tiprankstipranks
Trending News
More News >
Crescent Energy Company Class A (CRGY)
NYSE:CRGY
US Market
Advertisement

Crescent Energy Company Class A (CRGY) AI Stock Analysis

Compare
512 Followers

Top Page

CRGY

Crescent Energy Company Class A

(NYSE:CRGY)

Rating:71Outperform
Price Target:
$10.50
▲(19.86% Upside)
Crescent Energy's strong earnings call and strategic corporate events are significant positives, driving the overall score. However, challenges in profitability and bearish technical indicators moderate the score. The company's robust cash flow and strategic initiatives provide a solid foundation for future growth.
Positive Factors
Asset Management
There is upside from asset sales, as CRGY raised its non-core asset sale target to $1.0 billion, of which $110.0 million has been executed to date.
Financial Performance
CRGY reported strong results, beating expectations on all fronts.
Mergers and Acquisitions
Crescent announced the acquisition of struggling public E&P Vital Energy for a 20% premium, adding approximately 267,000 acres and 138 MBoepd (45% oil), granting Crescent a solid Permian foothold.
Negative Factors
Production Decline
The total/oil production profile will decline throughout 2026, a negative trend in investor eyes.
Production Forecast
There is an expected sharper oil production drop, which may be a headwind for some investors.
Stock Valuation
While building scale is critical, this is likely to remain an overhang on the share price, which is reflected in the target multiple.

Crescent Energy Company Class A (CRGY) vs. SPDR S&P 500 ETF (SPY)

Crescent Energy Company Class A Business Overview & Revenue Model

Company DescriptionCrescent 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 MoneyCrescent Energy makes money by exploring, developing, and producing oil and natural gas, which it then sells to various markets. The company's revenue primarily comes from the sale of crude oil, natural gas, and natural gas liquids (NGLs). Crescent Energy's key revenue streams include upstream activities like drilling and production, where they extract hydrocarbons from their reserves, and selling these resources in the open market. The company may also engage in hedging activities to manage commodity price risks, thereby ensuring more predictable cash flows. Significant partnerships with other energy firms or technology providers can enhance operational efficiency and reduce costs, contributing to Crescent Energy's profitability.

Crescent Energy Company Class A Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
Crescent Energy's earnings call highlighted strong operational performance and financial results, with record production and substantial free cash flow. The company successfully managed assets and implemented cost efficiencies, contributing to an enhanced outlook for the year. However, market volatility posed challenges, particularly in the A&D market, and the company struggles to see the full value of its minerals portfolio reflected in its share price. Overall, the company's strong performance and strategic initiatives outweigh the noted challenges.
Q2-2025 Updates
Positive Updates
Record Production and Free Cash Flow
Crescent Energy achieved record production of 263,000 barrels of oil equivalent per day, with 108,000 barrels of oil per day, generating approximately $171 million of free cash flow, exceeding Wall Street expectations.
Operational Excellence and Cost Efficiency
The company improved well costs by approximately 15% in both the Eagle Ford and Uinta Basins since last year, driving capital efficiency gains and cost savings across its asset base.
Successful Asset Management
Crescent Energy acquired attractive minerals assets expected to generate returns in excess of a 2x MOIC target and contribute roughly $100 million of annual cash flow. Additionally, they divested non-core assets totaling roughly $110 million year-to-date.
Strong Financial Position and Shareholder Returns
The company repurchased approximately $28 million worth of stock and announced a dividend of $0.12 per share, equating to a 7% annualized yield. They also paid down approximately $200 million of debt, increasing liquidity to $1.750 billion.
Negative Updates
Market Volatility Impact
Despite strong performance, Crescent Energy noted dislocation in the A&D market with 75% or more of asset sale processes in the Eagle Ford being pulled due to market volatility.
Challenges in Recognizing Minerals Portfolio Value
The company acknowledged that the value of its growing minerals portfolio, now anticipated to generate $100 million in EBITDA, is not fully reflected in its current share price.
Company Guidance
During the Crescent Energy Q2 2025 Results Call, the company provided an optimistic outlook for the year, highlighting several key metrics that exceeded expectations. Crescent reported record production levels of 263,000 barrels of oil equivalent per day, including 108,000 barrels of oil per day, and generated approximately $171 million in free cash flow for the quarter. The company achieved this by improving well costs by about 15% in both the Eagle Ford and Uinta Basins, which contributed to increased capital efficiency and operational savings. Crescent also reported $514 million in adjusted EBITDA and $265 million in capital expenditures. The company continues to leverage its flexible business model to capitalize on market dislocations, engaging in strategic acquisitions and divestitures that align with its goals of maximizing free cash flow and enhancing shareholder value. Crescent's proactive risk management has strengthened its balance sheet through debt repayment and maturity extensions, maintaining a strong liquidity position of $1.750 billion. The company also announced a $0.12 per share dividend, contributing to a 7% annualized yield, and repurchased $28 million worth of its stock.

Crescent Energy Company Class A Financial Statement Overview

Summary
Crescent Energy shows positive revenue growth and strong cash flow generation, but faces challenges with low net profit margins and negative EBIT margins. The balance sheet reflects improved leverage management, indicating a stable financial position.
Income Statement
65
Positive
Crescent Energy shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data reveals a modest revenue growth rate of 7.59%, indicating a positive trajectory. However, the gross profit margin has decreased significantly from 81.96% in 2024 to 48.15% in TTM, suggesting increased cost pressures. The net profit margin improved to 1.05% in TTM from a negative margin in 2024, but remains low, reflecting challenges in profitability. The EBIT margin turned negative in TTM, highlighting operational inefficiencies, while the EBITDA margin decreased to 29.69% from 34.02% in 2024.
Balance Sheet
70
Positive
The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.75 in TTM, showing a reduction from 0.99 in 2024, which suggests improved leverage management. The return on equity (ROE) improved to 1.06% in TTM from a negative ROE in 2024, indicating better utilization of equity. However, the equity ratio remains moderate, reflecting a balanced asset structure.
Cash Flow
75
Positive
Crescent Energy's cash flow statement shows strong performance with a significant free cash flow growth rate of 23.31% in TTM, indicating improved cash generation. The operating cash flow to net income ratio of 1.87 in TTM suggests robust cash flow relative to net income. The free cash flow to net income ratio improved to 0.41, reflecting better cash flow management. Overall, the company demonstrates strong cash flow generation capabilities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.47B2.93B2.38B3.06B1.48B754.22M
Gross Profit2.41B2.40B1.30B2.62B1.23B552.04M
EBITDA1.27B996.99M1.17B1.15B-69.01M194.30M
Net Income36.37M-114.61M67.61M480.60M-432.23M-216.12M
Balance Sheet
Total Assets9.86B9.16B6.80B6.02B5.16B3.91B
Cash, Cash Equivalents and Short-Term Investments3.05M132.82M2.97M-10.75M128.58M36.86M
Total Debt3.48B3.13B1.76B1.26B1.09B774.79M
Total Liabilities5.36B4.79B3.17B2.72B2.14B1.01B
Stockholders Equity4.49B3.14B1.70B848.11M682.21M2.72B
Cash Flow
Free Cash Flow355.73M-21.20M-494.83M-206.96M-37.54M284.86M
Operating Cash Flow1.59B1.22B935.77M1.01B233.15M411.03M
Investing Cash Flow-2.18B-1.20B-1.40B-1.12B-244.59M-124.94M
Financing Cash Flow-173.69M207.39M456.46M-7.84M105.14M-272.09M

Crescent Energy Company Class A Technical Analysis

Technical Analysis Sentiment
Negative
Last Price8.76
Price Trends
50DMA
9.07
Negative
100DMA
8.83
Negative
200DMA
10.93
Negative
Market Momentum
MACD
0.06
Positive
RSI
42.75
Neutral
STOCH
32.65
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 8.76 is below the 20-day moving average (MA) of 9.35, below the 50-day MA of 9.07, and below the 200-day MA of 10.93, indicating a bearish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 42.75 is Neutral, neither overbought nor oversold. The STOCH value of 32.65 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$1.67B7.3016.84%16.17%11.56%
73
Outperform
$3.29B4.4911.31%8.78%0.24%-9.19%
72
Outperform
$3.24B3.9919.27%2.97%28.20%1.63%
71
Outperform
$2.35B23.270.70%5.48%32.84%-755.17%
71
Outperform
$2.54B4.2327.17%7.00%2.98%7.94%
68
Neutral
$1.68B45.094.52%12.38%-2.89%-107.61%
65
Neutral
$15.28B7.483.19%5.33%4.10%-60.58%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRGY
Crescent Energy Company Class A
8.76
-1.14
-11.52%
CIVI
Civitas Resources
34.39
-15.68
-31.32%
NOG
Northern Oil And Gas
24.84
-7.80
-23.90%
SM
SM Energy
26.92
-11.62
-30.15%
KRP
Kimbell Royalty Partners
13.41
-0.05
-0.37%
MNR
Mach Natural Resources LP
14.04
-0.12
-0.85%

Crescent Energy Company Class A Corporate Events

M&A Transactions
Crescent Energy Announces Merger with Vital Energy
Neutral
Aug 25, 2025

On August 24, 2025, Crescent Energy Company announced a merger agreement with Vital Energy, Inc., involving an all-equity transaction. The merger will result in Crescent’s shareholders owning approximately 77% of the combined entity, while Vital’s shareholders will own about 23%. The merger aims to enhance Crescent’s market position and operational capabilities, with the board of directors expanding to include two directors from Vital. The completion of the merger is subject to customary conditions, including shareholder approvals and regulatory clearances.

M&A TransactionsBusiness Operations and Strategy
Crescent Energy Announces Merger with Vital Energy
Positive
Aug 25, 2025

On August 25, 2025, Crescent Energy Company announced an all-equity merger agreement to acquire Vital Energy, Inc., valued at approximately $3.1 billion, including Vital’s net debt. This merger is set to establish Crescent as a top 10 independent energy company with a strategy focused on free cash flow and returns. The transaction, which offers significant value and accretion across key financial metrics, is expected to close by the end of 2025, subject to customary approvals. The merger will result in Crescent shareholders owning 77% of the combined company, while Vital shareholders will hold 23%. The combined entity will benefit from enhanced capital allocation flexibility and operational efficiencies, with a focus on long-term growth and value creation.

M&A TransactionsStock BuybackBusiness Operations and StrategyFinancial Disclosures
Crescent Energy Reports Strong Q2 2025 Results
Positive
Aug 4, 2025

Crescent Energy Company reported strong financial and operational results for the second quarter of 2025, with record production and significant free cash flow. The company enhanced its 2025 guidance and executed strategic acquisitions and divestitures, including a $72 million minerals acquisition and $110 million in non-core asset sales, to optimize its portfolio and reduce debt. Crescent also simplified its corporate structure and continued its share repurchase program, reflecting its commitment to delivering value to investors.

Private Placements and Financing
Crescent Energy Issues $600M Senior Notes Due 2034
Neutral
Jul 11, 2025

On July 8, 2025, Crescent Energy Finance LLC, a subsidiary of Crescent Energy Company, issued $600 million in 8.375% Senior Notes due 2034. These notes are senior unsecured obligations guaranteed by the issuer’s existing subsidiaries but not by Crescent Energy Company itself. Additionally, Crescent Energy announced the early results of its tender offer to purchase up to $500 million of its 9.250% Senior Notes due 2028, with $306.125 million of these notes validly tendered by July 7, 2025. The tender offer is set to expire on July 22, 2025, unless extended or terminated.

Private Placements and FinancingBusiness Operations and Strategy
Crescent Energy Announces Pricing of $600M Senior Notes
Positive
Jun 24, 2025

On June 23, 2025, Crescent Energy Finance LLC, an indirect subsidiary of Crescent Energy Company, announced the pricing of $600 million in 8.375% Senior Notes due 2034. The proceeds from this offering, along with additional borrowings and cash on hand, are intended to fund a tender offer for a portion of the company’s outstanding 9.250% Senior Notes due 2028 and other corporate purposes. This strategic financial move is expected to enhance Crescent Energy’s capital structure and provide flexibility in managing its debt obligations.

Private Placements and Financing
Crescent Energy Announces $500M Senior Notes Offering
Neutral
Jun 23, 2025

On June 23, 2025, Crescent Energy Finance LLC announced its intention to offer $500 million in Senior Notes due 2034 through a private placement, subject to market conditions. The proceeds from this offering are intended to fund a cash tender offer to purchase up to $500 million of its outstanding 9.250% Senior Notes due 2028. This financial maneuver aims to optimize the company’s debt structure and potentially improve its financial flexibility, impacting its stakeholders by possibly enhancing its market positioning and operational efficiency.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 05, 2025