Crescent Energy (CRGY) Q4 2025 earnings summary

Executive summary

• 2025 marked a transformational year with strong financial performance, exceeding expectations across all key metrics, generating $1.7B in operating cash flow and $856M in levered free cash flow, and achieving a ~31% yield.

• Nearly $5B in M&A activity upgraded the portfolio, with $4B in acquisitions (under 3x EBITDA) and $1B in divestitures (over 5x EBITDA), focusing on scalable, higher-return assets in Eagle Ford, Permian, and Uinta.

• Integration of Permian assets is ahead of plan, with synergy targets doubled to $190M and $40M+ captured.

• Crescent Royalties platform launched, contributing $160M–$180M annual cash flow and enhancing strategic flexibility.

• Strengthened balance sheet with ~$2B liquidity and a six-year weighted average maturity at year-end 2025.

Financial highlights

• Q4 2025 production: 268 MBoe/d (106 MBopd, 39% oil, 58% liquids); full-year average: 260 MBoe/d.

• Q4 Adjusted EBITDAX: $536M; Q4 Levered Free Cash Flow: $239M; full-year LFCF: $856M (~31% yield).

• Declared $0.12/share dividend (approx. 5% yield); 14 consecutive years of dividend payments.

• Over $700M of debt repaid in Q4; net LTM leverage at 1.5x; ~$2B liquidity.

• Buyback authorization increased to $400M, with ~$336M remaining.

Outlook and guidance

• 2026 plan targets maximizing free cash flow, capital discipline, and operational flexibility, with a 6–7 rig program (4 Eagle Ford, 1 Uinta, 1–2 Permian).

• 2026 production guidance: 320–335 MBoe/d (40–42% oil, 36–39% gas); development capital: $1.325–$1.425B.

• Adjusted opex (excl. taxes): $11.50–$12.50/Boe; cash taxes: ~6–7% of Adj. EBITDAX.

• Dividend and buyback framework maintained; targeting 25% or below corporate base decline rate in 12–18 months.