Latest news with #CrescentEnergy
Yahoo
15-05-2025
- Business
- Yahoo
Wall Street Is Ignoring These Oil Stocks -- Value Investors Are Quietly Loading Up
Something weird is happening in energy stocks and it's catching the eyes of deep value diehards. Roughly 33% of small- and mid-cap oil and gas companies in the Russell 3000 are now trading below book value. That's not normal. It's the highest ratio since the pandemic meltdown. Names like Murphy Oil, Crescent Energy (NYSE:CRGY), and Noble Corp (NYSE:NE) are in the bargain bin literally priced as if their assets are worth more sold for scrap than kept running. Cole Smead, CEO of Smead Capital Management, isn't hesitating: We're going to take advantage of a lot of suckers, he said. He's been loading up on names he thinks could bounce no matter how ugly the headlines. It's been a brutal quarter for energy. The sector is down about 14% since Trump's early April tariff threat. Oil has been whipsawed by fears of a global slowdown, plus a supply spike from OPEC. West Texas Intermediate briefly hit $55 a barrel a level not seen since 2021 and while prices have rebounded slightly, many stocks haven't. But some insiders are starting to lean in. Cenovus Energy (NYSE:CVE) bought back $44 million in shares in Q1 then nearly tripled that pace in Q2. Diamondback Energy (NASDAQ:FANG) is doing the same. Buybacks are the right thing at these levels, said CEO Travis Stice. Others like Chevron don't have the firepower and are pulling back. Not everyone agrees on how to value these names. Book value can be misleading when oil is this volatile. BMO Capital's Jeremy McCrea prefers looking at cash flow and reserves and even on those measures, he still sees deep discounts. Typically, the best times to invest in energy are when it feels the worst, he said. And right now? It feels terrible. But that's exactly when the smart money usually starts buying. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
06-05-2025
- Business
- Bloomberg
KKR-Backed Crescent Energy Weighs Asset Sales to Focus on Eagle Ford, Uinta Basins
By Updated on Save Crescent Energy Co., a US oil-and-gas explorer backed by KKR & Co., is looking to slim down its drilling portfolio to focus on its core acreage in the Eagle Ford and Uinta basins, according to people familiar with the matter. The Houston-based company is working with financial advisers to seek buyers for its holdings in areas including the Denver-Julesburg Basin in Colorado, said the people, who asked to not be identified because the details aren't public.
Yahoo
02-03-2025
- Business
- Yahoo
Crescent Energy (NYSE:CRGY) Is Paying Out A Dividend Of $0.12
Crescent Energy Company (NYSE:CRGY) has announced that it will pay a dividend of $0.12 per share on the 26th of March. This payment means that the dividend yield will be 3.8%, which is around the industry average. Check out our latest analysis for Crescent Energy We aren't too impressed by dividend yields unless they can be sustained over time. Even in the absence of profits, Crescent Energy is paying a dividend. The company is also yet to generate cash flow, so the dividend sustainability is definitely questionable. According to analysts, EPS should be several times higher next year. If the dividend extends its recent trend, estimates say the dividend could reach 18%, which we would be comfortable to see continuing. Looking back, the dividend has been unstable but with a relatively short history, we think it may be a bit early to draw conclusions about long term dividend sustainability. The last annual payment of $0.48 was flat on the annual payment from3 years ago. Modest growth in the dividend is good to see, but we think this is offset by historical cuts to the payments. It is hard to live on a dividend income if the company's earnings are not consistent. With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Crescent Energy has impressed us by growing EPS at 72% per year over the past five years. The company hasn't been turning a profit, but it running in the right direction. If profitability can be achieved soon and growth continues apace, this stock could certainly turn into a solid dividend payer. An additional note is that the company has been raising capital by issuing stock equal to 44% of shares outstanding in the last 12 months. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. In general, the distributions are a little bit higher than we would like, but we can't ignore the fact the quickly growing earnings gives this stock great potential in the future. We would be a touch cautious of relying on this stock primarily for the dividend income. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 3 warning signs for Crescent Energy that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
