Crescent Energy (CRGY) Q4 2024 earnings summary

Executive summary

• 2024 marked a transformational year with record annual production of 201 MBoe/d, up over 30% year-over-year, driven by accretive acquisitions that more than doubled the Eagle Ford position and established a top-three producer status in the basin.

• Seamless integration of major acquisitions, including SilverBow and Ridgemar Energy, delivered realized annual synergies exceeding $100 million, with further upside anticipated.

• Achieved significant accretive growth with over $3 billion in Eagle Ford M&A across five deals, while divesting $50 million in non-core assets.

• Consistent execution led to outperformance in production and capital efficiency, generating approximately $260 million in free cash flow for Q4 and surpassing Wall Street expectations.

• Returned capital to shareholders via a fixed dividend ($0.12/share) and share buybacks, with $30 million repurchased at an average price of $10.07.

Financial highlights

• Q4 2024 Adjusted EBITDAX reached $535 million and Levered Free Cash Flow was $259 million.

• FY 2024 production outperformed guidance, with 2H'24 actuals at 237 Mboe/d versus guidance of 232–241 Mboe/d.

• Generated $1.2 billion in Operating Cash Flow and $630 million in Levered Free Cash Flow for 2024.

• Net leverage exited the year at 1.4x, within the target range, and liquidity stood at $2.1 billion at year-end 2024.

• Revenues for 2024 totaled $2.93 billion, up from $2.38 billion in 2023.

Outlook and guidance

• 2025 operating plan targets production of 254,000–264,000 BOE/d and capital expenditures of $925 million–$1.025 billion.

• Plans to run four to five rigs, primarily in the Eagle Ford, with flexibility to allocate capital between oil and gas based on commodity prices.

• Free cash flow in 2025 expected to surpass current Wall Street estimates at like-for-like commodity prices, with >$1.1 billion projected at $75 oil/$2.50 gas.

• 2025 outlook includes 11-month contribution from recently acquired Ridgemar assets.

• Continued focus on investment returns, balance sheet strength, and opportunistic M&A.