Crescent Energy Company Class A (CRGY) AI Stock Analysis

• Market Cap: $2.14B
• Dividend Yield: 5.8%
• Average Volume (3M): 4.32M
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.43
• Revenue Growth: 23.01%
• EPS Growth: -153.02%
• Country: US
• Employees: 987
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.69
• Shares Outstanding: 192,525,270
• 10 Day Avg. Volume: 3,178,724
• 30 Day Avg. Volume: 4,316,970
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.10
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $16.25
• Price Target Upside: 96.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Crescent Energy's overall stock score reflects a mixed financial performance, with a strong balance sheet offset by volatile income and cash flow challenges. Technical analysis indicates bearish market sentiment, while valuation is supported by a high dividend yield but undermined by negative earnings. The optimistic earnings call outlook and strategic acquisitions provide a positive future growth trajectory, contributing to a moderate overall score.

Positive Factors

Operational Efficiency

CRGY's 4Q24 results exceeded expectations, highlighting a strong track record in executing its model and capturing synergies from acquired assets.

Share Buybacks

CRGY is expected to be active in repurchasing shares, with $40MM in share buybacks executed to date.

Valuation

The company is trading at a discount compared to its peers, with an attractive valuation based on EV/EBITDA ratios.

Negative Factors

Oil Production Guidance

The guidance for oil volumes in 2025 is below consensus, which could raise questions about future production levels.

Oil Volume Decline

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.

Operational Costs

Q1 per unit adj. operating expenses are expected to increase sequentially by ~12%.

Crescent Energy Company Class A Business Overview & Revenue Model

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.

How the Company Makes Money

Crescent 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 shows a mixed financial picture. The balance sheet is strong with minimal current debt, but the income statement and cash flow metrics indicate volatility and profitability challenges. Efforts are needed to stabilize revenue and improve cash flow management.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 8.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 8.28 is above the 20-day moving average (MA) of 8.20, below the 50-day MA of 10.28, and below the 200-day MA of 12.27, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 42.73 is Neutral, neither overbought nor oversold. The STOCH value of 56.82 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOG	75 Outperform	$2.23B	4.38	29.41%	6.95%	24.27%	5.01%
SM	74 Outperform	$2.48B	3.25	19.62%	3.33%	13.33%	-2.72%
CIVI	72 Outperform	$2.49B	3.16	13.09%	7.34%	49.65%	-5.53%
MNR	67 Neutral	$1.55B	6.93	15.49%	20.48%	―	―
KRP	60 Neutral	$1.46B	45.09	1.48%	14.33%	13.72%	-110.82%
Sector *	56 Neutral	$6.92B	3.31	-4.49%	6.03%	-0.35%	-47.83%
CRGY	54 Neutral	$2.14B	23.27	-4.74%	5.80%	23.01%	-153.02%

Crescent Energy Company Class A Corporate Events

Crescent Energy Completes Merger with SilverBow Resources

Crescent Energy Company, a Delaware corporation, announced the completion of its merger with SilverBow Resources, Inc. on July 30, 2024. The merger involved a complex exchange of shares and cash, with Crescent issuing $750 million in senior notes and borrowing $724 million under its revolving credit facility. This strategic acquisition is expected to enhance Crescent’s market position by integrating SilverBow’s operations, although the final valuation of SilverBow’s assets and liabilities is still pending. The unaudited pro forma statement of operations has been prepared to reflect the merger’s impact, but future financial results may differ as additional information and analyses are conducted.

Crescent Energy Sees Strong Growth Amid Strategic Moves

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.