Assessing Crescent Energy Co's Dividend Sustainability and Growth
Crescent Energy Co (CRGY, Financial) recently announced a dividend of $0.12 per share, payable on 2023-12-04, with the ex-dividend date set for 2023-11-17. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Crescent Energy Co's dividend performance and assess its sustainability.
What Does Crescent Energy Co Do?
Crescent Energy Co is an independent energy company with a portfolio of assets in key basins across the lower 48 states. The company maintains a diverse portfolio of assets in key proven basins across the United States, including the Eagle Ford, Rockies, Barnett, Permian, and Mid-Con. It seeks to deliver attractive risk-adjusted investment returns and predictable cash flows across cycles with a focus on operated oil and gas assets complemented by non-operated assets, mineral and royalty interests, and midstream infrastructure.
A Glimpse at Crescent Energy Co's Dividend History
Crescent Energy Co has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a quarterly basis. Unfortunately, there is no enough data to calculate the increase in dividends each year, and therefore, the title of dividend king is not applicable to Crescent Energy Co at this time. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Crescent Energy Co's Dividend Yield and Growth
As of today, Crescent Energy Co currently has a 12-month trailing dividend yield of 5.24% and a 12-month forward dividend yield of 4.33%. This suggests an expectation of decreased dividend payments over the next 12 months. Based on Crescent Energy Co's dividend yield and five-year growth rate, the 5-year yield on cost of Crescent Energy Co stock as of today is approximately 5.24%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Crescent Energy Co's dividend payout ratio is not applicable due to insufficient data.
Crescent Energy Co's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Crescent Energy Co's profitability 4 out of 10 as of 2023-09-30, suggesting that the dividend may not be sustainable. The company has reported net profit in 2 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Crescent Energy Co's growth rank of 4 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable. Revenue is the lifeblood of any company, and Crescent Energy Co's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Crescent Energy Co's revenue has decreased by approximately 10.50% per year on average, a rate that underperforms approximately 83.87% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Crescent Energy Co's earnings increased by approximately 8.30% per year on average, a rate that underperforms approximately 63.86% of global competitors.
Conclusion: Evaluating Crescent Energy Co's Dividend Future
While Crescent Energy Co's dividend yield remains attractive, the company's growth metrics and profitability rank raise concerns about the long-term sustainability of its dividend payments. The lack of sufficient data to calculate the dividend growth rate and payout ratio further complicates the analysis. Investors should weigh these factors against Crescent Energy Co's overall financial health and future prospects before making any decisions. For those looking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener to discover potential opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
