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…
Earnings analysis · 10-Q
CRGY earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.3
- Operating margin
- 41.65%
What stood out
-
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.
What to watch
-
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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.