Crescent Energy Company

Crescent reported approximately $798 million of adjusted EBITDAX and approximately $418 million of levered free cash flow in Q2 2026. Production averaged approximately 335,000 boe/d, including approximately 140,000 barrels of oil per day. Oil production was approximately 4% above the midpoint of original full-year guidance, total production was approximately 2% above the midpoint, and adjusted operating expense was nearly 10% better than the midpoint. For 2026, management raised full-year total production guidance to 327,000 to 335,000 boe/d and improved adjusted operating expense guidance to $11 to $12 per boe; development capital guidance stayed at $1.325 billion to $1.425 billion. Management also said it expects more than $1 billion of levered free cash flow in 2026 at current prices.

David Rockecharlie framed the quarter as another record period and said the business is showing stronger execution, lower costs, and meaningful free cash flow. He emphasized that Crescent’s operating and investing model is proving repeatable across the portfolio, especially in the Permian, where the company is now in the optimization phase after integration. His tone was confident and expansive, repeatedly stressing that the company is still early in unlocking the full value of its acreage, inventory, and resource potential.

Brandi Kendall highlighted the financial results of approximately $798 million of adjusted EBITDAX and approximately $418 million of levered free cash flow. She said the stronger first half led Crescent to raise 2026 total production guidance to 327,000 to 335,000 boe/d and improve adjusted operating expense guidance to $11 to $12 per boe, while keeping development capital at $1.325 billion to $1.425 billion. She also cited approximately $2.2 billion of liquidity, no near-term maturities, a weighted average maturity of about 6 years, and the post-quarter redemption of the remaining $259 million of 2029 senior notes at par. On capital allocation, she reiterated the dividend, rapid deleveraging, and flexibility for M&A or share repurchases, while noting the company expects more than $1 billion of levered free cash flow in 2026 at current prices.

Analysts focused heavily on the raised Permian synergy target, asking when the incremental savings would show up and whether the benefit would continue into 2027. Management said most of the $250 million to $300 million target should be captured by the end of 2026 and that there is incremental upside into 2027, especially in cash flow. Questions also centered on capital spending, with Brandi pointing investors back to the midpoint of the capital range, and on back-half production, where she said oil volumes should naturally decline and Q3 oil should be in the mid-130s range. Several questions probed resource expansion, Austin Chalk, and future M&A, and management responded that the company sees more opportunity in its own asset base than in the acquisition market right now, with a high bar for new deals.