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]

Northern Oil and Gas (NOG) Q1 2025 Earnings Call April 30, 2025 09:00 AM ET Speaker0 Greetings, and welcome to the NOG's First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. The question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Evelyn Inferno, Vice President, Investor Relations. Thank you. You may begin. Speaker1 Good morning. Welcome t ...

Northern Oil and Gas (NOG) Q1 2025 Earnings Call April 30, 2025 09:00 AM ET Company Participants Evelyn Infurna - VP - IRNicholas O'Grady - CEOAdam Dirlam - PresidentChad Allen - CFONoah Hungness - Equity Research AssociateJim Evans - Chief Technical OfficerNoel Parks - Managing Director - Energy Research Conference Call Participants Phillips Johnston - Senior E&P Analyst Operator Greetings, and welcome to the NOG's First Quarter twenty twenty five Earnings Conference Call. At this time, all participants ar ...