The following is a summary of the Crescent Energy Company (CRGY) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Crescent Energy reported strong financial results with record production of 219,000 barrels of oil equivalent per day.

• Adjusted EBITDA for the quarter was approximately $430 million with levered free cash flow at about $160 million.

• Capital expenditures were $211 million, better than forecast due to cost efficiencies.

• Significant free cash flow was generated, and guidance for the year was raised for the third consecutive quarter due to efficient capital spending and increased free cash flow.

• Achieved a strong balance sheet with net leverage of 1.5x and $1.5 billion of liquidity.

Business Progress:

• Crescent achieved significant improvements through the integration of SilverBow, realizing approximately $65 million of annualized synergies and subsequently raised the synergy target by over 20%.

• Continued enhancement of operational efficiencies in the Eagle Ford through developments like horseshoe U-shaped wells and Simulfrac completions, driving down development costs and enhancing well performance.

• Expanded and optimized operations across SilverBow assets, leading to a 10% reduction in well costs relative to H1.

• Executed on a significant acquisition strategy, including successful integration of acquisitions and continued pursuit of attractive M&A opportunities, with a pipeline of 150 to 200 potential transactions annually.

Opportunities:

• Positioned for significant market opportunities with increased scale, robust operating, and financial performance.

• Flexibility to adjust activity levels and capital allocation in response to commodity volatility, focusing on cash flow generation and attractive capital returns.

• Pursuit of further acquisitions with a focus on compounding capital over time at attractive rates of return, under stringent underwriting criteria.

Risks:

• The market remains volatile with uncertainties in commodity prices and economic conditions possibly impacting business operations and financial performance.

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