Crescent Energy announced second-quarter net earnings of $37.5 million, surpassing analyst expectations due to increased oil and gas production.
This marks a substantial improvement from the second quarter of 2023, when net earnings were $5.2 million. The company’s average daily output for the quarter was 73,000 barrels of oil and 372 million cubic feet of gas. The projected total output for the year ranges between 232,000 and 241,000 barrels of oil and gas daily.
“We began 2024 with a strong first-quarter performance and have built on that momentum this quarter. I am extremely pleased with our team’s results and our differentiated model, which have led to strong production, improved capital spending, and significant cash flow generation,” said Crescent Energy CEO David Rockecharlie.
Earlier this year, Crescent Energy announced the acquisition of SilverBow Resources in a $2.1 billion deal, aiming to become a major player in the Eagle Ford shale formation. This move reflects the continued strength of U.S. oil and gas mergers in the second quarter.
“The combination with SilverBow, expected to be immediately accretive to all key per-share metrics, establishes Crescent as a leading operator in the Eagle Ford and strengthens our growth platform with increased scale,” Rockecharlie stated at the time.
The company anticipates synergies from the deal to be between $65 million and $100 million, with $35 million already realized, as noted in the second-quarter news release.
U.S. oil and gas exploration and production companies spent up to $234 billion on mergers and acquisitions last year, the highest expenditure since 2012, according to the Energy Information Administration.
The year 2024 also started strong, with companies announcing a record $51 billion in deals in the first quarter, driven by activity in the Permian, according to Enverus Intelligence Research.