Crescent Energy Q2 Earnings Call Highlights

Crescent Energy NYSE: CRGY reported record quarterly levered free cash flow in the second quarter of 2026 and raised its full-year production outlook, citing higher volumes, lower operating costs and accelerating savings from its Permian acquisition. Chief Executive Officer David Rockecharlie said the company produced about 335,000 barrels of oil equivalent per day during the quarter, including approximately 140,000 barrels of oil per day. Crescent generated $418 million of levered free cash flow, a quarterly record, and $798 million of adjusted EBITDAX.

“Higher production, structurally lower costs, and record free cash flow reinforce both the strength of the business today and the long-term value creation opportunity ahead,” Rockecharlie said.

Management increased 2026 total production guidance to a range of 327,000 to 335,000 Mboe/d and raised oil production expectations, though it did not provide a revised numerical oil guidance range during the call. The company also improved its adjusted operating expense outlook to $11 to $12 per Boe, a $0.50-per-Boe improvement.

Development capital guidance was unchanged at $1.325 billion to $1.425 billion. Chief Financial Officer Brandi Kendall said maintaining the capital range while increasing production expectations reflects capital-efficiency improvements across Crescent’s portfolio. Kendall told analysts that capital spending is expected to land near the midpoint of the annual range. While the second quarter represented the company’s lowest capital quarter of the year, spending in the third and fourth quarters is expected to be relatively even. Management expects oil and total production to decline naturally during the second half of 2026, largely because of the timing of wells placed on production. In the Permian, Crescent is transitioning from two-mile to three-mile laterals, which is expected to move more completions later in the quarter. Kendall said third-quarter oil production is expected to be in the mid-130,000-barrel-per-day range.

Crescent increased its estimated annual synergy opportunity from its December Permian acquisition to $250 million to $300 million, roughly three times the original $90 million to $100 million target announced with the deal. The company said it had captured approximately $190 million of annualized synergies to date. Rockecharlie said the company has completed the initial stabilizatio...