Key Highlights

  • Total revenues rose 56% to USD 1,351.2 million, led by oil Revenue up 75% to USD 1,042.5 million.
  • Income from operations rose to USD 478.7 million from USD 30.8 million a year earlier.
  • A derivative loss of USD 405.8 million, versus a gain, left a net loss of USD 0.6 million.
  • Lease and asset Operating Expense fell 5% per Barrel of Oil Equivalent to USD 7.61, despite higher total spending.

Quarter in Numbers

Crescent Energy Company (NYSE:CRGY), an independent oil and gas producer, reported third-quarter 2026 total revenues of USD 1,351.2 million, up from USD 866.6 million. Oil revenue rose 75% to USD 1,042.5 million, Natural Gas revenue rose 7% to USD 154.6 million, natural gas liquids revenue rose 52% to USD 140.3 million, and Midstream and other revenue fell 59% to USD 13.8 million, mainly because of 2025 divestitures. Oil made up 78% of production revenue versus 72% a year earlier, and natural gas fell to 12% from 17%.

Total expenses were USD 872.5 million versus USD 835.8 million, and income from operations was USD 478.7 million versus USD 30.8 million. The prior-year quarter included a USD 73.5 million Impairment of oil and natural gas properties.

Cost Structure

Lease and asset operating expense rose 23% to USD 229.4 million on higher production from the Vital Energy merger, but fell to USD 7.61 per barrel of oil equivalent, down USD 0.44, because of the added volumes and 2025 divestitures. Gathering, processing and transportation fell 3% to USD 90.2 million and fell 26% to USD 2.99 per barrel of oil equivalent. Production and other taxes rose 41% to USD 78.4 million, or USD 2.60 per barrel of oil equivalent. Workover expense was USD 30.9 million versus USD 23.1 million, depreciation, depletion and amortization rose to USD 374.9 million from USD 298.5 million, and general and administrative expense fell to USD 65.3 million from USD 74.3 million. The company recorded a gain on asset sales of USD 6.1 million.

Below the Operating Line

Other income and expense was a net expense of USD 473.3 million, dominated by a loss on Derivatives of USD 405.8 million versus a gain of USD 55.7 million a year earlier. Interest expense rose to USD 94.2 million from USD 72.6 million, and the prior year included a USD 29.2 million loss on extinguishment of debt. The net loss was USD 0.6 million versus USD 10.3 million, and the net loss attributable to the company was USD 2.2 million, or USD 0.01 per Class A share, versus USD 9.5 million, or USD 0.04.

By our calculation, pre-tax income was only about USD 5.4 million, which shows how Commodity hedges rather than operations determined the bottom line.

For the nine months, revenues were USD 3,929.0 million versus USD 2,714.7 million, and income from operations was USD 1,387.2 million versus USD 282.7 million. Derivative losses of USD 930.5 million compared with gains of USD 163.3 million, so Net Income was USD 73.9 million versus USD 158.1 million, and diluted Earnings per Class A share were USD 0.21 versus USD 0.60.

Hedging and Cost Indicators

Items to track include the mark-to-market effect of derivatives as prices move, unit Lease operating costs after the merger, interest expense on the larger Debt balance, and the oil weighting of production, which rose to 78% of revenue.