10-Q · August 3, 2026
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…
Earnings analysis · 10-Q
CRGY earnings analysis
Filed November 2, 2026 · Our reading of the company's report
The latest report
Crescent reported $1.351 billion of third-quarter revenue and $367 million of levered free cash flow, with revenue up approximately 55.8% year over year and free cash flow up approximately 83.5%. However, diluted GAAP…
Read full summary
Crescent reported $1.351 billion of third-quarter revenue and $367 million of levered free cash flow, with revenue up approximately 55.8% year over year and free cash flow up approximately 83.5%. However, diluted GAAP EPS was $(0.01), below the $0.59 consensus estimate, partly reflecting a $405.8 million derivative loss disclosed in the earnings update. The pending $4.2 billion Devon Eagle Ford acquisition and associated $1.5 billion Term Loan B create substantial execution, leverage and integration risks, while no numeric forward revenue or EPS guidance was provided.
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.
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
- $-0.01
What stood out
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Revenue remained sharply above prior year
Third-quarter revenue was $1.351 billion, down from $1.39 billion in 2026Q2 by approximately 2.8%, but up from $867 million in 2025Q3 by approximately 55.8%.
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Free cash flow stayed strong
Levered free cash flow was $367 million versus $373 million in 2026Q2 and $200 million in 2025Q3, representing an approximately 83.5% year-over-year increase.
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GAAP earnings fell short
Diluted GAAP EPS was $(0.01), compared with $1.30 in 2026Q2 and $(0.04) in 2025Q3; the quarter missed the $0.59 consensus estimate.
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Repurchase capacity remains available
The company had $336.0 million of remaining authorization under its stock repurchase program as of September 30, 2026, while no shares were repurchased during the quarter.
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Acquisition financing advanced
The company completed pricing and syndication of a $1.5 billion Term Loan B in October 2026, with a five-year term and pricing at SOFR plus 2.25%.
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Controls remained effective
Disclosure controls were concluded to be effective as of September 30, 2026, and management reported no material change in internal control during the quarter.
What to watch
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Large pending acquisition
The Devon EF Assets Acquisition is expected to cost approximately $4.2 billion in cash and is subject to numerous closing conditions; the filing states it may not close in the anticipated timeframe or at all.
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Financing and interest-rate risk
The acquisition financing adds leverage and interest-rate exposure: the company arranged a $1.5 billion Term Loan B at SOFR plus 2.25%, while $83.5 million of variable-rate borrowings was outstanding at September 30, 2026.
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Derivative and commodity volatility
Commodity derivative exposure is material, with approximately $2.1 billion of aggregate notional value and a $241.9 million net liability at September 30, 2026; a 10% price increase would change the derivative position by approximately $187.0 million.
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Convertible-note dilution risk
The filing newly identifies dilution and potential earnings effects from the 2031 Convertible Notes, including the possibility that contingent shares reduce diluted EPS or that the liability is reclassified as current, which could materially reduce working capital.
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Synergy and integration risk
Management cautions that acquisition forecasts may not be realized; expected synergies and benefits could take longer than anticipated or fail to materialize as the business expands significantly.
Management's outlook
No numeric revenue or EPS guidance was provided in the filing; the quantitative outlook was deferred to the earnings release and related disclosures.
Earlier filings 4
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…
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…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.