Crescent Energy Company Class A (CRGY) AI Stock Analysis

• Market Cap: $2.74B
• Dividend Yield: 5.52%
• Average Volume (3M): 3.60M
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.37
• Revenue Growth: 31.58%
• EPS Growth: -114.70%
• Country: US
• Employees: 987
• Sector: Energy
• Sector Strength: 41
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.56
• Shares Outstanding: 255,246,490
• 10 Day Avg. Volume: 2,899,697
• 30 Day Avg. Volume: 3,596,098
• PEG Ratio: -0.89
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.88
• Price Target Upside: 61.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 54 Neutral
• Price Target: $8.00 ▼( -7.19% Downside)

Crescent Energy's stock score reflects a mixed financial outlook, with strong balance sheet stability overshadowed by inconsistent income and cash flow issues. Despite bearish technical indicators, the company's strategic initiatives and high dividend yield support a moderate valuation. Positive earnings call insights highlight future growth potential, balancing current volatility risks.

Positive Factors

Capital Returns

CRGY repurchased approximately $30.0 million of its shares, reinforcing capital returns to shareholders.

Operational Efficiency

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 maintains a Buy rating due to compelling relative valuation, trading at an EV/EBITDA discount with the highest FCF yield in its peer group and material NAV upside.

Negative Factors

Oil Production

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.

Production Guidance

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

Quarterly Performance

The company reported mixed 1Q25 results with oil production, DCFPS, and EBITDA falling short of expectations, which could weigh on near-term sentiment.

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 displays financial stability with a strong balance sheet and no current debt, but faces challenges with inconsistent profitability and negative cash flow. The income statement indicates volatility, while the balance sheet remains robust. Cash flow issues present 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.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.22B	2.93B	2.38B	3.06B	1.48B	754.22M
	Gross Profit
1.98B	2.40B	1.30B	2.62B	1.23B	552.04M
	EBIT
237.22M	218.46M	324.74M	1.28B	483.74M	-126.07M
	EBITDA
1.02B	996.99M	1.17B	1.15B	-69.01M	194.30M
	Net Income Common Stockholders
-79.30M	-114.61M	67.61M	480.60M	-432.23M	-216.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.32M	132.82M	2.97M	-10.75M	128.58M	36.86M
	Total Assets
6.80B	9.33B	6.80B	6.02B	5.16B	3.91B
	Total Debt
1.83B	3.13B	1.76B	1.26B	1.09B	774.79M
	Net Debt
1.83B	3.00B	1.76B	1.27B	962.17M	737.93M
	Total Liabilities
3.25B	4.79B	3.17B	2.72B	2.14B	1.01B
	Stockholders Equity
1.97B	3.14B	1.70B	848.11M	682.21M	2.72B
Cash Flow		Free Cash Flow
677.46M	-21.20M	-494.83M	-206.96M	-37.54M	284.86M
	Operating Cash Flow
1.38B	1.22B	935.77M	1.01B	233.15M	411.03M
	Investing Cash Flow
-2.10B	-1.20B	-1.40B	-1.12B	-244.59M	-124.94M
	Financing Cash Flow
733.91M	207.39M	456.46M	-7.84M	105.14M	-272.09M

Crescent Energy Company Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.62
• 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 8.62 is above the 20-day moving average (MA) of 8.61, below the 50-day MA of 9.18, and below the 200-day MA of 11.91, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.72 is Neutral, neither overbought nor oversold. The STOCH value of 36.56 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
CIVI	75 Outperform	$2.64B	3.27	12.73%	7.24%	22.14%	5.69%
NOG	75 Outperform	$2.65B	4.18	29.41%	6.28%	24.27%	5.01%
MNR	75 Outperform	$1.72B	9.09	12.64%	18.94%	―	―
SM	72 Outperform	$2.72B	3.33	20.28%	3.36%	26.04%	11.96%
KRP	63 Neutral	$1.60B	45.09	2.88%	13.21%	3.20%	-91.39%
Sector *	57 Neutral	$7.04B	3.12	-3.45%	5.79%	0.62%	-50.55%
CRGY	54 Neutral	$2.74B	23.27	-3.54%	5.52%	31.58%	-114.70%

Crescent Energy Company Class A Corporate Events

Crescent Energy Reports Strong Q1 2025 Financial Results

Crescent Energy Company reported strong financial results for the first quarter of 2025, with key metrics meeting or exceeding expectations. The company generated $337 million in operating cash flow and $242 million in levered free cash flow, reflecting a 45% annualized yield. Crescent improved its South Texas drilling costs by 10% and executed $90 million in non-core asset divestitures. The acquisition of Ridgemar Energy was completed on January 31, 2025, enhancing Crescent’s Eagle Ford position. The company simplified its corporate structure by transitioning to a single class of common stock and repurchased $30 million of shares. Crescent’s outlook for 2025 includes a flexible rig program and an 11-month contribution from the Ridgemar assets, with a focus on maximizing returns and free cash flow.

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.