Crescent Energy Reports Transformational 2025 Results: Record Production, Major Acquisitions, and Enhanced Shareholder Returns
Key Highlights from the Fourth Quarter and Full Year 2025
- Operating Cash Flow: \$1.7 billion for the full year 2025
- Levered Free Cash Flow: \$856 million for the year
- Record Production: Achieved an annual production high of 260 MBoe/d (39-40% oil, 58% liquids)
- Portfolio Transformation: Completed approximately \$5 billion in acquisitions and divestitures to focus on higher-return, scalable assets
- Operational Excellence: 15% year-over-year improvement in well costs
- Strengthened Balance Sheet: Ended 2025 with roughly \$2 billion in liquidity and a net leverage ratio of 1.5x
- Shareholder Returns: Increased share repurchase authorization to \$400 million and declared a quarterly dividend
Detailed Financial and Operational Results
Fourth Quarter 2025:
- Production averaged 268 MBoe/d (39% oil, 58% liquids), with oil output at 106 Mbo/d
- 33 gross operated wells were drilled (25 in Eagle Ford, 6 in Permian, 2 in Uinta); 22 gross operated wells brought online (all in Eagle Ford)
- Capital expenditures (excluding acquisitions): \$226 million for the quarter
- Net income: \$9 million; Adjusted Net Income: \$131 million
- Adjusted EBITDAX: \$536 million; Operating Cash Flow: \$371 million; Levered Free Cash Flow: \$239 million
Full Year 2025:
- Net income: \$167 million; Adjusted Net Income: \$470 million
- Adjusted EBITDAX: \$2.1 billion
- Operating Cash Flow: \$1.7 billion; Levered Free Cash Flow: \$856 million
- Exceeded full-year guidance due to acquisitions, divestitures, and operational outperformance
- Closed the year with a net leverage ratio of 1.5x and \$2 billion liquidity
Major Acquisitions and Divestitures
- \$4 Billion in Accretive Acquisitions in 2025:
- January 2025: Closed Central Eagle Ford acquisition (\$905 million, including \$830 million in cash and 5.5 million shares of common stock, plus contingent oil price consideration)
- July 2025: Closed complementary minerals assets acquisition (\$72 million)
- December 2025: Closed Vital Energy acquisition in the Permian (\$3.1 billion, inclusive of net debt, all-stock transaction)
- February 2026: Announced two Eagle Ford minerals acquisitions for \$355 million in cash; transactions closed in Q1 2026
- Over \$900 Million in Non-Core Divestitures: Sold entire positions in Barnett, conventional Rockies, Mid-Continent, and DJ basins, completing the planned non-core divestiture program
2026 Outlook: Strategic Plans and Guidance
- Production Guidance: 320-335 MBoe/d (40-42% oil, 36-39% gas)
- Development Capital: \$1.325 – \$1.425 billion
- Operational Plan: Flexible 6-7 rig program (1-2 rigs in Permian), applying Crescent’s operational playbook to newly acquired assets
- Increased Exposure to World-Class Undeveloped Resource: Driven by recent minerals acquisitions in Eagle Ford
- Shareholder Returns: Maintained fixed dividend (\$0.12 per share for Q4 2025, payable March 25, 2026) and expanded share repurchase program to \$400 million
Shareholder Updates and Price-Sensitive Information
- Expanded Share Repurchase Authorization: The board increased the program to \$400 million, reflecting confidence in the company’s cash flow and flexibility to act during market dislocations. This could support the share price if executed aggressively.
- Record Production and Well Cost Improvements: Delivering operational efficiencies and scaling up core basin positions, which can positively impact valuation multiples and future cash flows.
- Balance Sheet Strength: Strong liquidity and low net leverage (1.5x) after paying down revolving credit facility with divestiture proceeds. This financial flexibility positions Crescent for further opportunistic investments or returns.
- Successful Portfolio Transformation: The acquisition of Vital Energy and divestment of non-core assets enhance the portfolio’s growth and return outlook, a catalyst for re-rating the shares.
- 2026 Guidance: The company is targeting meaningful production growth (up ~23-29% year-over-year), which, if achieved, could drive upward earnings and share price revisions.
- Corporate Simplification: Elimination of the Up-C structure streamlines governance and potentially improves cash flow available to shareholders.
Operational and Financial Tables (Select Data)
| Metric |
Q4 2025 |
FY 2025 |
| Net Income |
\$9 million |
\$167 million |
| Adjusted EBITDAX |
\$536 million |
\$2.1 billion |
| Levered Free Cash Flow |
\$239 million |
\$856 million |
| Production (MBoe/d) |
268 |
260 |
| Liquidity (Year-End) |
\$2 billion |
| Net Leverage |
1.5x |
Conference Call Information
- Date: Thursday, February 26, 2026
- Time: 10 a.m. CT (11 a.m. ET)
- Webcast Link: www.crescentenergyco.com
- Dial-in: 877-407-0989 (domestic) / 201-389-0921 (international)
Investor Takeaways
- Crescent Energy delivered a transformational year marked by major acquisitions, operational improvements, and enhanced returns to shareholders.
- The company’s aggressive capital recycling and portfolio focus have set the stage for meaningful production and cash flow growth in 2026.
- Shareholders benefit from an expanded buyback program, stable dividends, and a simplified organizational structure.
- Given the scale of acquisitions, improvements in well costs, and robust guidance, Crescent Energy remains a potentially attractive play in the U.S. E&P sector for growth- and value-oriented investors.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any securities. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. Future performance is subject to risks as outlined in Crescent Energy’s forward-looking statements and regulatory filings.
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