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On Tuesday, Raymond (NSE:RYMD) James analysts reaffirmed their Strong Buy rating for Crescent Energy stock (NYSE: CRGY), maintaining their price target at $16.00. Currently trading at $8.58, the stock has declined over 41% in the past six months, according to InvestingPro data. The decision follows the company’s first-quarter results, which met production expectations and exceeded capital expenditure forecasts by approximately 17%, attributed to pad timing.
Crescent Energy’s capital expenditure for the first quarter shifted to the second quarter, leading to an expected peak of $275 million. While the company has shown strong revenue growth of 31.58%, InvestingPro analysis reveals significant debt levels and negative free cash flow in recent quarters. The company anticipates balanced spending for the first and second halves of 2025, with estimates of $483 million and $492 million, respectively. The total capex forecast for 2025 stands at $975 million, slightly above the street consensus of $964 million.
Production forecasts for 2025 are aligned with guidance, with Crescent Energy expected to produce around 256,000 barrels of oil equivalent per day, of which approximately 40.5% is oil. For the second quarter of 2025, production is projected at 255,000 barrels of oil equivalent per day, with oil making up 41.4% of the total.
Looking ahead to 2026, Raymond James projects Crescent Energy’s production to remain steady at 255,000 barrels of oil equivalent per day, with a capital expenditure of about $1 billion. The firm highlights Crescent Energy’s robust 2025 free cash flow to enterprise value yield of 12%, compared to an average of 7% among small-cap peers.
Raymond James analysts emphasize their confidence in Crescent Energy’s financial health and growth prospects, reiterating their Strong Buy rating and maintaining the $16 price target. The stock currently offers a notable dividend yield of 5.59%, though investors should note that analyst targets range from $10 to $20. For deeper insights into Crescent Energy’s valuation and financial health metrics, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Crescent Energy reported its Q1 2025 earnings, exceeding analysts’ expectations with an earnings per share of $0.56 compared to the forecasted $0.48. The company also outperformed revenue projections, reporting $950.17 million against the expected $941.57 million. Crescent Energy achieved record production levels, reaching 258,000 barrels of oil equivalent per day, and reported an adjusted EBITDA of $530 million with levered free cash flow of $242 million. Capital expenditures were lower than anticipated at $208 million, contributing to the positive financial performance. The company maintains its full-year capital expenditure guidance of $925-$1,025 million and expects oil production to increase by low to mid-single digits. Approximately 60% of Crescent Energy’s 2025 oil and natural gas production is hedged, providing some stability against volatile commodity prices. Despite these positive results, the stock experienced a decline, possibly due to broader market volatility and investor concerns. Crescent Energy’s management emphasized their commitment to free cash flow generation and strategic flexibility in capital allocation.
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