On August 5, 2024, Crescent Energy Co (CRGY, Financial) released its 8-K filing detailing the financial and operating results for the second quarter of 2024. Crescent Energy Co, an independent energy company with a diverse portfolio of assets across key basins in the United States, continues to deliver attractive risk-adjusted investment returns and predictable cash flows.
Performance Overview
Crescent Energy Co reported a net income of $70 million for Q2 2024, significantly surpassing the analyst estimate of $0.30 per share. The company also achieved an Adjusted EBITDAX of $320 million, Operating Cash Flow of $287 million, and Levered Free Cash Flow of $147 million. These results highlight the company's robust financial health and operational efficiency.
Key Financial Achievements
The company increased its standalone full-year 2024 production guidance and achieved incremental capital savings. The successful acquisition and integration of SilverBow Resources, Inc. have already realized approximately $35 million of the targeted $65 - $100 million in synergies. Additionally, Crescent Energy Co declared a quarterly cash dividend of $0.12 per share, reinforcing its commitment to shareholder returns.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenues | $653.3 million | $492.3 million |
| Net Income | $70.2 million | $57.5 million |
| Adjusted EBITDAX | $320 million | $287 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Crescent Energy Co maintained a strong balance sheet with a Net LTM Leverage ratio of 1.3x and liquidity of $2.1 billion. The company's borrowing base increased to $2.6 billion following the SilverBow acquisition, with an elected commitment of $2.0 billion. The company reported $778.1 million in cash and cash equivalents, a significant increase from $2.97 million at the end of 2023.
Operational Efficiency and Production
Second-quarter production averaged 165 MBoe/d, with 44% oil and 62% liquids. The company drilled 12 gross operated wells and brought online 11 gross operated wells, with capital expenditures (excluding acquisitions) amounting to $120 million. Operational efficiency gains and moderating service costs contributed to reduced development costs.
Outlook and Guidance
Crescent Energy Co provided updated guidance for the second half of 2024, reflecting a ~2% increase in production and a ~2% improvement in expected capital spend. The company continues to focus on delivering value through disciplined growth and consistent return of capital.
"We started 2024 with strong first-quarter performance and built upon that momentum this quarter. I am extremely pleased with the results our team and differentiated model have delivered, with strong production and continued improvements in capital spend, leading to significant cash flow generation," said Crescent CEO David Rockecharlie.
For more detailed financial information and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Crescent Energy Co for further details.
