What to Know About This Fund's $27 Million Bet on a Cash-Generating Oil Producer

Miller Value Partners initiated a new position in Crescent Energy(NYSE:CRGY) in its May 15, 2026, SEC filing, acquiring 2,003,132 shares for an estimated $20.98 million based on quarterly average pricing.

What happened

According to a SEC filing dated May 15, 2026, Miller Value Partners disclosed a new position in Crescent Energy, acquiring 2,003,132 shares. The estimated transaction value was approximately $20.98 million, based on the average closing price during the first quarter of 2026. The quarter-end value of the position rose to $27.04 million, reflecting both the share acquisition and changes in CRGY’s stock price through March 31, 2026.

What else to know

This was a new position, representing 7.06% of Miller Value Partners’ 13F reportable assets under management as of March 31, 2026 Top holdings after the filing:

NYSE: NBR: $38.25 million (10.0% of AUM) NYSE: GTN: $23.31 million (6.1% of AUM) NYSE: LNC: $20.26 million (5.3% of AUM) NYSEMKT: SPY: $19.54 million (5.1% of AUM)

As of Thursday, Crescent Energy shares were priced at $13.10, up about 50% over the past year and well outperforming the S&P 500, which is instead up about 27%.

Company Overview

Metric Value Revenue (TTM) $3.8 billion Net Income (TTM) ($284.79 million) Dividend Yield 3.78%

Company Snapshot

Crescent Energy produces and sells crude oil, natural gas, and natural gas liquids from a diversified portfolio of U.S. basins, including Eagle Ford, Rockies, Barnett, Permian, and Mid-Continent. The firm operates an upstream exploration and production business model, generating revenue primarily from the extraction and sale of hydrocarbons. It is headquartered in Houston, Texas, with a focus on operational scale and efficiency across multiple basins.

Crescent Energy is a Houston-based independent energy producer with a multi-basin portfolio and a focus on operational scale and efficiency. The company leverages a deep inventory of drilling locations and proven reserves to drive production and cash flow.

What this transaction means for investors

Crescent Energy stock has already climbed roughly 50% over the past year, which suggests that Miller Value Partners appears to be buying into a business that is still executing, and the company’s latest quarter offers support for that thesis. The company reported record production of 341 thousand barrels of oil equivalent per day (MBoe/d), generated $409 million in operating cash flow and $192 million in levered free cash flow, while capturing roughly $120 million of Permian acquisition synergies ahead of schedule. Management also continued strengthening the balance sheet, refinancing debt at lower rates, extending maturities, and maintaining about $2 billion of liquidity.

Also of note: Crescent is delivering on both cash generation and volume growth. Adjusted EBITDAX reached nearly $690 million in the quarter, and net leverage remained a manageable 1.7x. If management can continue delivering on higher production, strong cash flow, and rising shareholder returns, it’s not hard to understand why a fund like Miller Value would choose to buy in and stay in.

Story Continues

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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

What to Know About This Fund's $27 Million Bet on a Cash-Generating Oil Producer was originally published by The Motley Fool

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