Financial Data and Key Metrics Changes - Crescent Energy reported approximately $514 million in adjusted EBITDA and $171 million in levered free cash flow for the quarter, exceeding Wall Street expectations [14][8] - The company generated record production of 263,000 barrels of oil equivalent per day, including 108,000 barrels of oil per day [8][9] - Capital expenditures for the quarter were approximately $265 million, with a focus on maximizing free cash flow and returns on capital invested [14][9] Business Line Data and Key Metrics Changes - The Eagle Ford operations are delivering on a flexible capital program, focusing on gas activity in the latter half of the year [9] - In the Uinta basin, the company is maintaining a prudent approach to capturing long-term resource opportunities, with strong performance from joint ventures [10][11] - The minerals portfolio is expected to generate approximately $100 million of annual cash flow, with recent acquisitions enhancing this segment [11][14] Market Data and Key Metrics Changes - The A&D market was quieter in Q2, with continued volatility in commodity pricing, but the company successfully identified and executed accretive transactions [10][11] - The company repurchased approximately $28 million worth of stock at a weighted average price of $7.88, reflecting a strategy to capitalize on market volatility [15][14] Company Strategy and Development Direction - Crescent Energy is focused on operational excellence and long-term value creation, with a business model designed to generate durable free cash flow [5][6] - The company is simplifying its stock structure by transitioning to a single share class, which is expected to enhance shareholder value [8][14] - The management emphasizes a proactive approach to capital allocation, balancing debt repayment, dividends, and share repurchases [33][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility and highlighted the importance of operational execution in driving free cash flow [5][6] - The company is optimistic about future opportunities, particularly in the context of ongoing market dislocation [40][41] - Management reiterated a commitment to maintaining a strong balance sheet while pursuing growth opportunities [62][65] Other Important Information - The company has eliminated its Up C structure, simplifying its public company evolution [14] - Crescent Energy has a strong liquidity position of $1 billion, following significant debt repayment [15][14] Q&A Session Summary Question: Efficiency gains in D&C per foot - Management attributed efficiency gains to the execution of best practices, particularly in completion operations [20][21] Question: Capital allocation decisions in Uinta - Management indicated excitement about resource potential in Uinta and plans to allocate capital prudently based on proven economic inventory [22][24] Question: Justification for adding to the minerals portfolio - The acquisition aligns with the company's strategy and is expected to be highly cash flow accretive [28][30] Question: Balance sheet and capital allocation - Management confirmed that 80% of free cash flow was directed towards debt repayment, with the remaining 20% allocated to dividends and buybacks [33][35] Question: Market dislocation in A&D - Management noted that many asset sale processes were pulled due to market volatility, indicating a functioning but cautious market [39][40] Question: Production response in Uinta - Management expressed satisfaction with reservoir performance and indicated no surprises in production results [42][43] Question: Future capital allocation flexibility - Management confirmed the ability to pivot capital allocation between oil and gas based on market conditions [52][53] Question: Cash tax benefits and future outlook - Management highlighted significant cash tax savings expected over the next few years due to updated tax legislation [56][57] Question: Realistic leverage targets - Management reiterated a focus on maintaining leverage within the 1 to 1.5 times range, with plans for continued debt reduction [61][62]

Financial Data and Key Metrics Changes - Crescent Energy reported record production of 263,000 barrels of oil equivalent per day, with 108,000 barrels of oil per day, generating approximately $171 million of free cash flow for the quarter, all exceeding Wall Street expectations [7][14] - The company achieved approximately $514 million of adjusted EBITDA and $265 million of capital expenditures, continuing a strong track record of free cash flow generation [14] - The company has generated cumulative free cash flow roughly equal to its current market cap over the last five years, indicating a compelling discount on free cash flow metrics [14] Business Line Data and Key Metrics Changes - The Eagle Ford operations are delivering on a flexible capital program, focusing on gas activity in the latter half of the year, while maintaining a prudent approach in Utah to capture long-term resource opportunities [9][10] - Operational efficiencies have improved well costs by approximately 15% in both the Eagle Ford and Uinta basins since last year, contributing to enhanced production expectations and reduced capital [8][9] Market Data and Key Metrics Changes - The A and D market was quieter in Q2 with continued commodity price volatility, but the company successfully identified compelling value opportunities for both acquisitions and divestitures [10][12] - The company acquired attractive minerals assets expected to generate returns exceeding the 2x MOIC target, while divesting non-operated assets to streamline the business [11][12] Company Strategy and Development Direction - Crescent Energy is focused on driving long-term value through operational excellence, capital efficiency, and a consistent hedge program to generate durable free cash flow [5][6] - The company is transitioning to a single share class to simplify its stock structure and enhance shareholder value [7][14] - The management emphasizes a proactive approach to capital allocation, balancing debt repayment, dividends, and share buybacks [15][33] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility and highlighted the importance of operational execution in delivering strong results [5][6] - The company is optimistic about future opportunities, particularly in the Eagle Ford and Uinta basins, and is committed to maximizing free cash flow and returns on capital [9][10] - Management acknowledged the current dislocation in the A and D market, indicating a cautious yet opportunistic approach to acquisitions [38] Other Important Information - The company repurchased approximately $28 million worth of stock at a weighted average price of $7.88, roughly 12% below the current share price, as part of its buyback program [15] - Crescent Energy paid down approximately $200 million of debt this quarter, increasing liquidity to $1 billion [15] Q&A Session Summary Question: Efficiency gains on D and C per foot - Management attributed the efficiency gains to the execution of best practices, particularly the implementation of simul frac in completion operations [21] Question: Capital allocation decisions in Uinta - Management indicated excitement about the resource potential in Uinta and plans to allocate capital prudently based on proven economic inventory [24] Question: Justification for adding to the minerals portfolio - Management emphasized that the acquisition aligns with their strategy and is expected to be highly cash flow accretive [29] Question: Balance sheet and capital allocation - Management confirmed that 80% of free cash flow is directed towards debt repayment, with the remaining 20% allocated to dividends and buybacks [33] Question: Dislocation in the A and D market - Management noted that many asset sale processes were pulled due to volatility, indicating a functioning market with opportunities for strategic transactions [38] Question: Comparison of returns between Uinta and Eagle Ford - Management stated that both areas have similar capital allocation potential, but Uinta has more stacked resources that require careful evaluation before further development [70]

Financial Data and Key Metrics Changes - Assets under management decreased by 1% to $373.2 billion, partially offset by $2 billion of positive net flows and favorable currency adjustments [6][9] - Adjusted diluted EPS increased by 11% to $0.79 compared to Q1 2024 [9][27] - Adjusted revenue decreased by 14% compared to the prior quarter but increased by 14% year-over-year due to higher management fees [22][27] Business Line Data and Key Metrics Changes - Net inflows for the quarter were $2 billion, a significant improvement from net outflows of $3 billion a year ago, driven by a 44% increase in gross sales [13][19] - Fixed income net inflows were $5.6 billion, compared to $5.2 billion in the prior quarter, with active fixed income ETFs leading the positive flows [19][20] - Equity flows were negative $4.2 billion, reflecting a challenging environment for active equities [19] Market Data and Key Metrics Changes - The U.S. intermediary channel experienced positive net flows for the seventh consecutive quarter, with contributions from various strategies including active ETFs and U.S. mid-cap growth [15][16] - Asia Pacific intermediary net flows were positive for the third consecutive quarter, marking the best result in over three years [17] - Institutional net inflows were $800 million, including $600 million of ETF net inflows [17] Company Strategy and Development Direction - The company announced a multifaceted strategic partnership with Guardian Life Insurance Company, managing a $45 billion investment-grade public fixed income portfolio [4][41] - The strategic vision focuses on protecting and growing core businesses, amplifying strengths, and diversifying where clients provide opportunities [31][32] - The company aims to leverage M&A as a means to amplify and diversify its business, with a focus on high-growth areas [33][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged tumultuous market conditions but expressed confidence in navigating uncertainty due to a global footprint and diverse client base [5][6] - The long-term investment performance remains solid, with over 65% of assets beating benchmarks over three, five, and ten-year periods [8][12] - Management emphasized the importance of active management in capitalizing on market dislocations and opportunities [8][46] Other Important Information - The company announced a 3% increase in the quarterly dividend and a new share buyback authorization of up to $200 million through April 2026 [9][29] - Adjusted operating expenses decreased by 9% to $330 million compared to the prior quarter, reflecting cost discipline [23][25] - The company expects to maintain a tax rate on adjusted net income in the range of 23% to 25% [27] Q&A Session Summary Question: Thoughts on CLO ETF capacity and liquidity - Management noted that they hold about 80% market share in the CLO ETF category and have seen stable flows despite market volatility [52][54] Question: Next steps for institutional channel performance - Management highlighted a significant increase in RFP activity and consultant support, indicating a positive outlook for institutional flows [58][60] Question: Opportunities with the Guardian partnership - Management expressed optimism about enhancing Guardian's investment capabilities and leveraging their distribution platform for growth [66][70] Question: M&A interest and market conditions - Management indicated a very active M&A environment and a disciplined approach to potential acquisitions, with a narrowing bid-ask spread [72][74] Question: Organic growth expectations for the Guardian AUM - Management expects continued growth in the $45 billion AUM from Guardian, aligning with their growth trajectory [78][80] Question: Active management opportunities in 2025 - Management sees significant opportunities for active management amidst market dislocation, emphasizing their global reach and investment expertise [86][90] Question: Regional demand differences in intermediary and institutional channels - Management noted stability in the institutional channel and ongoing strength in Asia and Latin America, despite some concerns in EMEA and the U.S. [95][96]