Crescent Energy (CRGY) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 production of 219,000 BOE/d, driven by operational efficiencies and successful integration of SilverBow and other acquisitions, with synergy capture exceeding initial targets.

• Revenues rose 16% year-over-year to $744.9M, with Adjusted EBITDAX up 49% to $430.4M and levered free cash flow of $158M.

• Net loss for Q3 2024 was $9.9M, primarily due to integration and transaction costs, while adjusted net income was $82M.

• Continued disciplined capital allocation, including a $0.12/share dividend, $30M in share repurchases YTD, and opportunistic non-core asset divestitures.

• Added to the S&P SmallCap 600 Index, increasing trading liquidity and passive ownership.

Financial highlights

• Q3 2024 revenues were $744.9M, Adjusted EBITDAX $430.4M, and levered free cash flow $158M; operating cash flow was $368M.

• Q3 production averaged 219 Mboe/d (39% oil, 58% liquids); 22 gross operated wells drilled.

• Operating expenses for Q3 were $326.5M, with per Boe costs improving to $12.57, below guidance.

• Capital expenditures for Q3 were $211M, below forecast due to field savings.

• Interest expense for Q3 was $61.8M, up 47% from higher average debt balances.

Outlook and guidance

• 2024 capital investment guidance improved by 10% to $425–$455M for the second half, with production guidance reaffirmed at 232–241 Mboe/d.

• 2025 maintenance production expected at 240,000–250,000 BOE/d on ~$1B capital, with formal guidance in February.

• Management will evaluate future dividend increases quarterly, considering financial condition and market environment.