Crescent Energy Company (CRGY) Bundle
A Brief History of Crescent Energy Company
Crescent Energy Company has rapidly evolved since its inception, focusing on the acquisition and development of oil and natural gas properties. In 2024, the company demonstrated significant growth through strategic mergers and acquisitions, particularly with the SilverBow Merger completed in July 2024.
Financial Performance
As of September 30, 2024, Crescent Energy reported revenues of $2.66 billion for the nine months ended September 30, 2024, compared to $3.55 billion for the same period in 2023. The net income for the same period was $166.5 million, a decline from $764.6 million in 2023, reflecting the challenges posed by fluctuating commodity prices and operational adjustments post-merger.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Revenues | $2,659,691,000 | $3,546,572,000 | $(886,881,000) |
| Net Income | $166,458,000 | $764,589,000 | $(598,131,000) |
| Adjusted EBITDAX | $430,435,000 | $289,624,000 | $140,811,000 |
| Levered Free Cash Flow | $370,746,000 | $207,753,000 | $162,993,000 |
Operational Highlights
In 2024, Crescent Energy's operational focus shifted towards integrating the assets acquired from SilverBow, which included a significant increase in production capabilities. The company reported production volumes of 20,124 MBoe for the nine months ended September 30, 2024, compared to 14,440 MBoe for the same period in 2023.
Debt and Liquidity Position
As of September 30, 2024, Crescent Energy's cash and cash equivalents stood at $136.2 million, with long-term debt amounting to $3.23 billion. This reflects an increase in debt levels due to the financing of the SilverBow Merger. The company successfully issued $750 million in senior notes due 2033 and an additional $250 million in September 2024 to support its strategic initiatives.
| Liquidity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $136,151,000 | $2,974,000 |
| Long-term Debt | $3,225,173,000 | $1,694,375,000 |
Commodity Derivative Contracts
Crescent Energy actively manages commodity price risks through derivative contracts. As of September 30, 2024, 76% of oil production was hedged, along with 55% of natural gas production. The company reported a gain on commodity derivatives amounting to $349 million for the three months ended September 30, 2024, a significant recovery from the prior year's losses.
Market Environment
The oil and natural gas industry has faced volatility due to geopolitical tensions, inflationary pressures, and changes in OPEC production strategies. The average NYMEX oil price for the three months ended September 30, 2024, was $75.10 per barrel, compared to $82.26 in the previous year. This decline impacted realized prices, with Crescent Energy realizing an average price of $69.19 per barrel during the same period.
| Commodity Prices | Average NYMEX Price | Realized Price (Excluding Derivative Settlements) |
|---|---|---|
| Oil (Bbl) | $75.10 | $69.19 |
| Natural Gas (Mcf) | $2.16 | $2.10 |
In conclusion, Crescent Energy's strategic maneuvers in 2024, particularly the SilverBow Merger, have positioned the company for future growth while navigating the challenges of a volatile market environment.
A Who Owns Crescent Energy Company (CRGY)
Ownership Structure
Crescent Energy Company operates under an "Up-C" structure. The primary asset of Crescent is the OpCo Units of Crescent Energy OpCo LLC, where the majority of the assets and liabilities reside. As of September 30, 2024, the ownership is divided primarily between two classes of common stock: Class A and Class B.
| Type of Stock | Shares Outstanding | Voting Rights | Economic Rights |
|---|---|---|---|
| Class A Common Stock | 162,345,725 | Yes | Yes |
| Class B Common Stock | 65,948,124 | Yes | No |
Major Shareholders
As of 2024, significant ownership is attributed to institutional investors and private equity firms, notably KKR & Co. Inc. Additionally, the company completed a merger with SilverBow Resources on July 30, 2024, which impacted its shareholder structure significantly.
Recent Transactions Affecting Ownership
During the SilverBow Merger, Crescent Energy issued approximately 51.6 million shares of Class A Common Stock and paid $382.4 million in cash to SilverBow shareholders. This transaction altered the distribution of shares among existing and new shareholders.
KKR & Co. Inc. Ownership
KKR is a significant player in Crescent's ownership structure, holding Series I preferred stock, which does not have economic rights but grants them the authority to appoint members to the Board of Directors.
| Entity | Type of Ownership | Shares/Units Held | Voting Rights |
|---|---|---|---|
| KKR & Co. Inc. | Preferred Stock | Not Disclosed | Yes (Board Appointment) |
| Independence Energy Aggregator L.P. | OpCo Units & Class A Common Stock | 6,000,000 OpCo Units exchanged for Class A Common Stock | Yes |
Market Capitalization
As of October 31, 2024, the market capitalization of Crescent Energy is reflective of the trading price of its Class A Common Stock, which was approximately $10.74 per share following the April 2024 Class A Conversion.
Recent Financial Performance
Crescent Energy reported total assets of $9.25 billion as of September 30, 2024, with significant liabilities amounting to $5.05 billion. This financial backdrop influences investor decisions and ownership dynamics.
| Financial Metric | Amount (in thousands) |
|---|---|
| Total Assets | $9,250,429 |
| Total Liabilities | $5,054,996 |
| Total Equity | $2,875,274 |
| Long-Term Debt | $3,225,173 |
Crescent Energy Company (CRGY) Mission Statement
Crescent Energy Company aims to deliver value to shareholders through a disciplined growth strategy, primarily focusing on acquisitions and maintaining a balanced portfolio of energy assets. The company is committed to responsible operations that enhance financial returns while prioritizing sustainability and community impact.
Company Overview
Crescent Energy operates primarily in Texas and the Rocky Mountain regions, focusing on oil and gas production. As of September 30, 2024, Crescent Energy reported total assets of $9.25 billion, up from $6.80 billion at the end of 2023.
Financial Performance
For the three months ended September 30, 2024, Crescent Energy reported total revenues of $744.87 million, compared to $642.40 million for the same period in 2023. The breakdown of revenues was as follows:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Oil | $548,430 | $504,660 |
| Natural Gas | $78,790 | $72,097 |
| Natural Gas Liquids | $87,253 | $54,724 |
| Midstream and Other | $30,401 | $10,917 |
Net income for the same period was reported at $(5.58) million, compared to a loss of $(131.10) million in Q3 2023.
Recent Mergers and Acquisitions
In July 2024, Crescent Energy completed the SilverBow Merger, acquiring SilverBow for $382.4 million in cash and issuing 51.6 million shares of Class A Common Stock. This merger is part of Crescent's strategy to enhance its operational scale and asset base.
Debt and Equity Structure
As of September 30, 2024, Crescent Energy's total liabilities amounted to $5.05 billion, with long-term debt standing at $3.23 billion. The company has issued senior notes totaling $1.00 billion, with terms extending to 2033. The equity structure includes:
| Equity Component | Value (in thousands) |
|---|---|
| Class A Common Stock | $16 |
| Class B Common Stock | $7 |
| Additional Paid-In Capital | $2,838,549 |
| Retained Earnings | $53,288 |
| Noncontrolling Interests | $15,341 |
| Total Equity | $2,875,274 |
Sustainability and Community Engagement
Crescent Energy emphasizes sustainability in its operations, participating in initiatives like the Oil & Gas Methane Partnership 2.0. The company aims to measure and mitigate its methane emissions, striving for a balance between operational efficiency and environmental stewardship.
Market Position and Future Outlook
With a focus on long-term growth and responsible energy production, Crescent Energy is positioned to capitalize on market dynamics while adhering to its mission of delivering shareholder value. The company's strategic acquisitions and commitment to sustainability are expected to enhance its competitive edge in the energy sector.
How Crescent Energy Company (CRGY) Works
Company Overview
Crescent Energy Company (CRGY) is a U.S. energy company focused on oil and natural gas exploration and production. Its operations are primarily concentrated in Texas and the Rocky Mountain region, combining long-life, low-decline production with high-quality development inventory.
Financial Performance
As of September 30, 2024, Crescent Energy reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenues | $744,874,000 | $642,398,000 | $2,055,630,000 | $1,724,874,000 |
| Net Income (Loss) | $(5,579,000) | $(131,102,000) | $32,262,000 | $181,983,000 |
| Oil Revenue | $548,430,000 | $504,660,000 | $1,521,946,000 | $1,270,244,000 |
| Natural Gas Revenue | $78,790,000 | $72,097,000 | $210,008,000 | $286,172,000 |
| NGL Revenue | $87,253,000 | $54,724,000 | $221,103,000 | $131,098,000 |
| Midstream Revenue | $30,401,000 | $10,917,000 | $102,573,000 | $37,360,000 |
Expenses
Crescent Energy's major expenses for the same period were as follows:
| Expense Category | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Lease Operating Expense | $129,546,000 | $120,791,000 | $382,688,000 | $364,796,000 |
| General and Administrative Expense | $159,677,000 | $43,831,000 | $249,532,000 | $106,235,000 |
| Depreciation, Depletion and Amortization | $251,498,000 | $186,492,000 | $640,444,000 | $492,879,000 |
| Total Expenses | $752,296,000 | $500,864,000 | $1,809,648,000 | $1,368,735,000 |
Balance Sheet Highlights
As of September 30, 2024, Crescent Energy reported the following balance sheet metrics:
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $9,250,429,000 | $6,803,335,000 |
| Total Liabilities | $5,054,996,000 | $3,167,617,000 |
| Redeemable Noncontrolling Interests | $1,320,159,000 | $1,901,208,000 |
| Total Equity | $2,875,274,000 | $1,734,510,000 |
Capital Expenditures and Acquisitions
Crescent Energy's development program focuses on drilling, completion, and recompletion activities. The company expects to fund its 2024 capital program through cash flow from operations. Significant acquisitions in 2024 include:
- SilverBow Merger (July 30, 2024): Crescent acquired SilverBow for $382.4 million in cash and 51.6 million shares of Class A Common Stock.
- October 2024 Acquisition: Oil and gas properties in Texas for approximately $168 million.
- Eagle Ford Minerals Acquisition (February 2024): Cash consideration of approximately $25 million.
Debt and Financing
As of September 30, 2024, Crescent Energy's debt metrics are as follows:
| Debt Metric | Amount |
|---|---|
| Long-term Debt | $3,225,173,000 |
| Revolving Credit Facility Borrowings | $572,300,000 |
| Interest Expense (YTD 2024) | $146,885,000 |
Stock Performance
Crescent Energy's stock performance can be summarized as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Class A Common Stock Price | $10.45 | $13.20 |
| Class A Common Stock Dividend | $0.12 per share | $0.08 per share |
Management Structure
Crescent Energy operates under a management agreement with KKR Energy Assets Manager LLC, which provides executive management services for a fee of approximately $45.9 million annually. This fee is linked to the company's equity performance and can increase as the company grows.
How Crescent Energy Company (CRGY) Makes Money
Revenue Streams
Crescent Energy Company primarily generates revenue through the sale of oil, natural gas, and natural gas liquids (NGLs). The revenue mix as of September 30, 2024, is detailed in the following table:
| Revenue Source | Three Months Ended September 30, 2024 (%) | Three Months Ended September 30, 2023 (%) | Nine Months Ended September 30, 2024 (%) | Nine Months Ended September 30, 2023 (%) |
|---|---|---|---|---|
| Oil | 77 | 80 | 78 | 75 |
| Natural Gas | 11 | 11 | 11 | 17 |
| NGLs | 12 | 9 | 11 | 8 |
Financial Performance
For the nine months ended September 30, 2024, Crescent Energy reported total revenues of $2,055.6 million, an increase of 19% from $1,724.9 million in the same period of 2023. The breakdown of revenues for the three and nine months is as follows:
| Revenue Type | Three Months Ended September 30, 2024 ($ million) | Three Months Ended September 30, 2023 ($ million) | Nine Months Ended September 30, 2024 ($ million) | Nine Months Ended September 30, 2023 ($ million) |
|---|---|---|---|---|
| Oil | 548.4 | 504.7 | 1,521.9 | 1,270.2 |
| Natural Gas | 78.8 | 72.1 | 210.0 | 286.2 |
| NGLs | 87.3 | 54.7 | 221.1 | 131.1 |
| Midstream and Other | 30.4 | 10.9 | 102.6 | 37.4 |
| Total Revenues | 744.9 | 642.4 | 2,055.6 | 1,724.9 |
Production Volumes
Crescent Energy's production volumes for the periods ended September 30, 2024, are shown in the following table:
| Production Type | Three Months Ended September 30, 2024 (MBbls/MMcf) | Three Months Ended September 30, 2023 (MBbls/MMcf) | Nine Months Ended September 30, 2024 (MBbls/MMcf) | Nine Months Ended September 30, 2023 (MBbls/MMcf) |
|---|---|---|---|---|
| Oil | 7,927 | 6,667 | 20,932 | 17,797 |
| Natural Gas | 50,935 | 33,009 | 121,502 | 95,085 |
| NGLs | 3,708 | 2,271 | 9,001 | 5,730 |
| Total | 20,124 | 14,440 | 50,183 | 39,375 |
Average Realized Prices
The average realized prices for Crescent Energy's products during the same period are as follows:
| Commodity | Average Price (Three Months Ended September 30, 2024) | Average Price (Three Months Ended September 30, 2023) |
|---|---|---|
| Oil ($/Bbl) | 69.19 | 75.70 |
| Natural Gas ($/Mcf) | 1.55 | 2.18 |
| NGLs ($/Bbl) | 23.53 | 24.10 |
Expenses and Net Income
Crescent Energy's expenses for the nine months ended September 30, 2024, totaled $1,809.6 million, compared to $1,368.7 million in the same period of 2023. The net income for the Company during this period was $32.3 million, a decrease from $182.0 million in the previous year.
| Expense Category | Nine Months Ended September 30, 2024 ($ million) | Nine Months Ended September 30, 2023 ($ million) |
|---|---|---|
| Lease Operating Expense | 382.7 | 364.8 |
| Depreciation, Depletion, and Amortization | 640.4 | 492.9 |
| Total Expenses | 1,809.6 | 1,368.7 |
| Net Income | 32.3 | 182.0 |
Recent Acquisitions
In 2024, Crescent Energy completed the SilverBow Merger, acquiring assets valued at approximately $1.2 billion. The acquisition was financed through the issuance of senior notes and cash reserves.
| Transaction | Value ($ million) | Financing Method |
|---|---|---|
| SilverBow Merger | 1,200 | Senior Notes, Cash |
| October 2024 Acquisition | 168.0 | Revolving Credit Facility |
| Eagle Ford Minerals Acquisition | 25.0 | Revolving Credit Facility |
Debt and Financing
As of September 30, 2024, Crescent Energy had total long-term debt of $3.2 billion, an increase from $1.7 billion at the end of 2023. The Company utilized various financing methods, including the issuance of senior notes and a revolving credit facility to support its operational and acquisition activities.
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Resources:
- Crescent Energy Company (CRGY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Crescent Energy Company (CRGY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Crescent Energy Company (CRGY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.