Mizuho maintains Neutral rating on Crescent Energy stock amid dry gas shift

Published 11/07/2025, 12:32
Mizuho maintains Neutral rating on Crescent Energy stock amid dry gas shift

Investing.com - Mizuho (NYSE:MFG) has reiterated its Neutral rating and $12.00 price target on Crescent Energy (NYSE:CRGY), currently trading at $9.29, as the company shifts capital toward dry gas Eagle Ford assets. According to InvestingPro data, analysts’ targets range from $10 to $19, with the stock showing potential upside based on consensus estimates.

The investment firm expects CRGY’s oil volumes to peak in the second quarter of 2025, while barrel of oil equivalent (boe) volumes will continue growing in the third and fourth quarters as dry gas wells begin production.

Mizuho notes that investors appear concerned about the implications for 2026 oil volumes, with the firm forecasting a potential 4% year-over-year decline due to the company’s increased focus on dry gas development.

The research note highlights ongoing progress on non-core asset sales, with CRGY having closed approximately $90 million of its targeted $250 million year-to-date, while investors await updates on potential M&A activity and Eagle Ford consolidation.

Despite continued execution and business simplification, CRGY shares have underperformed peers year-to-date, with Mizuho maintaining its Neutral stance as the stock trades near or at a slight premium to industry peers.

In other recent news, Crescent Energy Company announced preliminary figures for its hedge settlements, expecting to report approximately $37 million in cash received for the second quarter of 2025. Additionally, Crescent Energy Finance LLC, a subsidiary of Crescent Energy, reported that $306 million in principal amount of its 9.250% Senior Notes due 2028 were tendered in a cash offer. The company also priced $600 million of 8.375% Senior Notes due 2034, increasing the offering size from the initially planned $500 million. These notes are intended to fund a tender offer for a portion of the 2028 notes and to repay revolving credit facility debt.

Moreover, Piper Sandler initiated coverage on Crescent Energy with an Overweight rating and a price target of $14.00, citing the company’s strategic focus on expanding in the Eagle Ford basin and its strong hedge book. The analysts highlighted Crescent Energy’s potential for acquisitions and the shift towards gas activity. The company’s recent financial maneuvers and analyst coverage reflect significant developments in its strategy and financial management.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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