Crescent Energy (CRGY) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong operational and financial results, with net income of $70 million, Adjusted EBITDAX of $320 million, and Levered Free Cash Flow of $147 million, driven by production outperformance and capital efficiency.

• Closed the transformative SilverBow acquisition ahead of schedule, expanding Eagle Ford position by over 50% and capturing $35 million in synergies at closing.

• Increased full-year standalone production guidance for 2024 by 2%, with improved capital efficiency and disciplined capital allocation.

• Maintained a robust return of capital framework, including a $0.12/share quarterly dividend and a $150 million share repurchase program.

• Focused on further M&A opportunities, portfolio optimization, and integration of SilverBow to drive scale and shareholder value.

Financial highlights

• Q2 2024 revenue was $653 million, up 33% year-over-year, with Adjusted EBITDAX of $320 million and Levered Free Cash Flow of $147 million.

• Standalone production averaged 165 Mboe/d (44% oil, 62% liquids) in Q2 2024.

• Capital expenditures were $120 million in Q2, below forecast, with meaningful savings achieved.

• Operating expenses increased 30% to $293.6 million, mainly due to higher production from acquisitions.

• Net LTM leverage ratio at 1.3x as of June 30, 2024, with pro forma liquidity of ~$1.3 billion post-SilverBow.

Outlook and guidance

• Standalone FY 2024 production guidance raised to 160–162.5 Mboe/d, with capex guidance held flat at $550–$600 million.

• Pro forma 2H 2024 guidance includes five months of SilverBow, with total production expected at 232–241 Mboe/d and capex of $460–$510 million.

• Management expects to fund the 2024 capital program, excluding acquisitions, through operating cash flow.

• Continued focus on capturing $65–100 million in annual synergies from SilverBow integration.

• Four rigs planned for the remainder of 2024: three in Eagle Ford, one in Uinta.