Let me now discuss our strong fourth quarter in more detail. We produced 268,000 barrels of oil equivalent per day for the quarter, including 106,000 barrels of oil per day, and generated approximately $239 million of levered free cash flow. In the fourth quarter, our activity was focused predominantly in the Eagle Ford gas and condensate windows to capitalize on strength in the natural gas curve. Early performance has been strong, and our ability to allocate capital across both oil- and gas-weighted invent ...

Crescent Energy (NYSE:CRGY) Q4 2025 Earnings call February 26, 2026 11:00 AM ET Company ParticipantsBrandi Kendall - CFOClay Rynd - EVP of InvestmentsDavid Rockecharlie - CEOJarrod Giroue - Senior Research AssociateJoey Hall - COOJohn Abbott - VP of E&P ResearchJonathan Mardini - Equity Research Senior AssociateLloyd Byrne - Managing Director of Equity ResearchMichael Furrow - VP on the Research TeamReid Gallagher - Investor RelationsConference Call ParticipantsBert Donnes - Financial AnalystCharles Meade - ...

Financial Data and Key Metrics Changes - The first quarter of 2025 marked a record production quarter for the company, with total production up 3% quarter over quarter, averaging over 42,000 BOE per day [5] - Adjusted EBITDA was $142 million, reflecting a 1% increase from the prior quarter, while net income rose 36% to $26 million [6] - The company declared a cash dividend of $0.35 per share and repurchased 1,100,000 shares for $22 million, representing a return of capital of $0.50 per share for the first quarter [6][7] Business Line Data and Key Metrics Changes - Net wells turned in line increased by 34% from Q4 2024, primarily driven by the Delaware Basin [5] - The company closed over $20 million in acquisitions, adding 1,350 net royalty acres [5] Market Data and Key Metrics Changes - The company updated its full-year 2025 estimated cash taxes guidance to $23 million, reflecting a decrease of $5 million from the original estimate due to lower anticipated commodity prices [8] Company Strategy and Development Direction - The company emphasizes the unique advantages of minerals and royalties as an asset class, highlighting their non-cost-bearing nature and high-margin investment opportunities [10][11] - The focus is on asset quality, operator quality, and asset/operator diversity to maximize returns [18] - The company is actively evaluating consolidation opportunities in a fragmented market, aiming to enhance its portfolio [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the quality of assets and their ability to compete for operator capital in various commodity price environments [20] - The company remains cautious about the current market dynamics but believes in the long-term value of its assets [60] Other Important Information - The company has maintained a disciplined approach to acquisitions, focusing on high-quality assets and operators [18] - The company has repurchased over 4% of its stock in the last fourteen months, with an additional $300 million authorized for share repurchases [21] Q&A Session Summary Question: Production trajectory outlook for the next two quarters - Management indicated confidence in production trajectory, supported by existing producing wells and wells that have been spud [26] Question: Comparison of share repurchase value versus M&A opportunities - Management highlighted a balance between share repurchases and M&A opportunities, noting the unique value proposition of their stock [27][29] Question: Insights on production guidance and operator strategies - Management acknowledged the strong first-quarter production but indicated that guidance may be revisited based on future data [40] Question: Context on inventory increase of 40 net locations - Management explained that the increase was due to successful well results in the Delaware and Midland Basins, reflecting ongoing operator activity [50] Question: Observations on operators' strategies for managing base decline - Management noted that operators are curtailing CapEx while maintaining production guidance, indicating a cautious approach to capital discipline [58]