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CRGY NYSE· Crescent Energy Co.
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CRGY NYSE· Crescent Energy Co.
Earnings report Q3 2023

CRGY Reports Decrease in Revenue for Latest Quarter

Segments of Revenue

  • Natural gas revenue: In the three months ended September 30, 2023, CRGY's natural gas revenue decreased by $163.7 million, or 69%, compared to the same period in 2022. This decline was primarily driven by lower natural gas prices, resulting in a decrease of $158.7 million (a decrease of 69% per Mcf), and a $5.0 million decrease in sales volume (8 MMcf/d, or 2%). The decrease in sales volumes was mainly due to downtime at a gas processing plant and natural decline, partially offset by the July Western Eagle Ford Acquisition.
  • NGL revenue: CRGY's NGL revenue decreased by $10.1 million, or 16%, in the three months ended September 30, 2023, compared to the same period in 2022. This decrease was primarily driven by lower realized NGL prices, resulting in a decrease of $25.3 million (a decrease of 32% per Bbl), and a $15.2 million increase in sales volume (5 MBbls/d, or 25%). The increase in sales volumes was primarily related to the July Western Eagle Ford Acquisition.

Strengths

Despite the decrease in revenue, CRGY's management highlighted the positive impact of the July Western Eagle Ford Acquisition on the sales volume of both natural gas and NGL segments. This acquisition partially offset the decline in sales volumes due to downtime at a gas processing plant and natural decline. It demonstrates the company's strategic efforts to expand its operations and diversify its revenue streams.

Challenges

The main weakness for CRGY in the latest quarter was the significant decrease in natural gas and NGL revenue. This decline was primarily driven by lower prices in both segments, resulting in a decrease in overall sales volume. The company faced challenges due to natural decline and downtime at a gas processing plant, which impacted its sales volumes negatively.

Noteworthy

It is worth noting that CRGY's natural gas revenue for the nine months ended September 30, 2023, decreased by $300.1 million, or 51%, compared to the same period in 2022. This decline was mainly driven by lower natural gas prices and a decrease in sales volume. Similarly, NGL revenue for the same period decreased by $88.8 million, or 40%, primarily due to lower realized NGL prices. These significant decreases in revenue reflect the challenging market conditions faced by the company.

Summary

CRGY reported a decrease in revenue for the latest quarter, with both natural gas and NGL segments experiencing declines. Lower prices in both segments, along with a decrease in sales volume, contributed to the overall decrease in revenue. However, the company's strategic acquisition in the Western Eagle Ford region helped partially offset the decline in sales volumes. CRGY continues to face challenges related to natural decline and downtime at a gas processing plant. The significant decrease in revenue highlights the difficult market conditions the company is currently navigating.

Source documents

Form 10-Q  filed on Nov 06, 2023
6 pages scanned

Reference data

Company financials Q3 revenue 642M
Analyst estimates Q3 EPS beat by 142.74%
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