Update shared on27 Aug 2025
Fair value Increased 2.51%Crescent Energy’s price target was modestly increased to $14.67, as analysts cited strong operational outperformance, disciplined capital management, and premium asset quality, outweighing market recalibration following its all-stock acquisition of Vital Energy.
Analyst Commentary
- Recent all-stock acquisition of Vital Energy by Crescent Energy is causing shares to trade independently of company fundamentals.
- Strong operational outperformance demonstrated by Crescent Energy, with quarterly production and oil volumes surpassing Street estimates by approximately 3%.
- Capital expenditures came in roughly 4% below expectations, reflecting disciplined capital management.
- Crescent Energy’s assets feature longer inventory life and a lower base decline rate, supporting premium valuation multiples compared to sector peers.
- Despite positive operational trends, overall price targets adjusted downward, reflecting market recalibration post-acquisition.
What's in the News
- Crescent Energy is in advanced negotiations to acquire Vital Energy, a deal expected to enhance Crescent's footprint in the Permian Basin; an announcement could come as soon as next week (Reuters, 2025-08-22).
- The company completed a substantial share buyback, repurchasing 3,573,293 shares (1.83% of shares outstanding) between April and June 2025, totaling $28.17 million, and reaching a cumulative buyback of 2.75% of shares for $41.32 million under its March 2024 authorization (Key Developments, 2025-08-04).
- As of late June 2025, Crescent Energy was dropped from multiple major growth-oriented Russell indices, including the Russell 2000 Growth, 2500 Growth, 3000 Growth, Small Cap Comp Growth, and 3000E Growth (Key Developments, 2025-06-28/30).
- Removal from these indices could impact Crescent's visibility among institutional investors and index-tracking funds (Key Developments, 2025-06-28/30).
- The potential acquisition of Vital Energy and the completed share buyback signal Crescent Energy's active capital allocation strategy despite recent index removals (Reuters, Key Developments).
Valuation Changes
Summary of Valuation Changes for Crescent Energy
- The Consensus Analyst Price Target has risen slightly from $14.31 to $14.67.
- The Consensus Revenue Growth forecasts for Crescent Energy has significantly fallen from 1.4% per annum to 1.2% per annum.
- The Net Profit Margin for Crescent Energy has significantly risen from 10.08% to 11.12%.
Disclaimer
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