Crescent Energy Company (CRGY) — ESG & Values Scores

Environment story

Crescent Energy is an oil and natural gas exploration and production company with a portfolio concentrated in fossil fuel extraction (Eagle Ford, Permian, Uinta Basins). The company discloses no Scope 1, Scope 2, or Scope 3 GHG emissions metrics, no renewable energy percentage, and no net-zero or climate targets. The 10-K explicitly acknowledges climate change as an operational risk ('Our operations are subject to a series of risks arising from climate change') but does not quantify emissions or commit to decarbonization. Production increased significantly year-over-year (260 MBoe/d in 2025 vs. 201 in 2024, a 29% rise), indicating rising direct fossil fuel extraction. No disclosed initiatives for physical decarbonization or emissions reduction. The company acknowledges regulatory risks from climate legislation (One Big Beautiful Bill Act, Inflation Reduction Act) but frames these as threats to profitability rather than opportunities for transition. No evidence of carbon offset investments. Overall assessment: core business model is antithetical to climate mitigation; no credible net-zero pathway disclosed.

Criticisms on file

No disclosed GHG emissions data (Scope 1, 2, 3) or emissions reduction targets in 10-K filing; significant absence for a company operating 7,945+ productive oil and natural gas wells.
Source: CRGY 10-K SEC filing (2025); Items 1, 7; Human Capital and Environmental Sections
Production volume increased 29% year-over-year (95.0 MMBoe in 2025 vs. 73.6 in 2024), with no corresponding climate mitigation strategy or net-zero commitment.
Source: CRGY 10-K, Oil, Natural Gas and NGL Production Prices and Operating Costs table, Year Ended December 31
Company identifies climate change as an operational risk but does not quantify exposure or commit to climate action plans; frames climate regulation as a cost burden rather than business opportunity.
Source: CRGY 10-K, Risk Factors, Item 1A: 'Our operations are subject to a series of risks arising from climate change'; 'federal and state regulations and laws...the Inflation Reduction Act of 2022...may negatively impact the future production of oil and natural gas'
No disclosed water stewardship metrics or environmental compliance incidents despite operating in water-stressed basins (Texas, Utah) and acknowledging 'Our operations are substantially dependent on the availability of water.'
Source: CRGY 10-K, Risk Factors: 'Restrictions on our ability to obtain water may have a material and adverse effect on our financial condition, results of operations and cash flows.'

Disclosed initiatives

Operational efficiency in drilling and production

Company reports maintaining a lower-decline production base and disciplined capital expenditure approach, with an average reinvestment rate of ~45% of Adjusted EBITDAX since 2021. This reduces per-unit production costs but does not constitute decarbonization.

Reduces operational costs; does not reduce emissions or carbon footprint.
Midstream infrastructure ownership

12% interest in Springfield Gathering System in Eagle Ford Shale; midstream assets provide operational advantages and enhanced cash flow margins.

Improves logistics efficiency for oil and gas distribution; does not mitigate upstream extraction emissions.

Social story

Crescent Energy employs approximately 1,066 employees as of December 31, 2025. The company reports no collective bargaining agreements and states employee relationships are 'satisfactory.' No CEO-to-worker pay ratio, workforce turnover rate, or detailed diversity metrics are disclosed in the 10-K. Human resources initiatives focus on safety, recruitment, training, and 'total rewards' benchmarking, which are standard industry practices. The company highlights quarterly town halls, open communication culture, and community engagement but provides no quantified DEI outcomes, pay equity audits, or supply-chain human rights due diligence. No evidence of union suppression activities or major labor disputes in the past 24 months. The company operates as a KKR-managed investment vehicle with external management dependency, reducing direct employee governance autonomy. Overall: limited transparency on workforce equity metrics; standard safety and HR frameworks without ESG certification or third-party audit.

Criticisms on file

No disclosed CEO-to-median-worker pay ratio or executive compensation benchmarking; unable to assess pay inequality or compliance with ESG compensation guidelines.
Source: CRGY 10-K, Item 11 (Executive Compensation) references Manager Compensation of $78.5M annually plus performance-based incentive grants; employee salary data not provided.
No quantified diversity metrics (women %, underrepresented racial/ethnic groups %, leadership diversity %) disclosed in 10-K Human Capital section.
Source: CRGY 10-K, Human Capital Measures section; no EEO-1 data or diversity targets provided.
External management structure (KKR Manager controls executive team and strategic decisions) reduces direct employee governance voice and union participation in corporate decision-making.
Source: CRGY 10-K, Management Agreement section: 'Manager will provide us with our senior executive management team' and 'Manager is entitled to receive $78.5M per annum in compensation.'
Supply-chain human rights and labor practices not disclosed; company does not commit to conflict minerals, forced labor, or living wage audits in its upstream operations or contractor relationships.
Source: CRGY 10-K, no supply-chain ethics, conflict minerals, or human rights policy sections identified.

Disclosed initiatives

Safety-focused culture and programs

Company prioritizes workplace safety with procedures including confined space entry, emergency response, fall protection, hearing conservation, hot work, hydrogen sulfide training, incident reporting, personal protective equipment, and spill prevention. Safety performance tracked monthly; trends guide improvements.

Reduces workplace injuries and fatalities; industry-standard practice for oil and gas operators.
Recruitment, development, and training

Dynamic recruiting via online platforms, referrals, and professional recruiters. Robust performance review process with development goals. On-boarding training focused on safety and compliance. Additional training offerings throughout the year.

Supports employee skill development and safety compliance; does not address pay equity or diversity representation.
Total rewards benchmarking program

Company benchmarks compensation and benefits against industry standards. Provides subsidized health/dental/life insurance, retirement plan with employer match, paid time off, paid parental leave, and wellness stipend.

Competitive compensation; does not eliminate pay gaps or address gender/racial equity.
Community and social engagement

Company commits to supporting communities in which it operates and employees live, recognizing link between local communities, employee success, and business success.

Community goodwill; specific programs and metrics not disclosed.

Governance story

Crescent Energy operates under a dual-class share structure: Class A Common Stock held by public shareholders and Series I Preferred Stock held by Independence Energy Aggregator LP (a KKR fund), which grants the Preferred Shareholder supermajority control. The Preferred Stockholder's significant voting power 'limits the ability of holders of our common stock to influence our business' and may 'delay or prevent changes in control or changes in management.' Board independence percentage is not explicitly disclosed in the 10-K; governance structure is heavily weighted toward KKR influence via the Management Agreement, which grants KKR control over executive management, strategic planning, and capital allocation decisions. Lobbying expenditures and PAC contributions are not disclosed. No documented antitrust, consumer-safety, or SEC consent decrees are mentioned, but the company acknowledges risks from climate regulation and environmental compliance. Delaware incorporation with exclusive forum provision limits shareholder litigation rights. Overall governance assessment: concentrated shareholder control via KKR; limited minority shareholder influence; no disclosed lobbying or political spending transparency; standard compliance with oil-and-gas industry regulations.

Criticisms on file

Dual-class share structure with supermajority Preferred Stockholder voting control (Independence Energy Aggregator LP / KKR); minority Common Shareholders have limited influence over business decisions, director elections, or strategic direction.
Source: CRGY 10-K, Risk Factors, Item 1A: 'Our Preferred Stockholder's significant voting power limits the ability of holders of our common stock to influence our business.'
Preferred Stockholder exemption from fiduciary duty to consider other shareholders' interests; Certificate of Incorporation provides Preferred Stockholder with broad liability protection.
Source: CRGY 10-K, Risk Factors: 'Our Certificate of Incorporation provides that the Preferred Stockholder is, to the fullest extent permitted by law, under no obligation to consider the separate interests of the other stockholders and will contain provisions limiting the liability of the Preferred Stockholder.'
Delaware forum provision (exclusive forum for shareholder actions) limits shareholders' ability to seek remedies in other jurisdictions; reduces litigation options for minority shareholders challenging board decisions.
Source: CRGY 10-K, Risk Factors: 'Our Certificate of Incorporation designates the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by stockholders.'
Board independence percentage not disclosed; governance structure heavily influenced by external Manager (KKR) that controls executive team and strategic decisions, reducing independent director influence.
Source: CRGY 10-K, Item 10 (Directors and Executive Officers) references Manager-provided executive team; specific board independence metrics not provided.
Lobbying expenditures and PAC contributions not disclosed; company acknowledges regulatory risks from climate legislation (Inflation Reduction Act, One Big Beautiful Bill Act) but does not disclose political spending or trade association alignment on energy policy.
Source: CRGY 10-K, Risk Factors: references to 'One Big Beautiful Bill Act,' 'Inflation Reduction Act of 2022,' and regulatory risks; no political spending or lobbying expenditure disclosures found in 10-K.
No documented shareholder proposals, say-on-pay votes, or ESG-related governance amendments disclosed in 10-K; limited evidence of shareholder engagement on governance issues.
Source: CRGY 10-K SEC filing; no proxy statement or Item 12 (Security Ownership) shareholder proposal details provided in excerpted documents.

Disclosed initiatives

Management Agreement with KKR Group

KKR Energy Assets Manager LLC manages strategy, assets, and day-to-day business. Manager receives $78.5M annual compensation (indexed to future equity issuances) plus performance-based incentive grants (up to 10% of outstanding shares). Management Agreement has 3-year term with automatic renewal; termination requires 2/3 independent director approval and evidence of unsatisfactory performance or materially excessive fees.

Provides professional asset management and access to KKR's global platform, capital markets, and sustainability advisory services; concentrates control in external manager with limited accountability to minority shareholders.
Board oversight and corporate governance framework

Board supervises Manager performance; independent directors may decline Management Agreement renewal upon evidence of unsatisfactory performance or excessive fees. Company maintains standard D&O insurance, audit committee, and compliance procedures.

Standard governance; limited effectiveness given supermajority Preferred shareholder control.
Public reporting and SEC compliance

Company files annual 10-K, quarterly 10-Qs, and proxy statements with SEC; maintains NYSE listing and related governance standards.

Transparency and regulatory compliance with U.S. securities laws.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Crescent Energy Company. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Crescent Energy Company in the app for interactive charts and portfolio building.

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