Crescent Energy reported second-quarter net earnings of $37.5 million, beating analyst expectations thanks to higher oil and gas production.
The result was a significant improvement from the second quarter of 2023 when the net figure came in at $5.2 million.
The company booked an average daily output of 73,000 barrels daily and gas production of 372 million cu ft daily in the second quarter. The total output outlook for the year is between 232,000 and 241,000 barrels of oil and gas daily.
"We started 2024 with strong first-quarter performance and built upon that momentum this quarter. I am extremely pleased with the results our team and differentiated model have delivered, with strong production and continued improvements in capital spend, leading to significant cash flow generation," Crescent Energy chief executive David Rockecharlie said.
Crescent Energy earlier this year announced the acquisition of SilverBow Resources in a deal valued at $2.1 billion to create a major player in the Eagle Ford shale formation as the U.S. oil and gas mergers continued strong in the second quarter of the year.
"The combination with SilverBow, which is expected to be immediately accretive to all key per share metrics, solidifies Crescent as a leading operator in the Eagle Ford and strengthens the company's growth platform with increased scale," Crescent's Rockecharlie said at the time.
The deal was seen delivering synergies of between $65 million and $100 million, of which some $35 million has already been realized, the company said in its second-quarter news release.
U.S. oil and gas exploration and production companies spent as much as $234 billion on mergers and acquisitions last year-the highest such spend in real dollar terms since 2012, the Energy Information Administration said earlier this year.
2024 also began on a high note-companies announced a record $51 billion in deals in the first quarter, driven - again - by deal-making in the Permian, according to Enverus Intelligence Research.
By Charles Kennedy for Oilprice.com
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