Executive Summary

Q2 2025 delivered record production (263 Mboe/d) and strong cash generation (Adjusted EBITDAX $513.9M; Levered FCF $170.9M), with “all key metrics exceeding expectations” per management .
Results beat S&P Global consensus: Adjusted EPS $0.43 vs $0.31*, revenue $898.0M vs $886.4M*, and EBITDA $578.1M* vs $476.3M*; magnitude of beats was aided by operational cost efficiencies and hedging (S&P Global; asterisked values) ; Values retrieved from S&P Global.
Full-year 2025 guidance improved on capital (-~3% to $910–$990M) and cash taxes (to 0%), with production unchanged (251–261 Mboe/d), increasing projected free cash flow .
Balance sheet strengthened via ~$200M debt repayment in Q2 and opportunistic refinancing: priced $600M 8.375% 2034 notes (June 23) and executed tender/partial redemption of 9.250% 2028s to $500M in July . Shareholder returns continued: $0.12 dividend and ~$28M buybacks at $7.88/sh in Q2 .

What Went Well and What Went Wrong

What Went Well
- Record production (263 Mboe/d; 108 Mbbl/d oil) with capex discipline; Adjusted EBITDAX $513.9M and Levered FCF $170.9M supported a capital returns program (dividend + buybacks) .
- 2025 outlook enhanced: capex cut ~3% with production unchanged; cash taxes reset to 0% (post-OBBBA), increasing free cash flow potential .
- Strategic/financial actions: ~$200M debt repaid in Q2; $600M 2034 notes priced; tender+redemption addressed 2028s; repurchased ~$28M stock, eliminated Up-C (single-class common) .
- Management quote: “We once again posted strong free cash flow…and we are enhancing our outlook for the full year” – CEO David Rockecharlie .
What Went Wrong
- GAAP G&A per Boe rose q/q (2.45 → 5.21) largely from elevated equity-based comp; GAAP G&A expense $124.6M vs $56.8M in Q1 .
- Realizations softer y/y: total realized price (after hedges) $36.79/Boe vs $39.57/Boe in Q2’24; oil price before hedges $61.47/bbl vs $75.68/bbl y/y .
- QoQ revenue declined ($950.2M → $898.0M) amid lower blended realizations despite higher volumes; impairment expense ($3.0M) also recorded .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$653.3	$950.2	$898.0
GAAP Diluted EPS ($)	$0.33	$(0.01)	$0.60
Adjusted EPS ($)	$0.31	$0.56	$0.43
Adjusted EBITDAX ($USD Millions)	$319.8	$529.5	$513.9
Levered Free Cash Flow ($USD Millions)	$146.9	$241.6	$170.9
Production (Mboe/d)	165	258	263
Oil (Mbbl/d)	73	102	108
Gas (MMcf/d)	372	655	644
NGLs (Mbbl/d)	30	47	48

Estimates vs Actuals (S&P Global; asterisk denotes S&P data)

Q2 2025 Adjusted/Primary EPS: $0.43 actual vs $0.31 consensus*; beat of $0.12. Values retrieved from S&P Global.
Q2 2025 Revenue: $898.0M actual vs $886.4M* consensus; beat of ~$11.6M. Values retrieved from S&P Global.
Q2 2025 EBITDA: $578.1M* actual vs $476.3M* consensus; beat of ~$101.9M. Values retrieved from S&P Global.
(Counts: EPS ests = 11*, Revenue ests = 7*). Values retrieved from S&P Global.

Q2 2025 Consensus vs Actual	Consensus*	Actual
Primary EPS ($)	0.314	0.43
Revenue ($M)	886.4	898.0
EBITDA ($M)	476.3	578.1*

KPIs and Unit Economics

KPI	Q2 2024	Q1 2025	Q2 2025
Total realized price after hedges ($/Boe)	39.57	38.93	36.79
Oil realized price before hedges ($/Bbl)	75.68	67.64	61.47
Gas realized price before hedges ($/Mcf)	1.51	3.18	2.71
NGL realized price before hedges ($/Bbl)	24.55	25.43	22.59
Operating expense ($/Boe)	19.61	17.38	16.31
Adjusted opex ex taxes ($/Boe)	15.17	13.25	12.40
Production & other taxes ($/Boe)	2.08	2.60	2.30
GAAP G&A ($/Boe)	3.15	2.45	5.21
Adjusted Recurring Cash G&A ($/Boe)	1.44	1.38	1.22

Segment breakdown: Not applicable; Crescent reports a consolidated upstream portfolio.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Production (Mboe/d; oil %)	FY 2025	251–261; 41–40%	251–261; 41–40%	Maintained
Capital Expenditures (ex A&D) ($M)	FY 2025	$925–$1,025	$910–$990	Lowered (~3%)
Cash Taxes (% of Adjusted EBITDAX)	FY 2025	2.0%–5.0%	0%	Lowered to 0%

Notes: Updates reflect operational efficiencies and the July 4, 2025 OBBBA cash tax impact; production unchanged; A&D impacts immaterial to 2025E .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Capital efficiency & D&C costs	Highlighted improved D&C, U-turn wells; 2025 plan flexible across oil/gas	~15% DC&F cost savings in South Texas/Uinta vs 2024; reaffirmed efficiency gains	Improving
Hedging & cash flow durability	~60% 2025 oil/gas hedged; hedges managed separately from drilling	~60% hedged in 2025; detailed 2025–2027 liquids and gas hedge book	Stable/Robust
Portfolio optimization (A&D)	Non-core divestiture pipeline; Ridgemar closed; opportunistic sales/buys	~$110M non-core divestitures YTD; $72M minerals acquisition closed July 31	Active
Balance sheet & refinancing	Leverage 1.4–1.5x; ample liquidity	~$200M Q2 debt paydown; $600M 2034s priced; $500M 2028s tender/redemption	Strengthening
Regulatory/cash taxes	—	Cash taxes to 0% for 2025 (OBBBA impact)	Positive tailwind
Return of capital	Dividend $0.12/sh; opportunistic buybacks	$0.12 Q2 dividend; ~$28M Q2 buybacks; ~43% of $150M authorization used to date	Ongoing

Management Commentary

Strategic message: “Our business model allows us to see opportunity and be proactive in periods of dislocation…this quarter’s performance is a perfect example of our strategy in action.” – CEO David Rockecharlie .
Operating execution: Record production (263 Mboe/d) with capex of $265M; 34 gross operated wells online (26 Eagle Ford, 8 Uinta) .
Capital returns and simplification: $0.12 dividend, ~$28M buybacks at $7.88/sh, Up‑C elimination completed .
Guidance framing: Capex trimmed with unchanged volumes; 0% cash taxes for 2025, boosting free cash flow outlook .

Q&A Highlights

Note: The Q2 2025 earnings call transcript could not be retrieved due to a source database inconsistency (document 42). Based on the most recent available Q1 2025 Q&A, investor focus remained on:
- Capital allocation flexibility between oil vs gas (shift within Eagle Ford; returns-first approach) .
- Hedging treated as a separate asset from drilling decisions .
- Use of free cash flow across buybacks vs debt reduction (opportunistic; balance sheet and fixed dividend prioritized) .
- Uinta JV and delineation strategy with minimal firm commitments; patience and risk-sharing emphasized .

Estimates Context

S&P Global consensus vs actual (Q2 2025): Adj/Primary EPS $0.31* vs $0.43 actual; Revenue $886.4M* vs $898.0M actual; EBITDA $476.3M* vs $578.1M* actual. Beats suggest upward pressure on near-term EBITDA/FCF forecasts, offset by softer unit realizations q/q. Values retrieved from S&P Global.

Key Takeaways for Investors

Solid fundamental beat: Broad-based beat vs EPS, revenue, and EBITDA consensus, underpinned by cost efficiency and hedging; higher production and lower unit opex support sustainability ; Values retrieved from S&P Global.
FCF momentum with lower 2025 capex and 0% cash taxes: Guidance implies incremental free cash flow vs prior outlook; production unchanged .
De-risked balance sheet path: $600M 2034 notes priced; ~$500M 2028s taken out via tender/redemption; ~$200M Q2 paydown accelerates deleveraging .
Shareholder-friendly capital returns: Fixed dividend maintained; buybacks active at discounted prices; ~43% of the $150M plan executed to date .
Operational levers intact: Eagle Ford and Uinta efficiency gains (DC&F down ~15–25% vs prior programs) provide cushion against commodity volatility .
Actionable: Narrative catalysts near term include execution against lowered capex guide, sustained FCF delivery, and additional portfolio optimization/debt reduction; watch realized prices and G&A normalization after elevated Q2 equity comp .

Additional references used

Q2 2025 8-K results (press release, financials, reconciliations) .
Q2 2025 earnings slides (guidance, hedges, leverage, KPIs) .
Q1 2025 8-K results (trend context) .
Q1 2025 earnings call (themes/Q&A) .
Q4 2024 earnings call (longer-term themes) .
Tender/financing updates (Q2 context) .

Crescent Energy Co (CRGY)·Q2 2025 Earnings Summary