Crescent Energy Company have announced financial and operating results for the second quarter of 2024.

Second Quarter 2024 Highlights 

• Strong performance across key financial metrics; generated net income of $70 million, Adjusted EBITDAX(1) of $320 million, Operating Cash Flow of $287 million and Levered Free Cash Flow(1) of $147 million
• Increased standalone full year 2024 production guidance alongside incremental capital savings and released updated guidance pro forma for the closing of the acquisition of SilverBow Resources, Inc. ("SilverBow")
• Continued gains in Eagle Ford capital efficiency with strong well results and continued improvements in development costs
• Successfully closed acquisition of SilverBow ahead of schedule; integration and synergy capture well underway with approximately $35 million of $65 - $100 million target realized to-date through an improved cost of capital
• Captured additional synergies from 2023 Western Eagle Ford acquisitions; up to ~$60 million annually relative to approximately $850 million of combined purchase price 
• Declared quarterly cash dividend of $0.12 per share, in line with enhanced and simplified shareholder return framework

Crescent CEO David Rockecharlie said, 
“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. 

Our standalone performance, combined with the closing of the SilverBow acquisition, positions Crescent for significant future value potential as we continue to execute on our proven strategy. Our business today combines the benefits of an advantaged asset profile, a strong balance sheet, improved access to capital markets and significant operating and investing expertise to bring investors a unique value proposition in our sector. We believe Crescent is a must-own mid-cap company, and I am excited to continue building on the growth platform we have created.”

Second Quarter Financial and Operating Results Second quarter production averaged 165 MBoe/d (44% oil and 62% liquids). The Company drilled 12 gross operated wells (8 in the Eagle Ford and 4 in the Uinta), brought online 11 gross operated wells (6 in the Eagle Ford and 5 in the Uinta) and incurred capital expenditures (excluding acquisitions) of $120 million during the quarter. Development costs continued to benefit from operational efficiency gains, as well as moderating service costs. 

Crescent reported net income of $70 million and $56 million of Adjusted Net Income(1) in the second quarter. The Company generated $320 million of Adjusted EBITDAX(1), $287 million of Operating Cash Flow and $147 million of Levered Free Cash Flow(1) for the period.

Financial Position 

Crescent maintains a strong balance sheet and a low leverage profile. As of June 30, 2024, the Company had a Net LTM Leverage(1) ratio of 1.3x, in-line with its stated leverage target, and liquidity of $2.1 billion. 

In connection with the closing of the SilverBow Acquisition in July, the Company’s borrowing base was increased to $2.6 billion with an elected commitment of $2.0 billion. As of July 31, 2024, the Company had approximately $3.2 billion of long-term debt. The Company's corporate credit rating was recently upgraded by Fitch to BB-. 

2024 Outlook 

Crescent is providing updated second half 2024 guidance pro forma for 5 months of the SilverBow acquisition. Relative to initial 2024 estimates, the standalone full-year guidance, excluding the effects of the SilverBow acquisition, reflects a ~2% increase to production and a ~2% improvement in expected capital spend.

(1) Non-GAAP financial measure

KeyFacts Energy: Crescent Energy United States country profile