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Get filing alertsCrescent Energy reports $40M cash paid on Q1 derivative settlements, offset by merger gains
Filed April 9, 2026 · Period ending April 9, 2026 · ~1 min read
Key Changes
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Company paid $101M net on commodity derivatives in Q1 2026, but received $61M from contracts acquired in SilverBow and Vital mergers, resulting in $40M total cash outflow. Figures are preliminary and subject to revision in the Q1 10-Q.
Item 7.01 view on EDGAR → -
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Acquired derivative settlements of $61M will boost Adjusted EBITDAX and appear as positive cash flow adjustments, improving non-GAAP metrics despite the net cash paid position.
Item 7.01 view on EDGAR → -
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Separate $15M earn-out payment for Ridgemar Acquisition excluded from derivative settlement totals, representing additional cash outflow not captured in the $40M figure.
Item 7.01 view on EDGAR →
Summary
Crescent Energy provided an early look at Q1 2026 derivative performance, revealing the company paid $40 million net on commodity hedges. The headline number masks underlying volatility: the company's core hedging program cost $101 million, but this was partially offset by $61 million in favorable settlements from derivative contracts inherited through recent SilverBow and Vital acquisitions.
These preliminary figures will be finalized when the company reports full Q1 results. For retail investors, the key takeaway is that Crescent's hedging strategy resulted in cash outflows during Q1, suggesting commodity prices moved against their hedged positions. However, the acquired contracts provided a cushion.
The company will report the $61 million as an add-back to Adjusted EBITDAX, which may make non-GAAP earnings look better than cash reality. Additionally, a separate $15 million earn-out payment related to the Ridgemar deal represents further cash deployment not included in these figures. Watch for the full Q1 10-Q to see actual production volumes, realized prices, and whether hedging losses continue. The interplay between legacy hedges and acquired positions will be important for understanding true cash generation going forward.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Item 2.02 — Results of Operations and Financial Condition filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
Represents the settlement of certain oil, gas, and natural gas liquids derivative contracts acquired in connection with the SilverBow Merger and the Vital Merger. The Company expects to report these settlements as positive adjustments on the Statements of Cash Flows and as additions to Adjusted EBITDAX.
The $61 million positive settlement relates to derivative contracts acquired from the SilverBow and Vital mergers. These settlements will be reported as positive adjustments in cash flows and added to Adjusted EBITDAX, indicating favorable treatment in the company's non-GAAP metrics.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 3, 2026 · How we verify