Crescent Energy (CRGY) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly results in Q2 2026, including record free cash flow, EBITDAX, and net income, driven by higher production, structurally lower costs, and strong operational execution across all core basins.

• Outperformance was supported by the Vital Energy Merger, major acquisitions, and synergy capture, particularly in the Permian, Eagle Ford, and Uinta basins.

• Enhanced full-year and 2026 guidance for production and operating costs, reflecting positive momentum and capital efficiency gains.

• Maintained strong liquidity and financial flexibility, with significant cash balances and no borrowings under the main revolving credit facility as of June 30, 2026.

• Continued focus on disciplined capital allocation, including dividends, deleveraging, and opportunistic share repurchases.

Financial highlights

• Q2 2026 revenue rose 55% year-over-year to $1.39 billion, with net income up 204% to $493.7 million and adjusted EBITDAX at $798 million.

• Levered free cash flow for Q2 2026 was $418 million, with operating cash flow at $707 million.

• Production averaged 335,000 Boe/d (42% oil), with oil sales volumes up 30% year-over-year and realized oil prices at $96.61/Bbl.

• Adjusted operating expense was $10.95/Boe, nearly 10% below guidance midpoint, and well costs in Eagle Ford and Permian down over 20% year-over-year.

• Declared a fixed quarterly dividend of $0.12 per share, with $39.6 million paid in Q2 2026.

Outlook and guidance

• Raised 2026 production guidance to 327,000–335,000 Boe/d (40–42% oil) and lowered adjusted operating expense guidance to $11.00–$12.00/Boe.

• Development capital guidance unchanged at $1.325–$1.425 billion, reflecting capital efficiency.

• Permian synergy target increased to $250–$300 million, with $190 million captured to date.

• Expect to generate over $1 billion of levered free cash flow in 2026, supporting further debt reduction, M&A, and share repurchases.

• 2027 expected to see a slight production decline as Permian capital intensity resets, with oil volumes exiting at long-term maintenance levels.