CRGY earnings analysis
What we found in CRGY's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Crescent delivered a strong Q2, with revenue up 55% year over year to $1.395 billion, GAAP diluted EPS of $1.30, and operating margin expanding to 41.65%. Vital Energy-related volumes and substantially higher oil prices drove the improvement, while lower per-Boe costs and reduced equity-compensation expense supported profitability and record quarterly levered free cash flow of $417.678 million. The balance sheet improved through a $254.725 million cash increase and $358.106 million debt reduction, though commodity-price exposure, $5.166 billion of remaining debt, and the new convertible-note dilution risk remain important constraints.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue, EPS and margin improved sharply
- Q2 revenue was $1.395 billion, up $496.971 million, or 55%, from $897.983 million in Q2 2025; it also rose from $1.18 billion in Q1 2026. GAAP diluted EPS was $1.30, versus $0.60 in Q2 2025 and a loss of $1.28 in Q1 2026.
- Operating leverage drove margin expansion
- Operating income implied by reported revenue less operating expenses was $580.986 million, for a 41.65% operating margin, versus approximately 8.87% in Q2 2025. Total expenses declined $4.380 million to $813.968 million despite a $496.971 million revenue increase.
- Vital merger and oil pricing lifted volumes
- Total sales volumes increased 27% to 30.465 Mboe, or 335 Mboe/d, from 23.908 Mboe, or 263 Mboe/d. Oil revenue doubled to $1.227 billion as oil volumes rose 30% and realized oil price increased 57% to $96.61/Bbl.
- Cash generation accelerated materially
- Q2 operating cash flow rose $207.822 million, or 42%, to $706.788 million, while levered free cash flow increased $246.803 million, or 144%, to $417.678 million. Development spending was $284.124 million, equal to 40.2% of operating cash flow.
- Liquidity strengthened and debt declined
- Cash and equivalents increased to $264.882 million from $10.157 million at December 31, 2025, while long-term debt decreased $358.106 million to $5.166 billion. The revolving credit facility had no borrowings and approximately $2.0 billion available at June 30, 2026.
- Unit-cost efficiency offset volume growth costs
- Per-unit operating expense fell 18% to $13.38/Boe, including a 30% decline in gathering, processing and transportation cost to $3.10/Boe. Adjusted EBITDAX increased 55% to $797.940 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Gas-price weakness materially reduced revenue
- Natural-gas revenue fell $125.225 million, or 79%, to $33.776 million as realized gas price declined 81% to $0.52/Mcf from $2.71/Mcf. Natural-gas volumes nevertheless increased 11%, underscoring the realized-price exposure.
- Convertible notes add dilution and EPS risk
- The new $690.0 million of 2.750% convertible notes due 2031 may dilute holders if converted; their initial conversion price is $14.89 per share. The filing identifies dilution, potential trading-price pressure, EPS effects and possible working-capital reclassification as new convertible-note risk factors.
- Hedging and leverage retain material sensitivity
- At June 30, 2026, the derivative portfolio had $2.6 billion of notional value; a hypothetical 10% commodity-price increase would change its value by approximately $179.1 million, and a 10% decrease by approximately $168.4 million. Long-term debt remained $5.166 billion and Q2 interest expense increased 33% to $99.823 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.3
- Operating margin
- 41.65%
- Segment
- Oil revenue: $1.227 billion, up $624.338 million (104%) year over year.
- Segment
- Natural-gas revenue: $33.776 million, down $125.225 million (79%) year over year.
- Segment
- NGL revenue: $129.371 million, up $31.229 million (32%) year over year.
- Segment
- Midstream and other revenue: $4.981 million, down $33.371 million (87%) year over year.
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS outlook. Management expects to fund its 2026 capital program, excluding acquisitions, through cash flow from operations and says it can flex spending based on commodity prices, operating results, costs, infrastructure and permitting.
The filing reads better than the one before it.
What came before.
- 10-Q · May 4, 2026
- Crescent Energy reported a robust first quarter for 2026, surpassing revenue and EPS expectations, which indicates strong operational performance and effective cost management. The revenue surged to $1.182 billion, a…
- 10-K · February 25, 2026
- The 2025 10-K positions Crescent Energy as a free cash flow–focused E&P with a long-life, low-decline portfolio concentrated in the Eagle Ford, Permian and Uinta basins. The filing reports 975.5 net MMBoe of proved…
- 10-Q · August 4, 2025
- Crescent Energy reported Q2 2025 revenue of $897,983,000 (up 37.5% vs Q2 2024) and diluted Class A EPS of $0.60 (up $0.27 vs Q2 2024). Operating income was $79,635,000, implying an operating margin of 8.87%, down…
- 10-Q · August 5, 2024
- Crescent Energy reported Q2 revenue of $653.3M, up 32.7% year-over-year from $492.3M, with operating income of $119.4M and diluted Class A EPS of $0.33 (vs $0.11 in Q2 2023). The quarter shows materially stronger cash…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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