CRGY Earnings Prediction
The chart below shows how CRGY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CRGY sees a +1.19% change in stock price 10 days leading up to the earnings, and a +4.52% change 10 days following the report. On the earnings day itself, the stock moves by -1.10%. This data can give you a slight idea of what to expect for the next quarter's release.
CRGY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
744.87M
15.95%
14.02%
Gross Margin
22.40%
-22.38%
-0.62%
Operating Margin
6.57%
-71.78%
-62.84%
Net Margin
-0.75%
-96.33%
-106.98%
EPS
-0.07
-89.55%
-121.21%
No Data Available
CRGY Earnings Analysis
Crescent Energy Company Corporation (CRGY.N) Earnings Conference Call
Positive
Record Oil Production: 1. Record Production: Crescent achieved record production of 219,000 barrels of oil equivalent per day in Q3 2024, reflecting strong operational performance and the early contributions from the SilverBow acquisition.
Strong Free Cash Flow: 2. Significant Free Cash Flow: The company generated approximately $160 million in levered free cash flow during the quarter, demonstrating effective capital management and operational efficiency.
Acquisition Synergy Success: 3. Increased Synergies: Crescent realized approximately $65 million of annualized synergies from the SilverBow acquisition within just a few months, exceeding initial expectations and increasing the synergy target by over 20%.
Capital Cost Reduction: 4. Enhanced Capital Efficiency: The company reported a 10% reduction in well costs compared to the first half of the year, driven by improved operational efficiencies and the implementation of new technologies.
Liquidity and Leverage Strength: 5. Strong Liquidity Position: Crescent maintains a robust balance sheet with $1.5 billion in liquidity and a net leverage ratio of 1.5x, positioning the company well for future growth and investment opportunities.
Negative
Production Decline Forecast: 1. Declining Production Guidance: Despite achieving record production of 219,000 barrels of oil equivalent per day, the company anticipates a decline in oil volumes for Q4, projecting a range of low to mid 250s overall, which indicates a potential decrease from Q3 levels.
High Capital Expenditures Concerns: 2. High Capital Expenditures: Crescent reported $211 million in capital expenditures for the quarter, which is significantly high and raises concerns about the sustainability of capital allocation amidst commodity price volatility.
Debt Management Challenges: 3. Increased Debt Levels: The company has divested approximately $50 million of non-core assets this year, indicating a need to optimize its portfolio and manage debt levels, which could signal financial strain.
Uinta Development Uncertainty: 4. Underperformance in Uinta Development: Although the Uinta basin shows potential, the company is still in the early stages of evaluating its resource potential, suggesting uncertainty in achieving expected returns from this area.
Cautious Share Buyback Strategy: 5. Limited Share Buyback Activity: Crescent's $7 million share buyback in the quarter, while opportunistic, reflects a cautious approach to capital allocation, prioritizing debt reduction over shareholder returns, which may not satisfy investor expectations.
CRGY FAQs
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CRGY Earning Call Sentiment
Crescent Energy Company (CRGY) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
CRGY.N
0.21%Positive
The earnings call summary and Q&A indicate strong financial performance with increased production guidance and capital expenditure improvements. The SilverBow acquisition is expected to provide further synergies, enhancing growth potential. Despite some vague responses in the Q&A, analysts seem satisfied with management's outlook on future opportunities. The market strategy and shareholder returns are well-received, contributing to a positive sentiment. Considering the market cap, the stock is likely to experience a positive movement in the range of 2% to 8% over the next two weeks.
