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HOUSTON - Crescent Energy Co (NYSE:CRGY), currently trading at $7.43 per share with a market capitalization of $2.2 billion, expects to report approximately $7 million in total cash received from its hedge positions for the first quarter ending March 31, 2025. This figure includes a positive adjustment of $18 million from the settlement of acquired derivative contracts related to the SilverBow (NYSE:SBOW) Merger. The preliminary results also show a net cash payment of $11 million on the settlement of derivatives. According to InvestingPro analysis, the company operates with a significant debt burden, though net income is expected to grow this year.
These financial outcomes are part of the company's latest 8-K filing with the Securities and Exchange Commission. The reported cash received from hedge settlements will be reflected in Crescent's Adjusted EBITDAX, a measure used by the company to evaluate its operating performance. The company's EBITDA for the last twelve months stands at $1.26 billion, while its stock has declined by approximately 34% over the past six months.
Crescent Energy, a player in the crude petroleum and natural gas sector with headquarters in Houston, Texas, highlighted that these figures are subject to change and constitute forward-looking statements. The company cautions that actual final results for the quarter could materially differ from current expectations.
The full financial details for the quarter will be available in Crescent's upcoming Quarterly Report on Form 10-Q for the period ended March 31, 2025. The information provided in the SEC filing is not deemed "filed" for purposes of Section 18 of the Exchange Act and is not incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act.
This news is based on Crescent Energy's recent SEC filing and reflects the company's performance and strategic financial management through its hedging activities.
In other recent news, Crescent Energy reported its fourth-quarter 2024 earnings, revealing an impressive earnings per share (EPS) of $1.08, which significantly surpassed the forecasted $0.4616. However, the company's revenue of $875.29 million fell short of expectations, missing the projected $896.62 million. Alongside these results, Crescent Energy completed a corporate structure simplification by converting all its Class B common stock into Class A common stock, aiming to improve financial transparency and align stockholder interests. Raymond (NSE:RYMD) James maintained a Strong Buy rating for Crescent Energy but lowered the stock's price target from $23.00 to $18.00, citing a decline in oil prices and adjustments in capital expenditure estimates. Despite the revenue miss, Crescent Energy generated approximately $260 million in free cash flow during the quarter and reported $535 million in adjusted EBITDA. The company also declared a dividend of $0.12 per share and maintained a fixed dividend yield of 4.6%. Crescent Energy's leadership expressed optimism about future opportunities, emphasizing a strategic focus on disciplined growth and capital allocation.
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