Crescent Energy Company Reports Net Income of $59.8 Million in Q1 2023
Revenue for Crescent Energy Company in Q1 2023 Reaches $590.1 Million
Crescent Energy Company,(CRGY) a leading energy corporation, h as announced its financial results for the first quarter of 2023. The company reported a net income of $59.8 million, showcasing a significant improvement compared to the loss of $85 million in the same period last year. Crescent Energy also achieved a total revenue of $590.1 million, reflecting stable performance in the energy sector. Let's take a closer look at the company's financial statements to gain deeper insights into its Q1 2023 performance.
Financial Statements
CONDENSED CONSOLIDATED BALANCE SHEETS
Crescent Energy Company's current assets as of March 31, 2023, amounted to $540 million, indicating an increase from $516.7 million reported in December 2022. These assets comprised cash and cash equivalents of $2.93 million, accounts receivable of $467.6 million, derivative assets of $19.5 million, and other current assets totaling $36.7 million.
The company's property, plant, and equipment, including oil and natural gas properties, stood at $7.8 billion, with accumulated depreciation, depletion, amortization, and impairment at $2.3 billion. Consequently, Crescent Energy's net property, plant, and equipment amounted to $5.5 billion. The company also holds derivative assets of $8.5 million, an investment in equity affiliates of $12.6 million, and other assets valued at $45.7 million.
On the liabilities side, Crescent Energy reported current liabilities of $786.1 million, consisting of accounts payable, accrued liabilities, derivative liabilities, and other current liabilities. The company's long-term debt stood at $1.2 billion, with noncurrent derivative liabilities of $19.6 million and other noncurrent liabilities of $13.8 million. In total, the company's liabilities amounted to $2.6 billion, including redeemable noncontrolling interests of $2.6 billion.
Crescent Energy's equity section comprised common and preferred stock, additional paid-in capital, retained earnings, and noncontrolling interests. The total equity as of March 31, 2023, reached $916.5 million.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
During the first quarter of 2023, Crescent Energy generated revenues totaling $590.1 million. The company's revenue streams consisted of $372.3 million from oil sales, $162 million from natural gas, $42.5 million from natural gas liquids, and $13.3 million from midstream and other operations.
In terms of expenses, Crescent Energy incurred lease operating expenses of $131 million, workover expenses of $12.6 million, asset operating expenses of $22.2 million, and gathering, transportation, and marketing costs of $47.4 million. Additionally, the company faced production and other taxes amounting to $54.9 million, depreciation, depletion, and amortization expenses of $146.5 million, exploration expenses, and general and administrative expenses of $21.2 million. Crescent Energy reported a gain on the sale of assets and recorded total expenses of $439.6 million.
Despite the expenses, Crescent Energy achieved an income from operations of $150.6 million in the first quarter of 2023. The company also experienced positive outcomes in other income (expense), with a total of $121.4 million. This includes a gain of $150.3 million on derivatives, offset by interest expenses and other income. After accounting for taxes, Crescent Energy's net income for Q1 2023 amounted to $255.6 million.
It is worth noting that the net income attributable to noncontrolling interests was ($149,000), and the net income attributable to redeemable noncontrolling interests was ($195.7 million). However, Crescent Energy's net income attributable to the company itself reached $59.8 million.
Overall, Crescent Energy has demonstrated a notable turnaround in its financial performance, reporting a significant increase in net income compared to the same period last year. The company's focus on optimizing its operations and capitalizing on the energy sector's growth has contributed to this positive outcome.
