Crescent Energy (CRGY) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered robust financial and operational performance, with all key metrics meeting or exceeding expectations, including record production, $950M in revenue (up 45%), and levered free cash flow exceeding $240M, representing a ~45% annualized yield.

• Seamless integration of the Ridgemar acquisition (closed for $905M–$1.2B), adding high-margin production and low-risk inventory, with early performance surpassing expectations.

• Executed $90M in non-core asset sales YTD, streamlining the portfolio and accelerating debt repayment.

• Simplified corporate structure by eliminating the Up-C structure, consolidating all equity into a single class of common stock, and increasing trading liquidity.

• Repurchased $30M of shares YTD at an average price of $8.26, with $150M buyback authorization and $91M remaining under the program as of April 2025.

Financial highlights

• Q1 2025 production averaged a record 258 Mboe/d (40% oil, 58% liquids), with Adjusted EBITDAX of $529M (up 69% YoY) and levered free cash flow of $242M (up 265% YoY).

• Revenues totaled $950M, up from $657M in Q1 2024, with oil revenue at $619.7M, natural gas at $187.4M, and NGL at $107.6M.

• Net income for Q1 2025 was $6M, with adjusted net income of $143M; adjusted EPS was $0.56.

• Capital expenditures (excluding acquisitions) were $208M, with improved D&C costs and project timing shifts.

• Declared a $0.12/share dividend and paid $23.5M in dividends to Class A common stock in Q1 2025.

Outlook and guidance

• 2025 full-year production guidance (divestiture adjusted): 251–261 Mboe/d, with 40–41% oil; Q2 expected to be the highest capital quarter.

• Capital expenditures projected at $925–$1,025M for 2025, funded through operating cash flow.

• Continued focus on maximizing free cash flow and returns, with flexibility to adjust activity levels based on commodity prices.

• 2025 outlook includes 11-month contribution from Ridgemar assets and a flexible 4–5 rig program.

• Ongoing focus on economic hedging to mitigate commodity price volatility and protect cash flows.