Crescent Energy Co: 2Q26 Preview: Expecting Another Update Print Post VTLE; Expecting Cash Flow Beat and Further Synergy Capture Upside

研报英文原文证据摘录

Crescent Energy Co: 2Q26 Preview: Expecting Another Update Print Post VTLE; Expecting Cash Flow Beat and Further Synergy Capture Upside

Arun Jayaram AC North America Equity Research

(1-212) 622-8541 24 July 2026 J P M O R G A N

arun.jayaram@jpmchase.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

Intriguing royalties catalyst while shares trade at cheap

valuation. CRGY is a diversified E&P with a long track record

of creating value through the A&D market. We have been

impressed with the company’s success in consolidating its Eagle

Ford position and improving capital efficiency in the play.

CRGY entered the Permian through its acquisition of VTLE in

late 2025. While near-term leverage remains elevated following

the transaction, our model indicates that CRGY can utilize FCF

to organically delever following the increase in strip prices due

YTD 1m 3m 12m to the Iran conflict. Additionally, our NAV indicates that CRGY

Abs 35.8% 8.3% -10.3% 27.7% shares trade at a discount to PDP value at current strip prices.

Rel 17.3% 9.5% -16.3% -1.1%

CRGY gave incremental disclosure on its royalty business with

Company Data 4Q25 earnings, unveiling that the business will generate ~$160

Shares O/S (mn) 328 MM of FY26 EBITDA. The company also contributed its

52-week range ($) 14.29-7.68 royalty assets into a separate entity within the corporate

Market cap ($ mn) 3,739.03

Exchange rate 1.00 structure, potentially paving the way for a future transaction if

Free float (%) 86.4% the market continues to not recognize the value of the royalty

3M ADV (mn) 6.61 business.

3M ADV ($ mn) 77.2

Volatility (90 Day) 47 Valuation

Index RUSSELL 2000

BBG ANR (Buy | Hold | Sell) 14|3|0 Our Dec 2026 price target is based on NYMEX strip pricing. Our