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Crescent Energy Company Class A (CRGY)
:CRGY
US Market
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Crescent Energy Company Class A (CRGY) AI Stock Analysis

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CRGY

Crescent Energy Company Class A

(NYSE:CRGY)

Rating:71Outperform
Price Target:
$10.50
▲(9.83% Upside)
Crescent Energy's overall stock score reflects a blend of strong operational performance and strategic financial management, as highlighted in the earnings call. The company's robust cash flow and strategic initiatives are significant positives. However, profitability challenges and valuation concerns temper the outlook. The technical analysis suggests a neutral to slightly positive trend, supporting a cautiously optimistic view.
Positive Factors
Financial Performance
CRGY reported strong results, beating expectations on all fronts.
Tax Efficiency
The company improved its cash tax guidance to zero, resulting in a refund.
Negative Factors
Earnings Performance
The company reported mixed 1Q25 results with oil production, DCFPS, and EBITDA falling short of expectations, which could weigh on near-term sentiment.
Production Concerns
There is an expected sharper oil production drop, which may be a headwind for some investors.

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 Class A (CRGY) is an independent energy company operating primarily in the exploration, development, and production of oil and natural gas. The company focuses on acquiring and managing a portfolio of oil and natural gas assets in various prolific basins across the United States. Crescent Energy aims to deliver sustainable energy solutions while maximizing shareholder value through operational excellence and strategic asset management.
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: 7.66%|
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
Crescent Energy reported a strong quarter with record production, substantial free cash flow, and successful cost-saving measures. The company also made significant strides in debt repayment and stock buybacks, alongside accretive acquisitions and divestitures. However, market volatility has affected asset sale activities, and potential cost inflation could impact future operations. Overall, the positive achievements outweigh the challenges, leading to a positive sentiment.
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, including 108,000 barrels of oil per day, generating approximately $171 million of free cash flow for the quarter, surpassing Wall Street expectations.
Operational Efficiency and Cost Savings
The company improved well costs by approximately 15% in both the Eagle Ford and Uinta Basins since last year, enhancing capital efficiency and reducing cash tax expectations for increased free cash flow.
Significant Debt Repayment and Stock Buyback
Crescent repaid approximately $200 million of debt, bringing liquidity to $1.750 billion, and repurchased $28 million worth of stock at a weighted average price of $7.88, about 12% below the current share price.
Accretive M&A Activities
The company acquired minerals assets expected to generate returns in excess of a 2x MOIC target, contributing roughly $100 million of annual cash flow, and divested non-core assets totaling $110 million year-to-date.
Negative Updates
Market Volatility Impacting A&D Activity
Crescent noted that about 75% of asset sale processes in the Eagle Ford were pulled due to market volatility, indicating challenges in executing acquisitions and divestitures.
Potential Service Cost Inflation
The company anticipates slight inflationary pressures on service costs in the latter half of the year, which may increase drilling and completion costs by $10 per foot.
Company Guidance
During the Crescent Energy Q2 2025 Results Call, the company provided an impressive outlook, showcasing exceptional performance metrics for the quarter. Crescent reported record production of 263,000 barrels of oil equivalent per day, with 108,000 barrels of oil per day. The company generated approximately $171 million in free cash flow, exceeding Wall Street expectations. This robust financial performance was driven by capital efficiencies, strong well performance, and a modest acceleration of activity, leading to a 15% improvement in well costs in both the Eagle Ford and Uinta Basins since last year. Additionally, Crescent capitalized on market volatility by repurchasing $28 million worth of stock and closing $110 million in non-core asset divestitures. The company also strengthened its balance sheet with $200 million in debt repayment and maturity extensions, resulting in increased liquidity of $1.750 billion. Crescent reiterated its focus on maximizing free cash flow and returns, leveraging its flexible capital program and operational excellence to navigate the cyclical industry environment effectively.

Crescent Energy Company Class A Financial Statement Overview

Summary
Crescent Energy's financial performance is mixed. The balance sheet is strong with minimal debt and a high equity ratio, but the income statement and cash flow metrics show instability. The company faces challenges in maintaining consistent revenue and profitability, with recent negative net income and inconsistent cash flow.
Income Statement
42
Neutral
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
67
Positive
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
38
Negative
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.
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
Positive
Last Price9.56
Price Trends
50DMA
9.09
Positive
100DMA
8.97
Positive
200DMA
11.30
Negative
Market Momentum
MACD
0.12
Negative
RSI
58.91
Neutral
STOCH
76.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRGY, the sentiment is Positive. The current price of 9.56 is above the 20-day moving average (MA) of 9.17, above the 50-day MA of 9.09, and below the 200-day MA of 11.30, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 58.91 is Neutral, neither overbought nor oversold. The STOCH value of 76.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRGY.

Crescent Energy Company Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$1.72B7.4916.84%19.24%11.56%
72
Outperform
$3.10B3.8119.27%2.96%28.20%1.63%
71
Outperform
$2.93B4.0011.31%9.10%0.24%-9.19%
71
Outperform
$2.38B23.270.70%4.97%32.84%-755.17%
70
Outperform
$2.40B4.0527.17%7.01%2.98%7.94%
68
Neutral
$1.77B45.094.52%11.76%-2.89%-107.61%
56
Neutral
C$4.17B2.0316.25%5.63%10.63%-51.09%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRGY
Crescent Energy Company Class A
9.65
-1.44
-12.98%
CIVI
Civitas Resources
33.86
-25.54
-43.00%
NOG
Northern Oil And Gas
24.82
-12.58
-33.64%
SM
SM Energy
26.73
-18.79
-41.28%
KRP
Kimbell Royalty Partners
14.45
-0.08
-0.55%
MNR
Mach Natural Resources LP
14.50
-2.22
-13.28%

Crescent Energy Company Class A Corporate Events

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.

The most recent analyst rating on (CRGY) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Crescent Energy Company Class A stock, see the CRGY Stock Forecast page.

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.

The most recent analyst rating on (CRGY) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Crescent Energy Company Class A stock, see the CRGY Stock Forecast page.

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.

The most recent analyst rating on (CRGY) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Crescent Energy Company Class A stock, see the CRGY Stock Forecast page.

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.

The most recent analyst rating on (CRGY) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Crescent Energy Company Class A stock, see the CRGY Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Crescent Energy Appoints Joey Hall as COO
Positive
May 23, 2025

On May 19, 2025, Crescent Energy Company announced the appointment of Joey Hall as Chief Operating Officer, effective June 2, 2025. Hall, previously with Pioneer Natural Resources Company, brings extensive experience in operational leadership, particularly in the Eagle Ford and Permian Basin regions. His appointment is expected to enhance Crescent’s operational capabilities and support its growth strategy, focusing on innovation, environmental responsibility, and shareholder value.

The most recent analyst rating on (CRGY) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Crescent Energy Company Class A stock, see the CRGY Stock Forecast page.

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: Aug 14, 2025