On March 4, 2024, Crescent Energy Co (CRGY, Financial) released its 8-K filing, announcing financial and operating results for the fourth quarter and full year 2023. The company, an independent energy company with a diverse portfolio of assets across key basins in the lower 48 states, has demonstrated strong financial performance with every metric meeting or exceeding guidance expectations.
Company Overview
Crescent Energy Co (CRGY, Financial) maintains a diverse portfolio of assets in key proven basins across the United States, including the Eagle Ford, Rockies, Barnett, Permian, and Mid-Con. The company focuses on delivering attractive risk-adjusted investment returns and predictable cash flows across cycles, with a focus on operated oil and gas assets complemented by non-operated assets, mineral and royalty interests, and midstream infrastructure.
Financial and Operational Highlights
The company's record annual production of 149 MBoe/d represents an 8% increase year-over-year, driven by both acquired volumes and strong well productivity. Crescent Energy Co (CRGY, Financial) also made significant strides in sustainability, improving absolute scope 1 GHG emissions by 27% in 2022 relative to the 2021 baseline. The company's financial achievements, including a robust Operating Cash Flow of $936 million and Levered Free Cash Flow of $310 million, are particularly important in the Oil & Gas industry, where cash flow is a critical indicator of a company's ability to fund operations, invest in growth, and return capital to shareholders.
For the fourth quarter, Crescent reported $140 million of net income and $53 million of Adjusted Net Income. The company generated $276 million of Adjusted EBITDAX, $323 million of Operating Cash Flow, and $102 million of Levered Free Cash Flow for the period. These results reflect the company's operational efficiency gains, which have driven down costs and improved well performance.
Financial Statements Analysis
Key details from the financial statements include a Net LTM Leverage ratio of 1.3x and approximately $1.3 billion of liquidity as of December 31, 2023. The company paid down $368 million on its revolving credit facility, with $24 million outstanding on its $1.3 billion elected commitment. Crescent's strong balance sheet is further evidenced by S&P's upgrade of its issuer credit rating to B+ and its senior unsecured notes rating to BB- with a stable outlook in July 2023.
Crescent CEO David Rockecharlie commented, "I am extremely proud of our 2023 performance, where we have delivered on all of our strategic priorities – we generated significant cash flow, fueled by strong operational execution, we progressed a number of key sustainability initiatives and we acquired two complementary and accretive assets in the Eagle Ford."
2024 Outlook and Shareholder Returns
Looking ahead, Crescent Energy Co (CRGY, Financial) forecasts approximately 6% year-over-year production growth with relatively flat capital investments. The company has also enhanced its shareholder return framework, establishing a fixed $0.12 per share dividend and authorizing a $150 million share buyback program, signaling confidence in its financial stability and commitment to delivering shareholder value.
For more detailed information and analysis on Crescent Energy Co (CRGY, Financial)'s financial performance, please refer to the full 8-K filing.
Company Contact: For additional information, please reach out to [email protected].
Explore the complete 8-K earnings release (here) from Crescent Energy Co for further details.
