$CRGY earnings report

Crescent reported third-quarter total revenues of $ 1,351,212 (in thousands), compared with $ 866,579 (in thousands) in the prior-year quarter. Oil revenues were $ 1,042,500 (in thousands), while natural gas revenues were $ 154,593 (in thousands) and natural gas liquids revenues were $ 140,345 (in thousands). Total consolidated production averaged 328 MBoe/d, including 134 MBo/d of oil, compared with 253 MBoe/d and 103 MBo/d, respectively, in the prior-year quarter.

Operating profitability improved sharply on the reported figures. Income from operations was $ 478,689 (in thousands), compared with $ 30,801 (in thousands) a year earlier, while Adjusted EBITDAX was $ 785,829 (in thousands), compared with $ 486,539 (in thousands). GAAP results nevertheless remained negative, with net income (loss) of $ (591) (in thousands), as the quarter included a $ (405,833) (in thousands) gain (loss) on derivatives and $ (94,214) (in thousands) of interest expense. Adjusted Net Income was $ 254,047 (in thousands), and Adjusted EPS was $ 0.77.

Cash generation supported both investment and capital returns. Net cash provided by operating activities was $ 608,495 (in thousands), compared with $ 473,060 (in thousands) in the prior-year quarter, and Levered Free Cash Flow was $ 366,654 (in thousands), compared with $ 204,467 (in thousands). Capital expenditures excluding acquisitions were $326 million. The Board approved a $0.12 per-share cash dividend, and the Share Repurchase Program had approximately $336 million of availability remaining as of September 30, 2026.

The balance-sheet presentation showed $ 4,717,703 (in thousands) of long-term debt and $ 6,126 (in thousands) of cash and cash equivalents at September 30, 2026. The Company reported Net Debt of $ 4,712 (in millions) and Net Leverage of 1.5x. Management also reported approximately $2.0 billion of liquidity and no near-term maturities in the release highlights.

The principal strategic development was the announced agreement to acquire Eagle Ford assets from Devon Energy for an estimated net purchase price of approximately $3.85 billion. The transaction is expected to close in the fourth quarter of 2026 or early 2027, subject to customary closing conditions. Separately, Crescent raised its Permian synergy target to more than $300 million, reporting approximately $295 million captured to date. The release did not provide formal financial guidance for a future reporting period.

This filing is a preliminary derivative-settlement disclosure rather than a full earnings release. Crescent expects to report total cash paid from hedge settlements of approximately $144 million for the three months ended September 30, 2026 and $383 million for the nine months ended September 30, 2026. The company states that all disclosed dollar amounts are preliminary and subject to change, with final amounts to be reported in its Quarterly Report on Form 10-Q for the period ended September 30, 2026.

For the three-month period, net cash paid on settlement of derivatives was $ (160) million. Settlement of acquired derivative contracts contributed $33 million, while settlement of Ridgemar contingent earn-out consideration was $ (17) million. For the nine-month period, net cash paid on settlement of derivatives was $ (504) million, acquired derivative-contract settlements were $156 million, and Ridgemar contingent earn-out settlement was $ (35) million.

The company expects to classify the Ridgemar contingent earn-out settlements as financing outflows on the Statements of Cash Flows and additions to Adjusted EBITDAX. It expects to classify settlements of acquired derivative contracts as positive adjustments on the Statements of Cash Flows and additions to Adjusted EBITDAX. The acquired-contract settlements relate to derivative contracts obtained through the SilverBow Merger and the Vital Merger.

Separately, Crescent amended its credit agreement to permit the Devon EF Assets Acquisition and, subject to customary terms and conditions, an up to $2.0 billion 364-day unsecured bridge credit facility to fund, among other things, part of the acquisition consideration. The amendment maintains aggregate elected commitments at $2.0 billion and also provides specified capacity for pari passu term loan indebtedness and certain additional debt. The filing does not provide revenue, operating income, net income, EPS, production, capital expenditures, cash, debt balances, or forward operating guidance, limiting assessment of the broader operating period.

Crescent reported strong second-quarter operating and cash-flow performance. Production averaged 335 MBoe/d, including 140 MBo/d of oil, while operating expense was $13.38/Boe and adjusted operating expense, excluding production and other taxes, was $10.95/Boe. The adjusted operating-expense result was approximately 9% below the prior 2026 guidance midpoint. The company drilled 43 gross operated wells and brought online 32 gross operated wells across the Eagle Ford, Permian and Uinta.

Financial results included $494 million of net income, $263 million of Adjusted Net Income and record Adjusted EBITDAX of $798 million. Record Operating Cash Flow of $707 million and record Levered Free Cash Flow of $418 million were supported by disciplined capital investment and operational execution. Capital expenditures, excluding acquisitions, were $284 million during the second quarter.

Management enhanced its 2026 outlook after stronger-than-expected first-half performance. Total production guidance is now 327 - 335 MBoe/d, while oil production remains guided at 40% - 42% of total production. The company lowered adjusted operating expense guidance to $11.00 - $12.00/Boe and production-tax guidance to 5.0% - 6.0% of commodity revenue, while maintaining development capital guidance at $1,325 - $1,425. Management expects the combination of higher production and lower operating costs to support incremental free cash flow generation in 2026.

Capital allocation combined debt reduction with an ongoing shareholder-return framework. Crescent redeemed the remaining $259 million of 7.75% senior notes due 2029 at par in July 2026, eliminating its nearest maturity, and reported approximately $2.2 billion of liquidity as of June 30, 2026. The Board approved a $0.12 per-share quarterly cash dividend, while approximately $336 million remained available under the share repurchase program. Permian optimization is a central execution item, with the synergy target increased to approximately $250 million to $300 million and approximately $190 million captured to date.