CRGY

Crescent is a roll-up E&P focused on the Eagle Ford, Permian and Uinta basins, and the FY2025 print shows the acquisition strategy is delivering top-line: revenue grew 22.1% to $3.58B and operating cash flow jumped 37.4% to $1.68B. Net income swung back to $133M from a $115M loss in 2024, and at a market cap of $3.33B the stock trades at ~0.9x sales and ~2x operating cash flow — optically cheap. The MD&A explicitly frames the business as 'disciplined, returns-driven growth through acquisition,' and the cash-flow numbers back that up.

But the quality underneath is mediocre and the balance sheet is the real concern. Operating margin is just 6.4%, net margin 3.7% and ROE only 2.6% — this is a price-taker burning through $1.17B of DD&A annually, so reported earnings are a thin slice of a heavy-asset business. Long-term debt ballooned 81.2% to $5.52B while cash collapsed 92.4% to $10.2M; liabilities/equity sits at 1.41x and retained earnings are zero. The growth is being bought with debt and equity issuance (share count and equity both up sharply), not organically compounded.