Crescent Energy: Stable Near-Term Outlook and Vital Acquisition Synergies Support Durable Free Cash Flow and Buy Rating

William Blair analyst Neal Dingmann has maintained their bullish stance on CRGY stock, giving a Buy rating on January 30.

Neal Dingmann has given his Buy rating due to a combination of factors tied to Crescent Energy’s stable near‑term outlook and improving financial profile. He expects fourth quarter 2025 production and capital spending to land around the middle of management’s guidance and consensus, even as the company continues to reduce debt, supported by nearly $900 million in noncore asset sales for the year. Looking into 2026, he anticipates a meaningful step-up in both production and capital expenditures driven by the recently closed Vital Energy acquisition, yet with free cash flow projected to stay relatively steady despite lower year-over-year oil prices. The company’s operational plan remains deliberately flexible, allowing it to adjust between oil- and gas-focused activity depending on commodity price conditions.
Vital Energy integration is already exceeding expectations, in Dingmann’s view, with Crescent quickly streamlining operations, cutting rig count, and achieving faster, more efficient drilling on newly acquired assets—all of which highlight significant additional value to be unlocked. He sees Crescent’s proven integration track record and early successes at Vital as key drivers of future efficiencies and capital discipline. Moreover, Dingmann emphasizes the durability of free cash flow in 2026, underpinned by a robust hedge book that is poised to generate substantial gains in a lower price environment. With that cash flow, Crescent has several attractive options, including accelerating debt reduction, expanding share repurchases beyond the current authorization, and reallocating capital toward its highest-return assets, collectively supporting his positive view and Buy recommendation on the stock.

In another report released on January 30, TipRanks – PerPlexity also reiterated a Buy rating on the stock with a $10.50 price target.