Executive Summary

Q3 2025 delivered strong free cash flow with Operating Cash Flow of $473.1M and Levered Free Cash Flow of $204.5M, underpinned by disciplined capex ($204.8M) and continued Eagle Ford efficiency gains; production averaged 253 Mboe/d with 103 Mbbl/d oil .
Versus S&P Global consensus, Crescent posted an EPS beat and EBITDA beat but a slight revenue miss: Adjusted/Primary EPS $0.35 vs $0.314* est., EBITDA $479.8M* vs $468.6M* est., Revenue $866.6M vs $877.4M* est. (company revenue actual) . Values retrieved from S&P Global.
Portfolio reshaping advanced: announced ~$3.1B all‑stock acquisition of Vital Energy (Permian) and signed >$700M of non‑core divestitures (Barnett, Rockies, Mid‑Continent) at >5.5x EBITDA; proceeds aimed at debt paydown; borrowing base springing to $3.9B with lower pricing, capturing ~$12M synergies ahead of close .
2025 capex guidance was improved for a second straight quarter to $910–$970M (from original $925–$1,025M) with flat production on a divestiture‑adjusted basis; Q3 dividend held at $0.12/share .
Key near‑term stock catalysts: Vital closing/timing and integration, divestiture closings by year‑end, synergy capture progression, and Q4 mix/volume impacts (≈16 Mboe/d reduction from divestitures; oil ~39%) .

What Went Well and What Went Wrong

What Went Well
- Free cash flow and cost efficiency: $473.1M Operating Cash Flow and $204.5M LFCF despite lower sequential revenue; Eagle Ford D&C and facilities costs per foot down ~15% vs 2024 with higher well productivity .
- Capital structure and liquidity: Borrowing base expanded 50% to $3.9B and pricing reduced (~$12M cost‑of‑capital synergies captured in advance of Vital close) .
- Strategic portfolio actions: >$700M of non‑core divestitures signed at >5.5x EBITDA and at a premium to PV‑10, simplifying the portfolio and improving margin/breakevens; Vital transaction adds scaled Permian exposure . “Our results exceeded expectations on all key metrics, and we are enhancing our full‑year outlook for the second consecutive quarter” — CEO David Rockecharlie .
What Went Wrong
- Revenue modestly below consensus: $866.6M actual vs $877.4M* est. despite strong realizations; GAAP net loss of $10.3M given DD&A, impairment, interest expense and debt extinguishment costs . Values retrieved from S&P Global.
- Sequential margin drift: Adjusted EBITDAX margin eased to ~56.1% from ~57.2% in Q2 (company measures), reflecting lower revenue and higher per‑Boe LOE/taxes .
- Near‑term headwinds into Q4: CFO guided to ~16 Mboe/d production reduction from divestitures and ~39% oil mix in Q4, which could weigh on oil‑weighted cash flow mix before Vital synergies are realized .

Financial Results

Vs estimates (S&P Global) and actuals

Metric	Q3 2025 Actual	Q3 2025 Consensus	Notes
Revenue ($USD Billions)	$0.867	$0.877*	Company revenue vs S&P est.; slight miss. Values retrieved from S&P Global.
Primary/Adjusted EPS ($)	$0.35	$0.314*	Company Adjusted EPS aligns with S&P Primary EPS actual; beat vs consensus. Values retrieved from S&P Global.
EBITDA ($USD Millions)	$479.8*	$468.6*	S&P EBITDA actual/est.; Company reports Adjusted EBITDAX $486.5M . Values retrieved from S&P Global.

Values retrieved from S&P Global.

P&L and cash flow vs prior periods (oldest → newest)

Metric	Q3 2024	Q2 2025	Q3 2025
Total Revenues ($USD Millions)	$744.9	$898.0	$866.6
GAAP Diluted EPS ($)	$(0.07)	$0.60	$(0.04)
Adjusted EPS ($)	$0.39	$0.43	$0.35
Adjusted EBITDAX ($USD Millions)	$430.4	$513.9	$486.5
Adjusted EBITDAX Margin (%)	57.8%	57.2%	56.1%
Operating Cash Flow ($USD Millions)	$368.0	$499.0	$473.1
Levered Free Cash Flow ($USD Millions)	$157.7	$170.9	$204.5

Commodity revenue breakdown (oldest → newest)

Revenue Component ($USD Millions)	Q3 2024	Q2 2025	Q3 2025
Oil	$548.4	$602.5	$596.3
Natural Gas	$78.8	$159.0	$144.5
NGLs	$87.3	$98.1	$92.6
Midstream & Other	$30.4	$38.4	$33.2
Total	$744.9	$898.0	$866.6

Operating KPIs

KPI	Q3 2024	Q2 2025	Q3 2029
Production (Mboe/d)	219	263	253
Oil (Mbbl/d)	86	108	103
Total realized price, after hedges ($/Boe)	$35.76	$36.79	$36.81
Operating expense ($/Boe)	$16.23	$16.31	$16.65
Adjusted operating expense ex taxes ($/Boe)	$12.57	$12.40	$12.83
Production & other taxes ($/Boe)	$2.15	$2.30	$2.39
Adjusted Recurring Cash G&A ($/Boe)	$1.13	$1.22	$1.33
Capex – development ($USD Millions)	$211.2	$264.7	$204.8
Adjusted EBITDAX ($USD Millions)	$430.4	$513.9	$486.5

Activity

Activity Metric	Q2 2025	Q3 2025
Gross operated wells drilled	27 (all Eagle Ford)	16 (all Eagle Ford)
Gross operated wells online	34 (26 EF, 8 Uinta)	31 (all Eagle Ford)

Non‑GAAP reconciliation references for Adjusted EBITDAX, LFCF, and Adjusted EPS are provided in the 8‑K exhibits .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Capital Expenditures ($MM)	FY 2025	$925–$1,025 (Original)	$910–$970	Raised efficiency; lower capex for same divestiture‑adjusted production
Dividend per share	Q3 2025	$0.12 (Q2 precedent)	$0.12 (declared; payable Dec 1, 2025)	Maintained
Q4 production impact from divestitures	Q4 2025	N/A	≈16 Mboe/d reduction	New disclosure
Q4 oil mix	Q4 2025	N/A	~39% oil	New disclosure

Additional context: Borrowing base springing to $3.9B with lower pricing at Vital close; ~$12M synergies already captured .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025 and Q2 2025)	Current Period (Q3 2025)	Trend
Capital efficiency (D&C/DC&F)	Q1: ~10% South Texas DC&F cost improvement vs 2024 . Q2: ~15% improvement across South Texas/Uinta vs 2024 .	Eagle Ford 15% savings per foot vs 2024; 2024/25 wells >20% productivity vs prior .	Improving and compounding
Portfolio optimization	Q1: ~$90M divested YTD . Q2: ~$110M YTD; pipeline targeted .	>$700M signed in Sep/Oct (Barnett/Rockies/Mid‑Continent); >$800M YTD; >5.5x EBITDA multiples; premium to PV‑10 .	Accelerating; value‑accretive
M&A/scale	Ridgemar EF closed 1/31 .	Vital Energy ~$3.1B all‑stock announced 8/25; accretive; top‑10 independent .	Transformative (Permian entry)
Balance sheet & liquidity	Q2: refinancing and maturity extension; debt paydown; leverage 1.5x LTM .	Borrowing base +50% to $3.9B; pricing reduced (~$12M synergies); pro forma leverage 1.4x .	Strengthening; deleveraging
Commodity mix & flexibility	Flexible 4–5 rig program .	Q4 oil ~39%; Q4 volume −16 Mboe/d from divestitures; flexible gas/oil allocation by returns .	Active mix management
Operating costs	Q2 adjusted op cost ~$12.40/boe .	Pro forma adjusted op cost ~$11.50/boe after divestitures/Vital blending; opportunity to improve further .	Lower structural cost base

Management Commentary

Strategic positioning: “Our results exceeded expectations on all key metrics, and we are enhancing our full‑year outlook for the second consecutive quarter… [Vital] establishes Crescent as a top 10 U.S. independent oil and gas producer” — CEO David Rockecharlie .
Integration plan and synergies: “We plan to… take [Vital] activity down to 1–2 rigs at closing… we now see upside beyond the $90–$100 million of base case synergies we announced” — CEO .
Capital allocation and balance sheet: “Priorities 1A and 1B are our attractive fixed dividend and maintaining a strong balance sheet… more than $150 million of debt repayment during the quarter… borrowing base… to $3.9 billion… capturing approximately $12 million… ahead of closing” — CFO Brandi Kendall .
Portfolio streamlining: “> $700 million of accretive divestitures… total sale value more than five and a half times EBITDA and a significant premium to… PV‑10” — CEO .

Q&A Highlights

Development approach unchanged; scale enables further efficiency, not strategy shifts (pad design, D&C execution) — CEO .
Deleveraging path: RBL to be repaid by year‑end standalone; divestiture proceeds to pay down Vital RBL; ~$2B liquidity post‑close; focus on reducing notes — CFO .
Q4 setup: ~16 Mboe/d production headwind from divestitures; oil mix ~39% — CFO .
Pricing uplift drivers: Better marketing/contracting improved realizations vs guidance/historicals — CFO .
Costs: Pro forma adjusted operating costs ~$11.50/boe after divestitures/Vital blending; opportunities to improve — CFO .

Estimates Context

S&P Global consensus vs reported: Revenue $0.877B* est. vs $0.867B actual (miss); Primary/Adjusted EPS $0.314* est. vs $0.35 actual (beat); EBITDA $468.6M* est. vs $479.8M* actual (beat). Values retrieved from S&P Global. Company also reported Adjusted EBITDAX of $486.5M (non‑GAAP) .

Key Takeaways for Investors

Free cash flow machine with improving structural costs: $204.5M LFCF on $204.8M capex and ~56% EBITDAX margin; continued Eagle Ford efficiencies and better marketing enhance durability .
Accretive portfolio rotation should raise quality and margins: >$700M signed divestitures at >5.5x EBITDA and Vital adds scaled Permian inventory; management intends to run Vital at 1–2 rigs to prioritize FCF and returns .
Balance sheet flexibility rising: Borrowing base to $3.9B with lower pricing and early synergy capture; pro forma leverage at ~1.4–1.5x provides capacity for deleveraging and selective capital returns .
Near‑term Q4 optics: Expect ~16 Mboe/d lower volumes and ~39% oil mix from divestitures; Vital close timing and integration cadence are key to 2026 run‑rate .
Estimate revisions: Expect upward EPS/EBITDA revisions (beat) but potential trimming of near‑term revenue/volume assumptions given Q4 mix/volume commentary. Values retrieved from S&P Global.
Execution focus: Track synergy delivery (>$90–$100M base case with upside), realized pricing sustainability, and cost trajectory (target ~$11.50/boe adjusted op cost) .
Dividend maintained at $0.12/quarter; buyback capacity remains with ~$86M authorization left YTD through Q3 (program capacity context) .

Non‑GAAP note: Adjusted EBITDAX, Levered Free Cash Flow, Adjusted Net Income/EPS are non‑GAAP measures; reconciliations provided in the Q3 8‑K exhibits **[1866175_0001866175-25-000166_crescentenergyq32025earnin.htm:11]** **[1866175_0001866175-25-000166_crescentenergyq32025earnin.htm:12]** **[1866175_0001866175-25-000166_crescentenergyq32025earnin.htm:13]** **[1866175_0001866175-25-000166_crescentenergyq32025earnin.htm:15]**.
Consensus/estimate note: Asterisked values are from S&P Global (Capital IQ). Values retrieved from S&P Global.

Crescent Energy Co (CRGY)·Q3 2025 Earnings Summary