On May 6, 2024, Crescent Energy Co (CRGY, Financial) released its 8-K filing, announcing its financial and operational results for the first quarter of 2024. The company, a distinguished player in the U.S. energy sector, operates across key basins including the Eagle Ford and Uinta, focusing on a balanced portfolio of operated and non-operated oil and gas assets, mineral and royalty interests, and midstream infrastructure.
Financial and Operational Performance
Crescent Energy reported a record quarterly production of 166 MBoe/d, a significant increase from the previous year, driven by operational efficiencies and strong commodity price realizations. Despite a net loss of $32 million primarily due to mark-to-market losses on derivatives, the company's Adjusted Net Income stood at $83 million. The robust operational performance translated into $313 million of Adjusted EBITDAX and $184 million of Operating Cash Flow. Notably, the Levered Free Cash Flow for the quarter was reported at $66 million.
The company's strategic acquisitions, including a $25 million bolt-on in the Eagle Ford minerals portfolio, and its consistent operational execution underpin its strong financial health. Crescent also highlighted its shareholder-friendly initiatives, declaring a quarterly cash dividend of $0.12 per share and continuing its share repurchase program, with $127 million remaining under its authorization.
Analysis of Financial Statements
Reviewing Crescent's balance sheet, the company maintains a strong liquidity position with $1.2 billion in liquidity and a low leverage profile, with a Net LTM Leverage ratio of 1.4x. The income statement reveals the challenges of volatile commodity prices impacting derivatives, yet the company's revenue streams remain robust with total revenues of $657 million for the quarter.
Operational expenses have been managed effectively, as evidenced by a decrease in operating expense per Boe compared to the previous year. The company's focus on cost management and operational efficiency is evident in its reduced general and administrative expenses and operational expenditure.
Strategic Outlook and Market Position
Crescent Energy's CEO, David Rockecharlie, expressed confidence in the company's business model and its ability to generate long-term value for shareholders. The increase in full-year 2024 production guidance reflects ongoing productivity gains and operational excellence.
The company's strategic focus on high-return development locations and efficient capital deployment continues to strengthen its market position and support sustainable growth. Crescent's commitment to returning capital to shareholders through dividends and share repurchases aligns with its objective to deliver attractive risk-adjusted investment returns.
In conclusion, Crescent Energy's first-quarter results demonstrate a strong start to 2024, characterized by record production levels and solid financial performance. The company's strategic initiatives and operational adjustments are poised to sustain its growth trajectory and enhance shareholder value in the evolving energy landscape.
For detailed financial figures and further information, please refer to the full 8-K filing and join the upcoming conference call and webcast.
Explore the complete 8-K earnings release (here) from Crescent Energy Co for further details.
