Crescent Energy Raises Output Outlook as Cash Flow Hits Record
The company lifted the lower end of its 2026 production forecast to 327,000 barrels of oil equivalent a day.
Crescent Energy (CRGY), an independent U.S. energy producer, more than doubled quarterly levered free cash flow to a record $418 million as higher realized prices and lower development spending outweighed a sequential decline in output.
The quarter extended Crescent’s year-over-year growth following its Permian expansion, while marking a pause from record first-quarter production. Total output slipped 1.8% sequentially to 335,000 barrels of oil equivalent a day, with oil holding at 140,000 barrels a day. Production remained 27% above the year-earlier level, including a 30% increase in oil.
Net income swung to $494 million from a $419 million loss in the first quarter. Adjusted earnings rose to $0.69 a share from $0.40 a year earlier, while adjusted EBITDAX increased 16% sequentially and 55% from a year earlier to a record $798 million.
Operating cash flow climbed 73% from the first quarter to a record $707 million. Crescent’s average realized oil price before derivative settlements rose 36% sequentially to $96.61 a barrel, and its total realized price after derivatives increased 10% to $40.56 per barrel of oil equivalent.
Development capital declined 26% sequentially to $284 million while oil production was unchanged. Crescent drilled 43 operated wells, up from 38, though the number of wells brought online fell to 32 from 37. Captured Permian synergies reached about $190 million, up from roughly $120 million in the first quarter, and the target was raised to approximately $250 million to $300 million.
Crescent now expects 2026 production of 327,000 to 335,000 barrels of oil equivalent a day, compared with its previous range of 320,000 to 335,000. It lowered adjusted operating-expense guidance to $11 to $12 per barrel of oil equivalent after second-quarter costs came in at $10.95, while leaving its $1.325 billion to $1.425 billion development-capital plan unchanged.
The company maintained its quarterly dividend at $0.12 a share and kept about $336 million of repurchase authorization. Recurring cash general and administrative expense rose 30% from a year earlier, and transaction and nonrecurring costs increased to $25.9 million as Crescent continued integrating acquisitions and restructuring operations.