Crescent Energy’s second-quarter 2026 earnings call provided more than an update on production, costs and free cash flow. Management also outlined a growing organic opportunity across the company’s Permian, Eagle Ford and Uinta assets.
The central message was that Crescent’s work is moving beyond integrating acquisitions and improving existing operations. The company is now dedicating more attention to delineating additional formations, expanding its economic drilling inventory and lowering breakeven costs across nearly one million net acres.
Crescent CEO David Rockecharlie described this resource potential as an underappreciated part of the company’s value. Management expects investors to begin seeing more results from these efforts during the second half of 2026 and throughout 2027.
Crescent’s 2026 permits span three core basins
Crescent’s 2026 well-permit data supports management’s focus on three primary operating regions. The dataset contains 69 records, with most activity concentrated in the Eagle Ford Basin.
Basin 2026 permit records Share Eagle Ford 44 63.8% Uinta 13 18.8% Permian 12 17.4% Total 69 100.0%
The distribution shows that the Eagle Ford remains Crescent’s largest permitting area. However, the Uinta and Permian records demonstrate that the company also has active development opportunities outside South Texas.
The permits are located in two states:
State Permit records Texas 56 Utah 13 Total 69
Texas includes Crescent’s Eagle Ford and Permian positions, while the Utah records are associated with the Uinta Basin.
Austin Chalk delineation is already changing the Eagle Ford program
The Austin Chalk represents the clearest example of Crescent successfully expanding its inventory through delineation.
Management said Crescent was not drilling the Austin Chalk extensively several years ago. Following additional technical work and successful wells, the formation has become a significant part of the company’s South Texas program.
Crescent expects its Eagle Ford-area drilling program to be approximately evenly divided between Austin Chalk and Eagle Ford wells by the end of 2026. Management highlighted particularly encouraging Austin Chalk results on the western side of its acreage.
The permit data reinforces that shift.
Eagle Ford Basin play Permit records Austin Chalk 27 Eagle Ford 17 Total 44
Austin Chalk accounts for approximately 61% of Crescent’s Eagle Ford Basin permit records in the dataset. This supports management’s statement that the formation is becoming a major development target rather than a secondary opportunity.
The field-level breakdown provides further detail:
Field Permit records Lorenzo — Austin Chalk 20 Briscoe Ranch — Eagle Ford 13 Hawkville — Austin Chalk 7 Eagleville 2 Eagleville — Eagle Ford-1 2 Total 44
The 27 Austin Chalk records are divided between the Lorenzo and Hawkville fields. Management said every successful Austin Chalk well increases its confidence and encourages the company to examine additional acreage for similar opportunities.
This work could expand the number of lower-risk locations, extend inventory life and improve the economics of Crescent’s broader Eagle Ford position.
Permian delineation work should become more visible in 2027
Crescent acquired its expanded Permian position in December and spent the first half of 2026 stabilizing the assets, integrating the organization and reducing capital intensity.
The company is now entering an optimization phase. Much of its initial focus has involved reducing well costs, improving operating practices and capturing synergies. Crescent increased its annual Permian synergy target to between $250 million and $300 million—roughly three times its original estimate.
Importantly, management said this synergy estimate does not include potential upside from resource delineation, expanded recoveries or additional economic inventory.
Analysts specifically asked about the Barnett, Woodford and Wolfcamp D during the earnings call. Crescent did not announce individual well results or location additions for these formations, but management said similar resource-development work will occur in the Permian over the next six to 12 months.
More information is expected during the second half of 2026 and into 2027.
The company’s 2026 Permian permits cover both the Midland and Delaware portions of the basin.
Permian Basin group Permit records Midland Basin — Spraberry 4 Delaware Basin — Wolfbone 4 Delaware Basin — Wolfcamp 2 Delaware Basin — Bone Spring 2 Total 12
At the field level, the permits are distributed across four targets:
Permian field or target Permit records Spraberry Trend Area 4 Wolfbone Trend Area 4 Phantom — Wolfcamp 2 Two Georges — Bone Spring 2 Total 12
The permits show current exposure to several established Permian targets. They should not, however, be interpreted as proof that Crescent has delineated the additional formations discussed during the call. Management has not yet quantified how many locations could be added through that work.
Crescent expects its own development planning and completion designs to become more visible during the second half of 2026 and to be more fully reflected in 2027 results. These changes include longer laterals, more wells per pad and potential adjustments to completion designs.
Uinta work will build on the McMullin result
Crescent also identified the Uinta Basin as an important resource-expansion area.
Management pointed to the strong performance of the McMullin well, which stepped farther across the company’s acreage and increased confidence in the broader opportunity. Crescent expects to follow up with additional work later in 2026 and during 2027.
The permit file contains 13 Duchesne County records associated with the Uinta Basin.
Uinta Basin classification Permit records Undesignated field 13 Total 13
Because all 13 records are classified as “Undesignated,” the permit data does not identify the individual formations or development intervals being targeted. The records nevertheless show continued permitting activity within Crescent’s Uinta position.
The company has already reported substantial operational improvements in the basin:
- Drilling efficiency increased approximately 25% year over year.
- Completion efficiency nearly doubled.
- Development costs declined almost 20%.
- Development costs are now below $800 per foot.
These cost reductions are important to the delineation strategy. Lower drilling and completion costs can move previously marginal locations into the economic inventory and improve returns from successful step-out wells.
Lower costs could expand economic inventory
Crescent’s delineation strategy is closely connected to its broader operating model.
The company is not only looking for new formations and additional locations. It is also working to reduce the cost required to develop its existing resource base. Management believes this combination can produce both more inventory and lower breakevens.
The potential value comes from three sources:
- Improving the profitability of established drilling locations.
- Converting previously marginal locations into economic inventory.
- Identifying new locations in additional formations or less-developed acreage.
The Austin Chalk demonstrates how this process can work. Technical evaluation and successful drilling increased Crescent’s confidence, and the formation subsequently became a major part of the development program. Management now intends to apply a similar approach in the Permian and Uinta.
Not every permitted well has recorded activity
The 2026 permit dataset also requires an important qualification. Of the 69 records, 26 do not have an Activity Date.
Basin or play Records without an activity date Uinta — Undesignated 7 Eagle Ford — Eagle Ford 6 Eagle Ford — Austin Chalk 5 Permian — Midland/Spraberry 4 Permian — Delaware/Wolfbone 4 Total 26
These 26 records represent 37.7% of the dataset. They have 2026 licence or permit dates, but the missing Activity Date means they should not automatically be counted as drilled wells.
In addition, one Bone Spring record has a June 4, 2023 Activity Date despite having a 2026 Licence Date. That record should be verified before being used in an activity analysis.
The permit totals therefore measure regulatory and development positioning—not completed drilling or commercial success.
What to watch through 2027
Crescent’s basin strategy is becoming increasingly clear.
In the Eagle Ford, Austin Chalk delineation has already converted into a meaningful development program. In the Permian, operational improvements are establishing a lower-cost foundation for broader formation testing. In the Uinta, Crescent plans to build on its McMullin result with additional follow-up work.
Key developments to monitor include:
- Additional Austin Chalk results and expansion beyond currently established areas.
- Testing of new or less-developed Permian intervals.
- Permian development results using Crescent-designed wells and completions.
- Follow-up wells around the McMullin opportunity in the Uinta Basin.
- Changes to Crescent’s disclosed economic location count.
- Improvements in reserve life and basin-level breakeven costs.
- Conversion of currently permitted wells into recorded drilling activity.
Crescent has not yet quantified how many locations its delineation work could add. However, its 2026 permit distribution shows active positioning across all three core basins, while the Austin Chalk provides an early example of how successful delineation can reshape the company’s drilling program.
For oilfield service companies, the combination of existing permits, resource testing and potential inventory expansion could create opportunities across drilling, completions, geological services, artificial lift, workovers, infrastructure and production optimization as Crescent advances its basin-development strategy.
Author: phinds