Crescent Energy Reports 16% Revenue Growth, Net Loss Improvement in Q3 2024

Crescent Energy Company reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved revenues of $744.9 million for the three months, marking a 16% increase from $642.4 million in the same period of 2023. For the nine months ended September 30, 2024, revenues reached $2.06 billion, up 19% from $1.72 billion in 2023. This growth was primarily driven by increased oil revenues, which rose to $548.4 million, a 9% increase from $504.7 million in the prior year, supported by a 19% rise in sales volume.

Natural gas liquids (NGL) revenues surged by 59% to $87.3 million, while midstream and other revenues increased dramatically by 178% to $30.4 million, attributed to higher oil blending revenues. However, total expenses for the quarter also rose significantly to $752.3 million, a 50% increase from $500.9 million in 2023, largely due to higher general and administrative costs, which soared by 264% to $159.7 million.

Crescent reported a net loss of $5.6 million for the quarter, an improvement from a loss of $131.1 million in the same quarter of 2023. The net income attributable to Crescent Energy was $(9.9 million), compared to $(52.9 million) in the previous year. The company’s net cash provided by operating activities increased by 94% to $368.0 million, reflecting improved operational efficiency.

The company completed the SilverBow Merger on July 30, 2024, issuing 51.6 million shares of Class A common stock and paying $382.4 million in cash. This merger contributed $161.6 million in revenues and $47.8 million in net income from the acquired operations through September 30, 2024. The merger also led to a significant increase in total debt, which rose to $3.23 billion from $1.69 billion at the end of 2023.

Crescent's capital expenditures for the nine months ended September 30, 2024, totaled $1.47 billion, up from $1.09 billion in 2023, reflecting ongoing investments in acquisitions and development. The company also repurchased $7.3 million worth of Class A common stock during the quarter as part of its stock repurchase program, which has a remaining authorization of $120 million.

Overall, Crescent Energy's performance in the third quarter of 2024 reflects a strategic focus on growth through acquisitions, particularly following the SilverBow merger, while managing increased operational costs and debt levels.