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1. Company Snapshot

1.a. Company Description

Crescent Energy Company, an energy company, explores for, develops, and produces crude oil, natural gas, and natural gas liquids (NGLs) reserves.The company holds a portfolio of oil and natural gas assets in key proven basins, including the Eagle Ford, Rockies, Barnett, Permian, Mid-Con, and other basins in the United States.As of December 31, 2021, it had 1,528 gross undrilled locations, including 567 gross operated drilling locations; and 531.6 net million barrels of oil equivalent of proved reserves.


The company was founded in 2020 and is based in Houston, Texas.

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1.b. Last Insights on CRGY

Here is a 90-word analysis of the negative drivers behind Crescent Energy Company's recent stock performance: Crescent Energy's recent struggles can be attributed to high selling pressure, leading to an oversold stock condition. Despite a strong Q4 earnings beat, with EPS of $0.56 vs. estimates of $0.26, the stock has failed to gain traction. The company's inability to capitalize on market gains and its flat trading sessions suggest investor skepticism. Furthermore, the lack of momentum in its stock price, even after a positive earnings surprise, implies that investors are waiting for more convincing signs of a turnaround before buying in.

1.c. Company Highlights

2. Crescent's Q3 2025 Earnings: Strong Performance and Strategic Moves

Crescent's financial performance in Q3 2025 was robust, with the company reporting levered free cash flow of approximately $204 million, adjusted EBITDA of $487 million, and capital expenditures of $205 million. Earnings per share (EPS) came in at $0.35, beating estimates of $0.3. The company's revenue growth is expected to continue, with analysts estimating a 34.4% increase in revenues for the next year. The company's financial health is reflected in its valuation metrics, with a P/E Ratio of 64.7, P/B Ratio of 0.52, and EV/EBITDA of 4.2, indicating a relatively reasonable valuation given its growth prospects.

Publication Date: Nov -25

📋 Highlights
  • Transformative Acquisition of Vital Energy: Positions Crescent as Top 10 U.S. Independent Oil & Gas Producer
  • $800 Million Noncore Divestitures: Year-to-Date, Including $700M Signed in Q3 2025, to Streamline Portfolio and Strengthen Balance Sheet
  • 253,000 BOE/Day Production: with $204M Levered Free Cash Flow in Q3 2025, Exceeding Full-Year Outlook
  • $150 Million Debt Repayment: in Q3 2025, Plus 50% Borrowing Base Increase to $3.9 Billion, Enhancing Financial Flexibility
  • 2026 Capital Allocation: Plans: 6 Rigs, 50% Reinvestment Rate, and $11.50/BOE Adjusted Cash OpEx Target

Operational Highlights

The company produced 253,000 barrels of oil equivalent per day, including 103,000 barrels of oil per day, and continued to demonstrate its ability to increase well productivity while reducing capital expenditures. As David Rockecharlie mentioned, "We're continuing to execute on more efficient operations, in particular, drilling and completion than prior operators of assets we've acquired," highlighting the company's operational expertise.

Strategic Acquisition and Divestitures

Crescent announced its transformative acquisition of Vital Energy, marking its entry into the Permian Basin and establishing it as a top 10 U.S. independent oil and gas producer. The company also announced over $700 million of noncore divestitures, bringing its noncore divestiture program to more than $800 million year-to-date. These strategic moves are expected to enhance the company's margins and reserve life.

Outlook and Capital Allocation

The company's outlook for 2026 is positive, with plans to continue its lower capital intensity and reinvestment rate of roughly 50%. Crescent is expected to generate significant free cash flow, which will be used to delever and improve its balance sheet. The company's commodity prices have generated strong returns, making 2026's allocation and commodity perspective similar to 2025's. With a Free Cash Flow Yield of 55.93%, the company is well-positioned to return value to its investors.

Valuation and Return Metrics

Crescent's valuation metrics, including a P/S Ratio of 0.65 and Dividend Yield of 5.24%, indicate a relatively attractive valuation. However, the company's ROIC of -79.49% and ROE of 0.94% suggest that there is room for improvement in terms of returns on invested capital and equity. The Net Debt / EBITDA ratio of 2.43 indicates a manageable debt burden.

3. NewsRoom

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Crescent Energy Provides Update on Successful Non-Core Divestiture Program with Over $900 Million Signed Year to Date

Dec -03

Source: businesswire.com

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Crescent Energy Announces Exchange Offers and Consent Solicitations for Vital Energy, Inc.'s 7.75% Senior Notes due 2029 and 9.750% Senior Notes due 2030

Dec -01

Source: businesswire.com

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Meet 33 Ideal "Safer" November Small/MidCap Value DiviBuys Of The S&P600

Nov -26

Source: seekingalpha.com

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Campbell & CO Investment Adviser LLC Invests $260,000 in Crescent Energy Company $CRGY

Nov -18

Source: defenseworld.net

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Crescent Energy: Watch The Free Cash Flow

Nov -05

Source: seekingalpha.com

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Crescent Energy Company (CRGY) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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Crescent Energy Reports Third Quarter 2025 Results

Nov -03

Source: businesswire.com

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Focus Partners Advisor Solutions LLC Takes $97,000 Position in Crescent Energy Company $CRGY

Nov -02

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.90%)

6. Segments

Oil

Expected Growth: 5%

Crescent Energy Company's 5% growth in oil production is driven by increased drilling activities in the Permian Basin, improved operational efficiency, and strategic acquisitions. Additionally, rising global demand, OPEC's production cuts, and favorable crude oil prices contribute to the growth. Furthermore, the company's focus on cost reduction and capital discipline enables it to maintain a competitive edge in the market.

Natural Gas

Expected Growth: 4%

Crescent Energy Company's 4% growth in Natural Gas is driven by increasing demand from power generation and industrial sectors, coupled with rising LNG exports. Additionally, improved drilling efficiencies, cost reductions, and strategic acquisitions have enhanced the company's production capabilities, further supporting growth.

Natural Gas Liquids

Expected Growth: 5%

Crescent Energy Company's 5% growth in Natural Gas Liquids is driven by increasing demand for petrochemical feedstocks, growing exports to Asia, and strategic acquisitions in the Permian Basin. Additionally, improving operational efficiencies, enhanced well productivity, and a favorable pricing environment also contribute to this growth.

Midstream and Other

Expected Growth: 7%

Crescent Energy's Midstream and Other segment growth is driven by increasing crude oil production, expansion of gathering and processing infrastructure, and strategic acquisitions. Additionally, the company's focus on cost optimization, operational efficiencies, and strong relationships with producers contribute to its 7% growth rate.

7. Detailed Products

Crude Oil

Crescent Energy Company's crude oil is a type of petroleum product used as a raw material for various industries such as energy, petrochemicals, and manufacturing.

Natural Gas

Crescent Energy Company's natural gas is a fossil fuel used as a clean-burning energy source for power generation, industrial processes, and residential heating.

Natural Gas Liquids (NGLs)

Crescent Energy Company's NGLs are a group of hydrocarbons extracted from natural gas, used as a feedstock for petrochemicals, fuels, and other products.

Refined Products

Crescent Energy Company's refined products include gasoline, diesel, jet fuel, and other petroleum products used as fuels and feedstocks.

Petrochemicals

Crescent Energy Company's petrochemicals are used as building blocks for the production of plastics, fibers, and other chemical products.

8. Crescent Energy Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Crescent Energy Company faces moderate threat from substitutes due to the availability of alternative energy sources such as solar and wind power.

Bargaining Power Of Customers

Crescent Energy Company has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Crescent Energy Company relies on a few major suppliers for its operations, giving them moderate bargaining power.

Threat Of New Entrants

The energy industry is highly regulated, and new entrants face significant barriers to entry, but Crescent Energy Company still faces a high threat from new entrants.

Intensity Of Rivalry

The energy industry is highly competitive, and Crescent Energy Company faces intense rivalry from established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.86%
Debt Cost 8.86%
Equity Weight 49.14%
Equity Cost 9.60%
WACC 9.22%
Leverage 103.50%

11. Quality Control: Crescent Energy Company passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Matador Resources

A-Score: 6.0/10

Value: 8.4

Growth: 8.8

Quality: 7.4

Yield: 4.0

Momentum: 3.0

Volatility: 4.7

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Permian Resources

A-Score: 6.0/10

Value: 6.6

Growth: 7.8

Quality: 6.6

Yield: 6.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

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SM Energy

A-Score: 5.3/10

Value: 9.4

Growth: 5.7

Quality: 6.8

Yield: 5.0

Momentum: 1.5

Volatility: 3.7

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Marathon Oil

A-Score: 5.3/10

Value: 5.8

Growth: 6.3

Quality: 6.6

Yield: 1.0

Momentum: 5.5

Volatility: 6.3

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Chesapeake Energy

A-Score: 4.9/10

Value: 5.1

Growth: 1.6

Quality: 6.1

Yield: 8.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Crescent Energy

A-Score: 4.7/10

Value: 6.9

Growth: 4.3

Quality: 4.2

Yield: 8.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.98$

Current Price

9.98$

Potential

-0.00%

Expected Cash-Flows