Group 1 - Autodesk's stock has underperformed in recent years primarily due to multiple expansion from 2016 to 2021, although current growth is supported by a shift to direct billings [1] - Narweena, an asset management firm, focuses on identifying market dislocations caused by misunderstandings of long-term business prospects, aiming for excess risk-adjusted returns through secular growth opportunities in markets with entry barriers [1] - The research process at Narweena emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon targeting deeply undervalued stocks [1] Group 2 - The aging population, low population growth, and stagnating productivity growth are expected to create new investment opportunities distinct from past trends, with some industries facing stagnation or secular decline potentially improving business performance due to reduced competition [1] - Conversely, other businesses may encounter rising costs and diseconomies of scale, while economies increasingly favor asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A significant amount of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia over time [1]

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]