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Crescent Energy Company Class A (CRGY)
NYSE:CRGY
RESEARCH TOOLSreports
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Crescent Energy Company Class A
(NYSE:CRGY)
54Neutral
Positive Factors
Financial Performance
CRGY's 4Q24 results exceeded expectations, highlighting a strong track record in executing its model and capturing synergies from acquired assets.
Strategic Allocation
CRGY's strategic move to allocate more capital to its dry gas Eagle Ford assets aligns with a bullish view on natural gas prices, potentially benefiting the company.
Valuation
CRGY trades at an EV/EBITDA discount with an above average FCF yield and material NAV upside, supported by a strong inventory runway.
Negative Factors
Guidance
The guidance for oil volumes in 2025 is below consensus, which could raise questions about future production levels.
Leverage
CRGY's leverage remains relatively high compared to peers, which could be a potential headwind in a volatile oil price environment.
Production Concerns
The shift in focus towards gassier assets is expected to result in declining oil volumes into 2026, which could be a concern for some stakeholders.
Crescent Energy Company Class A (CRGY) vs. S&P 500 (SPY)
Market Cap
$2.96B
Dividend Yield4.18%
Average Volume (3M)4.04M
Price to Earnings (P/E)23.3
Beta (1Y)1.21
Revenue Growth23.01%
EPS Growth-153.02%
CountryUS
Employees904
SectorEnergy
Sector Strength87
IndustryFossil Fuels
Share Statistics
EPS (TTM)-0.69
Shares Outstanding192,525,270
10 Day Avg. Volume5,053,269
30 Day Avg. Volume4,043,781
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.01
Price to Cash Flow (P/CF)1.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.00Price Target Upside56.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Crescent Energy Company Class A Business Overview & Revenue Model
Company DescriptionCrescent Energy Company Class A (CRGY) is an independent energy company primarily engaged in the exploration, development, and production of oil and natural gas. The company operates within the energy sector, focusing on acquiring and managing a diverse portfolio of oil and gas assets in key resource basins across the United States. Crescent Energy aims to deliver shareholder value through a balanced approach to growth and capital discipline, leveraging its technical expertise and operational efficiencies.
How the Company Makes MoneyCrescent Energy Company generates revenue primarily through the sale of oil, natural gas, and natural gas liquids (NGLs) produced from its exploration and production activities. The company operates across various prolific resource basins, optimizing its asset portfolio to enhance production output and maximize returns. Key revenue streams include the direct sale of hydrocarbons to refineries, utilities, and other customers, as well as potential hedging activities that help stabilize income against market fluctuations. Strategic partnerships and joint ventures may also contribute to Crescent Energy's earnings by enabling shared resources and expertise, further enhancing operational efficiency and cost management.
Crescent Energy Company Class A Financial Statement Overview
Summary
Crescent Energy's financial performance shows a mixed picture. The income statement highlights volatility in profitability and inconsistent revenue streams. While the balance sheet is strong with a high equity base and no current debt, the cash flow is inconsistent, posing liquidity risks.Income Statement
Crescent Energy's income statement shows volatility in profitability. The gross profit margin is strong, indicating cost efficiency, but net profit margins have been inconsistent, with a recent negative net income. Revenue growth has seen ups and downs, with a decline in the most recent year. This reflects challenges in maintaining consistent revenue streams and profitability.42
Neutral
Balance Sheet
The company exhibits a strong equity base with a high equity ratio, suggesting stability. No current debt is a positive sign of financial health, and the return on equity has shown improvement. However, past leverage was significant, indicating a risk of financial strain if not managed carefully.67
Positive
Cash Flow
Cash flow analysis reveals challenges in maintaining positive free cash flow, with recent periods showing negative figures. The operating cash flow to net income ratio reflects inefficiencies in cash generation relative to net income. While there were instances of high operating cash flow, the inconsistency poses a risk to liquidity.38
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.93B | 2.38B | 3.06B | 1.48B | 754.22M | Gross Profit |
| 2.40B | 1.30B | 2.62B | 1.23B | 552.04M | EBIT |
| 218.46M | 324.74M | 1.28B | 483.74M | -126.07M | EBITDA |
| 996.99M | 1.17B | 1.15B | -69.01M | 194.30M | Net Income Common Stockholders |
| -114.61M | 67.61M | 480.60M | -432.23M | -216.12M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 132.82M | 2.97M | -10.75M | 128.58M | 36.86M | Total Assets |
| 9.33B | 6.80B | 6.02B | 5.16B | 3.91B | Total Debt |
| 3.13B | 1.76B | 1.26B | 1.09B | 774.79M | Net Debt |
| 3.00B | 1.76B | 1.27B | 962.17M | 737.93M | Total Liabilities |
| 4.79B | 3.17B | 2.72B | 2.14B | 1.01B | Stockholders Equity |
| 3.14B | 1.70B | 848.11M | 682.21M | 2.72B |
| Cash Flow | Free Cash Flow | |||
| -21.20M | -494.83M | -206.96M | -37.54M | 284.86M | Operating Cash Flow |
| -35.75M | 935.77M | 1.01B | 233.15M | 411.03M | Investing Cash Flow |
| -1.20B | -1.40B | -1.12B | -244.59M | -124.94M | Financing Cash Flow |
| 207.39M | 456.46M | -7.84M | 105.14M | -272.09M |
Crescent Energy Company Class A Technical Analysis
Negative
11.47
Price Trends
13.45
Negative
13.79
Negative
12.63
Negative
Market Momentum
-0.50
Negative
39.05
Neutral
61.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRGY, the sentiment is Negative. The current price of 11.47 is above the 20-day moving average (MA) of 11.15, below the 50-day MA of 13.45, and below the 200-day MA of 12.63, indicating a neutral trend. The MACD of -0.50 indicates Negative momentum. The RSI at 39.05 is Neutral, neither overbought nor oversold. The STOCH value of 61.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRGY.
Crescent Energy Company Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $71.56B | 11.32 | 22.29% | 2.87% | 0.88% | -13.66% | |
76 Outperform | $11.28B | 10.45 | 10.87% | 2.73% | -15.82% | -46.85% | |
74 Outperform | $24.32B | 8.11 | 21.77% | 3.87% | 3.00% | -21.63% | |
68 Neutral | $7.61B | 9.17 | 20.26% | 4.74% | 17.61% | -75.78% | |
64 Neutral | $47.20B | 10.40 | 12.20% | 5.08% | 31.55% | -9.00% | |
58 Neutral | $9.25B | 5.52 | -6.24% | 7.43% | -0.10% | -69.94% | |
54 Neutral | $2.96B | 23.27 | -4.74% | 4.18% | 23.01% | -153.02% |
* Energy Sector Average
Performance Comparison
CRGY
Crescent Energy Company Class A
11.27
-0.15
-1.31%
APA
APA
21.20
-11.96
-36.07%
DVN
Devon Energy
36.88
-11.70
-24.08%
OVV
Ovintiv
43.32
-7.08
-14.05%
EOG
EOG Resources
126.73
2.41
1.94%
FANG
Diamondback
160.23
-31.35
-16.36%
Crescent Energy Company Class A Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -13.89% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlights a year of significant growth and financial success for Crescent Energy Company, with strong free cash flow and successful acquisitions. The company is well-positioned for continued success in 2025, though challenges remain in fully understanding the resource potential of the Uinta Basin. Overall, the sentiment is positive, with more highlights than lowlights.Highlights
Transformational Year with Record Free Cash Flow
Crescent Energy Company reported approximately $260 million of free cash flow for Q4, exceeding Wall Street expectations, and $259 million in levered free cash flow for the quarter, closing out a transformational year.
Successful Acquisitions and Synergy Capture
The company's acquisition strategy resulted in significant growth, with accretive acquisitions more than doubling the Eagle Ford position. The Silverbell acquisition exceeded expectations with realized annual synergies in excess of $100 million.
Strong Operating Performance and Guidance for 2025
Production guidance for 2025 was set at 254,000 to 264,000 barrels of oil equivalent per day, with an expected capital expenditure of $925 million to $1.025 billion. The company plans to run four to five rigs, focusing on maximizing free cash flow.
Improved Financial Position and Dividend Announcement
Crescent Energy exited the year with a net leverage of 1.4 times and liquidity of $1.4 billion. A dividend of $0.12 per share was announced, with a total annualized yield of 4% from dividends and repurchases.
Lowlights
Challenges in Delineating Uinta Basin
While the Uinta Basin shows promise, the delineation process is early and resource potential is still being understood, requiring cautious capital allocation and long-term focus.
Limited U-turn Well Impact in 2025
Although U-turn wells provide cost savings, they are expected to be a small part of the overall development strategy in 2025, indicating limited immediate impact on operations.
Company Guidance
During the Crescent Energy Company's Q4 fiscal year 2024 earnings call, the company provided an optimistic outlook for 2025, emphasizing its strong financial performance and strategic execution. Crescent Energy reported generating approximately $260 million in free cash flow for the fourth quarter, surpassing Wall Street expectations. The company's 2024 achievements included a significant expansion in the Eagle Ford basin, doubling its position through accretive acquisitions like Silverbell, with realized annual synergies exceeding $100 million. Crescent Energy plans to run four to five rigs in 2025, focusing on both oil and gas development, with an expected production range of 254,000 to 264,000 barrels of oil equivalent per day and capital expenditures between $925 million and $1.025 billion. The company highlighted its goal of maximizing free cash flow and maintaining a strong balance sheet, with net leverage reported at 1.4 times. Crescent Energy also announced a dividend of $0.12 per share, contributing to a 4% annualized yield, and noted its inclusion in the S&P 600 index, reflecting increased market presence.Crescent Energy Company Class A Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Crescent Energy Sees Strong Growth Amid Strategic Moves
Positive
Feb 26, 2025
Crescent Energy reported strong financial and operational results for 2024, highlighted by a 30% increase in annual production and significant acquisitions in the Eagle Ford region. The company achieved record production levels, improved operational efficiencies, and executed over $3 billion in mergers and acquisitions, positioning itself for continued success in 2025. Despite a net loss, Crescent generated substantial cash flow, repaid significant debt, and maintained a robust liquidity position. The company’s 2025 outlook forecasts continued production growth and strategic capital allocation to maximize returns.
M&A TransactionsBusiness Operations and Strategy
Crescent Energy Finalizes Major Acquisition of Assets
Positive
Jan 31, 2025
On January 31, 2025, Crescent Energy Company announced the successful completion of its acquisition of Central Eagle Ford assets from Ridgemar Energy for $905 million, which includes cash and shares, along with contingent future considerations. This strategic acquisition aims to enhance Crescent’s oil-weighted production and extend its low-risk inventory, thereby strengthening the company’s financial profile and reinforcing its capacity to maintain sustained cash flow and returns, aligning with its strategy for profitable growth and investment-grade ambitions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.