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NYSE: CRGY Crescent Energy Co 8-K

Crescent Energy paid $154M on commodity hedges in Q2, partially offset by acquired contracts

Filed July 8, 2026 · Period ending July 8, 2026 · ~1 min read

3 key changes 1 high relevance

Key Changes

  • high

    Company paid $154M net cash on commodity derivative settlements in Q2 2026, composed of $216M paid on its own hedges partially offset by $62M received from derivatives acquired in SilverBow and Vital mergers.

  • medium

    Settlements from acquired derivative contracts ($62M in Q2, $123M in H1) will be reported as positive adjustments to cash flows and added to Adjusted EBITDAX, separating them from the company's own hedging program.

  • medium

    Disclosed figures exclude $30M in Q2 and $45M in H1 2026 paid for contingent earn-out consideration related to the Ridgemar Acquisition, treated separately from commodity derivative settlements.

Summary

Crescent Energy disclosed that it paid $154 million net cash on commodity derivative settlements in Q2 2026, reflecting the cost of its hedging program during a period when commodity prices moved against its positions. The company paid $216 million on its own derivatives but received $62 million from contracts it acquired through the SilverBow and Vital mergers, which partially offset the outflow. The accounting treatment of acquired derivatives warrants attention.

By reporting the $62 million from acquired contracts as a positive adjustment to Adjusted EBITDAX while the $216 million paid on its own hedges flows through normally, the company presents its non-GAAP profitability metric more favorably than if all derivative settlements were treated uniformly. Investors should understand that this bifurcation inflates Adjusted EBITDAX relative to actual cash generation from operations. The disclosure also excludes $30 million in contingent earn-out payments related to the Ridgemar Acquisition, keeping acquisition-related cash outflows separate from the derivative settlement figures.

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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 9, 2026 · How we verify