow and Investments - Cash flows from operating activities increased to $1.223 billion in 2024, compared to$935.769 million in 2023, indicating improved operational efficiency[543]. - Crescent Energy's net cash used in investing activities was $1.198 billion in 2024, a decrease from$1.399 billion in 2023, reflecting a more disciplined investment approach[543]. - The company made acquisitions of oil and natural gas properties totaling $558.600 million in 2024, down from$849.254 million in 2023, suggesting a strategic shift in acquisition strategy[543]. - Proceeds from the issuance of Senior Notes increased to $2,074.625 million in 2024 from$984.625 million in 2023, reflecting a significant growth[546]. - The company’s cash and cash equivalents surged to $132,818 thousand in 2024, compared to$2,974 thousand in 2023, indicating a significant increase[528]. Debt and Liabilities - Long-term debt rose significantly to $3,049,255 thousand in 2024, up from$1,694,375 thousand in 2023, representing an increase of 80%[531]. - The total liabilities increased to $4,792,689 thousand in 2024, up from$3,167,617 thousand in 2023, which is a rise of 51%[531]. - Revolving Credit Facility borrowings rose to $3,168.3 million in 2024 from$2,283.8 million in 2023, indicating increased leverage[546]. Regulatory and Environmental Factors - The company is subject to extensive federal, state, and local regulations that can impact operational costs and profitability[143]. - Environmental regulations impose stringent requirements on drilling, production, and waste disposal, which could significantly impact operating costs if they become more stringent[162]. - The EPA's new methane emissions regulations may impose substantial compliance costs and fines for non-compliance[173]. - The company may face increased scrutiny from FERC regarding agreements with affiliated pipelines, which could affect transportation service agreements[156]. - The National Environmental Policy Act requires environmental assessments for major federal actions, which may delay permitting and increase costs for the company[190]. Market and Competitive Landscape - The company faces intense competition in the oil and natural gas industry, competing with larger companies that have greater resources[129]. - The company is exposed to market risk from adverse changes in commodity prices and interest rates, which can significantly impact cash flows[499]. - The company does not believe the loss of any single customer would materially impact its operating results due to the fungibility of oil, natural gas, and NGLs[507]. Employee and Community Engagement - The company employs approximately 987 employees as of December 31, 2024, with no collective bargaining agreements in place[136]. - The company is committed to community engagement and recognizes the link between local communities and business success[142].