| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 0/6 |
| Past Performance | 2/6 |
| Financial Health | 1/6 |
| Dividends | 3/6 |
CRGY Stock Overview
Crescent Energy Company, an energy company, explores for, develops, and produces crude oil, natural gas, and natural gas liquids (NGLs) reserves.
Crescent Energy Company Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$15.94 |
| 52 Week High | US$19.65 |
| 52 Week Low | US$10.86 |
| Beta | 0 |
| 1 Month Change | 28.86% |
| 3 Month Change | -9.59% |
| 1 Year Change | n/a |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | -5.23% |
Recent News & Updates
Crescent Energy Company GAAP EPS of $1.30 beats by $0.08, revenue of $908.43M
Crescent Energy Company press release (NYSE:CRGY): Q2 GAAP EPS of $1.30 beats by $0.08. Revenue of $908.43M (+175.2% Y/Y). Crescent CEO David Rockecharlie said, “Through mid-year, we continue to perform incredibly well across the business and execute our business plan to add long-term value for our shareholders. We are seeing solid early-time results from our new assets in the Uinta, which are contributing significantly to our near 100% quarter-over-quarter increase in cash flow. Although industry-wide inflation and service availability are creating headwinds, our people continue to find ways to mitigate these pressures, while generating significant returns on invested capital.”
Crescent Energy: It Is Showtime
Crescent's Uinta acquisition is looking more profitable than originally projected by management. Management has some drilling opportunities to go with the original older production purchases. The market is waiting for that "projected profitability" to show on the quarterly results. Debt ratios remain conservative. The market awaits the benefits of the company's strategy. (Note: This article was in the newsletter May 19, 2022, and has been updated as appropriate). Crescent Energy Company (CRGY) has made several accretive acquisitions. Contango ((MCF)) joined with the company to acquire size so that larger deals could be made. The company also in effect "went public" through that acquisition. This new company combines two parties with impressive track records of investment gains in a rare public vehicle. The last deal involving the Unita Basin acquisition is looking very good because prices have risen considerably above the assumptions used for the acquisition. That means that initial profits from this acquisition should run above budget as long as commodity prices remain stronger than the assumptions used for the acquisition. That is very good news for shareholders. But the real test of many of these acquisitions will be the performance of the assets during the next industry downturn. Older production often has higher lease operating expenses as volume declines. This usually continues until the older wells no longer generate cash flow. At that point, the well is either shut-in until a cyclical recovery ensures better commodity prices, or the well is abandoned because there is no hope of profitability. In this case, management appears to be in a very good position because that older production was purchased either in bankruptcy court or during a time of considerably lower prices. But Mr. Market will still want to see that outperformance during an industry downturn. In the meantime, management is able to spend the generous cash flow to optimize acquired operations while drilling new production to increase the performance of the properties acquired. This increases the chances of financial outperformance during the next industry downturn. Crescent Energy Production Growth Strategy In Eagle Ford And Uinta (Crescent Energy First Quarter 2022, Earnings Conference Call Slides) The company has begun to branch out from acquiring older production and optimizing those operations to some operations that involve drilling and production increases from new wells. This was probably to be expected as the company grew and was able to acquire larger deals. The Eagle Ford, in particular, is one of the most profitable basins in the United States. The beauty of operating here is that "everyone" wants to be in the Permian to the point that the Permian had bottlenecks that led to significant pricing discounts in the last business cycle. That did not happen in the Eagle Ford where the oil was generally sold at a premium to the corresponding benchmark. So, there was an unexpected benefit that probably made Eagle Ford operations more profitable during the peak of the last business cycle. Right now, it looks like that may happen again. Even though geology may usually give the advantage to Permian operators, there is nothing like a good old-fashioned bottleneck in the midstream capacity to completely obliterate that advantage. I personally think the Eagle Ford may yet come out on top at the top of the business cycle one more time. The Uinta is probably more problematic. These assets represent the majority of the old EP Energy (OTCPK:EPEG) company. That company itself filed bankruptcy with too much debt. The problem with a lot of companies that filed was the market often focused on the production decline rate as well as the lack of cash flow in the history. Both of those have changed considerably in the last few years. Now it always takes a few years for new techniques and technological advance to predominate. That few years though has lowered costs considerably to make previously uneconomical acreage economic while moving other acreage into Tier 1 territory. This has been going on for as long as I can remember and it appears to be continuing for the foreseeable future. Then again, the whole reason for acquiring assets is to improve performance. A large acquisition like this could take some years because of the size. However, the higher than projected current prices often shield a situation like this from cash flow issues until enough new wells and lower costs have been established throughout the purchase. There is always a possibility that prices could drop before shareholders see the benefits of new operational techniques or that management was too confident. Right now, though, I like the chances of management to succeed with this acquisition. Crescent Energy Management Guidance With Uinta Acquisition (Crescent Energy Press Release February 2022.) Management is now raising the guidance shown above due to the stronger than expected commodity prices. That means this acquisition will payback faster than expected. Generally, a faster payback raises the profitability of the acquisition. In the meantime, management will use the latest techniques and future technology improvements to continue to lower costs. That should increase the competitiveness of the Uinta assets. Because management continues to shop for bargains, there is likely to be more acquisitions that will materially change guidance during the current fiscal year. That sort of makes the guidance given during the first quarter earnings press release, conference call, and earnings slide presentation somewhat transitory in nature. It also makes it hard for the market to value the current collection of assets. Therefore, expect Mr. Market to take his time assigning a decent value to the assets. In the meantime, the "shop 'til you drop" attitude is ok as long as the discipline remains in place to ensure relatively fast paybacks of assets purchased.
Shareholder Returns
| CRGY | US Oil and Gas | US Market | |
|---|---|---|---|
| 7D | 17.5% | 4.8% | 3.6% |
| 1Y | n/a | 58.5% | -9.6% |
Return vs Industry: Insufficient data to determine how CRGY performed against the US Oil and Gas industry.
Return vs Market: Insufficient data to determine how CRGY performed against the US Market.
Price Volatility
| CRGY volatility | |
|---|---|
| CRGY Average Weekly Movement | 8.9% |
| Oil and Gas Industry Average Movement | 8.8% |
| Market Average Movement | 7.7% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: CRGY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: CRGY's weekly volatility (9%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2020 | n/a | David Rockecharlie | https://www.crescentenergyco.com |
Crescent Energy Company, an energy company, explores for, develops, and produces crude oil, natural gas, and natural gas liquids (NGLs) reserves. The company holds a portfolio of oil and natural gas assets in key proven basins, including the Eagle Ford, Rockies, Barnett, Permian, Mid-Con, and other basins in the United States. As of December 31, 2021, it had 1,528 gross undrilled locations, including 567 gross operated drilling locations; and 531.6 net million barrels of oil equivalent of proved reserves.
Crescent Energy Company Fundamentals Summary
| CRGY fundamental statistics | |
|---|---|
| Market Cap | US$2.76b |
| Earnings (TTM) | US$800.62m |
| Revenue (TTM) | US$2.34b |
0.8x
P/E Ratio0.3x
P/S RatioIs CRGY overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CRGY income statement (TTM) | |
|---|---|
| Revenue | US$2.34b |
| Cost of Revenue | US$795.32m |
| Gross Profit | US$1.54b |
| Other Expenses | US$740.39m |
| Earnings | US$800.62m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 19.08 |
| Gross Margin | 65.96% |
| Net Profit Margin | 34.27% |
| Debt/Equity Ratio | 54.4% |
How did CRGY perform over the long term?
See historical performance and comparisonDividends
4.3%
Current Dividend Yield4%
Payout RatioDoes CRGY pay a reliable dividends?
See CRGY dividend history and benchmarks| Crescent Energy dividend dates | |
|---|---|
| Ex Dividend Date | Aug 22 2022 |
| Dividend Pay Date | Sep 06 2022 |
| Days until Ex dividend | 6 days |
| Days until Dividend pay date | 21 days |
Does CRGY pay a reliable dividends?
See CRGY dividend history and benchmarks