Crescent Point Energy
Company Summary
Description
Crescent Point Energy Corp. is an oil and gas company based in Calgary, Alberta, Canada. The company focuses primarily on crude oil production in southern Saskatchewan.Website
http://www.crescentpointenergy.com/Operational Regions
- Uinta Basin
- Beaverhill Lake
- Viking Formation
- Alberta Basin Bakken
- Bakken
- Three Forks Formation
- Williston Basin
- Western Canadian Sedimentary Basin
- Shaunavon Resource Play
Financial Data:
NYSE:CPG from Google FinanceTickers:
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CPG - New York Stock Exchange
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CPG - Toronto Stock Exchange
Related Entities
Recent news
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Investor Presentations
- 3Q19 Investor Presentation
- July 2019 Investor Presentation (subscriber access)
- 1Q19 Investor Presentation (subscriber access)
- March 2019 Corporate Presentation (subscriber access)
- 3Q18 Investor Presentation (subscriber access)
- 2Q18 Earnings Presentation (subscriber access)
- 1Q18 Investor Presentation (subscriber access)
- March 2018 Corporate Presentation (subscriber access)
- January 2018 Corporate Presentation (subscriber access)
- October 2017 Corporate Presentation (subscriber access)
- Investor Presentation - July 2017 (subscriber access)
- Investor Presentation - February 2017 (subscriber access)
- 2017 Budget and Guidance (subscriber access)
- Enercom Presentation - August 2016 (subscriber access)
- Crescent Point Energy 1Q16 Investor Update (subscriber access)
- Crescent Point Energy - 2015 Q4 Report (subscriber access)
- March 2016 Weil Energy Conference (subscriber access)
Company Transactions
Date: 5/30/2023
Type: Acquisition
BUYERS:
Crescent Point Energy
SELLERS:
Spartan Delta Corp.
DETAILS:
COST: 1.7 $B
VOLUMES: 38 MBOE/d
ACRES: 235000 Acres
NOTES:
Crescent Point Energy has signed a deal with Spartan Delta Corp. to acquire the firms oil and liquids-rich Montney Shale position in Alberta for $1.7 billion in cash. The holdings include 600 Montney drilling locations (20 years of premium inventory), 38 Mboe/d in current production (55% liquids) and 235,000 net acres of land rights.
Crescent Point Energy has signed a deal with Spartan Delta Corp. to acquire the firms oil and liquids-rich Montney Shale position in Alberta for $1.7 billion in cash. The holdings include 600 Montney drilling locations (20 years of premium inventory), 38 Mboe/d in current production (55% liquids) and 235,000 net acres of land rights.
REGIONS:
Montney Formation
Date: 6/8/2021
Type: Acquisition
NOTES:
Crescent Point Energy has closed on the sale of their remaining non-core conventional assets in Southeast Saskatchewan for $93 million in cash. They also offloaded $220 million in asset retirement obligations (ARO) via the sale, which is 25% of their entire ARO book.
Crescent Point Energy has closed on the sale of their remaining non-core conventional assets in Southeast Saskatchewan for $93 million in cash. They also offloaded $220 million in asset retirement obligations (ARO) via the sale, which is 25% of their entire ARO book.
REGIONS:
Saskatchewan
Western Canadian Sedimentary Basin
Date: 4/5/2021
Type: Acquisition
BUYERS:
Crescent Point Energy
SELLERS:
Shell Canada Limited
Shell plc.
DETAILS:
COST: 900 $MM
VOLUMES: 30 MBOE/d
ACRES: 320000 Acres
NOTES:
Crescent Point Energy has acquired Shell's Kaybob Duvernay assets for $900 million, including $700 million in cash and 50 million in common shares. The asset includes 30 Mboe/d in production (57% condensate, 8% NGL, 35% gas) and 500 net sections of land in the region. Upon closing in April 2021, Shell will own 8.6% of outstanding Crescent Point shares.
Crescent Point Energy has acquired Shell's Kaybob Duvernay assets for $900 million, including $700 million in cash and 50 million in common shares. The asset includes 30 Mboe/d in production (57% condensate, 8% NGL, 35% gas) and 500 net sections of land in the region. Upon closing in April 2021, Shell will own 8.6% of outstanding Crescent Point shares.
REGIONS:
Duvernay Formation
Date: 3/15/2020
Type: Acquisition
NOTES:
Crescent Point Energy has entered into a deal to divest their natural gas infrastructure in Saskatchewan to Steel Reef Infrastructure Corp. for $500 million in cash. This brings their year-to-date asset sales to $1.45 billion. The package includes nine natural gas processing plants and two gas sales pipelines which handle 90 Mmcf/d in throughput. Crescent Point has also signed a long-term take-or-pay commitment with Steel Reef to continue using the facilities.
Crescent Point Energy has entered into a deal to divest their natural gas infrastructure in Saskatchewan to Steel Reef Infrastructure Corp. for $500 million in cash. This brings their year-to-date asset sales to $1.45 billion. The package includes nine natural gas processing plants and two gas sales pipelines which handle 90 Mmcf/d in throughput. Crescent Point has also signed a long-term take-or-pay commitment with Steel Reef to continue using the facilities.
REGIONS:
Saskatchewan
Date: 10/30/2019
Type: Acquisition
NOTES:
Crescent Point entered into a definitive agreement to sell all of its Uinta Basin assets for $525 million.
Crescent Point entered into a definitive agreement to sell all of its Uinta Basin assets for $525 million.
REGIONS:
Uinta Basin
Date: 9/30/2019
Type: Acquisition
NOTES:
Crescent Point entered into a definitive agreement to sell non-core Saskatchewan assets for $157 million.
Crescent Point entered into a definitive agreement to sell non-core Saskatchewan assets for $157 million.
REGIONS:
Western Canadian Sedimentary Basin
Date: 6/30/2018
Type: Acquisition
NOTES:
This includes two separate deals, on for $225 million and another for $55 million, which will both close late in the second quarter of 2018.
This includes two separate deals, on for $225 million and another for $55 million, which will both close late in the second quarter of 2018.
REGIONS:
Williston Basin
Date: 6/30/2017
Type: Acquisition
Date: 6/30/2017
Type: Acquisition
NOTES:
Crescent Point Energy completed the divestment of Manitoba assets for $93.2 million. The assets held 1.1 Mboe/d of production.
Crescent Point Energy completed the divestment of Manitoba assets for $93.2 million. The assets held 1.1 Mboe/d of production.
REGIONS:
Saskatchewan
Date: 4/27/2017
Type: Acquisition
NOTES:
Crescent Point Energy completed the acquisition of 8,500 net acres in North Dakota from an undisclosed seller for $100 million in cash.
Crescent Point Energy completed the acquisition of 8,500 net acres in North Dakota from an undisclosed seller for $100 million in cash.
REGIONS:
Bakken
Three Forks Formation
News & Press Releases
Criterion News
- 3/21/2024 - Crescent Point Energy... (subscriber access)
- 3/8/2024 - Crescent Point Energy... (subscriber access)
- 12/21/2023 - Hammerhead Energy... (subscriber access)
- 11/13/2023 - Crescent Point Completes... (subscriber access)
- 11/8/2023 - Crescent Point Energy... (subscriber access)
- 9/11/2023 - Crescent Point Energy... (subscriber access)
- 8/24/2023 - Crescent Point Energy... (subscriber access)
- 5/30/2023 - Crescent Point Energy... (subscriber access)
- 5/16/2023 - Crescent Point Closes on... (subscriber access)
- 5/16/2023 - Crescent Point Energy... (subscriber access)
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- 3/3/2023 - Crescent Point Energy... (subscriber access)
- 3/3/2023 - Crescent Point Energy... (subscriber access)
- 3/3/2023 - Crescent Point Energy... (subscriber access)
- 12/12/2022 - Paramount Resources... (subscriber access)
- 12/9/2022 - Crescent Point Energy... (subscriber access)
- 12/9/2022 - Crescent Point Energy... (subscriber access)
- 12/9/2022 - Crescent Point Energy... (subscriber access)
- 10/27/2022 - Crescent Point Energy... (subscriber access)
- 10/27/2022 - Crescent Point Energy... (subscriber access)
- 10/27/2022 - Crescent Point Forecasts... (subscriber access)
- 10/27/2022 - Crescent Point on Track... (subscriber access)
- 10/27/2022 - Crescent Point Energy... (subscriber access)
- 10/27/2022 - Crescent Point Completes... (subscriber access)
- 10/27/2022 - Crescent Point Energy... (subscriber access)
- 10/27/2022 - Crescent Point Announces... (subscriber access)
- 10/27/2022 - Crescent Point Notes... (subscriber access)
- 10/27/2022 - Crescent Point... (subscriber access)
- 10/27/2022 - Crescent Point Energy... (subscriber access)
Press Releases
- Jay Park, RECO COB and director, is a veteran energy lawyer with tons of Africa experience and was designated Queen's Counsel in Canada in 2011. He's advised oil companies and governments in 50 countries, and he has a following of the best of the best.
- Scot Evans CEO, Geologist, new fields expert, is an energy industry leader with a combined 35 years of experience with Exxon, Landmark Graphics and Halliburton.
- Daniel Jarvie is globally recognized as a leading analytical and interpretive organic geochemist of Barnett Gas fame, and "Hart Energy's Most Influential People for the Petroleum Industry in the Next Decade."
- Nick Steinberger, a world-class drilling completion expert and manager of the drilling company; yes Recon Africa owns its own rig that if picked up for a song in the downturn
- Bill Cathey is a geophysicist to the supermajors, including Chevron, ExxonMobil, ConocoPhillips … major and large
- Jay Park, RECO COB and director, is a veteran energy lawyer with tons of Africa experience and was designated Queen's Counsel in Canada in 2011. He's advised oil companies and governments in 50 countries, and he has a following of the best of the best.
- Scot Evans CEO, Geologist, new fields expert, is an energy industry leader with a combined 35 years of experience with Exxon, Landmark Graphics and Halliburton.
- Daniel Jarvie is globally recognized as a leading analytical and interpretive organic geochemist of Barnett Gas fame, and "Hart Energy's Most Influential People for the Petroleum Industry in the Next Decade."
- Nick Steinberger, a world-class drilling completion expert and manager of the drilling company; yes Recon Africa owns its own rig that if picked up for a song in the downturn
- Bill Cathey is a geophysicist to the supermajors, including Chevron, ExxonMobil, ConocoPhillips … major and large
- Capital expenditures of $475 to $525 million and annual average production guidance of 108,000 to 112,000 boe/d.
- Disciplined, flexible and returns focused budget fully funded at approximately US$40/bbl WTI.
- Excess cash flow of approximately $150 to $300 million expected in 2021 at US$45/bbl to US$50/bbl WTI with a target reinvestment ratio of less than 75 percent.
- Continued to incorporate ESG initiatives within budgeting process, including emissions reduction and environmental targets.
- Generated approximately $120 million of excess cash flow during third quarter, demonstrating continued capital discipline.
- Significantly reduced net debt by over $575 million year-to-date 2020, providing ample liquidity of over $2.5 billion.
- Upwardly revising 2020 production guidance with unchanged capital expenditures.
- Enhanced sustainability and cost structure, allowing for 2021 preliminary program to be fully funded at approximately US$40/bbl.
- Adjusted funds flow totaled $235.7 million during third quarter 2020, or $0.44 per share diluted, driven by a strong operating netback of $21.11 per boe, or $26.73 per boe including hedging gains.
- For the quarter ended September 30, 2020, Crescent Point's development capital expenditures totaled $93.3 million. The Company's capital budget for fourth quarter remains focused on high return assets, including the continued advancement of long-term projects to further enhance sustainability, such as decline mitigation.
- Net debt as at September 30, 2020 was approximately $2.2 billion and reflects over $575 million of net debt reduction year-to-date 2020 and approximately $1.2 billion since third quarter 2019. Cash and unutilized credit capacity was over $2.5 billion as at September 30, 2020. Crescent Point has no material near-term senior note debt maturities and its credit facilities do not mature until October 2023.
- As part of its risk management program to protect against commodity price volatility, the Company has currently hedged approximately 70 percent of its oil and liquids production, net of royalty interest, for the fourth quarter 2020. These hedges consist primarily of swaps with an average price of over CDN$62/bbl. Crescent Point has also hedged approximately 40 percent of its first quarter 2021 production, primarily through swaps, at levels above current strip prices at an average price of approximately CDN$62/bbl. The Company also has additional hedges extending throughout 2021 and it will continue to layer on added protection in the context of commodity prices.
- Subsequent to the quarter, Crescent Point declared a quarterly cash dividend of $0.0025 per share payable on January 4, 2021.
- Crescent Point's average third quarter production was 113,383 boe/d, comprised of over 90 percent oil and liquids. As previously announced, the Company reactivated economic volumes during third quarter that were previously shut-in.
- Crescent Point's average per well capital costs are trending in-line with its previously announced expectation for cost reductions of over 10 percent by year-end 2020. These capital cost improvements include internal efficiencies resulting from the Company's supply chain initiatives and drilling and completion optimization along with the benefits of knowledge transfer within its asset portfolio.
- Crescent Point continued to optimize its workflows and successfully implement its operational technology ("OT") platform throughout its Saskatchewan assets during third quarter 2020. As a result of these and other cost reduction initiatives, the Company has now removed approximately $60 million, or nine percent, of its budgeted operating expenses in 2020. Crescent Point plans to continue this rollout throughout 2021. The Company's OT platform has also further enhanced safe operations and risk management practices, while reducing emissions.
- Year-to-date, Crescent Point has converted approximately 110 producing wells to water injection, as part of its waterflood program, and expects to convert a total of approximately 135 wells in 2020. These activities are expected to continue to moderate the Company's long-term decline rate.
- Reactivated shut-in volumes, resulting in second half 2020 production increasing by approximately 20 percent.
- Capital expenditures expected to be approximately $665 million in 2020, in-line with the lower end of the prior range.
- Generating approximately $125 million of excess cash flow in second half of 2020.
- Preliminary 2021 outlook to sustain or exceed second half 2020 production with continued excess cash flow generation.
- Capital expenditures trending to lower end of guidance due to expected well cost savings of over 10 percent in 2020.
- Enhanced financial flexibility with continued net debt reduction now totaling over $450 million year-to-date.
- Released second annual sustainability report and established an emissions intensity reduction target of 30 percent by 2025.
- Appointed Myron Stadnyk to the Board who brings significant business and industry experience.
- Adjusted funds flow totaled $109.0 million during second quarter 2020, or $0.21 per share diluted.
- For the quarter ended June 30, 2020, Crescent Point's development capital expenditures totaled $72.0 million. This spending reflects normal seasonality related to spring break-up and management's proactive decision to curtail spending given the commodity price environment. Capital expenditures incurred during second quarter were made primarily to complete projects initiated in the prior quarter. The majority of Crescent Point's remaining 2020 program, which is primarily weighted to fourth quarter, remains flexible and discretionary.
- Net debt as at June 30, 2020 equated to approximately $2.3 billion and reflects over $450 million of net debt reduction in the first half of 2020. Cash and unutilized credit capacity was over $2.4 billion as at June 30, 2020. The Company has no material near-term senior note debt maturities and its credit facilities do not mature until October 2023.
- As part of its risk management program to protect against commodity price volatility, the Company has currently hedged, on average, over 65 percent of its oil and liquids production, net of royalty interest, through the remainder of 2020. Crescent Point recently optimized and restructured some its portfolio of second half 2020 hedges to provide additional downside protection. The Company also has hedges extending into the following year. Crescent Point will remain disciplined in its approach to layering on additional hedges, in the context of commodity prices, to further protect its funds flow.
- Subsequent to the quarter, the Company declared a quarterly cash dividend of $0.0025 per share payable on October 1, 2020.
- The Company's average production in second quarter 2020 was 120,842 boe/d, which includes the impact from production shut-ins announced during the quarter and lower overall activity. This production was comprised of over 90 percent oil and liquids.
- During the quarter, the Company voluntarily shut-in approximately 25,000 boe/d of higher-cost production, as previously announced. These shut-in volumes, which are primarily located outside the Company's key focus areas, also include curtailed production to allow for a more efficient and cost effective process when restoring production. Crescent Point continues to seek additional stability in commodity prices and overall market conditions before finalizing its reactivation plans to restore certain shut-in volumes.
- As a result of its ongoing successful cost initiatives, Crescent Point now expects its average per well capital costs to improve by over 10 percent by year-end 2020, compared to its original 2020 budget. This improvement includes internal efficiencies through reduced drilling days, improved frac optimization and increased pad drilling efficiencies.
- The Company continues to enhance its cost structure throughout the organization, including through the continued adoption of digital technologies. As previously announced, these initiatives have supported an approximately seven percent sustainable improvement in its operating expenses in 2020, or over 15 percent since the beginning of 2019.
- During second quarter, Crescent Point released its annual sustainability report highlighting its emissions intensity reduction target of 30 percent by 2025. This target is expected to be achieved primarily through an over 50 percent reduction in methane emissions. The report also highlights the Company's continued commitment to delivering improved safety, a positive social impact on its stakeholders and strong governance, including Board diversity and environmental, social & governance ("ESG") oversight.
- An effective risk-management response to the COVID-19 pandemic, demonstrating continued operational excellence and showcasing how the Company prioritizes the safety of staff and its operating area communities.
- Significantly decreased asset retirement obligations by over $220 million in 2019 primarily driven by dispositions of non-core assets and ongoing reclamation activities.
- Adoption of operational technology platform to further minimize the risk of spills, reduce fleet emissions, and decrease the risk of motor vehicle incidents.
- Revised compensation program with a significant weighting directly tied to ESG metrics.
- Commitment to gender diversity in all levels of leadership, including the Board.
- The release of the Company's first Taskforce for Climate-related Financial Disclosure ("TCFD") framework in conjunction with the Report.
- Successfully closed the sale of certain gas infrastructure assets for $500 million.
- Delivered $50 million of permanent operating expense savings, as previously announced.
- Recently announced $75 million reduction to capital budget with no associated impact to production.
- Took decisive actions to revise 2020 capital expenditures and voluntarily shut-in production, preserving long-term value.
- Reduced net debt by $437 million in first quarter.
- Strong operational execution, which has continued despite a modified work environment due to COVID-19 pandemic.
- Adjusted funds flow totaled $309.5 million during first quarter 2020, or $0.59 per share diluted, driven by a strong operating netback of $22.41 per boe.
- For the quarter ended March 31, 2020, Crescent Point's development capital expenditures totaled $320.1 million. The Company's first quarter capital expenditures represent close to half of its revised annual budget. As a result of the recent shift in its capital program, Crescent Point expects to incur its remaining capital expenditures primarily during fourth quarter 2020. The majority of this capital is discretionary and will depend on commodity prices, providing additional flexibility.
- Net debt as at March 31, 2020 equated to approximately $2.3 billion, and reflects $437.4 million of net debt reduction in the quarter. Cash and unutilized credit capacity was approximately $2.5 billion as at March 31, 2020. The Company has no material near-term senior note debt maturities and its credit facilities are not due for renewal until October 2023.
- During the quarter, the Company repaid a senior note maturity of $158.3 million. Crescent Point does not have any other senior note maturities until second quarter 2021 of approximately $185 million.
- As part of its risk management program to protect against commodity price volatility, the Company has currently hedged, on average, over 65 percent of its oil and liquids production, net of royalty interest, through the remainder of 2020. Management will remain disciplined in its approach to layering on additional hedges, in the context of commodity prices, to further protect its funds flow.
- Due to a significant decrease in the independent engineers' price forecast resulting from current concerns over global demand and supply for oil, Crescent Point incurred a non-cash impairment charge of $3.56 billion ($2.65 billion after-tax), driving a net loss of $2.32 billion for the quarter ended March 31, 2020. This impairment charge does not impact the Company's adjusted funds flow or its credit capacity, and is reversible in future periods should there be indications of change in value, including higher forecast commodity prices.
- Subsequent to first quarter, the Company declared a quarterly cash dividend of $0.0025 per share payable on July 2, 2020.
- The Company's average production in first quarter 2020 was 141,330 boe/d, comprised of over 90 percent oil and liquids.
- Crescent Point continued to realize internal efficiencies and operational outperformance during the quarter, allowing it to reduce its budgeted capital expenditures and operating expenses for 2020, as previously announced. The Company reduced its annual capital expenditures guidance by approximately $75 million with no associated impact to production. Crescent Point is also forecasting lower annual operating expenses, including $50 million of sustainable savings. Since the beginning of 2019, the Company has now permanently removed approximately $120 million, or over 15 percent, of its annual operating expenses.
- As previously announced on April 20, 2020, Crescent Point elected to shut-in approximately 25,000 boe/d of production. The majority of this shut-in production is outside of the Company's key focus areas and carries costs above the corporate average.
- Lowering 2020 capital expenditures guidance by $75 million, or 10 percent, with no associated impact to production.
- Maintaining flexibility to further reduce capital expenditures, if necessary.
- Enhancing sustainability by reducing 2020 operating expenses by $140 million.
- Reduced salaries for executive team and Board of Directors.
- Lowering annual production guidance by 15 percent, primarily due to the voluntary shut-in of higher cost production.
- Retains significant liquidity of over $2.5 billion, with no material near-term debt maturities.
- Expect to generate approximately $200 million to $350 million of excess cash flow in 2020 at US$55/bbl to US$60/bbl WTI, allowing for continued net debt reduction and accretive share repurchases.
- Disciplined and returns focused budget centered in key focus areas and fully funded at less than US$50/bbl WTI.
- Annual average production guidance of 140,000 to 144,000 boe/d.
- Capital expenditures of $1.10 to $1.20 billion, primarily comprised of sustaining capital.
- Advancing field automation and implementing a new supply chain pre-qualification process as part of continued focus on environmental, social and governance ("ESG") practices.
- Executed approximately $950 million of dispositions year-to-date 2019 and continue to work toward finalizing the monetization of certain gas infrastructure assets in Saskatchewan.
- Estimated net debt reduction of over $1.2 billion in 2019, driven by excess cash flow and asset dispositions.
- Repurchased approximately 13.8 million shares year-to-date for total consideration of approximately $71 million.
- Continued to enhance cost structure by reducing operating expenses by approximately seven percent, excluding any benefit expected to be realized from recently announced asset dispositions.
- Extended maturity date of covenant-based credit facilities to October 2023 with combined facilities totaling $3.0 billion and unutilized credit capacity expected to amount to approximately $2.0 billion at year-end 2019, excluding any further dispositions.
- Appointed Barbara Munroe as Chair following Bob Heinemann's retirement from the Board.
- Adjusted funds flow totaled $389.2 million or $0.71 per share diluted during the third quarter, based on a strong operating netback of $30.93 per boe.
- For the quarter ended September 30, 2019, Crescent Point's capital expenditures on drilling and development, facilities and seismic totaled $362.3 million, including $337.1 million spent on drilling and development to drill 133 (126.6 net) wells.
- Crescent Point's net debt at the end of third quarter totaled approximately $3.4 billion, not accounting for the previously announced disposition of its Uinta Basin asset that closed subsequent to the quarter. Based on guidance at current strip prices and proceeds from this disposition, the Company forecasts its net debt to be approximately $2.8 billion at year-end 2019.
- Subsequent to the quarter, Crescent Point elected to reduce its covenant-based credit facilities from $3.6 billion to $3.0 billion and extend the maturity dates of these facilities from June 2021 to October 2023. The Company's covenants under its bank credit facilities and senior guaranteed notes both remain unchanged. Crescent Point retains significant liquidity with no material near-term debt maturities. The Company's unutilized credit capacity is expected to total approximately $2.0 billion at year-end 2019 based on guidance at current strip prices and continued execution of its share repurchase program, excluding any additional potential dispositions.
- As at October 25, 2019, Crescent Point had, on average, approximately 49 percent of its oil and liquids production, net of royalties, hedged for fourth quarter 2019 at a weighted average market value price of approximately CDN$79.00/bbl. The Company also had, on average, over 35 percent of its oil and liquids production hedged for 2020 at approximately CDN$77.00/bbl.
- Crescent Point repurchased approximately 2.4 million shares during third quarter for total consideration of $14.3 million. Since initiating its share repurchase program in first quarter 2019 up to and including October 30, 2019, the Company has repurchased, for cancellation, approximately 13.8 million shares for total consideration of approximately $71 million. Crescent Point's 2019 budget continues to assume a total of approximately $125 million of share repurchases, subject to the outlook for commodity prices.
- Subsequent to the quarter, the Company declared a quarterly cash dividend of $0.01 per share payable to shareholders on January 2, 2020.
- Crescent Point reported an after-tax net loss of $301.7 million for third quarter 2019. This loss was primarily driven by after-tax charges totaling approximately $322.3 million related to the Company's recently announced asset dispositions. Third quarter results also include approximately $7.0 million of severance costs, which related primarily to Crescent Point's recent Uinta Basin asset disposition.
- Crescent Point's average production for third quarter was 155,708 boe/d, comprised of approximately 90 percent oil and liquids, net of previously announced dispositions that closed during the quarter. Fourth quarter production will reflect the disposition of the Company's Uinta Basin asset. The impact of this sale is expected to be partially offset by growth in the Company's North Dakota resource play following the completion of several multi-well pads.
- By continuing its focus on realizing operating efficiencies, Crescent Point achieved further cost savings during third quarter. As a result of internal workflow optimization and field automation over the past year, the Company's operating expenses in 2019 are approximately seven percent below its original budget, compared to approximately five percent previously. This improvement excludes any benefit expected to be realized from its recently announced asset dispositions. The Company will continue to seek opportunities to optimize its cost structure, including by further focusing its asset base and increasing field automation.
- Crescent Point has converted approximately 150 producing wells to water injection wells year-to-date and remains on track to convert a total of approximately 175 to 200 wells in 2019 as part of its decline mitigation program.
- Agreements to sell 27,000 boe/d of upstream assets for approximately 4.7 times cash flow.
- Net debt expected to improve to approximately $2.75 billion at year-end 2019, down from $4.40 billion prior to the changes in senior management in 2018. Transactions strengthen balance sheet and lower pro-forma net debt to adjusted funds flow ratio by approximately 0.4 times.
- Accretive to debt-adjusted funds flow per share by approximately 11 percent, while also improving the corporate operating netback by approximately five percent, lowering the capital required to sustain annual production and enhancing the Company's financial flexibility.
- Increases Crescent Point's ability to continue executing its share repurchase program, with approximately $100 million of incremental share repurchases budgeted for the remainder of 2019, based on guidance at current strip prices.
- Continue to advance disciplined disposition program, including the monetization of certain infrastructure assets.
- 4.8 times cash flow at current strip prices, based on an operating netback of $20.05 per boe;
- $35,000 per producing boe;
- $16.75 per 2P boe, including future development capital ("FDC") of approximately $1.36 billion, as assessed by independent engineers; and
- $1,300 per acre of undeveloped land or $3,100 per acre of undeveloped land with recognized drilling locations, net of PDP reserves value of $404 million using independent reserves at current strip pricing.
- 4.5 times 2020 cash flow at current strip prices, based on an operating netback of $18.55 per boe;
- $30,000 per producing boe; and
- $9.80 per 2P boe, including FDC of approximately $270 million, as assessed by independent engineers.
- Reduced net debt by over $450 million year-to-date 2019, primarily driven by excess cash flow and disciplined capital spending.
- Achieved cost improvements resulting in first half 2019 operating expenses approximately five percent below budget.
- Remain on track with annual guidance, which has been adjusted to reflect $60 million of non-core dispositions during the quarter.
- Continue to progress additional asset sales with select parties.
- Increased stakeholder communication with the release of Crescent Point's inaugural sustainability report, detailing its environmental, social and governance (ESG) practices, which can be found on the Company's website.
- Adjusted funds flow totaled $503.8 million or $0.92 per share diluted during the second quarter, based on a strong operating netback of $36.59 per boe.
- For the quarter ended June 30, 2019, Crescent Point's capital expenditures on drilling and development, facilities and seismic totaled $166.2 million, including $146.5 million on drilling and development to drill 52 (39.8 net) wells. The Company's second quarter activity reflects lower spending in comparison to the prior quarter due to seasonality within its Canadian operations relating to spring break-up. Second quarter capital expenditures were approximately $60 million below planned spending due to both wet weather conditions and management's discipline to operate in a more cost-efficient environment post break-up.
- Net debt as at June 30, 2019 equated to approximately $3.6 billion or 1.9 times trailing adjusted funds flow. Crescent Point reduced its net debt during the first half of the year by over $450 million, including the retirement of US$68.0 million and $7.0 million of senior guaranteed notes during second quarter. Cash and unutilized credit capacity as at June 30, 2019 was approximately $2.0 billion, with no material near-term senior note debt maturities.
- The Company continued to actively hedge oil production to further protect its returns and cash flow generation. As at July 19, 2019, Crescent Point had, on average, approximately 48 percent of its oil and liquids production, net of royalty interest, hedged for the second half of 2019, approximately 42 percent in the first half of 2020 and 25 percent in the second half of 2020.
- The Company's oil differential improved during second quarter to $7.92/bbl, allowing for realized oil prices to increase by over 10 percent in comparison to first quarter 2019.
- Crescent Point continued to return capital to shareholders through dividends and share repurchases. Subsequent to the quarter, the Company declared a quarterly cash dividend of $0.01 per share payable to shareholders on October 1, 2019.
- Second quarter 2019 average production of 172,476 boe/d was comprised of approximately 90 percent oil and liquids and net of approximately 2,400 boe/d of non-core asset dispositions completed during the quarter. This compares to second quarter 2018 average production of 181,818 boe/d, reflecting asset dispositions and disciplined capital spending. Adjusted funds flow per share during this period increased slightly despite lower production and weaker oil prices.
- The Company's second half 2019 capital allocation within its development budget continues to be weighted to its three key focus areas in Saskatchewan. This program includes a combination of low-risk infill drilling, waterflood development and continued advancement of the successful two-mile horizontal program in the Flat Lake resource play. In the second half, Crescent Point's U.S. operations will continue to focus on cost-efficient multi-well pad development, with completion activity expected during late third quarter.
- The Company's increased focus on cost reduction initiatives has resulted in realized efficiencies within Crescent Point's controllable operating expenses. These improvements are in addition to the capital cost and general and administrative expense savings the Company achieved since late 2018. Crescent Point's operating expenses totaled approximately $400 million during the first half of 2019, approximately five percent or $20 million below its original first half 2019 budget.
- The Company's decline mitigation program continues to yield successful results in each of its key focus areas. During the first half of the year, Crescent Point converted approximately 100 producing wells to water injection wells and remains on track with its plan to convert a total of approximately 145 wells in 2019.
- During second quarter, the Company released its inaugural sustainability report, highlighting its 2018 ESG performance. These achievements include a reduction in emissions of 12 percent, expanded infrastructure in key operating areas for increased gas conservation, the development of internal carbon pricing tools and the installation of remote well site monitoring. The report also highlights Crescent Point's commitment to safety and diversity throughout the organization and engagement within the community.
- Executed dispositions of approximately 2,400 boe/d of higher operating cost non-core assets during second quarter 2019 for cash proceeds of approximately $60 million.
- The Company's previously announced disposition processes for certain infrastructure assets and its conventional upstream assets in southeast Saskatchewan continue to advance, despite significant volatility in recent commodity prices. Crescent Point's infrastructure package, which is progressing to a second round of bids, includes associated gas processing capacity and sales lines with potential initial annual cash flow to a purchaser of approximately $50 million. The Company is also progressing the disposition of its southeast Saskatchewan conventional assets with select parties. These assets include a portfolio of several packages comprising approximately 20,000 boe/d of production.
- Crescent Point remains disciplined and flexible in its disposition process and will provide updates as required.
- Increased cash flow in 2019 based on return-focused capital allocation, lower costs, higher commodity prices and improved oil differentials. Expect to generate approximately $600 million of excess cash flow in 2019 based on guidance at current strip prices.
- Annual production and capital expenditures guidance remains unchanged, demonstrating continued capital discipline.
- Continued focus on net debt reduction and the execution of share repurchase program, with over $105 million of net debt reduction in the quarter and over 5.6 million shares repurchased year-to-date.
- Enhancing sustainability in key focus areas by reducing costs and consistently developing waterflood programs.
- Added John Dielwart and nominated James Craddock and Jennifer Koury as new independent directors of the board.
- Adjusted funds flow totaled $514.0 million during first quarter 2019, or $0.93 per share diluted, based on a strong operating netback of $33.95 per boe. The Company's operating netback within its key focus areas of Viewfield, Shaunavon and Flat Lake was approximately eight percent higher than the corporate average, highlighting the lower costs and premium oil pricing associated with these plays.
- For the quarter ended March 31, 2019, Crescent Point's capital expenditures on drilling and development, facilities and seismic totaled $380.2 million, down approximately 50 percent compared to $722.0 million in first quarter 2018. The Company's first quarter 2019 program included $359.6 million spent on drilling and development to drill 188 (164.7 net) wells. The Company expects reduced spending in second quarter 2019 compared to first quarter, driven by normal seasonality related to spring break-up. Based on the mid-point of its 2019 guidance, Crescent Point expects that its total capital expenditures in the first half of the year will account for approximately 50 percent of its annual budget, highlighting new management's shift toward a more consistent capital and drilling program.
- Net debt as at March 31, 2019 equated to approximately $3.9 billion, or 2.1 times trailing adjusted funds flow. The Company reduced its net debt during first quarter by $105.8 million, net of share repurchases and dividends. Crescent Point expects to continue improving its financial flexibility in 2019 based on the significant excess cash flow to be generated within its budget at current strip prices and proceeds from potential asset dispositions. Cash and unutilized credit capacity as at March 31, 2019 was approximately $1.72 billion, with no material near-term senior note debt maturities.
- Crescent Point continued to actively hedge oil production during the recent improvement in commodity prices, including new hedges extending to late 2019 and 2020. Management remains disciplined in its approach to layering on additional hedges, in the context of commodity prices, to further protect its funds flow and excess cash flow generation. As at May 3, 2019, Crescent Point had, on average, approximately 45 percent of its oil and liquids production, net of royalty interest, hedged through the remainder of 2019, approximately 35 percent in the first half of 2020 and 23 percent in the second half of 2020.
- Subsequent to first quarter, the Company declared a quarterly cash dividend of $0.01 per share payable on July 2, 2019.
- On January 1, 2019, Crescent Point, along with other reporting entities governed by International Financial Reporting Standards ("IFRS"), adopted IFRS 16 Leases. This new accounting standard requires companies to recognize most operating leases as liabilities on the balance sheet. The Company recorded a lease liability of approximately $224 million upon adoption of the standard. Crescent Point's IFRS 16 Leases transition methodology does not require restatement of prior periods nor does it impact the Company's debt covenants or credit available under its bank credit facilities.
- Crescent Point's first quarter oil differential improved by over 60 percent compared to fourth quarter 2018, to $8.36/bbl. Based on realized prices to date and the current forward curve, the Company expects its second quarter 2019 realized oil price to further increase by approximately 15 percent relative to first quarter 2019.
- During first quarter 2019, the Company resolved a National Energy Board complaint and legal action through the negotiation and execution of a settlement agreement, as previously announced. The agreement included a cash settlement in favour of Crescent Point, which was paid during first quarter. The agreement also includes a revised pipeline tariff, effective second quarter 2019, that is expected to increase the Company's netback for oil production transported on the Saskatchewan Pipeline System.
- Average production in first quarter 2019 was 175,955 boe/d, comprised of approximately 91 percent oil and liquids.
- Crescent Point's key focus areas continue to provide low-risk, high-return drilling opportunities, with each area expected to generate cash flows in excess of capital expenditures in 2019. Despite a stronger commodity price environment driving recent modest cost pressures on certain drilling and completion costs, the Company's full-year capital expenditures budget remains unchanged due to Crescent Point's successful and ongoing cost saving, optimization and supply chain initiatives. Management's increased focus on improving costs and efficiencies is further highlighted in the Viewfield Bakken, an area the Company has been developing for over 12 years. Crescent Point has reduced completion costs in this play during 2019 by approximately eight percent compared to the trailing three-year average.
- Due to existing market access in the Uinta Basin and risk-adjusted returns in the earlier-stage East Shale Duvernay play, Crescent Point continues to remain disciplined in allocating capital to these resource plays. In aggregate, these two areas account for approximately 15 percent of the Company's 2019 capital expenditures budget, primarily weighted to the Uinta Basin.
- As part of its focus on decline mitigation, Crescent Point converted approximately 75 producing wells to water injection wells in first quarter. The Company plans to convert a total of approximately 145 wells in 2019 across its key focus areas, up from 79 in 2018. In addition, subsequent to first quarter, Crescent Point fully unitized its fourth unit in the Viewfield Bakken resource play for waterflood development, with additional opportunities identified for future waterflood expansion. By consistently advancing its decline mitigation programs, the Company expects to add low cost reserves and enhance free cash flow generation while also reducing drilling requirements to sustain production.
- Over $400 million of excess cash flow expected to be available in 2019 for net debt repayment and additional share repurchases based on current strip prices. This amount excludes proceeds from any additional dispositions.
- Strong capital discipline with 2018 capital expenditures $38 million under budget and annual production ahead of guidance.
- Executed over $355 million of dispositions in 2018.
- Replaced 142 percent of 2018 production through organic reserves growth.
- Increased net asset value ("NAV") per share by approximately four percent, assuming a constant price deck of US$55.00/bbl, or approximately eight percent adjusted for dividends paid during the year.
- Commenced a normal course issuer bid ("NCIB") on January 25, 2019, with approximately 1.3 million shares repurchased to date at an average cost of $3.89 per share, which is a significant discount to the Company's current NAV.
- Continued board renewal process, including the recent appointment of John Dielwart as a new independent director.
- For the year ended December 31, 2018, the Company's adjusted funds flow totaled $1.74 billion, or $3.16 per share diluted. In fourth quarter, adjusted funds flow totaled $337.3 million, or $0.61 per share diluted.
- For the year ended December 31, 2018, Crescent Point's capital expenditures on drilling and development, facilities and seismic totaled $1.737 billion, which was below its annual guidance of $1.775 billion. Capital expenditures totaled $302.3 million in fourth quarter, including $278.4 million spent on drilling and development to drill 172 (139.6 net) wells.
- As at December 31, 2018, net debt to adjusted funds flow was 2.3 times, with cash and unutilized credit capacity of approximately $1.62 billion. Based on current strip commodity prices and guidance, net debt to adjusted funds flow is forecast to be 2.0 times at year-end 2019, with over $400 million of excess cash flow available for net debt reduction and share repurchases.
- For the year ended 2018, the Company incurred a net loss of $2.62 billion, including a non-cash impairment of $3.71 billion ($2.73 billion after-tax). Post-impairment, Crescent Point's balance sheet reflects a better approximation of the fair value of its asset base in the current environment and incorporates a higher cost of capital. The charge was not related to underlying asset performance and does not impact the Company's adjusted funds flow or the amount of credit available under its bank credit facilities.
- Crescent Point's fourth quarter oil differential widened to $23.34/bbl from $10.74/bbl in third quarter. This compared positively to the fourth quarter Edmonton Par differential of $34.88/bbl. Based on realized prices to date and the forward curve, the Company's first quarter 2019 oil differential is expected to narrow to approximately $8.75/bbl. This is expected to improve its realized oil price by approximately 15 percent relative to fourth quarter 2018. Crescent Point remains unaffected by the Alberta Government's production curtailments given the smaller size of its operations in the province.
- During periods of increased market access constraint in Canada, the Company expects that its oil production will continue receiving a premium due to a significant portion of its assets located either downstream of recent apportionment points or in the United States. Crescent Point is also exploring solutions to further enhance realized pricing for its Canadian oil production.
- Subsequent to fourth quarter 2018, the Company resolved a National Energy Board complaint and legal action through the negotiation and execution of a settlement agreement. The agreement includes a cash settlement payable to Crescent Point in addition to a revised pipeline tariff that is expected to increase the Company's netback for oil production transported on the Saskatchewan Pipeline System.
- Annual average production in 2018 was 178,166 boe/d, exceeding Crescent Point's guidance of 177,000 boe/d. As previously announced, the Company sold approximately 7,000 boe/d during 2018 for proceeds of approximately $355 million.
- Crescent Point continues to advance its key focus areas. In Viewfield, the Company's waterflood program has allowed for a base decline rate of approximately 25 percent in 2019. This decline rate is below the corporate average and helps drive free cash flow generation in the play. In Flat Lake, the Company has been testing longer laterals and drilled several two-mile horizontal wells as part of its fourth quarter program. This group of wells generated encouraging results with average 30-day initial production ("IP30") rates of over 270 boe/d and are expected to pay out in approximately 18 months at current strip prices. Crescent Point has budgeted for an increased number of two-mile horizontal wells in 2019 based on these results and recent well cost reductions of approximately 10 percent.
- In the Uinta Basin, Crescent Point continues to generate strong production results through its two-mile horizontal well program. During 2018, the Company completed 11 two-mile horizontal wells targeting the Wasatch and Uteland Butte zones with IP30 rates averaging approximately 900 boe/d. Notwithstanding these strong results and its ability to reduce well costs by over 10 percent, the Company reduced capital allocated to this play in 2019 based on returns due to existing market access.
- As part of its waterflood program, Crescent Point converted 79 producing wells to water injection wells in 2018 for approximately $50 million. The Company plans to convert approximately 145 wells in 2019 for approximately $40 million, highlighting its focus on cost reductions while advancing decline mitigation techniques. Conversion costs to date in 2019 have been on, or below, budget.
- On a Proved Plus Probable ("2P") basis, Crescent Point organically replaced 142 percent of its 2018 production and achieved reserves of 987.6 million boe ("MMboe") (90 percent oil and liquids). Excluding acquisitions and dispositions ("A&D"), the Company's 2P reserves grew by 27.2 MMboe, net of 2018 production.
- Crescent Point added 92.2 MMboe of organic 2P reserves in 2018, generating 2P F&D costs of $19.20 per boe, excluding changes in Future Development Capital ("FDC"), and an operating netback of $35.52 per boe, for a recycle ratio of 1.9 times.
- Total 2P reserves growth benefited from 132.1 MMboe of extensions and improved recovery less 40.6 MMboe of net technical revisions. These technical revisions include a reduction of vertical drilling locations in the Uinta Basin as part of the Company's asset review and its increased focus on horizontal well development.
- Over 23 percent of the Company's total organic 2P reserves additions in 2018, or 21.5 MMboe, were attributed to low F&D waterflood activities. Crescent Point has added over 60 MMboe of 2P waterflood reserves across its operations since 2013, with 2018 marking the sixth consecutive year independent evaluators have recognized tight rock waterflood additions.
- On a Proved ("1P") basis, Crescent Point replaced 120 percent of its 2018 production and achieved reserves of 619.5 MMboe (90 percent oil and liquids). Excluding changes in FDC, 1P F&D costs totaled $22.61 per boe, for a recycle ratio of 1.6 times. Overall, 1P reserves accounted for 63 percent of total 2P reserves.
- On a Proved Developed Producing ("PDP") basis, Crescent Point replaced 115 percent of 2018 production and achieved PDP reserves of 386.9 MMboe (90 percent oil and liquids). PDP F&D costs totaled $23.64 per boe, excluding changes in FDC, representing a recycle ratio of 1.5 times. Overall, PDP reserves accounted for 39 percent of total 2P reserves.
- The Company's 2P NAV was $24.41 per share at year-end 2018, based on independent engineering pricing, or $13.38 per share, based on a more conservative pricing assumption of flat US$55.00/bbl.
- Excluding any value attributed to land and seismic, Crescent Point's year-end 2P NAV increased by four percent to $11.37 per share in 2018. This NAV includes $6.01 per share of developed producing value for the Company's existing production over its remaining economic life, as represented by its year-end 2018 proved and probable developed producing reserves.
- The Company's 1P and PDP NAVs at US$55.00/bbl increased by approximately eight percent and 11 percent, respectively, in 2018, excluding any value attributed to land and seismic.
- Disciplined and returns focused 2019 capital budget of $1.20 to $1.30 billion.
- Maintaining annual average production at 170,000 to 174,000 boe/d, net of dispositions executed in 2018.
- Approved a share repurchase program given the Company's current share price versus its fundamental value.
- Excess cash flow to be allocated to debt reduction and share repurchases at a budgeted WTI oil price of US$50.00/bbl.
- Flexible budget with ability to revise capital expenditures based on commodity price outlook.
- Reduced capital costs and general and administrative expenses by approximately five and 10 percent, respectively.
- Continued focus on key value drivers previously outlined in Crescent Point's transition plan, including balance sheet improvement, disciplined capital allocation and cost reductions.
Big Oil Missed This, Now It Could Be Worth Billions
Source: PR Newswire
Orignial Article: https://contentapi.cision...
LONDON, Jan. 15, 2021 /PRNewswire/ -- In Namibia, an African venue that is being set up as the scene of the world's next—and possibly last—major onshore oil discovery, the oil and gas rights to an entire 8.5-million-acre sedimentary basin are owned by a single, small company. Mentioned in today's commentary includes: Occidental Petroleum Corporation (NYSE: OXY), Kinder Morgan, Inc. (NYSE: KMI), Equinor ASA (NYSE: EQNR), Apache Corporation (NASDAQ: APA), Crescent Point Energy Corp. (NYSE: CPG).
Now, Wood Mackenzie, the most trusted name in oil and gas resource assessments, has issued a report stating that this same basin is analogous to three world-class basins, including the $540-billion Midland Basin in Texas.
One of the most respected petroleum geochemists in the world, Dan Jarvie, came out of retirement for this play and believes this could be one of the largest oil basins worldwide, and his conservative estimate is that it could hold over 100 billion barrels of oil.
Just 40 days from now, the first well should be complete …And just a few weeks after that, the analytical results should start coming in. A discovery barely moves the needle on an integrated supermajor that's typically involved in drilling a basin of this scope and scale.
But for a junior, even the start of a drill can have maximum impact on share prices… And the junior company stealing the show is Reconnaissance Energy Africa (RECO.V, RECAF).
#1 This 'African Permian' Play Is Considered Analogous to the Midland Basin
Massively underexplored Africa is most likely the only place in the world left where we can possibly anticipate a major onshore oil and gas discovery. If that ends up being Namibia--all the more exciting. This under-explored country has never produced a single barrel of oil in its history. Either onshore or offshore and has excellent fiscal terms and infrastructure.
Exxon (XOM) has already scooped up an additional 7 million net acres offshore …But onshore, it's all about Recon Africa, which strategically swooped in to acquire the rights to the entire Kavango sedimentary basin from Namibia all the way to Botswana. That's a basin over 8.5 million acres, almost the size of Switzerland.
When Kavango first came to the world's attention a few years ago, another world-renowned geologist and geophysicist, Bill Cathey, who works with the oil and gas supermajors, studied the basin and said: "Nowhere in the world is there a sedimentary basin this deep that does not produce commercial hydrocarbons."
Then, Jarvie, a key force behind the Barnett Gas play and former chief geochemist for EOG Resources, jumped in on RECO as a shareholder because he saw a "very strong, independent junior explorer… sitting on a sedimentary basin that rivals South Texas in a massively underexplored region". Jarvie's own estimates 100+billion barrels of oil equivalent are based only on 12% of Recon Africa's (RECO.V, RECAF) total holdings.
#2 Analyst Coverage Is Decidedly Bullish—It Just Nearly Doubled
Haywood is all over this one. In early November, Haywood initiated coverage with a short-term $2.50 price on RECO because the company is "set and funded to de-risk a potentially material resource play onshore Namibia and Botswana with 1,348 mmbbls/58.1 Tcf, a conservative estimated prospective recoverable resource (gross)."
In arriving at its 12-month target price of $2.50/share, Haywood has risked this upside potential by a 6% chance of commercialization. In other words, they're playing it uber-cautious with the $2.50 price tag. But in December Haywood raised its short term price target to $4.00 per share.
More to the point, Haywood recommended "accumulating a position ahead of drilling/evaluation news flow in H1/21 aimed at proving up the presence of a working hydrocarbons system, which if confirmed, should provide abundant opportunities for further exploration and appraisal drilling".
Haywood is also hanging on Dan Jarvie's expertise here, with good reason. So, given the scale of the basin--again, we're talking about 8.5 million acres--a discovery would present manifold opportunities for strategic joint ventures for further de-risking--without share equity dilution. And now, that story just got even better ….
#3 Drilling Just Started ….
With the drill bit just hitting the ground on this massive African Permian play, If Dan Jarvie Is Right, RECO could end up going from a small-cap to a multi-billion-dollar company.
Torridon Investments has also initiated coverage, calling Recon Africa (RECO.V, RECAF) a "corporate story with a dedicated and internationally first-class management and technical team".
The catalysts are all there, with the drill bit already hitting the ground in a 6-2 well spud. By the second half of this year, it's likely RECO will already be in JV discussions if drilling goes as planned.
#4 This is the grand oil lottery
This is the oil lottery, but Recon Africa (RECO.V, RECAF) is not your average wildcatter. This is something entirely different. This is one of those oil opportunities that almost never comes around. This is a "high-conviction play", according to Torrindo's coverage, with a basin that is "one of the most significant underdeveloped basins of such depth globally".
Recon Africa has put together a veritable "who's who" exploration and technical team to move this project forward with some of the most qualified and successful oil "finders" in the business.
This is the best of the best--all of them confident in the chance of discovering the largest oil play in the last 20 to 30 years.
Oil Majors Are Making Moves In The Market, As Well
Norwegian oil and gas giant Equinor ASA (EQNR) is one of a handful of oil companies that managed to turn a profit in the tumultuous market after its oil storage bet paid off big time. Equinor reported a surprise adjusted net income of $646M for the second quarter, trouncing Wall Street's expectations for a loss of $250M thanks to huge trading profits despite a huge 53 percent plunge in revenue to $8.04B.
Equinor has has taken a technology-driven approach to the oil price crash in a way that few other companies have been able to. It's even brought the "remote" work idea to its oil rigs. Equinor's Valemon, situated 160km from land, contains about 192 million barrels of oil equivalent. Its remote employees are expected to spend two weeks a year on the vessel to familiarize themselves with the space, alleviating some of these safety concerns.
While Equinor's share price was hit hard in March 2020, it is already trading near its January 2020 prices thanks to its innovative approach to the crisis. And as the green push accelerates, Equinor may emerge as one of the most balanced energy companies in the business, making it particularly appealing as many other oil companies fall out of favor with investors.
Occidental Petroleum (OXY) had a particularly turbulent 2020. Like all other oil firms everywhere in the world, Occidental struggled with the weak oil and gas prices, which impact the value of its proved and unproved oil and gas reserves.
The crisis even lead to the collapse of a key deal in which Total was to buy Occidental's assets in Ghana. The collapsed deal was another blow to Occidental, which was relying on the sale of Anadarko's African assets to receive a total of US$8.8 billion that could partially reduce the huge debt it had accumulated to buy Anadarko in what analysts now see as an ill-timed decision to pursue such a huge and leveraged transaction.
With the troubles of 2020 in its rear-view mirror, the company is looking to capitalize on the inevitable rebound in oil. And it's already beginning to materialize. Since November, Occidental stock has already risen by 100%, and this rally could kick into high gear in the coming months.
Major North American pipeline operator Kinder Morgan (KMI) has been particularly upbeat in recent months. In fact, in early December, it issued optimistic updates ,planning higher dividends and expecting more profits in 2021, after the challenges the oil industry has faced this year.
Kinder Morgan also expects to raise its dividend for 2021 by 3 percent compared to this year. The company expects the board to declare a Q4 dividend of US$0.2625 per share or US$1.05 annualized. The board expects the 2021 dividend to be US$1.08 per share annualized, or a 3-percent increase from the 2020 dividend.
It was an interesting 2020 for Apache Energy (APA) investors, to say the least. Late in 2019, it fired its iconic VP of worldwide exploration, Steven Keenan after disappointing exploration results offshore Suriname, which was supposed to turn into another wild ride like Exxon's series of discoveries just across the maritime border in Guyana.
Despite the downturn, Apache still managed to beat other key players in the shale patch—but all eyes are now on Suriname, exactly where they should be. This is history in the making, and the upside is looking good.
Crescent Point Energy Corp. (CPG) was another Canadian oil producer that struggled in the oil price crisis of last year. The mid-cap company saw its share price tumble from a January high of $4.56 to an all-time low of just $0.70 as oil demand dissipated and prices tumbled into the negatives in a historically bad first-quarter. The terrible year forced the company to lower output and capex forecasts for 2021.
Despite its struggles, however, Crescent has seen its share price climb significantly over the past month. In fact, it has even received a 'strong buy' signal from analysts at Zack's thanks to its strong price performance and improving technical.
Matt Murphy, an analyst with energy research firm Tudor Pickering Holt explained, "There will be a bit of incremental growth in excess of this record," adding, "Our model shows the oil sands getting to 3.3 million bpd by the middle of 2021."
By. Cliff Shrew
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Forward-Looking Statements. Statements contained in this document that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of Recon. All estimates and statements with respect to Recon's operations, its plans and projections, size of potential oil reserves, comparisons to other oil producing fields, oil prices, recoverable oil, production targets, production and other operating costs and likelihood of oil recoverability are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties including, without limitation: risks associated with oil and gas exploration, timing of reports, development, exploitation and production, geological risks, marketing and transportation, availability of adequate funding, volatility of commodity prices, imprecision of reserve and resource estimates, environmental risks, competition from other producers, government regulation, dates of commencement of production and changes in the regulatory and taxation environment. Actual results may vary materially from the information provided in this document, and there is no representation that the actual results realized in the future will be the same in whole or in part as those presented herein. Other factors that could cause actual results to differ from those contained in the forward-looking statements are also set forth in filings that Recon and its technical analysts have made, We undertake no obligation, except as otherwise required by law, to update these forward-looking statements except as required by law.
Exploration for hydrocarbons is a speculative venture necessarily involving substantial risk. Recon's future success will depend on its ability to develop its current properties and on its ability to discover resources that are capable of commercial production. However, there is no assurance that Recon's future exploration and development efforts will result in the discovery or development of commercial accumulations of oil and natural gas. In addition, even if hydrocarbons are discovered, the costs of extracting and delivering the hydrocarbons to market and variations in the market price may render uneconomic any discovered deposit. Geological conditions are variable and unpredictable. Even if production is commenced from a well, the quantity of hydrocarbons produced inevitably will decline over time, and production may be adversely affected or may have to be terminated altogether if Recon encounters unforeseen geological conditions. Adverse climatic conditions at such properties may also hinder Recon's ability to carry on exploration or production activities continuously throughout any given year.
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SOURCE Oilprice.com
Article Date
1/15/2021Big Oil Missed This, Now It Could Be Worth Billions
Source: PR Newswire
Orignial Article: https://contentapi.cision...
FN Media Group Presents Oilprice.com Market Commentary
LONDON, Jan. 15, 2021 /PRNewswire/ -- In Namibia, an African venue that is being set up as the scene of the world's next—and possibly last—major onshore oil discovery, the oil and gas rights to an entire 8.5-million-acre sedimentary basin are owned by a single, small company. Mentioned in today's commentary includes: Occidental Petroleum Corporation (NYSE: OXY), Kinder Morgan, Inc. (NYSE: KMI), Equinor ASA (NYSE: EQNR), Apache Corporation (NASDAQ: APA), Crescent Point Energy Corp. (NYSE: CPG).
Now, Wood Mackenzie, the most trusted name in oil and gas resource assessments, has issued a report stating that this same basin is analogous to three world-class basins, including the $540-billion Midland Basin in Texas.
One of the most respected petroleum geochemists in the world, Dan Jarvie, came out of retirement for this play and believes this could be one of the largest oil basins worldwide, and his conservative estimate is that it could hold over 100 billion barrels of oil.
Just 40 days from now, the first well should be complete …And just a few weeks after that, the analytical results should start coming in. A discovery barely moves the needle on an integrated supermajor that's typically involved in drilling a basin of this scope and scale.
But for a junior, even the start of a drill can have maximum impact on share prices… And the junior company stealing the show is Reconnaissance Energy Africa (RECO.V, RECAF).
#1 This 'African Permian' Play Is Considered Analogous to the Midland Basin
Massively underexplored Africa is most likely the only place in the world left where we can possibly anticipate a major onshore oil and gas discovery. If that ends up being Namibia--all the more exciting. This under-explored country has never produced a single barrel of oil in its history. Either onshore or offshore and has excellent fiscal terms and infrastructure.
Exxon (XOM) has already scooped up an additional 7 million net acres offshore …But onshore, it's all about Recon Africa, which strategically swooped in to acquire the rights to the entire Kavango sedimentary basin from Namibia all the way to Botswana. That's a basin over 8.5 million acres, almost the size of Switzerland.
When Kavango first came to the world's attention a few years ago, another world-renowned geologist and geophysicist, Bill Cathey, who works with the oil and gas supermajors, studied the basin and said: "Nowhere in the world is there a sedimentary basin this deep that does not produce commercial hydrocarbons."
Then, Jarvie, a key force behind the Barnett Gas play and former chief geochemist for EOG Resources, jumped in on RECO as a shareholder because he saw a "very strong, independent junior explorer… sitting on a sedimentary basin that rivals South Texas in a massively underexplored region". Jarvie's own estimates 100+billion barrels of oil equivalent are based only on 12% of Recon Africa's (RECO.V, RECAF) total holdings.
#2 Analyst Coverage Is Decidedly Bullish—It Just Nearly Doubled
Haywood is all over this one. In early November, Haywood initiated coverage with a short-term $2.50 price on RECO because the company is "set and funded to de-risk a potentially material resource play onshore Namibia and Botswana with 1,348 mmbbls/58.1 Tcf, a conservative estimated prospective recoverable resource (gross)."
In arriving at its 12-month target price of $2.50/share, Haywood has risked this upside potential by a 6% chance of commercialization. In other words, they're playing it uber-cautious with the $2.50 price tag. But in December Haywood raised its short term price target to $4.00 per share.
More to the point, Haywood recommended "accumulating a position ahead of drilling/evaluation news flow in H1/21 aimed at proving up the presence of a working hydrocarbons system, which if confirmed, should provide abundant opportunities for further exploration and appraisal drilling".
Haywood is also hanging on Dan Jarvie's expertise here, with good reason. So, given the scale of the basin--again, we're talking about 8.5 million acres--a discovery would present manifold opportunities for strategic joint ventures for further de-risking--without share equity dilution. And now, that story just got even better ….
#3 Drilling Just Started ….
With the drill bit just hitting the ground on this massive African Permian play, If Dan Jarvie Is Right, RECO could end up going from a small-cap to a multi-billion-dollar company.
Torridon Investments has also initiated coverage, calling Recon Africa (RECO.V, RECAF) a "corporate story with a dedicated and internationally first-class management and technical team".
The catalysts are all there, with the drill bit already hitting the ground in a 6-2 well spud. By the second half of this year, it's likely RECO will already be in JV discussions if drilling goes as planned.
#4 This is the grand oil lottery
This is the oil lottery, but Recon Africa (RECO.V, RECAF) is not your average wildcatter. This is something entirely different. This is one of those oil opportunities that almost never comes around. This is a "high-conviction play", according to Torrindo's coverage, with a basin that is "one of the most significant underdeveloped basins of such depth globally".
Recon Africa has put together a veritable "who's who" exploration and technical team to move this project forward with some of the most qualified and successful oil "finders" in the business.
This is the best of the best--all of them confident in the chance of discovering the largest oil play in the last 20 to 30 years.
Oil Majors Are Making Moves In The Market, As Well
Norwegian oil and gas giant Equinor ASA (EQNR) is one of a handful of oil companies that managed to turn a profit in the tumultuous market after its oil storage bet paid off big time. Equinor reported a surprise adjusted net income of $646M for the second quarter, trouncing Wall Street's expectations for a loss of $250M thanks to huge trading profits despite a huge 53 percent plunge in revenue to $8.04B.
Equinor has has taken a technology-driven approach to the oil price crash in a way that few other companies have been able to. It's even brought the "remote" work idea to its oil rigs. Equinor's Valemon, situated 160km from land, contains about 192 million barrels of oil equivalent. Its remote employees are expected to spend two weeks a year on the vessel to familiarize themselves with the space, alleviating some of these safety concerns.
While Equinor's share price was hit hard in March 2020, it is already trading near its January 2020 prices thanks to its innovative approach to the crisis. And as the green push accelerates, Equinor may emerge as one of the most balanced energy companies in the business, making it particularly appealing as many other oil companies fall out of favor with investors.
Occidental Petroleum (OXY) had a particularly turbulent 2020. Like all other oil firms everywhere in the world, Occidental struggled with the weak oil and gas prices, which impact the value of its proved and unproved oil and gas reserves.
The crisis even lead to the collapse of a key deal in which Total was to buy Occidental's assets in Ghana. The collapsed deal was another blow to Occidental, which was relying on the sale of Anadarko's African assets to receive a total of US$8.8 billion that could partially reduce the huge debt it had accumulated to buy Anadarko in what analysts now see as an ill-timed decision to pursue such a huge and leveraged transaction.
With the troubles of 2020 in its rear-view mirror, the company is looking to capitalize on the inevitable rebound in oil. And it's already beginning to materialize. Since November, Occidental stock has already risen by 100%, and this rally could kick into high gear in the coming months.
Major North American pipeline operator Kinder Morgan (KMI) has been particularly upbeat in recent months. In fact, in early December, it issued optimistic updates ,planning higher dividends and expecting more profits in 2021, after the challenges the oil industry has faced this year.
Kinder Morgan also expects to raise its dividend for 2021 by 3 percent compared to this year. The company expects the board to declare a Q4 dividend of US$0.2625 per share or US$1.05 annualized. The board expects the 2021 dividend to be US$1.08 per share annualized, or a 3-percent increase from the 2020 dividend.
It was an interesting 2020 for Apache Energy (APA) investors, to say the least. Late in 2019, it fired its iconic VP of worldwide exploration, Steven Keenan after disappointing exploration results offshore Suriname, which was supposed to turn into another wild ride like Exxon's series of discoveries just across the maritime border in Guyana.
Despite the downturn, Apache still managed to beat other key players in the shale patch—but all eyes are now on Suriname, exactly where they should be. This is history in the making, and the upside is looking good.
Crescent Point Energy Corp. (CPG) was another Canadian oil producer that struggled in the oil price crisis of last year. The mid-cap company saw its share price tumble from a January high of $4.56 to an all-time low of just $0.70 as oil demand dissipated and prices tumbled into the negatives in a historically bad first-quarter. The terrible year forced the company to lower output and capex forecasts for 2021.
Despite its struggles, however, Crescent has seen its share price climb significantly over the past month. In fact, it has even received a 'strong buy' signal from analysts at Zack's thanks to its strong price performance and improving technical.
Matt Murphy, an analyst with energy research firm Tudor Pickering Holt explained, "There will be a bit of incremental growth in excess of this record," adding, "Our model shows the oil sands getting to 3.3 million bpd by the middle of 2021."
By. Cliff Shrew
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Forward-Looking Statements. Statements contained in this document that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of Recon. All estimates and statements with respect to Recon's operations, its plans and projections, size of potential oil reserves, comparisons to other oil producing fields, oil prices, recoverable oil, production targets, production and other operating costs and likelihood of oil recoverability are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties including, without limitation: risks associated with oil and gas exploration, timing of reports, development, exploitation and production, geological risks, marketing and transportation, availability of adequate funding, volatility of commodity prices, imprecision of reserve and resource estimates, environmental risks, competition from other producers, government regulation, dates of commencement of production and changes in the regulatory and taxation environment. Actual results may vary materially from the information provided in this document, and there is no representation that the actual results realized in the future will be the same in whole or in part as those presented herein. Other factors that could cause actual results to differ from those contained in the forward-looking statements are also set forth in filings that Recon and its technical analysts have made, We undertake no obligation, except as otherwise required by law, to update these forward-looking statements except as required by law.
Exploration for hydrocarbons is a speculative venture necessarily involving substantial risk. Recon's future success will depend on its ability to develop its current properties and on its ability to discover resources that are capable of commercial production. However, there is no assurance that Recon's future exploration and development efforts will result in the discovery or development of commercial accumulations of oil and natural gas. In addition, even if hydrocarbons are discovered, the costs of extracting and delivering the hydrocarbons to market and variations in the market price may render uneconomic any discovered deposit. Geological conditions are variable and unpredictable. Even if production is commenced from a well, the quantity of hydrocarbons produced inevitably will decline over time, and production may be adversely affected or may have to be terminated altogether if Recon encounters unforeseen geological conditions. Adverse climatic conditions at such properties may also hinder Recon's ability to carry on exploration or production activities continuously throughout any given year.
DISCLAIMERS
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Article Date
1/15/202112/4/2020 - Crescent Point Announces 2021 Budget
Crescent Point Announces 2021 Budget
Source: PR Newswire
CALGARY, AB, Dec. 4, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is pleased to announce its formal 2021 capital expenditures budget and production guidance.
KEY HIGHLIGHTS
"We remained disciplined and flexible throughout 2020 and, as a result of our efforts, we are on track to execute our annual program on budget with net debt reduction of approximately $600 million during the year," said Craig Bryksa, President and CEO of Crescent Point. "Our plans for 2021 remain aligned with our returns based capital allocation framework, with a continued focus on further enhancing our balance sheet strength and sustainability. The 2021 budget is designed to position the Company defensively given the current volatility in commodity prices, while also providing exposure to significant excess cash flow generation in a rising oil price environment."
2021 PRODUCTION AND CAPITAL EXPENDITURES BUDGET
Crescent Point's 2021 capital expenditures budget of $475 to $525 million is expected to generate annual average production of 108,000 to 112,000 boe/d. The Company's 2021 capital expenditures budget is reduced in comparison to 2020, highlighting a lower pace of activity, improved capital efficiencies and a moderation in its decline rate to 25 percent from approximately 30 percent.
The majority of Crescent Point's 2021 capital expenditures budget is allocated to its key focus areas in Viewfield, Shaunavon and Flat Lake, which continue to provide attractive risk-adjusted returns. The Company plans to allocate approximately 15 percent of its budget to discretionary long-term projects, such as decline mitigation and continued advancement of its operational technology ("OT") platform which has successfully reduced operating expenses and enhanced environmental, social and governance ("ESG") practices.
Crescent Point is also dedicating incremental funds to proactive environmental stewardship initiatives, including asset retirement, emission reductions, and asset integrity projects. The Company is currently on track to meet or exceed its emissions intensity reduction target of 30 percent by 2025, including a 50 percent reduction in methane emissions, and is finalizing plans to set additional environmental targets.
Approximately 40 percent of the Company's estimated first half 2021 oil and liquids production, net of royalty interest, is currently hedged. These hedges consist primarily of swaps with an average price of approximately CDN$60/bbl. Crescent Point plans to continue to increase its hedge position throughout 2021 and expects to layer on additional protection, in the context of commodity prices. To provide additional flexibility in its capital program throughout the year, approximately 60 percent of the Company's 2021 annual budget has been scheduled for the second half 2021.
EXCESS CASH FLOW AND PRIORITIES
Crescent Point's 2021 budget is fully funded at approximately US$40/bbl WTI. The Company expects to generate approximately $150 million to $300 million of excess cash flow at US$45/bbl to US$50/bbl WTI, and has targeted a reinvestment ratio of less than 75 percent.
Crescent Point will remain disciplined with a focus on sustaining production and maximizing excess cash flow in a higher commodity price environment, with approximately $35 million of funds flow sensitivity for every US$1/bbl change in WTI. The Company plans to initially prioritize its balance sheet with the allocation of its excess cash flow. As market conditions improve, Crescent Point will also evaluate other opportunities to further enhance value, including additional development capital and returning capital to shareholders.
The Company retains significant liquidity with over $2.5 billion of unutilized credit capacity, as at September 30, 2020, with no material near-term senior note debt maturities. Similar to prior years, Crescent Point will remain flexible in the event of lower commodity prices in order to preserve its strong liquidity position.
All financial figures are approximate and in Canadian dollars unless otherwise noted. This press release contains forward-looking information and references to non-GAAP financial measures. Significant related assumptions and risk factors, and reconciliations are described under the Non-GAAP Financial Measures and Forward-Looking Statements sections of this press release, respectively. |
2021 BUDGET AND GUIDANCE SUMMARY
Total annual average production (boe/d) | 108,000 - 112,000 |
% Oil and NGLs | 91% |
Development capital expenditures ($ millions) (1) | $475 - $525 |
Drilling and development (%) | 88% |
Facilities and seismic (%) | 12% |
(1) Development capital expenditures excludes approximately $70 million of capitalized G&A, land acquisitions, capital leases and reclamation activities. |
Non-GAAP Financial Measures
Throughout this press release, the Company uses the terms "excess cash flow", "reinvestment ratio" and "net debt". These terms do not have any standardized meaning as prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other issuers.
Excess cash flow is calculated as free cash flow less dividends. Management utilizes free cash flow and excess cash flow as key measures to assess the ability of the Company to finance dividends, potential share repurchases, debt repayments and returns-based growth.
Free cash flow is calculated as adjusted funds flow from operations less capital expenditures, payments on lease liability, asset retirement obligations and other cash items (excluding net acquisitions and dispositions).
Adjusted funds flow from operations is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Transaction costs are excluded as they vary based on the Company's acquisition and disposition activity and to ensure that this metric is more comparable between periods. Decommissioning expenditures are discretionary and are excluded as they may vary based on the stage of Company's assets and operating areas. Management utilizes adjusted funds flow from operations as a key measure to assess the ability of the Company to finance dividends, operating activities, capital expenditures and debt repayments.
Reinvestment ratio is calculated on a percentage basis as development capital and other capital expenditures, which excludes acquisitions and dispositions, plus payments on principal portion of lease liability, divided by adjusted funds flow from operations. Management utilizes reinvestment ratio to assist in guiding its capital allocation framework.
Net debt is calculated as long-term debt plus accounts payable and accrued liabilities and long-term compensation liability net of equity derivative contracts, less cash, accounts receivable, prepaids and deposits, long-term investments, excluding the unrealized foreign exchange on translation of US dollar long-term debt. Management utilizes net debt as a key measure to assess the liquidity of the Company.
Management believes the presentation of the Non-GAAP measures above provide useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.
Forward-Looking Statements
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: the expectation that the Company's 2021 budget will be fully funded at approximately US$40/bbl WTI; the Company's expected excess cash flow generation at US$45/bbl to US$50/bbl WTI and the associated target reinvestment ratio; expected 2021 capital expenditures and 2021 annual average production guidance; the Company's plans to continue to incorporate ESG targets within its budgeting process; the Company's expectation that it will execute its 2020 annual program on budget with net debt reduction of approximately $600 million; the Company's 2021 plan to further enhance its balance sheet strength and sustainability; the significant upside the Company believes it has to potential rising oil prices over 2021; the expected moderation in the Company's decline rate and its expected improved efficiencies in 2021; where the Company expects to spend its 2021 capital budget; the expectation that Viewfield, Shaunavon and Flat Lake will continue to provide attractive risk-adjusted returns; the percentage of the Company's 2021 budget allocated to discretionary long-term projects and the nature of those projects; the Company's plan to dedicate incremental funds to proactive environmental initiatives and the nature of those initiatives; the Company's view that it remains on track to meet or exceed its emissions intensity reduction target; the Company's emissions intensity reduction target of 30 percent by 2025, including a 50 percent reduction in methane emissions; the Company's ongoing efforts to set additional environmental targets; the Company's 2021 hedging plans; the expected timing of the Company's 2021 capital spend; Crescent Point's plan to remain disciplined with a focus on sustaining production and maximizing excess cash flow; the Company's funds flow sensitivity; Crescent Point's initial prioritization of its balance sheet and its plan to evaluate other opportunities to further enhance shareholder value as market conditions improve; and the Company's ability to remain flexible in the event of lower commodity prices and how this flexibility can preserve the Company's liquidity position.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material risks discussed in the Company's Annual Information Form for the year ended December 31, 2019 under "Risk Factors", our Management's Discussion and Analysis for the year ended December 31, 2019, under the headings "Risk Factors" and "Forward-Looking Information" and for the quarter ended September 30, 2020 under "Risk Factors", "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policy" and "Outlook". The material assumptions are disclosed herein and in the Management's Discussion and Analysis for the year ended December 31, 2019, under the headings "Capital Expenditures", "Liquidity and Capital Resources", "Critical Accounting Estimates", "Risk Factors", "Changes in Accounting Policies" and "Outlook" and are disclosed in the Management's Discussion and Analysis for the quarter ended September 30, 2020 under the headings Derivatives", "Liquidity and Capital Resources", "COVID-19", "Critical Accounting Estimates", "Changes in Accounting Policy" and "Outlook". In addition, risk factors include: financial risk of marketing reserves at an acceptable price given market conditions; volatility in market prices for oil and natural gas; delays in business operations, pipeline restrictions, blowouts; the risk of carrying out operations with minimal environmental impact; industry conditions, including changes in laws and regulations and the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; uncertainties associated with estimating oil and natural gas reserves; economic risk of finding and producing reserves at a reasonable cost; uncertainties associated with partner plans and approvals; operational matters related to non-operated properties; increased competition for, among other things, capital, acquisitions of reserves and undeveloped lands; competition for and availability of qualified personnel or management; incorrect assessments of the value of acquisitions and exploration and development programs; unexpected geological, technical, drilling, construction and processing problems; availability of insurance; fluctuations in foreign exchange and interest rates; stock market volatility; failure to realize the anticipated benefits of acquisitions and dispositions; general economic, market and business conditions; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities and counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates and incentive programs relating to the oil and gas industry; COVID-19; and other factors, many of which are outside the control of Crescent Point. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-2021-budget-301186256.html
SOURCE Crescent Point Energy Corp.
Article Date
12/4/202010/29/2020 - Crescent Point Announces Q3 2020 Results
Crescent Point Announces Q3 2020 Results
Source: PR Newswire
CALGARY, AB, Oct. 29, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX: CPG) (NYSE: CPG) is pleased to announce its operating and financial results for the quarter ended September 30, 2020.
KEY HIGHLIGHTS
"Our third quarter results continue to demonstrate the success of our disciplined approach and our strong operational execution," said Craig Bryksa, President and CEO of Crescent Point. "Our continued prioritization of returns and the long-term development of our assets, within the context of our key strategic pillars of balance sheet strength and sustainability, are reflected in our preliminary 2021 outlook and capital allocation."
FINANCIAL HIGHLIGHTS
OPERATIONAL HIGHLIGHTS
All financial figures are approximate and in Canadian dollars unless otherwise noted. This press release contains forward-looking information and references to non-GAAP financial measures. Significant related assumptions and risk factors, and reconciliations are described under the Non-GAAP Financial Measures and Forward-Looking Statements sections of this press release, respectively. |
OUTLOOK
The increase to Crescent Point's 2020 production guidance, with unchanged capital expenditures, demonstrates the success of the Company's continued operational execution and capital discipline. Crescent Point's financial results for the remainder of the year are also well insulated from the current volatility in commodity prices, as approximately 70 percent of its fourth quarter oil production is hedged at attractive levels.
The Company's recently established preliminary outlook for 2021 anticipates being able to generate annual average production that is in-line with, or exceeds, its estimated second half 2020 production of approximately 110,000 boe/d while spending $500 to $550 million in development capital. The Company plans to release its formal annual budget in late 2020 or early in the new year.
Crescent Point's preliminary 2021 program includes a base decline rate of approximately 25 percent, down from approximately 30 percent at the start of 2020, and is expected to be fully funded within cash flow at approximately US$40/bbl WTI. The Company expects to generate approximately $175 to $350 million of excess cash flow at US$45/bbl to US$50/bbl WTI, providing an increased opportunity to further enhance shareholder value.
Crescent Point will focus on sustaining production and generating excess cash flow in a higher commodity price environment, with approximately $40 million of funds flow sensitivity for every US$1/bbl change in WTI in 2021, and will remain flexible in the event of lower commodity prices.
Management will also remain flexible in its operations and business practices as it pertains to the COVID-19 pandemic, in order to continue to protect the health and safety of its stakeholders.
The Company retains a strong liquidity position with over $2.5 billion of unutilized credit capacity and no material near-term debt maturities. Crescent Point also has a substantial portion of its first half 2021 production hedged at attractive prices and will continue to layer on additional protection, in the context of commodity prices.
CONFERENCE CALL DETAILS
Crescent Point management will hold a conference call on Thursday, October 29, 2020 at 10:00 a.m. MT (12:00 p.m. ET) to discuss the Company's results and outlook. A slide deck will accompany the conference call and can be found on Crescent Point's home page.
Participants can listen to this event online. Alternatively, the conference call can be accessed by dialing 1-888-390-0605.
The webcast will be archived for replay and can be accessed on Crescent Point's website. The replay will be available approximately one hour following completion of the call.
Shareholders and investors can also find the Company's most recent investor presentation on the Company's website.
2020 GUIDANCE
The Company's guidance for 2020 is as follows:
Prior | Revised | |
Total annual average production (boe/d) | 119,000 – 121,000 | 121,000 |
% Oil and NGLs | 91% | 91% |
Development capital expenditures ($ millions) (1) | $665 | $665 |
Drilling and development (%) | 90% | 90% |
Facilities and seismic (%) | 10% | 10% |
(1) | Development capital expenditures excludes approximately $80 million of capitalized G&A, land acquisitions, capital leases and reclamation activities. |
The Company's unaudited financial statements and management's discussion and analysis for the quarter ended September 30, 2020, will be available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on Crescent Point's website at www.crescentpointenergy.com.
FINANCIAL AND OPERATING HIGHLIGHTS
Three months ended September 30 | Nine months ended September 30 | ||||||
(Cdn$ millions except per share and per boe amounts) | 2020 | 2019 | 2020 | 2019 | |||
Financial | |||||||
Cash flow from operating activities | 219.5 | 402.2 | 615.4 | 1,346.4 | |||
Adjusted funds flow from operations (1) | 235.7 | 389.2 | 654.2 | 1,407.0 | |||
Per share (1) (2) | 0.44 | 0.71 | 1.23 | 2.56 | |||
Net income (loss) | 0.5 | (301.7) | (2,468.7) | (101.2) | |||
Per share (2) | — | (0.55) | (4.67) | (0.18) | |||
Adjusted net earnings from operations (1) | 71.0 | 32.6 | 91.8 | 336.9 | |||
Per share (1) (2) | 0.13 | 0.06 | 0.17 | 0.61 | |||
Dividends declared | 1.3 | 5.5 | 8.0 | 16.6 | |||
Per share (2) | 0.0025 | 0.0100 | 0.0150 | 0.0300 | |||
Net debt (1) | 2,189.2 | 3,360.0 | 2,189.2 | 3,360.0 | |||
Net debt to adjusted funds flow from operations (1) (3) | 2.0 | 1.9 | 2.0 | 1.9 | |||
Weighted average shares outstanding | |||||||
Basic | 529.7 | 547.5 | 529.1 | 548.5 | |||
Diluted | 532.9 | 548.0 | 530.5 | 548.6 | |||
Operating | |||||||
Average daily production | |||||||
Crude oil (bbls/d) | 89,260 | 119,011 | 98,662 | 131,215 | |||
NGLs (bbls/d) | 13,458 | 20,627 | 15,048 | 20,523 | |||
Natural gas (mcf/d) | 63,988 | 96,422 | 68,593 | 97,403 | |||
Total (boe/d) | 113,383 | 155,708 | 125,142 | 167,972 | |||
Average selling prices (4) | |||||||
Crude oil ($/bbl) | 48.24 | 66.22 | 41.74 | 67.68 | |||
NGLs ($/bbl) | 19.05 | 14.09 | 14.93 | 20.27 | |||
Natural gas ($/mcf) | 2.94 | 1.96 | 2.90 | 2.59 | |||
Total ($/boe) | 41.89 | 53.69 | 36.29 | 56.85 | |||
Netback ($/boe) | |||||||
Oil and gas sales | 41.89 | 53.69 | 36.29 | 56.85 | |||
Royalties | (5.35) | (8.29) | (4.65) | (8.26) | |||
Operating expenses | (13.10) | (12.38) | (12.42) | (12.59) | |||
Transportation expenses | (2.33) | (2.09) | (2.27) | (2.08) | |||
Operating netback (1) | 21.11 | 30.93 | 16.95 | 33.92 | |||
Realized gain on derivatives | 5.62 | 1.33 | 5.96 | 0.45 | |||
Other (5) | (4.13) | (5.09) | (3.83) | (3.69) | |||
Adjusted funds flow from operations netback (1) | 22.60 | 27.17 | 19.08 | 30.68 | |||
Capital Expenditures | |||||||
Capital dispositions, net (6) | (0.9) | (199.2) | (507.9) | (260.3) | |||
Development capital expenditures | |||||||
Drilling and development | 76.6 | 337.1 | 434.2 | 843.2 | |||
Facilities and seismic | 16.7 | 25.2 | 51.2 | 65.5 | |||
Total | 93.3 | 362.3 | 485.4 | 908.7 | |||
Land expenditures | 1.2 | 2.2 | 2.8 | 10.3 | |||
(1) | Adjusted funds flow from operations, adjusted funds flow from operations per share, adjusted net earnings from operations, adjusted net earnings from operations per share, net debt, net debt to adjusted funds flow from operations, operating netback and adjusted funds flow from operations netback as presented do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other entities. |
(2) | The per share amounts (with the exception of dividends per share) are the per share – diluted amounts. |
(3) | Net debt to adjusted funds flow from operations is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters. |
(4) | The average selling prices reported are before realized derivatives and transportation. |
(5) | Other includes net purchased products, general and administrative expenses, interest on long-term debt, foreign exchange, cash-settled share-based compensation and certain cash items and excludes transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items. |
(6) | Capital dispositions, net represent total consideration for the transactions, including long-term debt and working capital assumed, and exclude transaction costs. |
Non-GAAP Financial Measures
Throughout this press release, the Company uses the terms "adjusted funds flow", "adjusted funds flow from operations", "funds flow", "adjusted funds flow from operations per share - diluted", "excess cash flow", "adjusted net earnings from operations", "adjusted net earnings from operations per share - diluted", "net debt", "net debt to adjusted funds flow from operations", "operating netback" and "adjusted funds flow from operations netback". These terms do not have any standardized meaning as prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other issuers.
Adjusted funds flow and funds flow are equivalent to adjusted funds flow from operations. Adjusted funds flow from operations is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Adjusted funds flow from operations per share - diluted is calculated as adjusted funds flow from operations divided by the number of weighted average diluted shares outstanding. Transaction costs are excluded as they vary based on the Company's acquisition and disposition activity and to ensure that this metric is more comparable between periods. Decommissioning expenditures are discretionary and are excluded as they may vary based on the stage of Company's assets and operating areas. Management utilizes adjusted funds flow from operations as a key measure to assess the ability of the Company to finance dividends, operating activities, capital expenditures and debt repayments. Adjusted funds flow from operations as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. Excess cash flow is defined as adjusted funds flow from operations less capital expenditures, payments on lease liability, asset retirement obligations, dividends and other cash items (excluding net acquisitions and dispositions). Management utilizes excess cash flow as a key measure to assess the ability of the Company to finance dividends, potential share repurchases, debt repayments and returns-based growth.
The following table reconciles cash flow from operating activities to adjusted funds flow from operations and excess cash flow:
Three months ended September 30 | Nine months ended September 30 | ||||||
($ millions) | 2020 | 2019 | 2020 | 2019 | |||
Cash flow from operating activities | 219.5 | 402.2 | 615.4 | 1,346.4 | |||
Changes in non-cash working capital | 14.8 | (21.8) | 22.8 | 40.9 | |||
Transaction costs | 0.1 | 3.1 | 5.4 | 4.2 | |||
Decommissioning expenditures | 1.3 | 5.7 | 10.6 | 15.5 | |||
Adjusted funds flow from operations | 235.7 | 389.2 | 654.2 | 1,407.0 | |||
Capital expenditures | (102.8) | (374.3) | (517.2) | (948.7) | |||
Dividends | (1.3) | (5.5) | (8.0) | (16.6) | |||
Other (1) | (13.0) | (0.9) | (48.0) | (11.4) | |||
Excess cash flow | 118.6 | 8.5 | 81.0 | 430.3 | |||
(1) | Includes payments on lease liability, asset retirement obligations and other cash items, excluding net acquisitions and dispositions. |
Adjusted net earnings from operations is calculated based on net income before amortization of exploration and evaluation ("E&E") undeveloped land, impairment or impairment recoveries, unrealized derivative gains or losses, unrealized foreign exchange gain or loss on translation of hedged US dollar long-term debt, unrealized gains or losses on long-term investments, gains or losses on the sale of long-term investments and gains or losses on capital acquisitions and dispositions. Adjusted net earnings from operations per share - diluted is calculated as adjusted net earnings from operations divided by the number of weighted average diluted shares outstanding. Management utilizes adjusted net earnings from operations to present a measure of financial performance that is more comparable between periods. Adjusted net earnings from operations as presented is not intended to represent net earnings or other measures of financial performance calculated in accordance with IFRS.
The following table reconciles net income to adjusted net earnings from operations:
Three months ended September 30 | Nine months ended September 30 | |||||||
($ millions) | 2020 | 2019 | 2020 | 2019 | ||||
Net income (loss) | 0.5 | (301.7) | (2,468.7) | (101.2) | ||||
Amortization of E&E undeveloped land | 16.7 | 33.6 | 58.0 | 107.8 | ||||
Impairment | — | 241.4 | 3,557.8 | 249.9 | ||||
Unrealized derivative (gains) losses | 116.3 | (128.3) | (73.0) | 115.7 | ||||
Unrealized foreign exchange (gain) loss on translation of hedged US dollar long-term debt | (37.7) | 40.5 | 24.1 | (155.2) | ||||
Unrealized loss on long-term investments | 0.8 | 0.1 | 5.1 | 1.5 | ||||
Net (gain) loss on capital dispositions | 0.4 | 193.2 | (307.9) | 199.3 | ||||
Deferred tax relating to adjustments | (26.0) | (46.2) | (703.6) | (80.9) | ||||
Adjusted net earnings from operations | 71.0 | 32.6 | 91.8 | 336.9 | ||||
Net debt is calculated as long-term debt plus accounts payable and accrued liabilities and long-term compensation liability net of equity derivative contracts, less cash, accounts receivable, prepaids and deposits, long-term investments, excluding the unrealized foreign exchange on translation of US dollar long-term debt. Management utilizes net debt as a key measure to assess the liquidity of the Company.
The following table reconciles long-term debt to net debt:
($ millions) | September 30, 2020 | September 30, 2019 | |
Long-term debt (1) | 2,413.7 | 3,578.2 | |
Accounts payable and accrued liabilities | 277.8 | 525.8 | |
Long-term compensation liability (2) | 11.6 | 50.9 | |
Cash | (8.6) | (122.9) | |
Accounts receivable | (189.5) | (336.7) | |
Prepaids and deposits | (24.1) | (9.8) | |
Long-term investments | (1.7) | (7.1) | |
Excludes: | |||
Unrealized foreign exchange on translation of hedged US dollar long-term debt | (290.0) | (318.4) | |
Net debt | 2,189.2 | 3,360.0 |
(1) | Includes current portion of long-term debt. |
(2) | Includes current portion of long-term compensation liability and is net of equity derivative contracts. |
Net debt to adjusted funds flow from operations is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters. The ratio of net debt to adjusted funds flow from operations is used by management to measure the Company's overall debt position and to measure the strength of the Company's balance sheet. Crescent Point monitors this ratio and uses this as a key measure in making decisions regarding financing, capital spending and dividend levels.
Operating netback is calculated on a per boe basis as oil and gas sales, less royalties, operating and transportation expenses. Adjusted funds flow from operations netback is calculated on a per boe basis as operating netback less net purchased products, realized derivative gains and losses, general and administrative expenses, interest on long-term debt, foreign exchange, cash-settled share-based compensation and certain cash items, excluding transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items. Operating netback and adjusted funds flow from operations netback are common metrics used in the oil and gas industry and are used by management to measure operating results on a per boe basis to better analyze performance against prior periods on a comparable basis. Netback calculations are shown in the Financial and Operating Highlights section in this press release.
Management believes the presentation of the Non-GAAP measures above provide useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.
All amounts in the news release are stated in Canadian dollars unless otherwise specified.
Forward-Looking Statements
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: ample liquidity of over $2.5 billion; 2020 production guidance and capital expenditures; 2021 preliminary program fully funded at approximately US$40/bbl; capital budget for fourth quarter focused on high return assets, including the continued advancement of long-term projects to further enhance sustainability; the plans, purpose, nature and extent of the hedging program; dividend payment; plans to continue the OT platform rollout throughout 2021; 2020 waterflood conversions and impact on corporate decline rate; outlook; Crescent Point's financial results for the remainder of the year are well insulated from the current volatility in commodity prices; Crescent Point's preliminary outlook for 2021 is expected to be fully funded within cash flow at approximately US$40/bbl WTI; generating annual average production in 2021 that is in-line with, or exceeds, estimated second half 2020 production of approximately 110,000 boe/d while spending $500 to $550 million in development capital; the release of a formal annual budget in late 2020 or early in 2021; Crescent Point's preliminary 2021 program including a base decline rate of approximately 25 percent; at US$45/bbl to US$50/bbl WTI, expectations of generating approximately $175 to $350 million of excess cash flow and providing an increased opportunity to further enhance shareholder value; the Company remaining flexible in the event of lower commodity prices and focusing on sustaining production and generating excess cash flow in a higher commodity price environment; approximately $40 million of funds flow sensitivity for every US$1/bbl change in WTI in 2021; management remaining flexible in its operations and business practices as they pertain to the COVID-19 pandemic, in order to continue to protect the health and safety of its stakeholders; a substantial portion of first half 2021 production hedged at attractive prices and expectations of layering on additional protection, in the context of commodity prices; and 2020 guidance including total annual average production including percentage of oil and NGLs and drilling capital expenditures, including percentage dedicated to drilling and development and facilities and seismic.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material assumptions and risks discussed in the Company's Annual Information Form for the year ended December 31, 2019 under "Risk Factors", our Management's Discussion and Analysis for the year ended December 31, 2019, under the headings "Risk Factors" and "Forward-Looking Information" and for the quarter ended September 30, 2020 under "Commodity Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policies", "Risk Factors", "Guidance" and "Forward-Looking Information". The material assumptions are disclosed in the Management's Discussion and Analysis for the year ended December 31, 2019, under the headings "Capital Expenditures", "Liquidity and Capital Resources", "Critical Accounting Estimates", "Risk Factors", "Changes in Accounting Policies", and "Outlook" and are disclosed in the Management's Discussion and Analysis for the quarter ended September 30, 2020 under the headings "Commodity Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policies" and "Guidance". The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-q3-2020-results-301162320.html
SOURCE Crescent Point Energy Corp.
Article Date
10/29/202010/29/2020 - Crescent Point Confirms Quarterly Dividend
Crescent Point Confirms Quarterly Dividend
Source: PR Newswire
CALGARY, AB, Oct. 29, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point") (TSX: CPG) (NYSE: CPG) announces its Board of Directors has declared a quarterly cash dividend of CDN $0.0025 per share to be paid on January 4, 2021 for shareholders of record on December 15, 2020.
These dividends are designated as "eligible dividends" for Canadian income tax purposes. For U.S. income tax purposes, Crescent Point's dividends are considered "qualified dividends."
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-confirms-quarterly-dividend-301162184.html
SOURCE Crescent Point Energy Corp.
Article Date
10/29/2020Crescent Point Updates Production Guidance and Outlook
Source: PR Newswire
CALGARY, AB, Sept. 1, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX: CPG) and (NYSE: CPG) is pleased to announce reactivation of economic volumes previously shut-in and provide revised 2020 guidance along with a preliminary outlook for 2021.
KEY HIGHLIGHTS
"Our process to shut-in and reactivate economic production demonstrates our continued focus on returns in a disciplined manner," said Craig Bryksa, President and CEO of Crescent Point. "We expect to generate excess cash flow in the current price environment and have further increased our downside protection through our strong hedging portfolio. We have also enhanced our sustainability in a low price environment through both ongoing improvements to our cost structure and the expected moderation in our decline rate."
REACTIVATION OF SHUT-IN VOLUMES AND REVISED 2020 GUIDANCE
During second quarter, Crescent Point shut-in certain higher cost production to preserve value and enhance its financial flexibility. The Company's reactivation plan is now complete and all economic production has been brought back on-line.
Crescent Point's annual average production guidance is now forecast to be 119,000 to 121,000 boe/d. The mid-point of the Company's revised 2020 guidance implies second half production of approximately 110,000 boe/d, which is approximately 20 percent higher in comparison to its previous guidance. Crescent Point's 2020 capital expenditures are now expected to be approximately $665 million, in-line with the lower end of its prior guidance range of $650 to $700 million. The Company also retains continued flexibility and discretion to adjust capital expenditures, if necessary.
Crescent Point expects to generate approximately $125 million of excess funds flow during the second half of 2020, based on guidance at current strip prices, which it plans to allocate to continued net debt reduction. Given the Company's strong results and execution during the first half of the year, total net debt reduction during 2020 is now expected to total approximately $600 million.
Approximately 70 percent of Crescent Point's second half of 2020 oil and liquids production, net of royalty interest, is hedged primarily through swaps with an average price of over CAD$65/bbl WTI. The Company has also hedged into 2021, and will remain disciplined in its approach to layering on additional hedges in the context of commodity prices.
OUTLOOK
Based on preliminary work done on its 2021 program and current market expectations, Crescent Point anticipates being able to generate annual average production in 2021 that is in-line with, or exceeds, its estimated second half 2020 production while spending approximately $500 to $550 million in development capital. The Company continues to work through its plans for 2021 and expects to formalize its annual guidance early in the new year.
This 2021 preliminary program is expected to be fully funded in the low US$40/bbl WTI range and generate excess cash flow at current strip prices. Crescent Point's current funds flow sensitivity in 2021 is approximately $45 million for every US$1/bbl change in WTI.
The Company retains flexibility and discretion in the allocation of its capital and overall operations in the event lower commodity prices, or other market developments, impacts its plans. Crescent Point will continue to focus on its key value drivers of disciplined capital allocation, cost efficiencies and balance sheet strength.
Crescent Point remains in a strong financial position, having over $2.4 billion of available liquidity as at June 30, 2020 and no material near term debt maturities.
2020 BUDGET AND GUIDANCE SUMMARY
Total annual average production (boe/d) | Prior 110,000 – 114,000 90% | Revised 119,000 – 121,000 91% |
Development capital expenditures ($ millions) (1) | $650 – $700 | $665 |
(1) | Development capital expenditures excludes approximately $80 million of capitalized G&A, land acquisitions, capital leases and reclamation activities. |
Non-GAAP Financial Measures
Throughout this press release, the Company uses the terms "excess cash flow", and "net debt". These terms do not have any standardized meaning as prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other issuers.
Adjusted funds flow from operations is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Transaction costs are excluded as they vary based on the Company's acquisition and disposition activity and to ensure that this metric is more comparable between periods. Decommissioning expenditures are discretionary and are excluded as they may vary based on the stage of Company's assets and operating areas. Management utilizes adjusted funds flow from operations as a key measure to assess the ability of the Company to finance dividends, operating activities, capital expenditures and debt repayments. Adjusted funds flow from operations as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.
Free cash flow is calculated as adjusted funds flow from operations less capital expenditures, payments on lease liability, asset retirement obligations and other cash items (excluding net acquisitions and dispositions). Excess cash flow is calculated as free cash flow less dividends. Management utilizes free cash flow and excess cash flow as key measures to assess the ability of the Company to finance dividends, potential share repurchases, debt repayments and returns-based growth.
Net debt is calculated as long-term debt plus accounts payable and accrued liabilities and long-term compensation liability net of equity derivative contracts, less cash, accounts receivable, prepaids and deposits and long-term investments, excluding the unrealized foreign exchange on translation of US dollar long-term debt. Management utilizes net debt as a key measure to assess the liquidity of the Company.
Management believes the presentation of the Non-GAAP measures above provide useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.
Forward-Looking Statements
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "sustain", "continues", "strategy", "potential", "grow", "estimate" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: second half 2020 production increases and the reason for the increase; 2020 capital expenditures, including how such expenditures are allocated to drilling and development and to facilities and seismic; 2020 total annual average production including production from oil and from NGLs; amount of excess cash flow generated during the second half of 2020 based on guidance at strip prices; the ability to sustain or exceed second half 2020 production in 2021 within funds flow in the low US$40/bbl WTI range; focus on returns in a disciplined manner; generating excess cash flow in the current price environment; expected total net debt reduction in 2020; downside protection hedging provides; key actions expected to enhance sustainability in a low price environment; 2020 annual average production guidance; second half 2020 production guidance; flexibility and discretion in capital budget; the allocation of excess cash flow to net debt reduction; 2021 annual average production based on preliminary work, current market outlook and 2021 development capital expenditures of approximately $500-$550 million; timing to formalize 2021 guidance; expectations that the preliminary 2021 program will be fully funded in the low US$40/bbl WTI range and generate excess cash flow at current strip prices; current 2021 funds flow sensitivity for every US$1/bbl change in WTI; capital allocation and operations remaining flexible; continued focus on disciplined capital allocation, cost efficiencies and balance sheet strength; and a strong financial position.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material assumptions and risks discussed in the Company's Annual Information Form for the year ended December 31, 2019 under "Risk Factors", our Management's Discussion and Analysis for the year ended December 31, 2019, under the headings "Risk Factors" and "Forward-Looking Information" and for the quarter ended June 30, 2020 under "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policies", "Risk Factors" and "Outlook". The material assumptions are disclosed in the Management's Discussion and Analysis for the year ended December 31, 2019, under the headings "Capital Expenditures", "Liquidity and Capital Resources", "Critical Accounting Estimates", "Risk Factors", "Changes in Accounting Policies" and "Outlook" and are disclosed in the Management's Discussion and Analysis for the quarter ended June 30, 2020 under the headings "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policies" and "Outlook". The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
www.crescentpointenergy.com
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-updates-production-guidance-and-outlook-301121331.html
SOURCE Crescent Point Energy Corp.
Article Date
9/1/2020Crescent Point Announces Q2 2020 Results and Appointment of Director
Source: PR Newswire
CALGARY, AB, July 30, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX: CPG) and (NYSE: CPG) is pleased to announce its operating and financial results for the quarter ended June 30, 2020. The Company's Board of Directors (the "Board") is also pleased to announce the appointment of a new director.
KEY HIGHLIGHTS
"Our priorities during the current commodity price cycle remain on maintaining a strong financial position and enhancing our sustainability," said Craig Bryksa, President and CEO of Crescent Point. "Our continued net debt reduction during second quarter, despite significantly weak commodity prices, highlights our deep netback asset base, risk management, discipline and a relentless focus on costs. We expect to generate excess cash flow during the second half of 2020, based on our guidance at current strip prices, further strengthening our financial position."
FINANCIAL HIGHLIGHTS
OPERATIONAL HIGHLIGHTS
OUTLOOK
The proactive measures the Company has taken year-to-date continue to demonstrate the disciplined and flexible approach management is taking to preserve a strong financial position and enhance long-term sustainability. As a result, Crescent Point is now in a position to meet or exceed its current annual average production guidance of 110,000 to 114,000 boe/d with development capital expenditures toward the lower end of its guidance range of $650 to $700 million in 2020.
As a result of the Company's ongoing improvements to its cost structure, Crescent Point expects to generate additional excess cash flow during the balance of the year, based on guidance at current strip prices, while also building further downside protection through its hedging activities. The Company's allocation of excess cash flow will continue to prioritize further net debt reduction.
Crescent Point retains flexibility in its overall program and will adjust its capital expenditures if necessary. The Company is also actively monitoring commodity prices and market conditions, in order to determine when to restore previously announced shut-in volumes, and will communicate such plans, including any upward revision to its annual production guidance, when warranted.
The Company has initiated its formal budgeting process for 2021 with a continued focus on returns, balance sheet strength and sustainability. Crescent Point expects to significantly decrease its capital requirements to sustain production due to the Company's successful cost initiatives in 2020, the expected moderation in its production decline rate and through lower overall activity. As a result, Crescent Point expects to improve its ability to generate excess cash flow in a low price environment.
Crescent Point remains in a strong financial position with significant liquidity of over $2.4 billion and no material near-term debt maturities. Management continues to prioritize additional balance sheet strength with its excess cash flow generation, given the volatility in commodity prices.
BOARD OF DIRECTORS
Crescent Point is pleased to appoint and welcome Myron Stadnyk to the Board, effective July 30, 2020. The Board has gone through significant changes over the past few years as part of its commitment to full Board renewal, enhanced diversity and strong governance. With Mr. Stadnyk's addition, the Board is now comprised of 10 members, including nine independent directors.
"We are pleased to have Myron join Crescent Point's board," said Barbara Munroe, Chair of the Board. "Myron brings over 35 years of business and industry experience, strong leadership skills and deep governance expertise that will provide a valuable contribution to all stakeholders. On behalf of the board, we look forward to working with him."
Mr. Stadnyk is the former President & CEO of ARC Resources Ltd. ("ARC"), who also served as its COO prior to that role and worked with a major oil and gas company in both domestic and international operations prior to joining ARC. During his tenure at ARC over the past 20 years, he contributed to building a safe, profitable and sustainable business. Mr. Stadnyk is currently on the boards of PraireSky Royalty Ltd. and Shock Trauma Air Rescue Society ("STARS") and was previously a Governor of the Canadian Association of Petroleum Producers ("CAPP"). Mr. Stadnyk holds a Bachelor of Science in Mechanical Engineering from the University of Saskatchewan, is a graduate of the Harvard Business School Advanced Management Program and is a member of Association of Professional Engineers and Geoscientists of Alberta ("APEGA").
CONFERENCE CALL DETAILS
Crescent Point management will hold a conference call on Thursday, July 30, 2020 at 10:00 a.m. MT (12:00 p.m. ET) to discuss the Company's results and outlook. A slide deck will accompany the conference call and can be found on Crescent Point's home page.
Participants can listen to this event online. Alternatively, the conference call can be accessed by dialing 1-888-390-0605.
The webcast will be archived for replay and can be accessed on Crescent Point's website. The replay will be available approximately one hour following completion of the call.
Shareholders and investors can also find the Company's most recent investor presentation on the Company's website.
2020 GUIDANCE
The Company's guidance for 2020 is as follows:
Total annual average production (boe/d) | 110,000 - 114,000 |
% Oil and NGLs | 90% |
Development capital expenditures ($ millions) (1) | $650 to $700 |
Drilling and development (%) | 91% |
(1) | Development capital expenditures excludes approximately $80 million of capitalized G&A, land acquisitions, capital leases and reclamation activities. |
The Company's unaudited financial statements and management's discussion and analysis for the quarter ended June 30, 2020, will be available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on Crescent Point's website at www.crescentpointenergy.com.
FINANCIAL AND OPERATING HIGHLIGHTS
Three months ended June 30 | Six months ended June 30 | |||
(Cdn$ millions except per share and per boe amounts) | 2020 | 2019 | 2020 | 2019 |
Financial | ||||
Cash flow from operating activities | 66.6 | 527.4 | 395.9 | 944.2 |
Adjusted funds flow from operations (1) | 109.0 | 503.8 | 418.5 | 1,017.8 |
Per share (1) (2) | 0.21 | 0.92 | 0.79 | 1.85 |
Net income (loss) | (145.1) | 198.6 | (2,469.2) | 200.5 |
Per share (2) | (0.27) | 0.36 | (4.67) | 0.37 |
Adjusted net earnings from operations (1) | (27.9) | 146.0 | 20.8 | 304.3 |
Per share (1) (2) | (0.05) | 0.27 | 0.04 | 0.55 |
Dividends declared | 1.4 | 5.5 | 6.7 | 11.1 |
Per share (2) | 0.0025 | 0.0100 | 0.0125 | 0.0200 |
Net debt (1) | 2,308.6 | 3,553.5 | 2,308.6 | 3,553.5 |
Net debt to adjusted funds flow from operations (1) (3) | 1.9 | 1.9 | 1.9 | 1.9 |
Weighted average shares outstanding | ||||
Basic | 529.3 | 547.6 | 528.8 | 548.9 |
Diluted | 531.2 | 548.2 | 529.7 | 549.0 |
Operating | ||||
Average daily production | ||||
Crude oil (bbls/d) | 94,900 | 134,951 | 103,414 | 137,418 |
NGLs (bbls/d) | 14,210 | 20,841 | 15,852 | 20,471 |
Natural gas (mcf/d) | 70,391 | 100,101 | 70,921 | 97,902 |
Total (boe/d) | 120,842 | 172,476 | 131,086 | 174,206 |
Average selling prices (4) | ||||
Crude oil ($/bbl) | 26.74 | 72.07 | 38.90 | 68.32 |
NGLs ($/bbl) | 8.11 | 21.39 | 13.17 | 23.43 |
Natural gas ($/mcf) | 2.74 | 2.14 | 2.88 | 2.91 |
Total ($/boe) | 23.55 | 60.22 | 33.84 | 58.28 |
Netback ($/boe) | ||||
Oil and gas sales | 23.55 | 60.22 | 33.84 | 58.28 |
Royalties | (2.77) | (8.97) | (4.34) | (8.25) |
Operating expenses | (11.89) | (12.61) | (12.12) | (12.69) |
Transportation expenses | (2.24) | (2.05) | (2.24) | (2.08) |
Operating netback (1) | 6.65 | 36.59 | 15.14 | 35.26 |
Realized gain (loss) on derivatives | 8.15 | (0.64) | 6.12 | 0.05 |
Other (5) | (4.89) | (3.85) | (3.72) | (3.03) |
Adjusted funds flow from operations netback (1) | 9.91 | 32.10 | 17.54 | 32.28 |
Capital Expenditures | ||||
Capital dispositions, net (6) | (1.5) | (58.3) | (507.0) | (61.1) |
Development capital expenditures | ||||
Drilling and development | 64.0 | 146.5 | 357.6 | 506.1 |
Facilities and seismic | 8.0 | 19.7 | 34.5 | 40.3 |
Total | 72.0 | 166.2 | 392.1 | 546.4 |
Land expenditures | 0.8 | 4.1 | 1.6 | 8.1 |
(1) | Adjusted funds flow from operations, adjusted funds flow from operations per share, adjusted net earnings from operations, adjusted net earnings from operations per share, net debt, net debt to adjusted funds flow from operations, operating netback and adjusted funds flow from operations netback as presented do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other entities. |
(2) | The per share amounts (with the exception of dividends per share) are the per share – diluted amounts. |
(3) | Net debt to adjusted funds flow from operations is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters. |
(4) | The average selling prices reported are before realized derivatives and transportation. |
(5) | Other includes net purchased products, general and administrative expenses, interest on long-term debt, foreign exchange, cash-settled share-based compensation and certain cash items and excludes transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items. |
(6) | Capital dispositions, net represent total consideration for the transactions, including long-term debt and working capital assumed, and exclude transaction costs. |
Non-GAAP Financial Measures
Throughout this press release, the Company uses the terms "adjusted funds flow", "adjusted funds flow from operations", "funds flow", "adjusted funds flow from operations per share - diluted", "adjusted net earnings from operations", "adjusted net earnings from operations per share - diluted", "net debt", "net debt to adjusted funds flow from operations", "netback", "operating netback" and "adjusted funds flow from operations netback". These terms do not have any standardized meaning as prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other issuers.
Adjusted funds flow and funds flow are equivalent to adjusted funds flow from operations. Adjusted funds flow from operations is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Adjusted funds flow from operations per share - diluted is calculated as adjusted funds flow from operations divided by the number of weighted average diluted shares outstanding. Transaction costs are excluded as they vary based on the Company's acquisition and disposition activity and to ensure that this metric is more comparable between periods. Decommissioning expenditures are discretionary and are excluded as they may vary based on the stage of Company's assets and operating areas. Management utilizes adjusted funds flow from operations as a key measure to assess the ability of the Company to finance dividends, operating activities, capital expenditures and debt repayments. Adjusted funds flow from operations as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.
The following table reconciles cash flow from operating activities to adjusted funds flow from operations:
Three months ended June 30 | Six months ended June 30 | |||
($ millions) | 2020 | 2019 | 2020 | 2019 |
Cash flow from operating activities | 66.6 | 527.4 | 395.9 | 944.2 |
Changes in non-cash working capital | 41.1 | (28.3) | 8.0 | 62.7 |
Transaction costs | 0.6 | 0.2 | 5.3 | 1.1 |
Decommissioning expenditures | 0.7 | 4.5 | 9.3 | 9.8 |
Adjusted funds flow from operations | 109.0 | 503.8 | 418.5 | 1,017.8 |
Adjusted net earnings from operations is calculated based on net income before amortization of exploration and evaluation ("E&E") undeveloped land, impairment or impairment recoveries, unrealized derivative gains or losses, unrealized foreign exchange gain or loss on translation of hedged US dollar long-term debt, unrealized gains or losses on long-term investments, gains or losses on the sale of long-term investments and gains or losses on capital acquisitions and dispositions. Adjusted net earnings from operations per share - diluted is calculated as adjusted net earnings from operations divided by the number of weighted average diluted shares outstanding. Management utilizes adjusted net earnings from operations to present a measure of financial performance that is more comparable between periods. Adjusted net earnings from operations as presented is not intended to represent net earnings or other measures of financial performance calculated in accordance with IFRS.
The following table reconciles net income to adjusted net earnings from operations:
Three months ended June 30 | Six months ended June 30 | |||
($ millions) | 2020 | 2019 | 2020 | 2019 |
Net income (loss) | (145.1) | 198.6 | (2,469.2) | 200.5 |
Amortization of E&E undeveloped land | 19.6 | 35.9 | 41.3 | 74.2 |
Impairment | — | — | 3,557.8 | 8.5 |
Unrealized derivative (gains) losses | 229.2 | (26.4) | (189.3) | 244.0 |
Unrealized foreign exchange (gain) loss on translation of hedged US dollar long-term debt | (74.1) | (99.0) | 61.8 | (195.7) |
Unrealized loss on long-term investments | (1.2) | 0.9 | 4.3 | 1.4 |
Net (gain) loss on capital dispositions | (0.8) | 11.4 | (308.3) | 6.1 |
Deferred tax relating to adjustments | (55.5) | 24.6 | (677.6) | (34.7) |
Adjusted net earnings (loss) from operations | (27.9) | 146.0 | 20.8 | 304.3 |
Net debt is calculated as long-term debt plus accounts payable and accrued liabilities and long-term compensation liability net of equity derivative contracts, less cash, accounts receivable, prepaids and deposits, long-term investments, excluding the unrealized foreign exchange on translation of US dollar long-term debt. Management utilizes net debt as a key measure to assess the liquidity of the Company.
The following table reconciles long-term debt to net debt:
($ millions) | June 30, 2020 | June 30, 2019 |
Long-term debt (1) | 2,597.6 | 3,706.7 |
Accounts payable and accrued liabilities | 270.3 | 474.8 |
Long-term compensation liability (2) | 5.9 | 6.2 |
Cash | (27.6) | (9.7) |
Accounts receivable | (183.7) | (331.4) |
Prepaids and deposits | (23.7) | (7.9) |
Long-term investments | (2.5) | (7.3) |
Excludes: | ||
Unrealized foreign exchange on translation of hedged US dollar long-term debt | (327.7) | (277.9) |
Net debt | 2,308.6 | 3,553.5 |
(1) | Includes current portion of long-term debt. |
(2) | Includes current portion of long-term compensation liability and is net of equity derivative contracts. |
Net debt to adjusted funds flow from operations is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters. The ratio of net debt to adjusted funds flow from operations is used by management to measure the Company's overall debt position and to measure the strength of the Company's balance sheet. Crescent Point monitors this ratio and uses this as a key measure in making decisions regarding financing, capital spending and dividend levels.
Operating netback is calculated on a per boe basis as oil and gas sales, less royalties, operating and transportation expenses. Adjusted funds flow netback is equivalent to adjusted funds flow from operations netback. Adjusted funds flow from operations netback is calculated on a per boe basis as operating netback less net purchased products, realized derivative gains and losses, general and administrative expenses, interest on long-term debt, foreign exchange, cash-settled share-based compensation and certain cash items, excluding transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items. Cash flow netback is equivalent to adjusted funds flow from operations netback. Operating netback and adjusted funds flow from operations netback are common metrics used in the oil and gas industry and are used by management to measure operating results on a per boe basis to better analyze performance against prior periods on a comparable basis. Netback calculations are shown in the Financial and Operating Highlights section in this press release.
Management believes the presentation of the Non-GAAP measures above provide useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.
All amounts in the news release are stated in Canadian dollars unless otherwise specified.
Forward-Looking Statements
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: expected well cost savings of over 10 percent in 2020; production restoration from previously announced shut-in wells; direct emissions intensity reduction target of 30 percent by 2025; over 50% reduction methane emissions by 2025; priorities during the current commodity price cycle; expecting to generate additional excess cash flow during the second half of 2020; hedging; dividends; average per well capital costs to improve by over 10 percent by year-end 2020, compared to original 2020 budget; meeting or exceeding current annual average production guidance of 110,000 to 114,000 boe/d; development capital expenditures toward the lower end of the 2020 guidance range of $650 to $700 million; excess cash flow generation during the remainder of 2020, based on guidance at current strip prices, with additional downside protection through hedging activities; 2021 budget focuses; contributions to all stakeholders of a new board member; capital requirements to sustain production decreasing significantly due to the Company's cost initiatives in 2020, an expected moderation in its production decline rate and lower overall activity; allocation of excess cash flow prioritized to further net debt reduction; improved ability to generate excess cash flow in a low price environment; prioritizing additional balance sheet strength; and 2020 guidance.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material assumptions and risks discussed in the Company's Annual Information Form for the year ended December 31, 2019 under "Risk Factors", our Management's Discussion and Analysis for the year ended December 31, 2019, under the headings "Risk Factors" and "Forward-Looking Information" and for the quarter ended June 30, 2020 under "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policies", "Risk Factors" and "Outlook". The material assumptions are disclosed in the Management's Discussion and Analysis for the year ended December 31, 2019, under the headings "Capital Expenditures", "Liquidity and Capital Resources", "Critical Accounting Estimates", "Risk Factors", "Changes in Accounting Policies", and "Outlook" and are disclosed in the Management's Discussion and Analysis for the quarter ended June 30, 2020 under the headings "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policies" and "Outlook". The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
www.crescentpointenergy.com
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-q2-2020-results-and-appointment-of-director-301102638.html
SOURCE Crescent Point Energy Corp.
Article Date
7/30/20207/30/2020 - Crescent Point Confirms Quarterly Dividend
Crescent Point Confirms Quarterly Dividend
Source: PR Newswire
CALGARY, AB, July 30, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point") (TSX: CPG) (NYSE: CPG) announces its Board of Directors has declared a quarterly cash dividend of CDN $0.0025 per share to be paid on October 1, 2020 for shareholders of record on September 15, 2020.
These dividends are designated as "eligible dividends" for Canadian income tax purposes. For U.S. income tax purposes, Crescent Point's dividends are considered "qualified dividends."
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
www.crescentpointenergy.com
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-confirms-quarterly-dividend-301102596.html
SOURCE Crescent Point Energy Corp.
Article Date
7/30/2020Crescent Point Releases 2020 Sustainability Report
Source: PR Newswire
CALGARY, AB, June 23, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX: CPG) (NYSE: CPG) has released its 2020 Sustainability Report (the "Report") highlighted by an emissions intensity reduction target of 30 percent by 2025. The Report outlines the Company's latest progress and commitment to strong environmental, social and governance ("ESG") performance.
Additional highlights of the Report include:
"Our 2020 Sustainability Report shows our continued emphasis on enhancing Crescent Point's strong ESG performance," said Craig Bryksa, President and CEO of Crescent Point. "Our 30 percent emissions intensity reduction target by 2025 is a tangible and achievable target that aligns with our purpose statement of 'Bringing energy to our world - the right way'. Integrating sustainability practices into our business operations is the right thing to do as our approach mitigates our long-term risks and strengthens shareholder value."
The Report is Crescent Point's second sustainability report, building upon the inaugural report released in 2019. The full Report, including a downloadable PDF, is available on Crescent Point's website at www.crescentpointenergy.com. The TCFD framework is also available on the Company's website.
FORWARD-LOOKING STATEMENTS
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: the Company's emissions intensity reduction target of 30 percent by 2025 and the achievability of that goal; and the Company's asset retirement obligations.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this release should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material risks and assumptions discussed in the Company's Annual Information Form for the year ended December 31, 2019 under "Risk Factors" and in our Management's Discussion and Analysis for the year ended December 31, 2019, under the headings "Risk Factors" and "Forward-Looking Information". The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
www.crescentpointenergy.com
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-releases-2020-sustainability-report-301081385.html
SOURCE Crescent Point Energy Corp.
Article Date
6/23/2020Crescent Point Receives Notification of Continued Listing Standard from NYSE
Source: PR Newswire
CALGARY, May 15, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) received notice from the New York Stock Exchange ("NYSE") on April 20, 2020, that the Company's common stock was not in compliance with the NYSE's continued listing standard requiring the average closing price of its common shares be at least US$1.00 over a consecutive 30-day trading period.
Under NYSE rules, Crescent Point can regain compliance at any time during the granted cure period ending December 29, 2020, by having a closing share price and a 30 trading-day average closing share price of at least US$1.00 on the last trading day of any calendar month. Failure to regain compliance could lead to delisting. The Company's shares will continue to be listed and traded on the NYSE during the cure period subject to compliance with other continued listing requirements. The NYSE will assign a ".BC" suffix to the Company symbol "CPG" throughout the cure period representing Crescent Point as below compliance of the NYSE price listing standard.
This notice does not impact Crescent Point's ongoing business operations, its reporting requirements to the U.S. Securities and Exchange Commission or the continued listing and trading of the Company's common shares on the Toronto Stock Exchange. The notification is not discretionary and is sent by the NYSE when a listed company's share price falls below the continued listing standard requirement.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-receives-notification-of-continued-listing-standard-from-nyse-301060284.html
SOURCE Crescent Point Energy Corp.
Article Date
5/15/2020Crescent Point Announces Annual General Meeting Results
Source: PR Newswire
CALGARY, May 14, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) held its Annual and Special Meeting of Shareholders ("AGM" or "the meeting") on May 14, 2020.
During the regular business proceedings at the meeting, shareholders elected all director nominees to the Board of Directors of the Company (the "Board") and approved all other items of business brought before the meeting. Voting results for all resolutions and advisory votes are below.
1. Fixing the Number of Directors
The appointment of nine Board members for the ensuing year was approved. Votes were received as follows:
Votes For | Percent | Against | Percent |
204,663,005 | 99.23% | 1,581,553 | 0.77% |
2. Election of Directors
The nine director nominees were elected. Votes were received as follows:
Nominee | Votes For | Percent | Withheld | Percent |
Barbara Munroe | 203,108,007 | 98.48% | 3,136,550 | 1.52% |
Craig Bryksa | 203,206,502 | 98.53% | 3,038,055 | 1.47% |
Laura A. Cillis | 202,168,091 | 98.02% | 4,076,466 | 1.98% |
James E. Craddock | 203,482,386 | 98.66% | 2,762,171 | 1.34% |
John Dielwart | 190,648,928 | 92.44% | 15,595,629 | 7.56% |
Ted Goldthorpe | 161,887,614 | 78.49% | 44,356,943 | 21.51% |
Mike Jackson | 201,616,853 | 97.76% | 4,627,704 | 2.24% |
Jennifer F. Koury | 202,386,561 | 98.13% | 3,857,996 | 1.87% |
François Langlois | 203,105,858 | 98.48% | 3,138,699 | 1.52% |
3. Appointment of Auditors
The appointment of PricewaterhouseCoopers LLP as Crescent Point's auditor was approved. Votes were received as follows:
Votes For | Percent | Withheld | Percent |
220,646,233 | 98.53% | 3,295,721 | 1.47% |
4. Reduction in Stated Capital Account
The resolution approving a reduction in the stated capital account maintained in respect of the common shares of the Company by $5 billion was approved. Votes were received as follows:
Votes For | Percent | Against | Percent |
201,695,718 | 97.79% | 4,548,838 | 2.21% |
5. Increasing the Restricted Share Bonus Plan Common Share Reserve
The resolution to increase the maximum number of common shares available for issuance under the Restricted Share Bonus Plan while decreasing the reserve of common shares available under the Stock Option Plan was approved. Votes were received as follows:
Votes For | Percent | Against | Percent |
175,255,637 | 84.97% | 30,988,920 | 15.03% |
6. By-law Amendment
The resolution to amend the Company's by-laws to permit virtual meetings was approved. Votes were received as follows:
Votes For | Percent | Against | Percent |
204,244,911 | 99.03% | 1,999,648 | 0.97% |
7. Advisory Vote on Executive Compensation
The advisory vote to accept the Company's approach to executive compensation was approved. Votes were received as follows:
Votes For | Percent | Against | Percent |
164,008,751 | 79.52% | 42,235,807 | 20.48% |
The biographies of Crescent Point's Board members, details about its governance practices and a recorded webcast from the meeting earlier today are available on www.crescentpointenergy.com. The full terms of each resolution voted on at the meeting can be found in the Company's latest information circular, which is also available on Crescent Point's website.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-annual-general-meeting-results-301059859.html
SOURCE Crescent Point Energy Corp.
Article Date
5/14/20205/6/2020 - Crescent Point Announces Q1 2020 Results
Crescent Point Announces Q1 2020 Results
Source: PR Newswire
CALGARY, May 6, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is pleased to announce its operating and financial results for the quarter ended March 31, 2020.
KEY HIGHLIGHTS
"Over the past two years, our team has worked diligently to reposition the Company", said Craig Bryksa, President and CEO of Crescent Point. "Our efforts have centered on enhancing our long-term sustainability, including strengthening our balance sheet and lowering our cost structure. During this period of uncertainty and volatility, we have and will continue to prioritize the safety of our employees and the communities in which we operate, and continue to protect our financial flexibility while remaining focused on returns, capital discipline and realizing additional cost savings."
FINANCIAL HIGHLIGHTS
OPERATIONAL HIGHLIGHTS
OUTLOOK
Year-to-date, Crescent Point has made significant revisions to its operations and capital program. The Company took early and decisive actions to respond to the current commodity price environment to preserve the long-term value of its assets. The Company has also realized additional efficiencies across the organization, including lowering its capital costs and operating and general and administrative expenses.
Crescent Point will remain flexible in its operations and remaining capital program, and will continue to focus on returns and balance sheet strength. Management will continue to work on realizing additional savings throughout the year and intends to align cash outflows, including capital expenditures, with inflows in order to protect its financial liquidity.
The Company expects to restore production from shut-in wells, with minimal impact to long-term production, when warranted. Management continues to evaluate the commodity price environment, including market access constraints and the potential for involuntary shut-ins.
Crescent Point remains committed and focused on its Environmental, Social and Governance ("ESG") practices. The Company's strong safety culture was evident during first quarter, including through the adoption of heightened safety protocols as a result of the COVID-19 pandemic. Crescent Point instituted physical distancing protocols within its field operations, advanced digital technology throughout the organization and adopted work from home policy for employees whose work can be performed remotely. The Company expects to release its second annual sustainability report during second quarter 2020, which will further highlight the Company's progress over the past year.
Crescent Point is on track with its 2020 budget, with expected annual average production of 110,000 to 114,000 boe/d, which assumes shut-in production remains off line for the remainder of the year, and planned development capital expenditures of $650 to $700 million.
ANNUAL GENERAL MEETING
Crescent Point's 2020 Annual General Meeting ("AGM") will be held on May 14, 2020. The Company is proceeding with the AGM solely by virtual means as previously announced. For more information, please review the press release dated April 21, 2020.
CONFERENCE CALL DETAILS
Crescent Point management will hold a conference call on Wednesday, May 6, 2020 at 10:00 a.m. MT (12:00 p.m. ET) to discuss the Company's results and outlook. A slide deck will accompany the conference call and can be found on Crescent Point's home page.
Participants can listen to this event online. Alternatively, the conference call can be accessed by dialing 1‑888‑390‑0605.
The webcast will be archived for replay and can be accessed on Crescent Point's website. The replay will be available approximately one hour following completion of the call.
Shareholders and investors can also find the Company's most recent investor presentation on Crescent Point's website.
2020 GUIDANCE
The Company's guidance for 2020 is as follows:
Total annual average production (boe/d) % Oil and NGLs | 110,000 - 114,000 90% |
Development capital expenditures ($ millions) (1) Drilling and development (%) Facilities and seismic (%) | $650 to $700 91% 9% |
(1) | Development capital expenditures excludes approximately $80 million of capitalized G&A, land acquisitions, capital leases and reclamation activities. |
The Company's unaudited financial statements and management's discussion and analysis for the quarter ended March 31, 2020, will be available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on Crescent Point's website at www.crescentpointenergy.com.
FINANCIAL AND OPERATING HIGHLIGHTS
Three months ended March 31 | |||
(Cdn$ millions except per share and per boe amounts) | 2020 | 2019 | |
Financial | |||
Cash flow from operating activities | 329.3 | 416.8 | |
Adjusted funds flow from operations (1) | 309.5 | 514.0 | |
Per share (1) (2) | 0.59 | 0.93 | |
Net income (loss) | (2,324.1) | 1.9 | |
Per share (2) | (4.40) | - | |
Adjusted net earnings from operations (1) | 48.7 | 158.3 | |
Per share (1) (2) | 0.09 | 0.29 | |
Dividends declared | 5.3 | 5.6 | |
Per share (2) | 0.01 | 0.01 | |
Net debt (1) | 2,327.9 | 3,905.5 | |
Net debt to adjusted funds flow from operations (1) (3) | 1.4 | 2.1 | |
Weighted average shares outstanding | |||
Basic | 528.3 | 550.3 | |
Diluted | 528.3 | 550.3 | |
Operating | |||
Average daily production | |||
Crude oil (bbls/d) | 111,928 | 139,911 | |
NGLs (bbls/d) | 17,493 | 20,097 | |
Natural gas (mcf/d) | 71,451 | 95,679 | |
Total (boe/d) | 141,330 | 175,955 | |
Average selling prices (4) | |||
Crude oil ($/bbl) | 49.21 | 64.65 | |
NGLs ($/bbl) | 17.28 | 25.58 | |
Natural gas ($/mcf) | 3.03 | 3.72 | |
Total ($/boe) | 42.64 | 56.35 | |
Netback ($/boe) | |||
Oil and gas sales | 42.64 | 56.35 | |
Royalties | (5.68) | (7.53) | |
Operating expenses | (12.31) | (12.77) | |
Transportation expenses | (2.24) | (2.10) | |
Operating netback (1) | 22.41 | 33.95 | |
Realized gain (loss) on derivatives | 4.38 | 0.73 | |
Other (5) | (2.73) | (2.22) | |
Adjusted funds flow from operations netback (1) | 24.06 | 32.46 | |
Capital Expenditures | |||
Capital dispositions, net (6) | (505.5) | (2.8) | |
Development capital expenditures | |||
Drilling and development | 293.6 | 359.6 | |
Facilities and seismic | 26.5 | 20.6 | |
Total | 320.1 | 380.2 | |
Land expenditures | 0.8 | 4.0 | |
(1) | Adjusted funds flow from operations, adjusted funds flow from operations per share, adjusted net earnings from operations, adjusted net earnings from operations per share, net debt, net debt to adjusted funds flow from operations, operating netback and adjusted funds flow from operations netback as presented do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other entities. |
(2) | The per share amounts (with the exception of dividends per share) are the per share – diluted amounts. |
(3) | Net debt to adjusted funds flow from operations is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters. |
(4) | The average selling prices reported are before realized derivatives and transportation. |
(5) | Other includes net purchased products, general and administrative expenses, interest on long-term debt, foreign exchange, cash-settled share-based compensation and certain cash items and excludes transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items. |
(6) | Capital dispositions, net represent total consideration for the transactions, including long-term debt and working capital assumed, and exclude transaction costs. |
Non-GAAP Financial Measures
Throughout this press release, the Company uses the terms "adjusted funds flow", "adjusted funds flow from operations", "funds flow", "adjusted funds flow from operations per share - diluted", "adjusted net earnings from operations", "adjusted net earnings from operations per share - diluted", "net debt", "net debt to adjusted funds flow from operations", "netback", "operating netback" and "adjusted funds flow from operations netback". These terms do not have any standardized meaning as prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other issuers.
Adjusted funds flow and funds flow is equivalent to adjusted funds flow from operations. Adjusted funds flow from operations is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Adjusted funds flow from operations per share - diluted is calculated as adjusted funds flow from operations divided by the number of weighted average diluted shares outstanding. Transaction costs are excluded as they vary based on the Company's acquisition and disposition activity and to ensure that this metric is more comparable between periods. Decommissioning expenditures are discretionary and are excluded as they may vary based on the stage of Company's assets and operating areas. Management utilizes adjusted funds flow from operations as a key measure to assess the ability of the Company to finance dividends, operating activities, capital expenditures and debt repayments. Adjusted funds flow from operations as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.
The following table reconciles cash flow from operating activities to adjusted funds flow from operations:
Three months ended March 31 | ||||
($ millions) | 2020 | 2019 | ||
Cash flow from operating activities | 329.3 | 416.8 | ||
Changes in non-cash working capital | (33.1) | 91.0 | ||
Transaction costs | 4.7 | 0.9 | ||
Decommissioning expenditures | 8.6 | 5.3 | ||
Adjusted funds flow from operations | 309.5 | 514.0 | ||
Adjusted net earnings from operations is calculated based on net income before amortization of exploration and evaluation ("E&E") undeveloped land, impairment or impairment recoveries, unrealized derivative gains or losses, unrealized foreign exchange gain or loss on translation of hedged US dollar long-term debt, unrealized gains or losses on long-term investments, gains or losses on the sale of long-term investments and gains or losses on capital acquisitions and dispositions. Adjusted net earnings from operations per share - diluted is calculated as adjusted net earnings from operations divided by the number of weighted average diluted shares outstanding. Management utilizes adjusted net earnings from operations to present a measure of financial performance that is more comparable between periods. Adjusted net earnings from operations as presented is not intended to represent net earnings or other measures of financial performance calculated in accordance with IFRS.
The following table reconciles net income to adjusted net earnings from operations:
Three months ended March 31 | ||||
($ millions) | 2020 | 2019 | ||
Net income (loss) | (2,324.1) | 1.9 | ||
Amortization of E&E undeveloped land | 21.7 | 38.3 | ||
Impairment | 3,557.8 | 8.5 | ||
Unrealized derivative (gains) losses | (418.5) | 270.4 | ||
Unrealized foreign exchange (gain) loss on translation of hedged US dollar long-term debt | 135.9 | (96.7) | ||
Unrealized loss on long-term investments | 5.5 | 0.5 | ||
Gain on capital dispositions | (307.5) | (5.3) | ||
Deferred tax relating to adjustments | (622.1) | (59.3) | ||
Adjusted net earnings from operations | 48.7 | 158.3 | ||
Net debt is calculated as long-term debt plus accounts payable and accrued liabilities and long-term compensation liability, less cash, accounts receivable, prepaids and deposits and long-term investments, excluding the unrealized foreign exchange on translation of US dollar long-term debt. Management utilizes net debt as a key measure to assess the liquidity of the Company.
The following table reconciles long-term debt to net debt:
($ millions) | March 31, 2020 | March 31, 2019 |
Long-term debt (1) | 2,539.2 | 4,142.6 |
Accounts payable and accrued liabilities | 418.2 | 600.5 |
Long-term compensation liability (2) | 2.4 | 4.9 |
Cash | (19.6) | (25.8) |
Accounts receivable | (196.7) | (421.6) |
Prepaids and deposits | (12.6) | (10.0) |
Long-term investments | (1.2) | (8.2) |
Excludes: | ||
Unrealized foreign exchange on translation of hedged US dollar long-term debt | (401.8) | (376.9) |
Net debt | 2,327.9 | 3,905.5 |
(1) | Includes current portion of long-term debt. |
(2) | Includes current portion of long-term compensation liability. |
Net debt to adjusted funds flow from operations is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters. The ratio of net debt to adjusted funds flow from operations is used by management to measure the Company's overall debt position and to measure the strength of the Company's balance sheet. Crescent Point monitors this ratio and uses this as a key measure in making decisions regarding financing, capital spending and dividend levels.
Operating netback is calculated on a per boe basis as oil and gas sales, less royalties, operating and transportation expenses. Adjusted funds flow netback is equivalent to adjusted funds flow from operations netback. Adjusted funds flow from operations netback is calculated on a per boe basis as operating netback less net purchased products, realized derivative gains and losses, general and administrative expenses, interest on long-term debt, foreign exchange, cash-settled share-based compensation and certain cash items, excluding transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items. Cash flow netback is equivalent to adjusted funds flow from operations netback. Operating netback and adjusted funds flow from operations netback are common metrics used in the oil and gas industry and are used by management to measure operating results on a per boe basis to better analyze performance against prior periods on a comparable basis. Netback calculations are shown in the Financial and Operating Highlights section in this press release.
Management believes the presentation of the Non-GAAP measures above provide useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.
All amounts in the news release are stated in Canadian dollars unless otherwise specified.
Forward-Looking Statements
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: the expectation that additional capital and operating efficiencies will be achieved during 2020; the expected impact of recent actions on long-term value; the expected lack of impact of the recently announced $75 million reduction to capital budget on production; the Company's priorities during this period of increased volatility; the Company's plans to continue to prioritize the safety of its employees and the communities in which it operates; Crescent Point's expectation that it will incur its remaining capital expenditures primarily during fourth quarter, the discretionary nature of these expenditures and the Company's ability to adjust spending based on commodity prices; management's plan to remain disciplined in its approach to hedging; the potential reversal of impairment charges in future periods; the Company's 2020 annual capital expenditures guidance; the Company's forecast for lower annual operating expenses, including sustainable savings; Crescent Point's plans to remain flexible in its operations and remaining capital program and its plans to continue to focus on returns, its balance sheet and protecting the long-term value of its assets; management's plans to continue to work to realize additional savings and its intent to align cash outflows with inflows; the Company's plans to restore production from its shut-in wells; Crescent Point plans to continue to evaluate the commodity price environment; Crescent Point's plans to release its second annual sustainability report during second quarter 2020; the Corporation's 2020 annual average production and development capital expenditures guidance; and the timing of the Corporation's AGM and its plan to hold a fully virtual meeting.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material assumptions and risks discussed in the Company's Annual Information Form for the year ended December 31, 2019 under "Risk Factors", our Management's Discussion and Analysis for the year ended December 31, 2019, under the headings "Risk Factors" and "Forward-Looking Information" and for the quarter ended March 31, 2020 under "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policies", "Risk Factors" and "Outlook". The material assumptions are disclosed in the Management's Discussion and Analysis for the year ended December 31, 2019, under the headings "Capital Expenditures", "Liquidity and Capital Resources", "Critical Accounting Estimates", "Risk Factors", "Changes in Accounting Policies", and "Outlook" and are disclosed in the Management's Discussion and Analysis for the quarter ended March 31, 2020 under the headings "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policies" and "Outlook". The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-q1-2020-results-301053515.html
SOURCE Crescent Point Energy Corp.
Article Date
5/6/20205/6/2020 - Crescent Point Confirms Quarterly Dividend
Crescent Point Confirms Quarterly Dividend
Source: PR Newswire
CALGARY, May 6, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point") (TSX and NYSE: CPG) announces its Board of Directors has declared a quarterly cash dividend of CDN $0.0025 per share to be paid on July 2, 2020 for shareholders of record on June 15, 2020.
These dividends are designated as "eligible dividends" for Canadian income tax purposes. For U.S. income tax purposes, Crescent Point's dividends are considered "qualified dividends."
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-confirms-quarterly-dividend-301053308.html
SOURCE Crescent Point Energy Corp.
Article Date
5/6/20204/29/2020 - Crescent Point Announces Q1 2020 Conference Call
Crescent Point Announces Q1 2020 Conference Call
Source: PR Newswire
CALGARY, April 29, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) plans to report its first quarter 2020 financial and operating results via press release prior to the opening of markets on Wednesday, May 6, 2020. Crescent Point's management will hold a conference call at 10:00 a.m. MT (12:00 p.m. ET) the same day to discuss the results and outlook for the Company.
Participants can listen to this event online via webcast. Alternatively, the conference call can be accessed by dialing 1‑888‑390‑0605.
The webcast will be archived for replay and can be accessed on Crescent Point's conference calls and webcasts webpage under the invest tab. The replay will be available approximately one hour following completion of the call.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
|Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
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SOURCE Crescent Point Energy Corp.
Article Date
4/29/2020Crescent Point Announces 2020 AGM as Virtual Meeting
Source: PR Newswire
CALGARY, April 21, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) will now hold its upcoming Annual and Special Meeting of Shareholders (the "AGM") solely by virtual means.
The AGM will be held at the originally scheduled date and time on May 14, 2020 at 10:00 a.m. MT, but it will now be conducted by way of live audio webcast. The timing and process for voting by proxy remains unchanged and are described in detail in the information circular or the AGM notice previously mailed to shareholders. Shareholders are reminded that completed proxy forms must be received no later than 10:00 a.m. MT on May 12, 2020.
Crescent Point is proceeding with the AGM solely by virtual means due to the current public health crisis as a result of the COVID-19 pandemic and the order of Alberta's Chief Medical Officer of Health prohibiting indoor gatherings in excess of 15 people and requiring minimum social distancing. The Board of Directors and management believe that a virtual AGM will mitigate health and safety risks to the community, shareholders, employees and other stakeholders.
As Crescent Point's election to hold the AGM solely by virtual means is based on the current health crisis, the Company expects to hold its 2021 annual meeting of shareholders in its usual fashion, by way of in person meeting.
Registered shareholders and duly appointed proxyholders will be able to attend the AGM, ask questions and vote, all in real time online at https://web.lumiagm.com/220957268 by entering the 15-digit Control Number provided in their meeting materials, and the password "crescent2020" (case sensitive). Non-registered (beneficial) shareholders (being shareholders who hold their common shares through a broker, investment dealer, bank, trust company, custodian, nominee or other intermediary) who have not duly appointed themselves as proxyholder will be able to attend the AGM at the link above as guests, but will not be able to vote or ask questions at the meeting. Crescent Point recommends shareholders log into the webcast at least 10 minutes in advance of the virtual meeting start time to ensure connectivity.
The majority of shareholders vote in advance of the annual meeting by proxy using the various voting channels made available by the Company, all of which will remain available. We encourage shareholders to continue voting in advance by proxy.
Full details on how to vote, change or revoke a vote, appoint a proxyholder, attend the virtual AGM, ask questions and other general proxy matters are available in the information circular dated April 2, 2020 and the Virtual AGM User Guide available on the Company's website and System for Electronic Document Analysis and Retrieval website.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
www.crescentpointenergy.com
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-2020-agm-as-virtual-meeting-301044587.html
SOURCE Crescent Point Energy Corp.
Article Date
4/21/20204/20/2020 - Crescent Point Announces Corporate Update
Crescent Point Announces Corporate Update
Source: PR Newswire
CALGARY, April 20, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is taking additional action to further enhance the Company's long-term sustainability through additional cost reductions, and is including a revised 2020 outlook.
KEY HIGHLIGHTS
"We have taken, and continue to take, meaningful action to enhance our long-term sustainability during this period of low commodity prices," said Craig Bryksa, President and CEO of Crescent Point. "We have further lowered our cost structure and also elected to shut-in production that is currently uneconomic to further enhance our cash flow. We are continuously monitoring the commodity price environment and will make further adjustments throughout the year, if necessary."
REVISED 2020 CAPITAL EXPENDITURES AND ADDITIONAL COST REDUCTIONS
Crescent Point's capital expenditures for 2020 are now forecast to be approximately $650 to $700 million, or $75 million below its recently revised guidance of $700 to $800 million, based on the mid-point of the range. This capital reduction, which has no associated impact to production, is a combination of internal efficiencies and operational outperformance resulting in lower expenditures during the balance of the year.
Since the release of its original 2020 budget, the Company has lowered its capital expenditures guidance by over 40 percent and retains the ability to further reduce expenditures later in the year, if necessary. Approximately half of Crescent Point's revised annual budget is expected to occur subsequent to first quarter. Due to a shift in the scheduled timing of its planned capital program, approximately 65 percent of the Company's remaining 2020 budget is expected during fourth quarter. The majority of these expenditures are discretionary and dependent on commodity prices. Management continues to work on realizing additional efficiencies and intends to balance annual cash outflows, including capital expenditures, with inflows.
Crescent Point forecasts that its operating expenses for the current fiscal year will be approximately $140 million, or approximately 20 percent, below its initial 2020 expectations. Approximately $50 million of this reduction is sustainable and is expected to be driven by internal initiatives with the remaining reduction achieved through lower activity levels and cost savings from shut-in production. Since the beginning of 2019, Crescent Point has permanently removed approximately $120 million, or over 15 percent, of its annual operating expenses due to its enhanced and ongoing focus on new workflow improvements and the adoption of digital technologies.
In light of the current environment, the President and CEO's current base salary will be reduced by 15 percent with the remaining members of the executive team taking a 10 percent reduction to current base salaries. The cash component of the Board of Directors retainer will also be reduced by 15 percent.
REVISED 2020 PRODUCTION GUIDANCE
The Company's annual average production is now forecast to be 110,000 to 114,000 boe/d for 2020. This represents a reduction of 20,000 boe/d, or approximately 15 percent, from Crescent Point's prior annual average guidance of 130,000 to 134,000 boe/d, based on the mid-point of the range. This revision is largely due to the shut-in of higher cost production, as well as the Company's decision to shift capital to the latter part of the year with flexibility to further reduce capital, if necessary.
In aggregate, Crescent Point is voluntarily shutting-in approximately 25,000 boe/d of its current production, of which approximately 70 percent is oil. This production is primarily located outside of the Company's key focus areas and carries costs above the corporate average. As a result of these shut-ins, and at current prices, Crescent Point expects to achieve cost savings in excess of the potential revenue.
The Company expects to restore production from shut-in wells, with minimal impact to long-term production, when warranted. Management continues to evaluate market conditions, including market access constraints and the potential for involuntary shut-ins.
All financial figures are approximate and in Canadian dollars unless otherwise noted. This press release contains forward-looking information. Significant related assumptions and risk factors, and reconciliations are described under the Forward-Looking Statements section of this press release, respectively. |
FINANCIAL LIQUIDITY
The Company retains significant liquidity with over $2.5 billion of cash and unutilized capacity on its credit facilities. Crescent Point does not have any material near-term debt maturities, with its next set of senior notes due in second quarter 2021 for a total of approximately $185 million.
HEDGING
The Company has over 65 percent of its revised oil production guidance hedged for the remainder of the year. Crescent Point recently layered additional hedges for second and third quarter 2020 in order to help protect against any further weakness in near-term commodity prices. The Company forecasts hedging gains of approximately $330 million in 2020 based on current strip prices.
COVID-19
In response to the continued uncertainty pertaining to the global pandemic of COVID-19, Crescent Point has taken strict measures to protect the health and safety of all stakeholders including its employees, community members and vendor partners. The Company has instituted physical distancing protocols within its field operations, advanced digital technology throughout the organization and seamlessly adopted a work from home policy for employees whose work can be performed remotely. Crescent Point has a long history of operational excellence with a motivated staff that continues to exceed expectations despite having to adapt to a new challenging environment. Management is continually monitoring the health and safety of its employees with no positive cases of COVID within the Company.
2020 BUDGET AND GUIDANCE SUMMARY
| Prior 130,000 – 134,000 91% | Revised 110,000 – 114,000 90% |
% Oil and NGLs | ||
Development capital expenditures ($ millions) (1) | $700 – $800 91% 9% | $650 – $700 91% 9% |
Drilling and development (%) |
(1) | Development capital expenditures excludes approximately $80 million of capitalized G&A, land acquisitions, capital leases and reclamation activities. |
FORWARD-LOOKING STATEMENTS
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: expected 2020 capital expenditures, production and operating expenses; the expected impact of lowered capital spending on 2020 production; the ability of the Company to further reduce capital expenditures, if necessary; expected 2020 operating expense; the Company's plan to continue to lower its cost structure and hence its flexibility during a period of low commodity prices; Crescent Point's plans to make further adjustments during the year if necessary in light of the commodity price environment; when the Company expects to spend capital during the remainder of 2020; how the Company expects to achieve its planned 2020 capital reduction; the Company's expectation that it will incur approximately 65% of its remaining capital during fourth quarter; management's plan to continue to work on realizing additional efficiencies and balance annual cash outflows with inflows; how the Company expects to achieve its planned operating expense reductions; planned salary reductions for the CEO and other executive team members and planned Board compensation reductions; Crescent Point's plan to voluntarily shut-in approximately 25,000 boe/d of production, the percentage of the shut-in volumes that are expected to be oil, how the Company plans to make shut-in decisions and when these shut-ins are expected to occur; the Company's plan to restore production from shut-in wells, with minimal impact to long-term production, when warranted; management's plan to continue to evaluate market conditions, including market access constraints and the potential for involuntary shut-ins; the expectation that the Company's recent additional hedges for second and third quarter 2020 will help protect against any further weakness in near term commodity prices; expected 2020 hedging gains; and Crescent Point's plans to continue to monitor the health and safety of its employees with no positive cases of COVID within the Company.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including: those material risks discussed in the Company's Annual Information Form for the year ended December 31, 2019 under "Risk Factors" and in our Management's Discussion and Analysis for the year ended December 31, 2019, under the headings "Risk Factors" and "Forward-Looking Information"; and the heightened uncertainty caused by current commodity prices, the impact of the COVID-19 pandemic on the Company's business and prospects and other global macroeconomic factors. The material assumptions are disclosed herein and in the Management's Discussion and Analysis for the year ended December 31, 2019, under the headings "Capital Expenditures", "Liquidity and Capital Resources", "Critical Accounting Estimates", "Risk Factors", "Changes in Accounting Policies", "Outlook" and "Forward-Looking Statements". The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
www.crescentpointenergy.com
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-corporate-update-301043243.html
SOURCE Crescent Point Energy Corp.
Article Date
4/20/2020Crescent Point Revises 2020 Capital Spending and Dividend
Source: PR Newswire
CALGARY, March 16, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is revising its 2020 capital spending by approximately 35 percent in response to the recent decline in commodity prices. This conservative and disciplined approach demonstrates the Company's flexibility, focus on returns and prudent risk management to protect its balance sheet.
"Our original plans for 2020 centered on returns, capital discipline, cost savings initiatives and balance sheet strength," said Craig Bryksa, President and CEO of Crescent Point. "Given the recent severe volatility in the near-term outlook for commodity prices, we have adjusted our program to support those same priorities. We expect to fully fund our 2020 program within cash flow assuming a WTI price in the low US$30/bbl range for the remainder of the year."
Crescent Point's revised 2020 capital expenditures budget of $700 to $800 million is expected to generate annual average production of 130,000 to 134,000 boe/d. This guidance reflects a high-graded, lower activity budget with fewer wells drilled. This program is expected to moderate the Company's corporate decline rate and reduce variable expenses while also protecting the long-term value of its drilling inventory.
The revised program will begin immediately with minimal activity in second quarter, driven by normal seasonality related to spring break-up, with the majority of remaining activity expected to resume late third quarter. Management will continue to monitor the outlook for commodity prices during this period of reduced activity and has the ability to make further adjustments if necessary.
Crescent Point's new budget incorporates additional operating and capital cost efficiencies realized during first quarter 2020 through the continued adoption of digital technologies and workflow optimization on top of successful drilling, completion and facility cost reduction initiatives. The Company is targeting further improvements to its cost structure throughout the year, which have not been incorporated into its updated guidance.
Crescent Point is also revising its dividend to provide additional flexibility in the current environment. After payment of the first quarter dividend of CDN$0.01 per share payable April 1, 2020, as previously announced, the Company intends to change to a quarterly cash dividend that equates to CDN$0.01 per share per year. Crescent Point is also deferring share repurchases under its normal course issuer bid with flexibility for it to be resumed as market conditions warrant.
The Company has over 50 percent of its revised oil production guidance hedged for 2020 at attractive prices which are expected to provide approximately $325 million to $350 million of gains for the year if WTI remains at US$30/bbl to US$35/bbl for the remainder of 2020. Crescent Point does not have any material near-term senior note debt maturities and currently retains significant liquidity of approximately $2.7 billion of cash and unutilized capacity on its credit facilities which are not due for renewal until October 2023. These credit facilities are unsecured and not subject to periodic revisions due to changes in reserve values.
2020 BUDGET AND GUIDANCE SUMMARY
Total annual average production (boe/d) | Prior 140,000 – 144,000 91% | Revised 130,000 – 134,000 91% |
% Oil and NGLs | ||
Development capital expenditures ($ millions) (1) | $1,100 – $1,200 90% 10% | $700 – $800 91% 9% |
Drilling and development (%) | ||
Facilities and seismic (%) |
(1) | Development capital expenditures excludes approximately $80 million of capitalized G&A, land acquisitions, capital leases and reclamation activities |
Forward-Looking Statements
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: the Company's expectation that its 2020 capital program will be fully funded within cash flow assuming a WTI price in the low US$30/bbl range for the remainder of the year; Crescent Point's revised 2020 capital budget of $700 to $800 million (and the allocation of those expenditures between drilling and development and facilities and seismic); the expectation that the revised 2020 capital budget will generate annual average production of 130,000 to 134,000 boe/d; the Company's plan to high grade its drilling program and drill fewer wells and the expectation that this approach will moderate the Company's corporate decline rate and reduce its variable expenses while also protecting the long term value of the Company's drilling inventory; the Company's planned activity levels under its revised capital program; management's plan to continue to monitor the outlook for commodity prices during this period of inactivity and remain flexible with further adjustments if necessary; the Company's plan to target further improvements to its cost structure throughout the year; the Corporation's intentions with respect to its normal course issuer bid; the Company's plan to reduce its dividend to CDN$0.01 per share per year; and the expected gains from the Company's hedging activity for 2020 assuming US$30/bbl to US$35/bbl WTI for the remainder of the year.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material risks discussed in the Company's Annual Information Form for the year ended December 31, 2019 under "Risk Factors" and in our Management's Discussion and Analysis for the year ended December 31, 2019, under the headings "Risk Factors" and "Forward-Looking Information". The material assumptions are disclosed herein and in the Management's Discussion and Analysis for the year ended December 31, 2019, under the headings "Capital Expenditures", "Liquidity and Capital Resources", "Critical Accounting Estimates", "Risk Factors", "Changes in Accounting Policies", "Outlook" and "Forward-Looking Statements". In addition, risk factors include: financial risk of marketing reserves at an acceptable price given market conditions; significant volatility in market prices for oil and natural gas; the uncertain impacts of COVID-19 on our business, the societal, economic and governmental response to COVID-19; delays in business operations, pipeline restrictions, blowouts; the risk of carrying out operations with minimal environmental impact; industry conditions, including changes in laws and regulations and the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; risks and uncertainties related to all oil and gas interests; cyber security risk; uncertainties associated with estimating oil and natural gas reserves; economic risk of finding and producing reserves at a reasonable cost; uncertainties associated with partner plans and approvals; operational matters related to non-operated properties; increased competition for, among other things, capital, acquisitions of reserves and undeveloped lands; competition for and availability of qualified personnel or management; incorrect assessments of the value of acquisitions and exploration and development programs; unexpected geological, technical, drilling, construction and processing problems; availability of insurance; fluctuations in foreign exchange and interest rates; stock market volatility; failure to realize the anticipated benefits of acquisitions and dispositions; general economic, market and business conditions; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities and counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates and incentive programs relating to the oil and gas industry; and other factors, many of which are outside the control of Crescent Point. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
All financial figures are approximate and in Canadian dollars unless otherwise noted. This press release contains forward-looking information. Significant related assumptions and risk factors, and reconciliations are described under the Forward-Looking Statements section of this press release, respectively. |
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SOURCE Crescent Point Energy Corp.
Article Date
3/16/2020Crescent Point Announces Year-End 2019 Conference Call
Source: PR Newswire
CALGARY, Feb. 27, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) plans to report its year-end 2019 financial and operating results and reserves via press release prior to the opening of markets on Thursday, March 5, 2020. Crescent Point's management will host a conference call at 10:00 a.m. MT (12:00 p.m. ET) the same day to discuss the results and outlook for the Company.
Participants can listen to this event online via webcast. Alternatively, the conference call can be accessed by dialing 1‑888‑390‑0605.
The webcast will be archived for replay and can be accessed on Crescent Point's conference calls and webcasts webpage under the invest tab. The replay will be available approximately one hour following the completion of the call.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-year-end-2019-conference-call-301012794.html
SOURCE Crescent Point Energy Corp.
Article Date
2/27/2020Crescent Point Closes Sale of Gas Infrastructure Assets
Source: PR Newswire
CALGARY, Jan. 20, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is pleased to announce that it has successfully closed the previously announced sale of certain associated gas infrastructure assets (the "Assets") in Saskatchewan for total cash consideration of $500 million.
The Assets sold as part of this transaction include nine natural gas gathering and processing facilities and two gas sales pipelines with total throughput capacity of more than 90 MMcf/d.
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
www.crescentpointenergy.com
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
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SOURCE Crescent Point Energy Corp.
Article Date
1/20/20201/14/2020 - Crescent Point Announces 2020 Budget
Crescent Point Announces 2020 Budget
Source: PR Newswire
CALGARY, Jan. 14, 2020 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is pleased to announce its 2020 budget.
KEY HIGHLIGHTS
"We successfully completed our 2019 program on budget while also significantly strengthening our balance sheet through excess cash flow generation and accretive dispositions," said Craig Bryksa, President and CEO of Crescent Point. "Our plans for 2020 will continue to focus on returns, capital discipline, cost saving initiatives and generating excess cash flow to further enhance shareholder value. We will also continue to seek opportunities to further optimize our portfolio, where appropriate, as part of our strategy to focus our asset base."
2020 PRODUCTION AND CAPITAL EXPENDITURES BUDGET
Crescent Point's 2020 capital expenditures budget of $1.10 to $1.20 billion is primarily comprised of sustaining capital and is expected to generate annual average production of 140,000 to 144,000 boe/d. This production range is unchanged from the prior year after incorporating approximately 30,000 boe/d of dispositions executed in 2019.
Over 80 percent of the 2020 capital expenditures budget is allocated to four plays including the Company's key focus areas and its North Dakota resource play. Crescent Point's key focus areas in the Viewfield, Shaunavon and Flat Lake resource plays account for approximately 60 percent of the allocation, up from approximately 55 percent in 2019. These areas currently generate strong netbacks, attractive risk-adjusted returns, excess cash flow, and the opportunity to further enhance overall sustainability through additional cost efficiencies and decline mitigation programs. The Company's North Dakota resource play also delivered strong operational performance and efficiencies in 2019, resulting in consistent capital expenditures in 2020.
Within Crescent Point's 2020 budget, approximately seven percent of its capital expenditures is prudently allocated to long-term development projects, including decline mitigation programs such as waterflood. The Company plans to convert approximately 120 producing wells to water injection wells in 2020.
EXCESS CASH FLOW, BALANCE SHEET AND SHARE REPURCHASES
Crescent Point expects to generate approximately $200 million to $350 million of excess cash flow at US$55/bbl to US$60/bbl WTI, which it plans to allocate to continued net debt reduction and accretive share repurchases. The Company's budget will be flexible in the event of lower commodity prices and is fully funded at oil prices of less than US$50/bbl WTI.
Management continues to believe a strong balance sheet is essential in a cyclical commodity business, and will remain disciplined in its capital allocation, with approximately 70 to 80 percent of its 2020 excess cash flow planned to be allocated to net debt reduction. The remaining 20 to 30 percent will be directed to share repurchases, subject to returns and market conditions, in addition to $50 million of share repurchases from expected proceeds of the recently announced infrastructure asset monetization, which is on track to close in first quarter 2020.
Since implementing its normal course issuer bid ("NCIB") in first quarter 2019, Crescent Point has repurchased, for cancellation, approximately 25.3 million shares for approximately $130 million, up to and including January, 9, 2020, representing approximately five percent of its public float. The Company intends to renew its NCIB in first quarter 2020.
As part of its risk management program to protect against commodity price volatility, Crescent Point has currently hedged approximately 50 percent of its oil and liquids production for 2020. The Company plans to continue to layer additional hedges, when appropriate, to further protect its cash flow.
Crescent Point does not have any material near-term senior note debt maturities and retains significant liquidity on its covenant-based, unsecured credit facilities which are not due for renewal until October 2023.
NETBACK IMPROVEMENT AND COST EFFICIENCIES
Crescent Point was proactive in identifying and realizing internal cost efficiencies throughout the organization in 2019, including capital costs, operating, and general and administrative expenses. The Company adopted digital technologies within its key focus areas throughout the year, which enhanced new workflow changes to realize reductions to its operating cost structure and benefits to its health and safety, and asset integrity programs.
These sustainable cost savings are in addition to benefits Crescent Point realized through dispositions executed in 2019 that further enhanced its overall netbacks and sustainability. As a result of these initiatives, the Company's expected 2020 adjusted funds flow netback has improved by approximately seven percent, including the impact of its recent infrastructure monetization, at a constant WTI price of US$55/bbl.
Crescent Point will continue to seek opportunities to further enhance its competitive position in 2020 through additional portfolio optimization, cost efficiencies and new market access opportunities.
2020 BUDGET AND GUIDANCE SUMMARY
Total annual average production (boe/d) | 140,000 - 144,000 |
% Oil and NGLs | 91% |
Capital expenditures ($ millions) (1) | $1,100 to $1,200 |
Drilling and development (%) | 90% |
Facilities and seismic (%) | 10% |
Net wells drilled (mid-point of guidance range) | ~450 |
Adjusted funds flow netback ($/boe) (2) (3) | ~$28 |
1 | Capital expenditures exclude any potential net property and land acquisitions and approximately $32 million of capitalized G&A. |
2 | Adjusted funds flow netback as presented does not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and, therefore, may not be comparable with the calculation of similar measures presented by other entities. |
3 | Adjusted funds flow netback based on US$55/bbl WTI, $0.75 US/CAD, MSW differential of -US$7/bbl and WCS differential of -US$19/bbl for 2020. |
Non-GAAP Financial Measures
Throughout this press release, the Company uses the terms "adjusted funds flow netback", "netback", "excess cash flow", and "net debt". These terms do not have any standardized meaning as prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other issuers.
Adjusted funds flow from operations is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Transaction costs are excluded as they vary based on the Company's acquisition and disposition activity and to ensure that this metric is more comparable between periods. Decommissioning expenditures are discretionary and are excluded as they may vary based on the stage of Company's assets and operating areas. Management utilizes adjusted funds flow from operations as a key measure to assess the ability of the Company to finance dividends, operating activities, capital expenditures and debt repayments. Adjusted funds flow from operations as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.
Operating netback is calculated on a per boe basis as oil and gas sales, less royalties, operating and transportation expenses. Adjusted funds flow netback and netback is equivalent to adjusted funds flow from operations netback. Adjusted funds flow from operations netback is calculated on a per boe basis as operating netback less net purchased products, realized derivative gains and losses, general and administrative expenses, interest on long-term debt, foreign exchange, cash-settled share-based compensation and certain cash items, excluding transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items. Operating netback and adjusted funds flow from operations netback are common metrics used in the oil and gas industry and are used by management to measure operating results on a per boe basis to better analyze performance against prior periods on a comparable basis. Adjusted funds flow from operations netback does not have any standardized meaning and should not be used to make comparisons.
Free cash flow is calculated as adjusted funds flow from operations less capital expenditures, payments on lease liability, asset retirement obligations and other cash items (excluding net acquisitions and dispositions). Excess cash flow is calculated as free cash flow less dividends. Management utilizes free cash flow and excess cash flow as key measures to assess the ability of the Company to finance dividends, potential share repurchases, debt repayments and returns-based growth.
Net debt is calculated as long-term debt plus accounts payable and accrued liabilities and other current and long-term liabilities, excluding current decommissioning and lease liabilities, less cash, accounts receivable, prepaids and deposits and long-term investments, excluding the unrealized foreign exchange on translation of US dollar long-term debt. Management utilizes net debt as a key measure to assess the liquidity of the Company.
Management believes the presentation of the Non-GAAP measures above provide useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.
Forward-Looking Statements
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: 2020 excess cash flow generation at US$55/bbl to US$60/bbl WTI and the actions and allocations the Company expects to undertake and make because of this level of excess cash flow; a disciplined and returns focused budget centered in key focus areas that is fully funded at less than US$50/bbl WTI; annual production guidance; capital expenditures budget and its composition; advancing field automation; implementing a new supply chain pre-qualification process; the continued focus on ESG practices; 2020 plans and their focus items; seeking opportunities to further optimize the Company's portfolio, as part of the strategy to focus the Company's asset base; the Company's key focus areas generating strong netbacks, attractive risk-adjusted returns, excess cash flow, and the opportunity to further enhance overall sustainability through additional cost efficiencies and decline mitigation programs; plans to convert producing wells to water injection wells; 2020 capital budget allocations; 2020 budget flexibility and full funding at oil prices of less than US$50/bbl WTI; disciplined capital allocation and the expected proportion of 2020 excess cash flow allocated to net debt reduction and share repurchases; the expected amount of 2020 share repurchases; the renewal of the Company's NCIB; the Company layering additional hedges and the benefits thereof; 2020 adjusted funds flow netback improvement; 2020 budget and guidance summary; average annual average production and composition; capital expenditures and composition; net wells drilled; and adjusted funds flow netback.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material risks discussed in the Company's Annual Information Form for the year ended December 31, 2018 under "Risk Factors", our Management's Discussion and Analysis for the year ended December 31, 2018, under the headings "Risk Factors" and "Forward-Looking Information" and for the quarter ended September 30, 2019 under "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policy" and "Outlook". The material assumptions are disclosed herein and in the Management's Discussion and Analysis for the year ended December 31, 2018, under the headings "Capital Expenditures", "Liquidity and Capital Resources", "Critical Accounting Estimates", "Risk Factors", "Changes in Accounting Policies" and "Outlook" and are disclosed in the Management's Discussion and Analysis for the quarter ended September 30, 2019 under the headings "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policy" and "Outlook". In addition, risk factors include: financial risk of marketing reserves at an acceptable price given market conditions; volatility in market prices for oil and natural gas; delays in business operations, pipeline restrictions, blowouts; the risk of carrying out operations with minimal environmental impact; industry conditions, including changes in laws and regulations and the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; risks and uncertainties related to all oil and gas interests and operations on tribal lands; uncertainties associated with estimating oil and natural gas reserves; economic risk of finding and producing reserves at a reasonable cost; uncertainties associated with partner plans and approvals; operational matters related to non-operated properties; increased competition for, among other things, capital, acquisitions of reserves and undeveloped lands; competition for and availability of qualified personnel or management; incorrect assessments of the value of acquisitions and exploration and development programs; unexpected geological, technical, drilling, construction and processing problems; availability of insurance; fluctuations in foreign exchange and interest rates; stock market volatility; failure to realize the anticipated benefits of acquisitions and dispositions; general economic, market and business conditions; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities and counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates and incentive programs relating to the oil and gas industry; and other factors, many of which are outside the control of Crescent Point. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
www.crescentpointenergy.com
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-2020-budget-300986178.html
SOURCE Crescent Point Energy Corp.
Article Date
1/14/202011/14/2019 - Crescent Point Announces Sale of Saskatchewan Gas Infrastructure Assets for $500 Million
Crescent Point Announces Sale of Saskatchewan Gas Infrastructure Assets for $500 Million
Source: PR Newswire
CALGARY, Nov. 14, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is pleased to announce that it has entered into a definitive agreement (the "Agreement") to sell certain associated gas infrastructure assets (the "Assets") in Saskatchewan to Steel Reef Infrastructure Corp. ("Steel Reef" or the "Purchaser") for total cash consideration of $500 million.
"Through the sale of these gas infrastructure assets, we will unlock value for our shareholders and further strengthen our financial position. We have now entered into agreements to sell, or have sold, in aggregate approximately $1.45 billion of assets in 2019," said Craig Bryksa, President and CEO of Crescent Point. "This sale is also aligned with our strategy, as it allows us to further focus on our core competencies to strengthen our corporate returns."
DISPOSITION METRICS AND TERMS
Through the sale of the Assets, Crescent Point will monetize nine natural gas gathering and processing facilities and two gas sales pipelines currently in operation within Saskatchewan. These gas processing facilities and associated sales gas lines have a total throughput capacity of more than 90 MMcf/d. The Assets do not include any oil-related infrastructure.
Under the terms of the Agreement, the Company will enter into certain long-term take-or-pay commitments with Steel Reef in exchange for Steel Reef granting Crescent Point processing rights at the facilities. The expected annual cash flow to the Purchaser is estimated at approximately $47 million, excluding cash flow from third parties. Steel Reef, an established midstream company with other gas processing assets in Saskatchewan and a strong track record of environmental, health and safety performance, will operate the Assets.
As part of the Agreement, Steel Reef has committed to fund an upcoming 12 MMcf/d expansion of one of the gas processing facilities, reducing the need for capital that would otherwise be required by Crescent Point. Steel Reef's cost to construct this expansion is estimated to be approximately $30 million, which will be in addition to the purchase price of $500 million. This facility expansion is expected to begin in 2020 and be completed within approximately 12 to 18 months following closing of the Asset sale. The expansion is expected to further enhance sales volumes while also reducing the facility's emissions intensity.
RBC Capital Markets acted as exclusive financial advisor to the Company on this sale. GMP FirstEnergy represented Crescent Point as its strategic advisor. The transaction is expected to close in first quarter 2020, subject to customary closing conditions and regulatory approvals.
Crescent Point is also pleased to report that it continues to advance negotiations for third party development of a new sales oil pipeline. This pipeline is expected to enhance the Company's market access and realized pricing for its southeast Saskatchewan oil production. Management expects that the new sales oil pipeline will take approximately 12 months to construct and bring in service, once an agreement is finalized.
USE OF PROCEEDS AND BALANCE SHEET STRENGTH
Crescent Point's disciplined capital allocation is centered on returns with a priority on continued balance sheet strength.
Upon closing of the sale of the Assets, the Company expects that its net debt will be reduced from approximately $2.8 billion at year-end 2019 to approximately $2.3 billion while also reducing Crescent Point's net debt to adjusted funds flow ratio by approximately 0.3 times. The Company continues to retain significant liquidity and unutilized credit capacity with no material near-term debt maturities.
Crescent Point currently expects to allocate approximately $50 million of proceeds from this disposition for additional share repurchases subsequent to closing and subject to market conditions. Given the anticipated timing for closing of the sale of the Assets in first quarter 2020, the Company's 2019 budget continues to assume a total of approximately $125 million of share repurchases. Crescent Point continues to be active in achieving this 2019 target and has repurchased, for cancellation, approximately 16.3 million shares year-to-date 2019 for total consideration of approximately $83 million, up to and including November 13, 2019.
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
All financial figures are approximate and in Canadian dollars unless otherwise noted. This press release contains forward-looking information and references to non-GAAP financial measures. Significant related assumptions and risk factors, and reconciliations are described under the Non-GAAP Financial Measures and the Forward-Looking Statements and Other Matters sections of this press release, respectively. |
Non-GAAP Financial Measures
Throughout this press release, the Company uses the terms "adjusted funds flow", "net debt", and "net debt to adjusted funds flow ratio". These terms do not have any standardized meaning as prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other issuers.
Adjusted funds flow is equivalent to adjusted funds flow from operations. Adjusted funds flow from operations is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Transaction costs are excluded as they vary based on the Company's acquisition and disposition activity and to ensure that this metric is more comparable between periods. Decommissioning expenditures are discretionary and are excluded as they may vary based on the stage of Company's assets and operating areas. Management utilizes adjusted funds flow from operations as a key measure to assess the ability of the Company to finance dividends, operating activities, capital expenditures and debt repayments. Adjusted funds flow from operations as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.
The following table reconciles cash flow from operating activities to adjusted funds flow from operations:
Three months ended September 30 | Nine months ended September 30 | |||
($ millions) | 2019 | 2018 (1) | 2019 | 2018 (1) |
Cash flow from operating activities | 402.2 | 474.1 | 1,346.4 | 1,388.9 |
Changes in non-cash working capital | (21.8) | (6.2) | 40.9 | (9.3) |
Transaction costs | 3.1 | 1.4 | 4.2 | 4.3 |
Decommissioning expenditures | 5.7 | 5.4 | 15.5 | 20.0 |
Adjusted funds flow from operations | 389.2 | 474.7 | 1,407.0 | 1,403.9 |
(1) On initial adoption of IFRS 16, the Company elected to use the modified retrospective approach; therefore, comparative information has not been restated. Refer to the Changes in Accounting Policies section in the Company's MD&A for the period ended September 30, 2019. |
Net debt is calculated as long-term debt plus accounts payable and accrued liabilities and other current and long-term liabilities, excluding current decommissioning and lease liabilities, less cash, accounts receivable, prepaids and deposits and long-term investments, excluding the unrealized foreign exchange on translation of US dollar long-term debt. Management utilizes net debt as a key measure to assess the liquidity of the Company.
The following table reconciles long-term debt to net debt:
($ millions) | September 30, 2019 | September 30, 2018 | |
Long-term debt (1) | 3,578.2 | 4,156.2 | |
Accounts payable and accrued liabilities | 525.8 | 653.2 | |
Dividends payable | — | 16.8 | |
Other current and long-term liabilities (2) | 50.9 | 18.1 | |
Cash | (122.9) | (65.5) | |
Accounts receivable | (336.7) | (455.7) | |
Prepaids and deposits | (9.8) | (7.0) | |
Long-term investments | (7.1) | (20.0) | |
Excludes: | |||
Unrealized foreign exchange on translation of hedged US dollar long-term debt | (318.4) | (289.2) | |
Net debt | 3,360.0 | 4,006.9 | |
(1) Includes current portion of long-term debt. |
(2) Excludes current decommissioning and lease liabilities. |
Net debt to adjusted funds flow ratio is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters. The ratio of net debt to adjusted funds flow from operations is used by management to measure the Company's overall debt position and to measure the strength of the Company's balance sheet. Crescent Point monitors this ratio and uses this as a key measure in making decisions regarding financing, capital spending and dividend levels.
Management believes the presentation of the Non-GAAP measures above provide useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.
Forward-Looking Statements
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: Crescent Point's intention to further focus on our core competencies to strengthen our corporate returns; reductions of capital expenditures in 2020; timing of facility expansion and related benefits; timing of the Asset sale closing; negotiations for, benefits from and in service timing of a sales oil pipeline; disciplined capital allocation (and its components); expected net debt and net debt to funds flow ratio following closing of the sale of the Assets; allocation of the proceeds from the sale of the Assets; expected annual cash flow to the Purchaser; and the Company's share repurchase program.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material risks discussed in the Company's Annual Information Form for the year ended December 31, 2018 under "Risk Factors", our Management's Discussion and Analysis for the year ended December 31, 2018, under the headings "Risk Factors" and "Forward-Looking Information" and for the quarter ended September 30, 2019 under "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policy" and "Outlook". The material assumptions are disclosed in the Management's Discussion and Analysis for the year ended December 31, 2018, under the headings "Capital Expenditures", "Liquidity and Capital Resources", "Critical Accounting Estimates", "Risk Factors", "Changes in Accounting Policies" and "Outlook" and are disclosed in the Management's Discussion and Analysis for the quarter ended September 30, 2019 under the headings "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policy" and "Outlook". In addition, risk factors include: transaction execution risk; risk related to contracting parties; financial risk of marketing reserves at an acceptable price given market conditions; volatility in market prices for oil and natural gas; delays in business operations, pipeline restrictions, blowouts; the risk of carrying out operations with minimal environmental impact; industry conditions, including changes in laws and regulations and the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; risks and uncertainties related to all oil and gas interests and operations on tribal lands; uncertainties associated with estimating oil and natural gas reserves; economic risk of finding and producing reserves at a reasonable cost; uncertainties associated with partner plans and approvals; operational matters related to non-operated properties; increased competition for, among other things, capital, acquisitions of reserves and undeveloped lands; competition for and availability of qualified personnel or management; incorrect assessments of the value of acquisitions and exploration and development programs; unexpected geological, technical, drilling, construction and processing problems; availability of insurance; fluctuations in foreign exchange and interest rates; stock market volatility; failure to realize the anticipated benefits of acquisitions and dispositions; general economic, market and business conditions; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities and counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates and incentive programs relating to the oil and gas industry; and other factors, many of which are outside the control of Crescent Point. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-sale-of-saskatchewan-gas-infrastructure-assets-for-500-million-300958848.html
SOURCE Crescent Point Energy Corp.
Article Date
11/14/201910/31/2019 - Crescent Point Announces Q3 2019 Results
Crescent Point Announces Q3 2019 Results
Source: PR Newswire
CALGARY, Oct. 31, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is pleased to announce its operating and financial results for the quarter ended September 30, 2019.
KEY HIGHLIGHTS
"Our third quarter results continue to demonstrate our focus on balance sheet strength, cost efficiencies and capital discipline," said Craig Bryksa, President and CEO of Crescent Point. "We also remain committed to returning capital to shareholders through accretive share repurchases while maintaining a strong financial position. In addition, we continue to seek opportunities to further enhance our sustainability, including through cost reductions, decline mitigation and portfolio rationalization opportunities."
FINANCIAL HIGHLIGHTS
OPERATIONAL HIGHLIGHTS
BOARD SUCCESSION
Bob Heinemann has retired from the Company's Board of Directors (the "Board"), due to personal reasons. Barbara Munroe, a current independent director since 2016, has been appointed by the Board as its next Chair, effective October 31, 2019.
"On behalf of Crescent Point and its Board, I express our appreciation to Bob for his guidance, commitment and leadership during his tenure on the Board and most recently as our Chair," said Ms. Munroe. "I am excited to be moving into this new role and look forward to continued execution of the Company's strategy to drive shareholder value."
"It has been an honour and a privilege to serve as a director on Crescent Point's Board over the past six years and most recently as its Chair," said Mr. Heinemann. "The team has made tremendous improvements to the business over the past year and I am confident in the Company's strategy, leadership team and its people. Barbara's appointment as Chair, effective immediately, will provide for a seamless transition."
Crescent Point's Board will now be comprised of nine members, including eight independent directors. The Company plans to continue to enhance the diversity, skills and experiences of its Board over time through its well-established renewal process.
OUTLOOK
The Company's third quarter and year-to-date results continue to highlight management's focus on its key value drivers, including balance sheet strength, disciplined capital allocation and an improved cost structure. This has resulted in significant excess cash flow generation, increased efficiencies and expected net debt reduction of over $1.2 billion by year-end 2019, based on guidance at current strip prices.
Crescent Point's recent asset dispositions further enhance the Company's cash flow netback, moderate its decline rate, reduce future decommissioning liabilities and lower the capital required to sustain its annual production as a percentage of cash flow. Crescent Point continues to work toward finalizing an agreement to monetize certain gas infrastructure assets in Saskatchewan during fourth quarter 2019, which is expected to further strengthen its financial position. The Company will also continue to seek and evaluate the potential for additional asset disposition opportunities, where appropriate, to further optimize its asset portfolio.
Crescent Point's updated annual guidance range reflects continued operational execution and capital discipline with annual average production of 161,000 to 163,000 boe/d and capital expenditures of $1.225 to $1.275 billion. This is a narrowing of the guidance range, which was previously targeting production of 160,000 to 164,000 boe/d and capital expenditures of $1.2 to $1.3 billion.
Crescent Point expects to announce its 2020 guidance and capital expenditures budget early in the new year. The Company's plans will continue to prioritize returns, balance sheet strength and free cash flow generation. Management will remain disciplined in allocating excess cash flow, including the continued return of capital to shareholders through an accretive share repurchase program.
CONFERENCE CALL DETAILS
Crescent Point's management will host a conference call on Thursday, October 31, 2019 at 10:00 a.m. MT (12:00 p.m. ET) to discuss the Company's results and outlook. A slide deck will accompany the conference call and can be found on Crescent Point's home page.
Participants can listen to this event online via webcast. Alternatively, the conference call can be accessed by dialing 1‑888‑390‑0605. The webcast will be archived for replay and can be accessed on Crescent Point's website approximately one hour following completion of the call.
Shareholders and investors can also find the Company's most recent investor presentation on Crescent Point's website.
2019 GUIDANCE
The Company's guidance for 2019 is as follows:
Prior | Revised | |
Total annual average production (boe/d) | 160,000 - 164,000 | 161,000 - 163,000 |
% Oil and NGLs | 91% | 91% |
Capital expenditures ($ millions) (1) | $1,200 to $1,300 | $1,225 to $1,275 |
Drilling and development (%) | 90% | 91% |
Facilities and seismic (%) | 10% | 9% |
(1) | Capital expenditures excludes any potential net property and land acquisitions and approximately $35 million of capitalized G&A. |
The Company's unaudited financial statements and management's discussion and analysis for the quarter ended September 30, 2019, will be available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on Crescent Point's website at www.crescentpointenergy.com.
All financial figures are approximate and in Canadian dollars unless otherwise noted. This press release contains forward-looking information and references to non-GAAP financial measures. Significant related assumptions and risk factors, and reconciliations are described under the Non-GAAP Financial Measures and Forward-Looking Statements sections of this press release, respectively. |
FINANCIAL AND OPERATING HIGHLIGHTS
Three months ended September 30 | Nine months ended September 30 | |||
(Cdn$ millions except per share and per boe amounts) | 2019 | 2018 | 2019 | 2018 |
Financial | ||||
Cash flow from operating activities | 402.2 | 474.1 | 1,346.4 | 1,388.9 |
Adjusted funds flow from operations (1) | 389.2 | 474.7 | 1,407.0 | 1,403.9 |
Per share (1) (2) | 0.71 | 0.86 | 2.56 | 2.55 |
Net income (loss) | (301.7) | 30.5 | (101.2) | (226.4) |
Per share (2) | (0.55) | 0.06 | (0.18) | (0.41) |
Adjusted net earnings from operations (1) | 32.6 | 84.8 | 336.9 | 250.9 |
Per share (1) (2) | 0.06 | 0.15 | 0.61 | 0.46 |
Dividends declared | 5.5 | 49.8 | 16.6 | 149.1 |
Per share (2) | 0.01 | 0.09 | 0.03 | 0.27 |
Net debt (1) | 3,360.0 | 4,006.9 | 3,360.0 | 4,006.9 |
Net debt to adjusted funds flow from operations (1) (3) | 1.9 | 2.1 | 1.9 | 2.1 |
Weighted average shares outstanding | ||||
Basic | 547.5 | 549.8 | 548.5 | 548.8 |
Diluted | 548.0 | 551.1 | 548.6 | 550.2 |
Operating | ||||
Average daily production | ||||
Crude oil (bbls/d) | 119,011 | 134,146 | 131,215 | 140,304 |
NGLs (bbls/d) | 20,627 | 22,257 | 20,523 | 19,668 |
Natural gas (mcf/d) | 96,422 | 107,231 | 97,403 | 109,098 |
Total (boe/d) | 155,708 | 174,275 | 167,972 | 178,155 |
Average selling prices (4) | ||||
Crude oil ($/bbl) | 66.22 | 80.11 | 67.68 | 74.50 |
NGLs ($/bbl) | 14.09 | 33.35 | 20.27 | 33.98 |
Natural gas ($/mcf) | 1.96 | 2.00 | 2.59 | 2.01 |
Total ($/boe) | 53.69 | 67.15 | 56.85 | 63.66 |
Netback ($/boe) | ||||
Oil and gas sales | 53.69 | 67.15 | 56.85 | 63.66 |
Royalties | (8.29) | (10.68) | (8.26) | (9.62) |
Operating expenses | (12.38) | (13.56) | (12.59) | (13.22) |
Transportation expenses | (2.09) | (1.77) | (2.08) | (2.01) |
Operating netback (1) | 30.93 | 41.14 | 33.92 | 38.81 |
Realized gain (loss) on derivatives | 1.33 | (7.14) | 0.45 | (4.89) |
Other (5) | (5.09) | (4.39) | (3.69) | (5.05) |
Adjusted funds flow from operations netback (1) | 27.17 | 29.61 | 30.68 | 28.87 |
Capital Expenditures | ||||
Capital dispositions, net (6) | (199.2) | (21.4) | (260.3) | (298.0) |
Development capital expenditures | ||||
Drilling and development | 337.1 | 366.4 | 843.2 | 1,257.8 |
Facilities and seismic | 25.2 | 44.7 | 65.5 | 176.5 |
Land | 2.2 | 4.9 | 10.3 | 28.3 |
Total | 364.5 | 416.0 | 919.0 | 1,462.6 |
(1) | Adjusted funds flow from operations, adjusted funds flow from operations per share, adjusted net earnings from operations, adjusted net earnings from operations per share, net debt, net debt to adjusted funds flow from operations, operating netback and adjusted funds flow from operations netback as presented do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other entities. |
(2) | The per share amounts (with the exception of dividends per share) are the per share – diluted amounts. |
(3) | Net debt to adjusted funds flow from operations is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters. |
(4) | The average selling prices reported are before realized derivatives and transportation. |
(5) | Other includes net purchased products, general and administrative expenses, interest on long-term debt, foreign exchange, cash-settled share-based compensation and certain cash items and excludes transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items. |
(6) | Capital dispositions, net represent total consideration for the transactions, including long-term debt and working capital assumed, and exclude transaction costs. |
Non-GAAP Financial Measures
Throughout this press release, the Company uses the terms "adjusted funds flow", "adjusted funds flow from operations", "adjusted funds flow from operations per share - diluted", "adjusted net earnings from operations", "adjusted net earnings from operations per share - diluted", "free cash flow", "excess cash flow", "net debt", "net debt to adjusted funds flow from operations", "netback" and "operating netback". These terms do not have any standardized meaning as prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other issuers.
Adjusted funds flow is equivalent to adjusted funds flow from operations. Adjusted funds flow from operations is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Adjusted funds flow from operations per share - diluted is calculated as adjusted funds flow from operations divided by the number of weighted average diluted shares outstanding. Transaction costs are excluded as they vary based on the Company's acquisition and disposition activity and to ensure that this metric is more comparable between periods. Decommissioning expenditures are discretionary and are excluded as they may vary based on the stage of Company's assets and operating areas. Management utilizes adjusted funds flow from operations as a key measure to assess the ability of the Company to finance dividends, operating activities, capital expenditures and debt repayments. Adjusted funds flow from operations as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.
The following table reconciles cash flow from operating activities to adjusted funds flow from operations:
Three months ended September 30 | Nine months ended September 30 | |||
($ millions) | 2019 | 2018 (1) | 2019 | 2018 (1) |
Cash flow from operating activities | 402.2 | 474.1 | 1,346.4 | 1,388.9 |
Changes in non-cash working capital | (21.8) | (6.2) | 40.9 | (9.3) |
Transaction costs | 3.1 | 1.4 | 4.2 | 4.3 |
Decommissioning expenditures | 5.7 | 5.4 | 15.5 | 20.0 |
Adjusted funds flow from operations | 389.2 | 474.7 | 1,407.0 | 1,403.9 |
(1) | On initial adoption of IFRS 16, the Company elected to use the modified retrospective approach; therefore, comparative information has not been restated. Refer to the Changes in Accounting Policies section in the Company's MD&A for the period ended September 30, 2019. |
Adjusted net earnings from operations is calculated based on net income before amortization of exploration and evaluation ("E&E") undeveloped land, impairment or impairment recoveries, unrealized derivative gains or losses, unrealized foreign exchange gain or loss on translation of hedged US dollar long-term debt, unrealized gains or losses on long-term investments, gains or losses on the sale of long-term investments and gains or losses on capital acquisitions and dispositions. Adjusted net earnings from operations per share - diluted is calculated as adjusted net earnings from operations divided by the number of weighted average diluted shares outstanding. Management utilizes adjusted net earnings from operations to present a measure of financial performance that is more comparable between periods. Adjusted net earnings from operations as presented is not intended to represent net earnings or other measures of financial performance calculated in accordance with IFRS.
The following table reconciles net income to adjusted net earnings from operations:
Three months ended September 30 | Nine months ended September 30 | |||
($ millions) | 2019 | 2018 (1) | 2019 | 2018 (1) |
Net income (loss) | (301.7) | 30.5 | (101.2) | (226.4) |
Amortization of E&E undeveloped land | 33.6 | 39.9 | 107.8 | 118.2 |
Impairment | 241.4 | 15.2 | 249.9 | 15.2 |
Unrealized derivative (gains) losses | (128.3) | 29.2 | 115.7 | 298.5 |
Unrealized foreign exchange (gain) loss on translation of | ||||
hedged US dollar long-term debt | 40.5 | (62.9) | (155.2) | 69.8 |
Unrealized loss on long-term investments | 0.1 | 6.1 | 1.5 | 12.4 |
(Gain) loss on sale of long-term investments | — | 2.8 | — | (1.7) |
Loss on capital dispositions | 193.2 | 30.2 | 199.3 | 100.8 |
Deferred tax relating to adjustments | (46.2) | (6.2) | (80.9) | (135.9) |
Adjusted net earnings from operations | 32.6 | 84.8 | 336.9 | 250.9 |
(1) | On initial adoption of IFRS 16, the Company elected to use the modified retrospective approach; therefore, comparative information has not been restated. Refer to the Changes in Accounting Policies section in the Company's MD&A for the period ended September 30, 2019. |
Free cash flow is calculated as adjusted funds flow from operations less capital expenditures, payments on lease liability, asset retirement obligations and other cash items (excluding net acquisitions and dispositions). Excess cash flow is calculated as free cash flow less dividends. Management utilizes free cash flow and excess cash flow as key measures to assess the ability of the Company to finance dividends, potential share repurchases, debt repayments and returns-based growth.
Net debt is calculated as long-term debt plus accounts payable and accrued liabilities and other current and long-term liabilities, excluding current decommissioning and lease liabilities, less cash, accounts receivable, prepaids and deposits and long-term investments, excluding the unrealized foreign exchange on translation of US dollar long-term debt. Management utilizes net debt as a key measure to assess the liquidity of the Company.
The following table reconciles long-term debt to net debt:
($ millions) | September 30, 2019 | September 30, 2018 |
Long-term debt (1) | 3,578.2 | 4,156.2 |
Accounts payable and accrued liabilities | 525.8 | 653.2 |
Dividends payable | — | 16.8 |
Other current and long-term liabilities (2) | 50.9 | 18.1 |
Cash | (122.9) | (65.5) |
Accounts receivable | (336.7) | (455.7) |
Prepaids and deposits | (9.8) | (7.0) |
Long-term investments | (7.1) | (20.0) |
Excludes: | ||
Unrealized foreign exchange on translation of hedged US dollar long-term debt | (318.4) | (289.2) |
Net debt | 3,360.0 | 4,006.9 |
(1) | Includes current portion of long-term debt. |
(2) | Excludes current decommissioning and lease liabilities. |
Net debt to adjusted funds flow from operations is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters. The ratio of net debt to adjusted funds flow from operations is used by management to measure the Company's overall debt position and to measure the strength of the Company's balance sheet. Crescent Point monitors this ratio and uses this as a key measure in making decisions regarding financing, capital spending and dividend levels.
Operating netback is calculated on a per boe basis as oil and gas sales, less royalties, operating and transportation expenses. Adjusted funds flow netback is equivalent to adjusted funds flow from operations netback. Adjusted funds flow from operations netback is calculated on a per boe basis as operating netback less net purchased products, realized derivative gains and losses, general and administrative expenses, interest on long-term debt, foreign exchange, cash-settled share-based compensation and certain cash items, excluding transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items. Cash flow netback is equivalent to adjusted funds flow from operations netback. Operating netback and adjusted funds flow from operations netback are common metrics used in the oil and gas industry and are used by management to measure operating results on a per boe basis to better analyze performance against prior periods on a comparable basis. Netback calculations are shown in the Financial and Operating Highlights section in this press release.
Management believes the presentation of the Non-GAAP measures above provide useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.
Forward-Looking Statements
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: finalizing the monetization of certain gas infrastructure assets in Saskatchewan, and timing thereof; estimated net debt reduction of over $1.2 billion in 2019; remaining committed to returning capital to shareholders through accretive share repurchases while maintaining a strong financial position; seeking opportunities to further enhance sustainability through measures such as cost reductions, decline mitigation and portfolio rationalization opportunities; a forecast of net debt to be approximately $2.8 billion at year-end 2019 (based on current strip prices and guidance); unutilized credit capacity is expected to total approximately $2.0 billion at year-end 2019 based on guidance at current strip prices and continued execution of share repurchase program, excluding any potential dispositions; growth in North Dakota resource play; total expected 2019 share repurchases; the Company continuing to seek opportunities to further optimize its cost structure, including a more focused asset base and increased automation within its field operations; waterflood conversion targets in 2019; the Company's Board renewal process; key value drivers, including balance sheet strength, disciplined capital allocation and an improved cost structure; benefits of the Company's recent asset dispositions; benefits of infrastructure monetization; seeking additional asset disposition opportunities and their expected benefits; annual guidance of 161,000 to 163,000 boe/d total annual average production and capital expenditures of $1.225 to $1.275 billion, including the distribution of capital expenditures amongst drilling and development and facilities and seismic; expects to announce the Company's 2020 guidance and capital expenditures budget; the Company's plans to continue to prioritize returns, balance sheet strength and free cash flow generation; and management remaining disciplined in allocating excess cash flow, including the continued return of capital to shareholders through an accretive share repurchase program.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material risks discussed in the Company's Annual Information Form for the year ended December 31, 2018 under "Risk Factors", our Management's Discussion and Analysis for the year ended December 31, 2018, under the headings "Risk Factors" and "Forward-Looking Information" and for the quarter ended September 30, 2019 under "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policy" and "Outlook". The material assumptions are disclosed in the Management's Discussion and Analysis for the year ended December 31, 2018, under the headings "Capital Expenditures", "Liquidity and Capital Resources", "Critical Accounting Estimates", "Risk Factors", "Changes in Accounting Policies" and "Outlook" and are disclosed in the Management's Discussion and Analysis for the quarter ended September 30, 2019 under the headings "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policy" and "Outlook". In addition, risk factors include: financial risk of marketing reserves at an acceptable price given market conditions; volatility in market prices for oil and natural gas; delays in business operations, pipeline restrictions, blowouts; the risk of carrying out operations with minimal environmental impact; industry conditions, including changes in laws and regulations and the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; risks and uncertainties related to all oil and gas interests and operations on tribal lands; uncertainties associated with estimating oil and natural gas reserves; economic risk of finding and producing reserves at a reasonable cost; uncertainties associated with partner plans and approvals; operational matters related to non-operated properties; increased competition for, among other things, capital, acquisitions of reserves and undeveloped lands; competition for and availability of qualified personnel or management; incorrect assessments of the value of acquisitions and exploration and development programs; unexpected geological, technical, drilling, construction and processing problems; availability of insurance; fluctuations in foreign exchange and interest rates; stock market volatility; failure to realize the anticipated benefits of acquisitions and dispositions; general economic, market and business conditions; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities and counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates and incentive programs relating to the oil and gas industry; and other factors, many of which are outside the control of Crescent Point. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard,
Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian,
Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020
Toll-free (US and Canada): 888-693-0020
Fax: (403) 693-0070
Address: Crescent Point Energy Corp.
Suite 2000, 585 - 8th Avenue S.W.
Calgary AB T2P 1G1
www.crescentpointenergy.com
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-q3-2019-results-300948785.html
SOURCE Crescent Point Energy Corp.
Article Date
10/31/201910/31/2019 - Crescent Point Confirms Quarterly Dividend
Crescent Point Confirms Quarterly Dividend
Source: PR Newswire
CALGARY, Oct. 31, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point") (TSX and NYSE: CPG) announces its Board of Directors has declared a quarterly cash dividend of CDN $0.01 per share to be paid on January 2, 2020 for shareholders of record on December 15, 2019.
These dividends are designated as "eligible dividends" for Canadian income tax purposes. For U.S. income tax purposes, Crescent Point's dividends are considered "qualified dividends."
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-confirms-quarterly-dividend-300948475.html
SOURCE Crescent Point Energy Corp.
Article Date
10/31/201910/24/2019 - Crescent Point Announces Q3 2019 Conference Call
Crescent Point Announces Q3 2019 Conference Call
Source: PR Newswire
CALGARY, Oct. 24, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) plans to report its third quarter 2019 financial and operating results via press release prior to the opening of markets on Thursday, October 31, 2019. Crescent Point's management will host a conference call at 10:00 a.m. MDT (12:00 p.m. EDT) the same day to discuss the results and outlook for the Company.
Participants can listen to this event online via webcast. Alternatively, the conference call can be accessed by dialing 1‑888‑390‑0605.
The webcast will be archived for replay and can be accessed on Crescent Point's conference calls and webcasts webpage under the invest tab. The replay will be available approximately one hour following the completion of the call.
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-q3-2019-conference-call-300944414.html
SOURCE Crescent Point Energy Corp.
Article Date
10/24/2019Crescent Point Closes on Sale of Uinta Basin and Non-Core Saskatchewan Assets
Source: PR Newswire
CALGARY, Oct. 18, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is pleased to announce that it has successfully closed the previously announced sale of its Uinta Basin asset and certain non-core conventional assets in southeast Saskatchewan.
These accretive dispositions are in-line with the Company's strategy to focus its asset base and strengthen its balance sheet.
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-closes-on-sale-of-uinta-basin-and-non-core-saskatchewan-assets-300941404.html
SOURCE Crescent Point Energy Corp.
Article Date
10/18/2019Crescent Point Announces Sale of Uinta Basin and Non-Core Saskatchewan Assets for Cash Proceeds of $912 Million
Source: PR Newswire
CALGARY, Sept. 3, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is pleased to announce that it has entered into definitive agreements with select parties to sell its Uinta Basin asset in its entirety and certain southeast Saskatchewan conventional assets for total cash consideration of approximately $912 million.
KEY HIGHLIGHTS
"Since we established our transition plan in September 2018, we have meaningfully improved the sustainability of our business model by revising our capital allocation process, lowering our cost structure and strengthening our balance sheet," said Craig Bryksa, President and CEO of Crescent Point. "The sale of the Uinta Basin and certain conventional assets is accretive for our shareholders and aligned with the key criteria we established for our asset portfolio. These transactions are a considerable step forward in our ongoing plan to focus our asset base."
UINTA BASIN ASSET DISPOSITION
During first quarter 2019, Crescent Point initiated a sales process for its Uinta Basin asset. This process has resulted in the successful execution of a purchase and sale agreement to sell the entirety of the Company's Uinta Basin position to a private operator for total cash consideration of approximately $700 million (US$525 million), before closing adjustments.
Crescent Point's Uinta Basin asset includes approximately 350 net sections of undeveloped land, 123.1 million boe ("MMboe") of Proved Plus Probable ("2P") reserves and 29.5 MMboe of Proved Developed Producing ("PDP") reserves. These reserves are based on the Company's independent engineers' evaluation and price forecast as at December 31, 2018.
Based on the above expectations and approximately 20,000 boe/d (75% crude oil and 85% total liquids) of forecast production in 2020, before royalties, the transaction metrics are approximately as follows:
Crescent Point expects to generate improved corporate returns and a stronger operating netback from lower royalties and reduced expenses as a result of this disposition. The capital expenditures required to sustain the Company's annual production are also expected to improve due to a shallowing of the corporate decline rate.
BMO Capital Markets and CIBC Capital Markets acted as Crescent Point's financial advisors on this transaction and each provided a fairness opinion to the Board of Directors, subject to the assumptions, qualifications and limitations contained therein. Tudor, Pickering, Holt & Co. represented the Company as its strategic advisor. The sale is expected to be completed in October 2019, subject to the satisfaction of normal closing conditions and the receipt of regulatory approvals.
SOUTHEAST SASKATCHEWAN CONVENTIONAL ASSET DISPOSITION
The conventional assets being sold include approximately 7,000 boe/d of current production (70% crude oil and 85% total liquids) and 49.2 MMboe of 2P reserves. These reserves are based on the Company's independent engineers' evaluation and price forecast as at December 31, 2018.
These conventional assets operate with a higher operating cost structure and generate an operating netback that is approximately 30 percent below Crescent Point's corporate average. Additionally, the future decommissioning liabilities associated with these non-core assets are higher than those associated with the Company's key focus areas.
The transaction metrics are approximately as follows:
National Bank Financial Inc. and Scotiabank acted as Crescent Point's financial advisors for these transactions. The agreements are expected to close late third quarter 2019, subject to the satisfaction of typical closing conditions and regulatory approvals.
TRANSITION PLAN AND ONGOING PORTFOLIO OPTIMIZATION
In September 2018, new management established a transition plan centered on its key value drivers of disciplined capital allocation, cost efficiencies and balance sheet improvement. The Company has successfully shifted its corporate strategy and capital allocation process, realigned its focus on generating stronger returns, realized cost improvements throughout the organization and materially enhanced its financial flexibility.
Including today's announcement, Crescent Point has now executed a total of over $1.3 billion in asset dispositions since the change in senior management and approximately $975 million of asset dispositions in 2019 alone.
The Company continues to pursue additional asset sales, including the balance of its southeast Saskatchewan conventional assets, and the monetization of its Saskatchewan gas infrastructure assets, the process for which continues to progress. The Company will remain disciplined and flexible as it seeks to create additional value for its shareholders.
UPDATED 2019 GUIDANCE
Crescent Point's revised guidance for 2019 incorporates the announced asset dispositions and includes annual average production of 160,000 to 164,000 boe/d. The Company's capital expenditures of $1.2 to $1.3 billion remains unchanged based on the planned spending profile for the disposed assets during the remainder of the year, as previously budgeted.
Crescent Point expects to conclude its 2019 capital expenditures budget for its Uinta Basin asset during September 2019. This program includes the fracture stimulation and completion of a number of previously drilled two-mile horizontal wells as part of the Company's multi-well pad development program. Crescent Point expects these eight (seven net) two-mile horizontal wells to be brought on-stream prior to the transaction closing in late third quarter, resulting in forecast production of over 22,000 boe/d from the asset at closing.
The Company's original 2019 budget allocated approximately $150 million in total to its Uinta Basin asset in comparison to approximately $200 million of estimated capital required to sustain annual production of approximately 20,000 boe/d in 2020. The southeast Saskatchewan conventional assets being sold would require estimated capital of approximately $25 million to sustain annual production of approximately 7,000 boe/d in 2020. As a result of these dispositions, the required capital expenditures to sustain annual production, as a percentage of Crescent Point's cash flow, is expected to improve.
The Company's revised 2019 guidance also incorporates the impact of converting additional producing wells to waterflood injectors as part of its commitment to decline mitigation. Crescent Point is now targeting approximately 175 to 200 injection well conversions in 2019 compared to its original budget of approximately 145 conversions.
The Company does not expect to incur any cash taxes resulting from the announced asset dispositions.
BALANCE SHEET AND SHARE REPURCHASE PROGRAM
As a result of its significant disposition program to date and enhanced free cash flow generation in 2019, Crescent Point's net debt and leverage ratios continue to improve. Based on strip prices and the announced dispositions, total net debt is expected to be reduced to approximately $2.75 billion at year-end 2019, resulting in a pro-forma net debt to adjusted funds flow ratio that is lower by approximately 0.4 times.
The Company is in a strong position to continue executing its share repurchase program in 2019 and currently budgets approximately $125 million for accretive share repurchases during the year, based on guidance at current strip prices. This implies approximately $100 million of incremental share repurchases during the remainder of 2019. Management will continually assess its allocation of excess cash flow, including additional share repurchases, as it further strengthens its balance sheet.
The Company's current share price continues to trade at a significant discount compared to the fundamental underlying value of its common shares. The announced asset dispositions are expected to be accretive by over 20 percent on a PDP basis to the Company's net asset value per share, excluding land and seismic, based on current strip commodity prices. As a result of these transactions, Crescent Point expects to realize an after-tax loss on the sale, or impairment, within its third quarter 2019 financial results that equates to less than three percent of the value of its total net property, plant and equipment as at June 30, 2019.
HEDGING
Based on the announced dispositions, Crescent Point expects approximately 49 percent of its oil and liquids production, net of royalty interest, to be hedged upon closing in fourth quarter and approximately 35 percent in 2020. The Company will remain disciplined in its approach to layering on additional hedges, taking into account commodity prices and its ongoing asset disposition program.
CONFERENCE CALL DETAILS
Crescent Point management will host a conference call on Tuesday, September 3, 2019, at 11:00 a.m. MDT (1:00 p.m. EDT) to discuss the Company's asset dispositions and outlook.
Participants can listen to this event online at: https://event.on24.com/wcc/r/2038229/4E7B63991413CE3D8761994554595E5C. Alternatively, the conference call can be accessed by dialing 1-888-390-0605.
The webcast will be archived for replay approximately one hour following completion of the call and can be accessed on Crescent Point's website on the conference calls and webcasts page.
2019 BUDGET AND GUIDANCE SUMMARY
Total average annual production (boe/d) % Oil and NGLs | Prior 168,000 to 172,000 91% | Revised 160,000 to 164,000 91% |
Total Capital expenditures ($ millions) (1) Drilling and development (%) Facilities and seismic (%) | $1,200 to $1,300 90% 10% | $1,200 to $1,300 90% 10% |
(1) | Capital expenditures excludes any potential net property and land acquisitions and approximately $35 million of capitalized G&A. |
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
All financial figures are approximate and in Canadian dollars unless otherwise noted. This press release contains forward-looking information and references to non-GAAP financial measures. Significant related assumptions and risk factors, and reconciliations are described under the Non-GAAP Financial Measures and Forward-Looking Statements sections of this press release, respectively. |
Non-GAAP Financial Measures
Throughout this press release, the Company uses the terms "adjusted funds flow", "net debt", "net debt to adjusted funds flow", "free cash flow", "excess cash flow" and "operating netback". These terms do not have any standardized meaning as prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other issuers.
Adjusted funds flow is equivalent to adjusted funds flow from operations. Adjusted funds flow from operations is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Transaction costs are excluded as they vary based on the Company's acquisition and disposition activity and to ensure that this metric is more comparable between periods. Decommissioning expenditures are discretionary and are excluded as they may vary based on the stage of Company's assets and operating areas. Management utilizes adjusted funds flow from operations as a key measure to assess the ability of the Company to finance dividends, operating activities, capital expenditures and debt repayments. Adjusted funds flow from operations as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.
Net debt is calculated as long-term debt plus accounts payable and accrued liabilities and long-term compensation liability, less cash, accounts receivable, prepaids and deposits and long-term investments, excluding the unrealized foreign exchange on translation of US dollar long-term debt. Management utilizes net debt as a key measure to assess the liquidity of the Company.
Net debt to adjusted fund flow is calculated as the period end net debt divided by the sum of adjusted funds flow for the trailing four quarters. The ratio of net debt to adjusted funds flow is used by management to measure the Company's overall debt position and to measure the strength of the Company's balance sheet. Crescent Point monitors this ratio and uses this as a key measure in making decisions regarding financing, capital spending and dividend levels.
Free cash flow is calculated as adjusted funds flow from operations less capital expenditures, payments on lease liability, asset retirement obligations and other cash items (excluding net acquisitions and dispositions). Excess cash flow is calculated as free cash flow less dividends. Management utilizes free cash flow and excess cash flow as key measures to assess the ability of the Company to finance dividends, potential share repurchases, debt repayments and returns-based growth.
Operating netback is calculated on a per boe basis as oil and gas sales, less royalties, operating and transportation expenses. Operating netback is a common metric used in the oil and gas industry and is used by management to measure operating results on a per boe basis to better analyze performance against prior periods on a comparable basis. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Management believes the presentation of the Non-GAAP measures above provide useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.
Notice to US Readers
The oil and natural gas reserves contained in this press release have generally been prepared in accordance with Canadian disclosure standards, which are not comparable in all respects of United States or other foreign disclosure standards. For example, the United States Securities and Exchange Commission (the "SEC") generally permits oil and gas issuers, in their filings with the SEC, to disclose only proved reserves (as defined in SEC rules), but permits the optional disclosure of "probable reserves" and "possible reserves" (each as defined in SEC rules). Canadian securities laws require oil and gas issuers, in their filings with Canadian securities regulators, to disclose not only proved reserves (which are defined differently from the SEC rules) but also probable reserves and permits optional disclosure of "possible reserves", each as defined in NI 51-101. Accordingly, "proved reserves", "probable reserves" and "possible reserves" disclosed in this news release may not be comparable to US standards, and in this news release, Crescent Point has disclosed reserves designated as "proved plus probable reserves". Probable reserves are higher-risk and are generally believed to be less likely to be accurately estimated or recovered than proved reserves. "Possible reserves" are higher risk than "probable reserves" and are generally believed to be less likely to be accurately estimated or recovered than "probable reserves". In addition, under Canadian disclosure requirements and industry practice, reserves and production are reported using gross volumes, which are volumes prior to deduction of royalties and similar payments. The SEC rules require reserves and production to be presented using net volumes, after deduction of applicable royalties and similar payments. Moreover, Crescent Point has determined and disclosed estimated future net revenue from its reserves using forecast prices and costs, whereas the SEC rules require that reserves be estimated using a 12-month average price, calculated as the arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period. Consequently, Crescent Point's reserve estimates and production volumes in this news release may not be comparable to those made by companies using United States reporting and disclosure standards. Further, the SEC rules are based on unescalated costs and forecasts. All amounts in the news release are stated in Canadian dollars unless otherwise specified.
Forward-Looking Statements and Other Matters
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: the agreement to sell the Uinta Basin asset and the non-core Saskatchewan assets (the "Sale") and the expected proceeds therefrom; the expected cash flow multiple, debt-adjusted per share accretion and adjusted funds flow accretion associated with the Sale; the expected impact of the Sale on net debt at year-end 2019; the expectation that the Sale will further enhance the Company's financial flexibility and ability to continue to execute its share buyback program; the Sale lowering the Company's capital requirements and improving netback; the Company continuing to advance its disciplined disposition program, including the monetization of certain infrastructure assets; the reserves associated with the assets being sold; future decommissioning liabilities; the expected 2020 production associated with the assets being sold; the expected metrics associated with the Sale, including the cash flow multiple at current strip prices, operating netback, the price per producing boe, the price per 2P boe, and the price per acre for both undeveloped and developed land, and the key assumptions used to estimate such metrics; the expectation that the Sale will be accretive to PDP, excluding land and seismic at strip commodity prices; the expectation that the Company will realize an after-tax loss on sale, or impairment, within its third quarter 2019 financial results that equates to less than three percent of its total net property, plant and equipment as at June 30, 2019 the expectation that the Sale will not result in any cash taxes being due; the expectation that the Sale will result in the Company generating improved corporate returns, operating netback and enhanced sustainability due to lower royalties and reduced expenses; the expectation that the Company's capital expenditures requirement to sustain annual production will improve following the Sale as a result of a shallowing of the Company's decline rate; the focus of the transition plan the expected closing date for the Sale; management's plan to remain disciplined and flexible as it seeks to create additional value for its shareholders and its pursuit of additional asset sales; the Company's revised annual average production and capital expenditures expectations for 2019; the Company's expectation that its 2019 capital expenditures budget for the assets being sold will be completed during September 2019 and the key components of the budget; the Company's expected timing to bring certain Utah wells on-stream and the expected production from the Utah Basin asset; the expectation that the Company's ratio of required annual capital expenditures to sustain annual production as a percentage of cash flow will improve following the Sale; the Company's target for injection well conversions in 2019; the Company's expectation that it will not incur any cash tax from the Sale; the Company's expected year-end 2019 net debt to adjusted funds flow ratio; the Company's 2019 budget for share repurchases based on guidance at current strip prices and the Company's plan to continually assess its allocation of excess cash flow as it further strengthens its balance sheet; the Company's hedging expectations for the fourth quarter of 2019 and 2020 along with the Company's plan to remain disciplined in its approach to layering on additional hedges and the Company's 2019 budget and guidance summary including production and capital expenditures.
Statements relating to "reserves" are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. Actual reserve values may be greater than or less than the estimates provided herein.
Unless otherwise noted, reserves referenced herein are given as at December 31, 2018. Also, estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates and future net revenue for all properties due to the effect of aggregation. All required reserve information for the Company is contained in its Annual Information Form for the year ended December 31, 2018, which is accessible at www.sedar.com.
With respect to disclosure contained herein regarding resources other than reserves, there is uncertainty that it will be commercially viable to produce any portion of the resources and there is significant uncertainty regarding the ultimate recoverability of such resources.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material risks discussed in the Company's Annual Information Form for the year ended December 31, 2018 under "Risk Factors", our Management's Discussion and Analysis for the year ended December 31, 2018, under the headings "Risk Factors" and "Forward-Looking Information" and for the quarter ended June 30, 2019 under "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policy" and "Outlook". The material assumptions are disclosed in the Management's Discussion and Analysis for the year ended December 31, 2018, under the headings "Capital Expenditures", "Liquidity and Capital Resources", "Critical Accounting Estimates", "Risk Factors", "Changes in Accounting Policies" and "Outlook" and are disclosed in the Management's Discussion and Analysis for the quarter ended June 30, 2019 under the headings "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policy" and "Outlook". In addition, risk factors include: regulatory authority approval risk for the Sale; the risk that the Sale fails to close, or that it closes on terms other than those expected; the benefits of the Sale failing to materialize as expected; financial risk of marketing reserves at an acceptable price given market conditions; volatility in market prices for oil and natural gas; delays in business operations, pipeline restrictions, blowouts; the risk of carrying out operations with minimal environmental impact; industry conditions, including changes in laws and regulations and the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; risks and uncertainties related to all oil and gas interests and operations on tribal lands; uncertainties associated with estimating oil and natural gas reserves; economic risk of finding and producing reserves at a reasonable cost; uncertainties associated with partner plans and approvals; operational matters related to non-operated properties; increased competition for, among other things, capital, acquisitions of reserves and undeveloped lands; competition for and availability of qualified personnel or management; incorrect assessments of the value of acquisitions and exploration and development programs; unexpected geological, technical, drilling, construction and processing problems; availability of insurance; fluctuations in foreign exchange and interest rates; stock market volatility; failure to realize the anticipated benefits of acquisitions and dispositions; general economic, market and business conditions; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities and counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates and incentive programs relating to the oil and gas industry; and other factors, many of which are outside the control of Crescent Point. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-sale-of-uinta-basin-and-non-core-saskatchewan-assets-for-cash-proceeds-of-912-million-300910493.html
SOURCE Crescent Point Energy Corp.
Article Date
9/3/20197/25/2019 - Crescent Point Announces Q2 2019 Results
Crescent Point Announces Q2 2019 Results
Source: PR Newswire
CALGARY, July 25, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is pleased to announce its operating and financial results for the quarter ended June 30, 2019.
KEY HIGHLIGHTS
"Our second quarter results continue to demonstrate our focus on disciplined capital allocation, realizing cost efficiencies and strengthening our balance sheet," said Craig Bryksa, President and CEO of Crescent Point. "We expect to generate significant excess cash flow in 2019, allowing for net debt reduction and accretive share repurchases. We continue to target additional asset dispositions as part of our focused asset strategy, providing increased efficiencies and financial flexibility."
FINANCIAL HIGHLIGHTS
OPERATIONAL HIGHLIGHTS
ASSET DISPOSITIONS
OUTLOOK
The Company's second quarter results highlight the continued changes being implemented throughout the organization. To date, Crescent Point's transition plan has resulted in significant debt reduction, a more disciplined, return-focused capital allocation process and material cost efficiencies.
The Company's direction remains centered on a focused asset strategy with a strong balance sheet, allowing for increased efficiencies and financial flexibility. Crescent Point expects continued improvement in its overall efficiencies, corporate returns, financial position and debt-adjusted per share metrics as it continues to reduce the number of areas in which it operates.
The Company's key focus areas in Viewfield, Shaunavon and Flat Lake continue to provide attractive returns, scalability, free cash flow and reliable market access. These resource plays provide low-risk, high return development opportunities with strong operating netbacks that were approximately 10 percent higher, on average, compared to the corporate operating netback during second quarter. These plays currently generate approximately $450 million of annual cash flow in excess of capital expenditures at US$55.00/bbl WTI and benefit from waterflood programs that are expected to further enhance overall recoveries.
Management's capital allocation process remains centered on prioritizing returns versus production growth, net debt reduction and returning capital to shareholders. Crescent Point will continue to assess its allocation of excess cash flow as it continues to execute its transition plan and further strengthen its balance sheet.
The Company's revised 2019 budget, which reflects announced dispositions, is now expected to generate annual average production of 168,000 to 172,000 boe/d, with capital expenditures of $1.2 to $1.3 billion. Asset dispositions completed during second quarter did not impact capital expenditures guidance based on planned spending for those non-core assets during the remainder of the year. Crescent Point remains on track with its annual guidance and will continue to update shareholders as it executes its transition plan.
CONFERENCE CALL DETAILS
Crescent Point's management will host a conference call on Thursday, July 25, 2019 at 10:00 a.m. MDT (12:00 p.m. EDT) to discuss the Company's results and outlook. A slide deck will accompany the conference call and can be found on Crescent Point's home page.
Participants can listen to this event online via webcast. Alternatively, the conference call can be accessed by dialing 1‑888‑390‑0605. The webcast will be archived for replay and can be accessed on Crescent Point's website approximately one hour following completion of the call.
Shareholders and investors can also find the Company's most recent investor presentation and sustainability report on Crescent Point's website.
2019 GUIDANCE
The Company's guidance for 2019 is as follows:
Prior | Revised | |
Total annual average production (boe/d) | 170,000 - 174,000 | 168,000 - 172,000 |
% Oil and NGLs | 91% | 91% |
Capital expenditures ($ millions) (1) | $1,200 to $1,300 | $1,200 to $1,300 |
Drilling and development (%) | 90% | 90% |
Facilities and seismic (%) | 10% | 10% |
(1) Capital expenditures excludes any potential net property and land acquisitions and approximately $35 million of capitalized G&A |
The Company's unaudited financial statements and management's discussion and analysis for the quarter ended June 30, 2019, will be available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on Crescent Point's website at www.crescentpointenergy.com.
All financial figures are approximate and in Canadian dollars unless otherwise noted. This press release contains forward-looking information and references to non-GAAP financial measures. Significant related assumptions and risk factors, and reconciliations are described under the Non-GAAP Financial Measures and Forward-Looking Statements sections of this press release, respectively |
FINANCIAL AND OPERATING HIGHLIGHTS
Three months ended June 30 | Six months ended June 30 | |||||||
(Cdn$ millions except per share and per boe amounts) | 2019 | 2018 | 2019 | 2018 | ||||
Financial | ||||||||
Cash flow from operating activities | 527.4 | 452.8 | 944.2 | 914.8 | ||||
Adjusted funds flow from operations (1) | 503.8 | 500.3 | 1,017.8 | 929.2 | ||||
Per share (1) (2) | 0.92 | 0.91 | 1.85 | 1.69 | ||||
Net income (loss) | 198.6 | (166.2) | 200.5 | (256.9) | ||||
Per share (2) | 0.36 | (0.30) | 0.37 | (0.47) | ||||
Adjusted net earnings from operations (1) | 146.0 | 102.7 | 304.3 | 166.1 | ||||
Per share (1) (2) | 0.27 | 0.19 | 0.55 | 0.30 | ||||
Dividends declared | 5.5 | 49.7 | 11.1 | 99.3 | ||||
Per share (2) | 0.01 | 0.09 | 0.02 | 0.18 | ||||
Net debt (1) | 3,553.5 | 4,015.7 | 3,553.5 | 4,015.7 | ||||
Net debt to adjusted funds flow from operations (1) (3) | 1.9 | 2.2 | 1.9 | 2.2 | ||||
Weighted average shares outstanding | ||||||||
Basic | 547.6 | 549.3 | 548.9 | 548.2 | ||||
Diluted | 548.2 | 551.0 | 549.0 | 549.9 | ||||
Operating | ||||||||
Average daily production | ||||||||
Crude oil (bbls/d) | 134,951 | 145,532 | 137,418 | 143,434 | ||||
NGLs (bbls/d) | 20,841 | 17,934 | 20,471 | 18,352 | ||||
Natural gas (mcf/d) | 100,101 | 110,110 | 97,902 | 110,046 | ||||
Total (boe/d) | 172,476 | 181,818 | 174,206 | 180,127 | ||||
Average selling prices (4) | ||||||||
Crude oil ($/bbl) | 72.07 | 76.31 | 68.32 | 71.83 | ||||
NGLs ($/bbl) | 21.39 | 35.04 | 23.43 | 34.36 | ||||
Natural gas ($/mcf) | 2.14 | 1.62 | 2.91 | 2.02 | ||||
Total ($/boe) | 60.22 | 65.52 | 58.28 | 61.93 | ||||
Netback ($/boe) | ||||||||
Oil and gas sales | 60.22 | 65.52 | 58.28 | 61.93 | ||||
Royalties | (8.97) | (9.35) | (8.25) | (9.09) | ||||
Operating expenses | (12.61) | (13.16) | (12.69) | (13.05) | ||||
Transportation expenses | (2.05) | (2.27) | (2.08) | (2.13) | ||||
Operating netback (1) | 36.59 | 40.74 | 35.26 | 37.66 | ||||
Realized gain (loss) on derivatives | (0.64) | (5.31) | 0.05 | (3.79) | ||||
Other (5) | (3.85) | (5.19) | (3.03) | (5.37) | ||||
Adjusted funds flow from operations netback (1) | 32.10 | 30.24 | 32.28 | 28.50 | ||||
Capital Expenditures | ||||||||
Capital dispositions, net (6) | (58.3) | (267.6) | (61.1) | (276.6) | ||||
Development capital expenditures | ||||||||
Drilling and development | 146.5 | 238.6 | 506.1 | 891.4 | ||||
Facilities and seismic | 19.7 | 62.6 | 40.3 | 131.8 | ||||
Land | 4.1 | 12.4 | 8.1 | 23.4 | ||||
Total | 170.3 | 313.6 | 554.5 | 1,046.6 | ||||
(1) | Adjusted funds flow from operations, adjusted funds flow from operations per share, adjusted net earnings from operations, adjusted net earnings from operations per share, net debt, net debt to adjusted funds flow from operations, operating netback and adjusted funds flow from operations netback as presented do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other entities |
(2) | The per share amounts (with the exception of dividends per share) are the per share – diluted amounts |
(3) | Net debt to adjusted funds flow from operations is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters |
(4) | The average selling prices reported are before realized derivatives and transportation |
(5) | Other includes net purchased products, general and administrative expenses, interest on long-term debt, foreign exchange, cash-settled share-based compensation and certain cash items and excludes transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items |
(6) | Capital dispositions, net represent total consideration for the transactions, including long-term debt and working capital assumed, and exclude transaction costs |
Non-GAAP Financial Measures
Throughout this press release, the Company uses the terms "adjusted funds flow", "funds flow", "adjusted funds flow from operations", "adjusted funds flow from operations per share - diluted", "adjusted net earnings from operations", "adjusted net earnings from operations per share - diluted", "free cash flow", "excess cash flow", "net debt", "net debt to adjusted funds flow from operations" and "netback". These terms do not have any standardized meaning as prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other issuers.
Adjusted funds flow and funds flow is equivalent to adjusted funds flow from operations. Adjusted funds flow from operations is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Adjusted funds flow from operations per share - diluted is calculated as adjusted funds flow from operations divided by the number of weighted average diluted shares outstanding. Transaction costs are excluded as they vary based on the Company's acquisition and disposition activity and to ensure that this metric is more comparable between periods. Decommissioning expenditures are discretionary and are excluded as they may vary based on the stage of Company's assets and operating areas. Management utilizes adjusted funds flow from operations as a key measure to assess the ability of the Company to finance dividends, operating activities, capital expenditures and debt repayments. Adjusted funds flow from operations as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.
The following table reconciles cash flow from operating activities to adjusted funds flow from operations:
Three months ended June 30 | Six months ended June 30 | ||||||||
($ millions) | 2019 | 2018 (1) | 2019 | 2018 (1) | |||||
Cash flow from operating activities | 527.4 | 452.8 | 944.2 | 914.8 | |||||
Changes in non-cash working capital | (28.3) | 41.0 | 62.7 | (3.1) | |||||
Transaction costs | 0.2 | 2.2 | 1.1 | 2.9 | |||||
Decommissioning expenditures | 4.5 | 4.3 | 9.8 | 14.6 | |||||
Adjusted funds flow from operations | 503.8 | 500.3 | 1,017.8 | 929.2 | |||||
(1) On initial adoption of IFRS 16, the Company elected to use the modified retrospective approach; therefore, comparative information has not been restated. Refer to the Changes in Accounting Policies section in the Company's MD&A for the period ended June 30, 2019 |
Adjusted net earnings from operations is calculated based on net income before amortization of exploration and evaluation ("E&E") undeveloped land, impairment or impairment recoveries, unrealized derivative gains or losses, unrealized foreign exchange gain or loss on translation of hedged US dollar long-term debt, unrealized gains or losses on long-term investments, gains or losses on the sale of long-term investments and gains or losses on capital acquisitions and dispositions. Adjusted net earnings from operations per share - diluted is calculated as adjusted net earnings from operations divided by the number of weighted average diluted shares outstanding. Management utilizes adjusted net earnings from operations to present a measure of financial performance that is more comparable between periods. Adjusted net earnings from operations as presented is not intended to represent net earnings or other measures of financial performance calculated in accordance with IFRS.
The following table reconciles net income to adjusted net earnings from operations:
Three months ended June 30 | Six months ended June 30 | ||||||||
($ millions) | 2019 | 2018 (1) | 2019 | 2018 (1) | |||||
Net income (loss) | 198.6 | (166.2) | 200.5 | (256.9) | |||||
Amortization of E&E undeveloped land | 35.9 | 39.5 | 74.2 | 78.3 | |||||
Impairment | — | — | 8.5 | — | |||||
Unrealized derivative (gains) losses | (26.4) | 234.3 | 244.0 | 269.3 | |||||
Unrealized foreign exchange (gain) loss on translation of hedged US dollar long-term debt | (99.0) | 8.7 | (195.7) | 132.7 | |||||
Unrealized (gain) loss on long-term investments | 0.9 | (5.5) | 1.4 | 6.3 | |||||
Gain on sale of long-term investments | — | (4.5) | — | (4.5) | |||||
Loss on capital dispositions | 11.4 | 71.5 | 6.1 | 70.6 | |||||
Deferred tax relating to adjustments | 24.6 | (75.1) | (34.7) | (129.7) | |||||
Adjusted net earnings from operations | 146.0 | 102.7 | 304.3 | 166.1 | |||||
(1) On initial adoption of IFRS 16, the Company elected to use the modified retrospective approach; therefore, comparative information has not been restated. Refer to the Changes in Accounting Policies section in the Company's MD&A for the period ended June 30, 2019 |
Free cash flow is calculated as adjusted funds flow from operations less capital expenditures, payments on lease liability, asset retirement obligations and other cash items (excluding net acquisitions and dispositions). Excess cash flow is calculated as free cash flow less dividends. Management utilizes free cash flow and excess cash flow as key measures to assess the ability of the Company to finance dividends, potential share repurchases, debt repayments and returns-based growth.
Net debt is calculated as long-term debt plus accounts payable and accrued liabilities and long-term compensation liability, less cash, accounts receivable, prepaids and deposits and long-term investments, excluding the unrealized foreign exchange on translation of US dollar long-term debt. Management utilizes net debt as a key measure to assess the liquidity of the Company.
The following table reconciles long-term debt to net debt:
($ millions) | June 30, 2019 | June 30, 2018 | |
Long-term debt (1) | 3,706.7 | 4,277.4 | |
Accounts payable and accrued liabilities | 474.8 | 605.6 | |
Dividends payable | — | 16.9 | |
Long-term compensation liability (2) | 6.2 | 21.3 | |
Cash | (9.7) | (9.0) | |
Accounts receivable | (331.4) | (409.7) | |
Prepaids and deposits | (7.9) | (7.6) | |
Long-term investments | (7.3) | (127.1) | |
Excludes: | |||
Unrealized foreign exchange on translation of hedged US dollar long-term debt | (277.9) | (352.1) | |
Net debt | 3,553.5 | 4,015.7 |
(1) | Includes current portion of long-term debt |
(2) | Includes current portion of long-term compensation liability |
Net debt to adjusted funds flow from operations is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters. The ratio of net debt to adjusted funds flow from operations is used by management to measure the Company's overall debt position and to measure the strength of the Company's balance sheet. Crescent Point monitors this ratio and uses this as a key measure in making decisions regarding financing, capital spending and dividend levels.
Operating netback is calculated on a per boe basis as oil and gas sales, less royalties, operating and transportation expenses. Adjusted funds flow netback is equivalent to adjusted funds flow from operations netback. Adjusted funds flow from operations netback is calculated on a per boe basis as operating netback less net purchased products, realized derivative gains and losses, general and administrative expenses, interest on long-term debt, foreign exchange, cash-settled share-based compensation and certain cash items, excluding transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items. Operating netback and adjusted funds flow from operations netback are common metrics used in the oil and gas industry and are used by management to measure operating results on a per boe basis to better analyze performance against prior periods on a comparable basis. Netback calculations are shown in the Financial and Operating Highlights section in this press release.
Management believes the presentation of the Non-GAAP measures above provide useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.
Forward-Looking Statements
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: assets sales currently in process; the Company's focus on disciplined capital allocation, realizing cost efficiencies and improving balance sheet strength; expectation of generating significant excess cash flow in 2019, allocated to the balance sheet and accretive share repurchases; targeting additional asset dispositions and the benefits thereof; the payment of a quarterly dividend payment; the Company's second half capital allocation within its development budget; the constituent elements of the Company's second half development program; expectations surrounding the Company's third and fourth quarter production; water injection well conversion plans; the progression of Crescent Point's asset dispositions; potential initial annual cash flow to a purchaser of the infrastructure package; Crescent Point disciplined and flexible approach to its disposition process and plan to provide updates as necessary or appropriate; the Company's direction centered on a focused asset strategy with a strong balance sheet, allowing for increased efficiencies and financial flexibility; expectations of continued improvement in overall efficiencies, corporate returns, financial position and debt-adjusted per share metrics; reduction in the number of operating areas; the Company's key focus areas, their characteristics and their provision of attractive returns, scalability, free cash flow and reliable market access; expectations that waterflood programs will further enhance overall recoveries and sustainability in the Company's key focus areas; management's capital allocation process centered on returns versus production growth, net debt reduction and returning capital to shareholders; the Company's continuing assessment of its allocation of excess cash flow as it continues to execute its transition plan and further strengthen its balance sheet; the Company's plan to continue to update shareholders as it executes its transition plan; and the Company's 2019 guidance, including total annual average production and capital expenditures, and the distribution of capital expenditures amongst drilling and development and facilities and seismic.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material risks discussed in the Company's Annual Information Form for the year ended December 31, 2018 under "Risk Factors", our Management's Discussion and Analysis for the year ended December 31, 2018, under the headings "Risk Factors" and "Forward-Looking Information" and for the quarter ended June 30, 2019 under "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policy" and "Outlook". The material assumptions are disclosed in the Management's Discussion and Analysis for the year ended December 31, 2018, under the headings "Capital Expenditures", "Liquidity and Capital Resources", "Critical Accounting Estimates", "Risk Factors", "Changes in Accounting Policies" and "Outlook" and are disclosed in the Management's Discussion and Analysis for the quarter ended June 30, 2019 under the headings "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policy" and "Outlook". In addition, risk factors include: financial risk of marketing reserves at an acceptable price given market conditions; volatility in market prices for oil and natural gas; delays in business operations, pipeline restrictions, blowouts; the risk of carrying out operations with minimal environmental impact; industry conditions, including changes in laws and regulations and the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; risks and uncertainties related to all oil and gas interests and operations on tribal lands; uncertainties associated with estimating oil and natural gas reserves; economic risk of finding and producing reserves at a reasonable cost; uncertainties associated with partner plans and approvals; operational matters related to non-operated properties; increased competition for, among other things, capital, acquisitions of reserves and undeveloped lands; competition for and availability of qualified personnel or management; incorrect assessments of the value of acquisitions and exploration and development programs; unexpected geological, technical, drilling, construction and processing problems; availability of insurance; fluctuations in foreign exchange and interest rates; stock market volatility; failure to realize the anticipated benefits of acquisitions and dispositions; general economic, market and business conditions; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities and counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates and incentive programs relating to the oil and gas industry; and other factors, many of which are outside the control of Crescent Point. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard,
Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian,
Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020
Toll-free (US and Canada): 888-693-0020
Fax: (403) 693-0070
Address: Crescent Point Energy Corp.
Suite 2000, 585 - 8th Avenue S.W.
Calgary AB T2P 1G1
www.crescentpointenergy.com
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-q2-2019-results-300890653.html
SOURCE Crescent Point Energy Corp.
Article Date
7/25/20197/25/2019 - Crescent Point Confirms Quarterly Dividend
Crescent Point Confirms Quarterly Dividend
Source: PR Newswire
CALGARY, July 25, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point") (TSX and NYSE: CPG) announces its Board of Directors has declared a quarterly cash dividend of CDN $0.01 per share to be paid on October 1, 2019 for shareholders of record on September 15, 2019.
These dividends are designated as "eligible dividends" for Canadian income tax purposes. For U.S. income tax purposes, Crescent Point's dividends are considered "qualified dividends."
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-confirms-quarterly-dividend-300890637.html
SOURCE Crescent Point Energy Corp.
Article Date
7/25/20197/18/2019 - Crescent Point Announces Q2 2019 Conference Call
Crescent Point Announces Q2 2019 Conference Call
Source: PR Newswire
CALGARY, July 18, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) plans to report its second quarter 2019 financial and operating results via press release prior to the opening of markets on Thursday, July 25, 2019. Crescent Point's management will host a conference call at 10:00 a.m. MDT (12:00 p.m. EDT) the same day to discuss the results and outlook for the Company.
Participants can listen to this event online via webcast. Alternatively, the conference call can be accessed by dialing 1‑888‑390‑0605.
The webcast will be archived for replay and can be accessed on Crescent Point's conference calls and webcasts webpage under the invest tab. The replay will be available approximately one hour following the completion of the call.
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-q2-2019-conference-call-300887490.html
SOURCE Crescent Point Energy Corp.
Article Date
7/18/2019Crescent Point Announces Annual General Meeting Results
Source: PR Newswire
CALGARY, June 14, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) held its Annual General Meeting ("AGM" or "the meeting") on June 14, 2019.
During the regular business proceedings at the meeting, shareholders elected all director nominees to the Board of Directors of the Company (the "Board") and approved all other items of business brought before the meeting. Voting results for all resolutions are below.
1. Fixing the Number of Directors
The appointment of 10 Board members for the ensuing year was approved by a show of hands. Votes were received as follows:
Votes For | Percent | Against | Percent |
237,403,335 | 97.53% | 6,004,591 | 2.47% |
2. Election of Directors
The 10 director nominees were elected by a show of hands. Votes were received as follows:
Nominee | Votes For | Percent | Withheld | Percent |
Craig Bryksa | 237,397,239 | 97.53% | 6,010,687 | 2.47% |
Laura A. Cillis | 236,634,172 | 97.22% | 6,773,754 | 2.78% |
James E. Craddock | 236,395,822 | 97.12% | 7,012,104 | 2.88% |
John Dielwart | 228,879,298 | 94.03% | 14,528,628 | 5.97% |
Ted Goldthorpe | 236,414,938 | 97.13% | 6,992,988 | 2.87% |
Robert F. Heinemann | 234,579,155 | 96.37% | 8,828,771 | 3.63% |
Mike Jackson | 236,334,233 | 97.09% | 7,073,693 | 2.91% |
Jennifer F. Koury | 236,770,229 | 97.27% | 6,637,697 | 2.73% |
François Langlois | 236,212,160 | 97.04% | 7,195,766 | 2.96% |
Barbara Munroe | 236,400,163 | 97.12% | 7,007,763 | 2.88% |
3. Appointment of Auditors
The appointment of PricewaterhouseCoopers LLP as Crescent Point's auditor was approved by a show of hands. Votes were received as follows:
Votes For | Percent | Against | Percent |
257,072,192 | 97.39% | 6,877,153 | 2.61% |
4. Reduction in Stated Capital
The resolution approving a reduction in the stated capital account maintained in respect of the common shares of the Company by $6 billion was approved by a show of hands. Votes were received as follows:
Votes For | Percent | Against | Percent |
237,809,369 | 97.70% | 5,598,556 | 2.30% |
5. Advisory Vote on Executive Compensation
The resolution to accept the Company's approach to executive compensation, the full text of which is set forth in the Information Circular, was approved. Votes were received as follows:
Votes For | Percent | Against | Percent |
213,091,322 | 87.54% | 30,336,579 | 12.46% |
The biographies of Crescent Point's Board members, details about its governance practices and a recorded webcast from the meeting earlier today are available on www.crescentpointenergy.com.
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
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SOURCE Crescent Point Energy Corp.
Article Date
6/14/2019Crescent Point Announces Annual General Meeting Details
Source: PR Newswire
CALGARY, June 7, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) announces that its Annual General Meeting ("AGM") to be held on June 14, 2019, as previously announced, will be located at the Imperial Ballroom of the Hyatt Regency Calgary (700 Centre Street S.E.) at 10:00 a.m. MT (12:00 p.m. ET).
Shareholders are encouraged to attend the meeting. For those unable to attend, a webcast of the AGM will be available following the conclusion of the meeting. To access, visit the conference call and webcasts page of the Company's website.
For further information about the AGM, including access to all meeting materials, please visit Crescent Point's website.
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-annual-general-meeting-details-300863904.html
SOURCE Crescent Point Energy Corp.
Article Date
6/7/20195/9/2019 - Crescent Point Announces Q1 2019 Results
Crescent Point Announces Q1 2019 Results
Source: PR Newswire
CALGARY, May 9, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is pleased to announce its operating and financial results for the quarter ended March 31, 2019.
KEY HIGHLIGHTS
"We have had a great start to 2019 and now expect to generate approximately $600 million of excess cash flow this year," said Craig Bryksa, President and CEO of Crescent Point. "By being disciplined in our capital allocation and focused on cost reductions, we have enhanced our financial flexibility. We plan to use the excess cash we generate this year to reduce net debt and repurchase additional shares under our normal course issuer bid. We are also pleased with our recent success in attracting new directors and board nominees with strong and diversified skill sets through our board's deliberate and thoughtful renewal process."
FINANCIAL HIGHLIGHTS
DIFFERENTIALS AND MARKET ACCESS
OPERATIONAL HIGHLIGHTS
OUTLOOK
Crescent Point continues to focus on its transition plan's key value drivers, which include disciplined capital allocation, cost reductions and balance sheet improvement.
As the Company advances each of these initiatives, it expects to further improve overall capital efficiencies, corporate returns and debt-adjusted per share metrics. Crescent Point's free cash flow generation has also improved, with approximately $600 million of excess cash flow expected to be generated in 2019, based on its guidance at current strip prices.
The Company remains disciplined in allocating capital and excess cash flow, prioritizing net debt reduction, accretive share repurchases and generating returns versus production growth. Crescent Point is on track with its 2019 budget, which remains unchanged, with expected annual average production of 170,000 to 174,000 boe/d and planned capital expenditures of $1.20 to $1.30 billion.
The Company initiated a process for asset dispositions during first quarter, which continues to progress. Crescent Point does not intend to disclose developments with respect to these processes unless the Board of Directors (the "Board") has approved a specific transaction, or otherwise determines that disclosure is necessary or appropriate. The Company will remain disciplined and flexible as it seeks to focus its asset base and create value for its shareholders.
ANNUAL GENERAL MEETING
Crescent Point's 2019 Annual General Meeting ("AGM") will be held on June 14, 2019. As previously announced, the Company's recent Board renewal process has included the appointment of Robert Heinemann as Chairman, the appointment of John Dielwart as a new independent director and the nominations of James Craddock and Jennifer Koury as additional independent directors. Following the upcoming AGM, Crescent Point will have undergone a complete Board renewal since 2014.
CONFERENCE CALL DETAILS
Crescent Point management will host a conference call on Thursday, May 9, 2019 at 10:00 a.m. MT (12:00 p.m. ET) to discuss the Company's results and outlook. A slide deck will accompany the conference call and can be found on Crescent Point's home page.
Participants can listen to this event online at https://event.on24.com/wcc/r/1972375/8A4F783AE28233E69CADC69991A619B2. Alternatively, the conference call can be accessed by dialing 1‑888‑390‑0605.
The webcast will be archived for replay and can be accessed on Crescent Point's website at https://www.crescentpointenergy.com/invest/conference-calls-webcasts. The replay will be available approximately one hour following completion of the call.
Shareholders and investors can also find the Company's most recent investor presentation on Crescent Point's website.
2019 GUIDANCE
The Company's guidance for 2019 is as follows:
Total annual average production (boe/d) | 170,000 - 174,000 |
% Oil and NGLs | 91% |
Capital expenditures ($ millions) (1) | $1,200 to $1,300 |
Drilling and development (%) | 90% |
Facilities and seismic (%) | 10% |
(1) | Capital expenditures excludes any potential net property and land acquisitions and approximately $35 million of capitalized G&A. |
The Company's unaudited financial statements and management's discussion and analysis for the quarter ended March 31, 2019, will be available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on Crescent Point's website at www.crescentpointenergy.com.
All financial figures are approximate and in Canadian dollars unless otherwise noted. This press release contains forward-looking information and references to non-GAAP financial measures. Significant related assumptions and risk factors, and reconciliations are described under the Non-GAAP Financial Measures and Forward-Looking Statements sections of this press release, respectively. |
FINANCIAL AND OPERATING HIGHLIGHTS
Three months ended March 31 | |||
(Cdn$ millions except per share and per boe amounts) | 2019 | 2018 | |
Financial | |||
Cash flow from operating activities | 416.8 | 462.0 | |
Adjusted funds flow from operations (1) | 514.0 | 428.9 | |
Per share (1) (2) | 0.93 | 0.78 | |
Net income (loss) | 1.9 | (90.7) | |
Per share (2) | - | (0.17) | |
Adjusted net earnings from operations (1) | 158.3 | 63.4 | |
Per share (1) (2) | 0.29 | 0.12 | |
Dividends declared | 5.6 | 49.6 | |
Per share (2) | 0.01 | 0.09 | |
Net debt (1) | 3,905.5 | 4,409.3 | |
Net debt to adjusted funds flow from operations (1) (3) | 2.1 | 2.5 | |
Weighted average shares outstanding | |||
Basic | 550.3 | 547.1 | |
Diluted | 550.3 | 548.4 | |
Operating | |||
Average daily production | |||
Crude oil (bbls/d) | 139,911 | 141,312 | |
NGLs (bbls/d) | 20,097 | 18,775 | |
Natural gas (mcf/d) | 95,679 | 109,983 | |
Total (boe/d) | 175,955 | 178,418 | |
Average selling prices (4) | |||
Crude oil ($/bbl) | 64.65 | 67.17 | |
NGLs ($/bbl) | 25.58 | 33.71 | |
Natural gas ($/mcf) | 3.72 | 2.42 | |
Total ($/boe) | 56.35 | 58.24 | |
Netback ($/boe) | |||
Oil and gas sales | 56.35 | 58.24 | |
Royalties | (7.53) | (8.82) | |
Operating expenses | (12.77) | (12.94) | |
Transportation expenses | (2.10) | (1.99) | |
Operating netback (1) | 33.95 | 34.49 | |
Realized gain (loss) on derivatives | 0.73 | (2.21) | |
Other (5) | (2.22) | (5.57) | |
Adjusted funds flow from operations netback (1) | 32.46 | 26.71 | |
Capital Expenditures | |||
Capital dispositions, net (6) | (2.8) | (9.0) | |
Development capital expenditures | |||
Drilling and development | 359.6 | 652.8 | |
Facilities and seismic | 20.6 | 69.2 | |
Land | 4.0 | 11.0 | |
Total | 384.2 | 733.0 | |
(1) | Adjusted funds flow from operations, adjusted funds flow from operations per share, adjusted net earnings from operations, adjusted net earnings from operations per share, net debt, net debt to adjusted funds flow from operations, operating netback and adjusted funds flow from operations netback as presented do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other entities. |
(2) | The per share amounts (with the exception of dividends per share) are the per share – diluted amounts. |
(3) | Net debt to adjusted funds flow from operations is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters. |
(4) | The average selling prices reported are before realized derivatives and transportation. |
(5) | Other includes net purchased products, general and administrative expenses, interest on long-term debt, foreign exchange and cash-settled share-based compensation and excludes transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items. |
(6) | Capital dispositions, net represent total consideration for the transactions, including long-term debt and working capital assumed, and exclude transaction costs. |
Non-GAAP Financial Measures
Throughout this press release, the Company uses the terms "adjusted funds flow from operations", "funds flow", "adjusted funds flow from operations per share - diluted", "adjusted net earnings from operations", "adjusted net earnings from operations per share - diluted", "free cash flow", "excess cash flow", "net debt", "net debt to adjusted funds flow from operations" and "netback". These terms do not have any standardized meaning as prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other issuers.
Adjusted funds flow and funds flow is equivalent to adjusted funds flow from operations. Adjusted funds flow from operations is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Adjusted funds flow from operations per share - diluted is calculated as adjusted funds flow from operations divided by the number of weighted average diluted shares outstanding. Transaction costs are excluded as they vary based on the Company's acquisition and disposition activity and to ensure that this metric is more comparable between periods. Decommissioning expenditures are discretionary and are excluded as they may vary based on the stage of Company's assets and operating areas. Management utilizes adjusted funds flow from operations as a key measure to assess the ability of the Company to finance dividends, operating activities, capital expenditures and debt repayments. Adjusted funds flow from operations as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.
The following table reconciles cash flow from operating activities to adjusted funds flow from operations:
Three months ended March 31 | |||
($ millions) | 2019 | 2018 (1) | |
Cash flow from operating activities | 416.8 | 462.0 | |
Changes in non-cash working capital | 91.0 | (44.1) | |
Transaction costs | 0.9 | 0.7 | |
Decommissioning expenditures | 5.3 | 10.3 | |
Adjusted funds flow from operations | 514.0 | 428.9 | |
(1) On initial adoption of IFRS 16, the Company elected to use the modified retrospective approach; therefore, comparative information has not been restated. Refer to the Changes in Accounting Policies section in the Company's MD&A for the period ended March 31, 2019. |
Adjusted net earnings from operations is calculated based on net income before amortization of exploration and evaluation ("E&E") undeveloped land, impairment or impairment recoveries on property, plant and equipment ("PP&E"), unrealized derivative gains or losses, unrealized foreign exchange gain or loss on translation of hedged US dollar long-term debt, unrealized gains or losses on long-term investments and gains or losses on capital acquisitions and dispositions. Adjusted net earnings from operations per share - diluted is calculated as adjusted net earnings from operations divided by the number of weighted average diluted shares outstanding. Management utilizes adjusted net earnings from operations to present a measure of financial performance that is more comparable between periods. Adjusted net earnings from operations as presented is not intended to represent net earnings or other measures of financial performance calculated in accordance with IFRS.
The following table reconciles net income to adjusted net earnings from operations:
Three months ended March 31 | |||
($ millions) | 2019 | 2018 (1) | |
Net income (loss) | 1.9 | (90.7) | |
Amortization of E&E undeveloped land | 38.3 | 38.8 | |
Impairment | 8.5 | — | |
Unrealized derivative losses | 270.4 | 35.0 | |
Unrealized foreign exchange (gain) loss on translation of hedged US dollar long-term debt | (96.7) | 124.0 | |
Unrealized loss on long-term investments | 0.5 | 11.8 | |
Gain on capital dispositions | (5.3) | (0.9) | |
Deferred tax relating to adjustments | (59.3) | (54.6) | |
Adjusted net earnings from operations | 158.3 | 63.4 | |
(1) On initial adoption of IFRS 16, the Company elected to use the modified retrospective approach; therefore, comparative information has not been restated. Refer to the Changes in Accounting Policies section in the Company's MD&A for the period ended March 31, 2019. |
Free cash flow is calculated as adjusted funds flow less capital expenditures (excluding net acquisitions and dispositions). Excess cash flow is calculated as free cash flow less dividends and lease payments. Management utilizes excess cash flow and free cash flow as key measures to assess the ability of the Company to finance dividends, potential share repurchases, debt repayments and returns-based growth.
Net debt is calculated as long-term debt plus accounts payable and accrued liabilities and long-term compensation liability, less cash, accounts receivable, prepaids and deposits and long-term investments, excluding the unrealized foreign exchange on translation of US dollar long-term debt. Management utilizes net debt as a key measure to assess the liquidity of the Company.
The following table reconciles long-term debt to net debt:
($ millions) | March 31, 2019 | March 31, 2018 | |
Long-term debt (1) | 4,142.6 | 4,412.9 | |
Accounts payable and accrued liabilities | 600.5 | 790.1 | |
Long-term compensation liability (2) | 4.9 | 29.4 | |
Cash | (25.8) | (14.7) | |
Accounts receivable | (421.6) | (382.5) | |
Prepaids and deposits | (10.0) | (10.0) | |
Long-term investments | (8.2) | (72.5) | |
Excludes: | |||
Unrealized foreign exchange on translation of hedged US dollar long-term debt | (376.9) | (343.4) | |
Net debt | 3,905.5 | 4,409.3 |
(1) Includes current portion of long-term debt. |
(2) Includes current portion of long-term compensation liability. |
Net debt to adjusted funds flow from operations is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters. The ratio of net debt to adjusted funds flow from operations is used by management to measure the Company's overall debt position and to measure the strength of the Company's balance sheet. Crescent Point monitors this ratio and uses this as a key measure in making decisions regarding financing, capital spending and dividend levels.
Operating netback is calculated on a per boe basis as oil and gas sales, less royalties, operating and transportation expenses. Adjusted funds flow netback is calculated on a per boe basis as operating netback less net purchased products, realized derivative gains and losses, general and administrative expenses, interest on long-term debt, foreign exchange and cash-settled share-based compensation, excluding transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items. Operating netback and adjusted funds flow from operations netback are common metrics used in the oil and gas industry and are used by management to measure operating results on a per boe basis to better analyze performance against prior periods on a comparable basis. Netback calculations are shown in the Financial and Operating Highlights section in this press release.
Management believes the presentation of the Non-GAAP measures above provide useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.
Notice to US Readers
The oil and natural gas reserves contained in this press release have generally been prepared in accordance with Canadian disclosure standards, which are not comparable in all respects of United States or other foreign disclosure standards. For example, the United States Securities and Exchange Commission (the "SEC") generally permits oil and gas issuers, in their filings with the SEC, to disclose only proved reserves (as defined in SEC rules), but permits the optional disclosure of "probable reserves" and "possible reserves" (each as defined in SEC rules). Canadian securities laws require oil and gas issuers, in their filings with Canadian securities regulators, to disclose not only proved reserves (which are defined differently from the SEC rules) but also probable reserves and permits optional disclosure of "possible reserves", each as defined in NI 51-101. Accordingly, "proved reserves", "probable reserves" and "possible reserves" disclosed in this news release may not be comparable to US standards, and in this news release, Crescent Point has disclosed reserves designated as "proved plus probable reserves". Probable reserves are higher-risk and are generally believed to be less likely to be accurately estimated or recovered than proved reserves. "Possible reserves" are higher risk than "probable reserves" and are generally believed to be less likely to be accurately estimated or recovered than "probable reserves". In addition, under Canadian disclosure requirements and industry practice, reserves and production are reported using gross volumes, which are volumes prior to deduction of royalties and similar payments. The SEC rules require reserves and production to be presented using net volumes, after deduction of applicable royalties and similar payments. Moreover, Crescent Point has determined and disclosed estimated future net revenue from its reserves using forecast prices and costs, whereas the SEC rules require that reserves be estimated using a 12-month average price, calculated as the arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period. Consequently, Crescent Point's reserve estimates and production volumes in this news release may not be comparable to those made by companies using United States reporting and disclosure standards. Further, the SEC rules are based on unescalated costs and forecasts.
All amounts in the news release are stated in Canadian dollars unless otherwise specified.
Forward-Looking Statements
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: approximately $600 million of excess cash flow expected to be generated in 2019 and the expected use of such funds for net debt reduction and additional share repurchases; increased cash flow in 2019 based on return-focused capital allocation, lower costs, higher commodity prices and improved oil differentials; expectations of an improved realized oil price for the Company by approximately 15 percent relative to first quarter 2019; the asset disposition process; reduced spending in second quarter 2019 due to normal seasonality related to spring break-up; total capital expenditures in the first half of the year are expected to account for approximately 50 percent of the Company's annual budget (based on the mid-point of its 2019 guidance); improved financial flexibility in 2019 based on the significant excess cash flow within the Company's budget at current strip prices and proceeds from potential asset dispositions; dividend payment dates; the anticipated effects of the settlement agreement related to a National Energy Board complaint, including improved netbacks for oil production transported on the Saskatchewan Pipeline System; each of the Company's key focus areas are expected to generate cash flows in excess of capital expenditures in 2019; the allocation of a disciplined amount of capital (approximately 15 percent) to the Uinta Basin and the East Shale Duvernay play within the Company's 2019 budget; the Company's plans to convert waterflood wells to injection wells across its key focus areas; the excepted benefits of decline mitigation programs; expectations to further improve overall capital efficiencies, corporate returns and debt-adjusted per share metrics; expectations of further generating approximately $600 million of excess cash flow in 2019 based on the Company's guidance at current strip prices; prioritization of net debt reduction and accretive share repurchases to enhance shareholder returns; asset disposition programs; that the Company is on track with its 2019 budget with expected annual average production of 170,000 to 174,000 boe/d and planned capital expenditures of $1.20 to $1.30 billion; AGM timing, director election and board renewal; and the Company's 2019 guidance, including expected total annual average production and capital expenditures.
Statements relating to "reserves" are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. Actual reserve values may be greater than or less than the estimates provided herein.
Unless otherwise noted, reserves referenced herein are given as at December 31, 2018. Also, estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates and future net revenue for all properties due to the effect of aggregation. All required reserve information for the Company is contained in its Annual Information Form for the year ended December 31, 2018, which is accessible at www.sedar.com.
With respect to disclosure contained herein regarding resources other than reserves, there is uncertainty that it will be commercially viable to produce any portion of the resources and there is significant uncertainty regarding the ultimate recoverability of such resources.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material risks discussed in the Company's Annual Information Form for the year ended December 31, 2018 under "Risk Factors", our Management's Discussion and Analysis for the year ended December 31, 2018, under the headings "Risk Factors" and "Forward-Looking Information" and for the quarter ended March 31, 2019 under "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policy" and "Outlook". The material assumptions are disclosed in the Management's Discussion and Analysis for the year ended December 31, 2018, under the headings "Capital Expenditures", "Liquidity and Capital Resources", "Critical Accounting Estimates", "Risk Factors", "Changes in Accounting Policies" and "Outlook" and are disclosed in the Management's Discussion and Analysis for the quarter ended March 31, 2019 under the headings "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policy" and "Outlook". In addition, risk factors include: financial risk of marketing reserves at an acceptable price given market conditions; volatility in market prices for oil and natural gas; delays in business operations, pipeline restrictions, blowouts; the risk of carrying out operations with minimal environmental impact; industry conditions, including changes in laws and regulations and the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; risks and uncertainties related to all oil and gas interests and operations on tribal lands; uncertainties associated with estimating oil and natural gas reserves; economic risk of finding and producing reserves at a reasonable cost; uncertainties associated with partner plans and approvals; operational matters related to non-operated properties; increased competition for, among other things, capital, acquisitions of reserves and undeveloped lands; competition for and availability of qualified personnel or management; incorrect assessments of the value of acquisitions and exploration and development programs; unexpected geological, technical, drilling, construction and processing problems; availability of insurance; fluctuations in foreign exchange and interest rates; stock market volatility; failure to realize the anticipated benefits of acquisitions and dispositions; general economic, market and business conditions; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities and counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates and incentive programs relating to the oil and gas industry; and other factors, many of which are outside the control of Crescent Point. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-q1-2019-results-300846866.html
SOURCE Crescent Point Energy Corp.
Article Date
5/9/20195/9/2019 - Crescent Point Confirms Quarterly Dividend
Crescent Point Confirms Quarterly Dividend
Source: PR Newswire
CALGARY, May 9, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point") (TSX and NYSE: CPG) announces its Board of Directors has declared a quarterly cash dividend of CDN $0.01 per share to be paid on July 2, 2019 for shareholders of record on June 15, 2019.
These dividends are designated as "eligible dividends" for Canadian income tax purposes. For U.S. income tax purposes, Crescent Point's dividends are considered "qualified dividends."
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
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SOURCE Crescent Point Energy Corp.
Article Date
5/9/2019Crescent Point Announces Q1 2019 Conference Call
Source: PR Newswire
CALGARY, May 2, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) plans to report its first quarter 2019 financial and operating results via press release prior to the opening of markets on Thursday, May 9, 2019. Crescent Point's management will host a conference call at 10:00 a.m. MST (12:00 p.m. EST) the same day to discuss the results and outlook for the Company.
Participants can listen to this event online via webcast. Alternatively, the conference call can be accessed by dialing 1‑888‑390‑0605.
The webcast will be archived for replay and can be accessed on Crescent Point's conference calls and webcasts webpage under the invest tab. The replay will be available approximately one hour following completion of the call.
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
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SOURCE Crescent Point Energy Corp.
Article Date
5/2/2019Crescent Point drives production cost reduction using AFTI Watchdog
Source: PR Newswire
CALGARY, April 23, 2019 /PRNewswire/ - AFTI WatchDog is pleased to announce that Crescent Point Energy Corp. ("Crescent Point") (TSX: CPG) and (NYSE: CPG) has selected the AFTI WatchDog as a key service provider to support its field automation strategy.
AFTI WatchDog is the industry leader for low-cost oil well and pipeline monitoring. Our mission, to remove the routine well-site visit, has delivered thousands of hours back to field operators and operations groups. WatchDog reduces equipment failures and potential environmental incidents while allowing operators to maximize production without additional labour costs.
"We are very excited about working with Crescent Point as it expands its well-site automation program," said Len Johnson, CEO of AFTI WatchDog. "The information produced by WatchDog is expected to assist Crescent Point in optimizing production, reducing downtime and lowering its operating expenses. We believe that WatchDog is unique in offering these benefits at a very low cost."
"Crescent Point is pleased to partner with AFTI WatchDog as we continue our efforts to improve our overall efficiencies," said Rob Fiorentino, Director of Operations Engineering of Crescent Point. "We have already seen the benefits of field automation in our operations and are excited about working alongside AFTI to optimize production and reduce our cost structure."
AFTI WatchDog is a Calgary based company which, through its WatchDog platform, offers well site monitoring technology. WatchDog is used by most major producers in the Western Canadian Sedimentary Basin.
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
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SOURCE AFTI WatchDog
Article Date
4/23/2019Crescent Point Nominates New Directors for Board Election
Source: PR Newswire
CALGARY, April 11, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is pleased to announce that James E. ("Jim") Craddock and Jennifer F. Koury will stand for election to its Board of Directors (the "Board") at the Company's upcoming Annual General Meeting ("AGM").
"We're excited about having both Jim and Jennifer stand as new independent nominees," said Bob Heinemann, Chairman of the Board. "Through our search process, it was evident that their extensive backgrounds and industry experience complemented our Board's existing skillset. Jim's strong leadership and broad-based technical knowledge along with Jennifer's significant human resources and governance experience will be invaluable as we continue to execute our transition plan."
Mr. Craddock has served on Noble Energy Inc.'s Board of Directors since its merger with Rosetta Resources Inc. in 2015 and served as the Chairman, Chief Executive Officer and President of Rosetta from 2013 to 2015. Mr. Craddock is currently a member of Noble's Compensation and Corporate Governance and Nominating committees and is Chair of the Safety, Sustainability and Corporate Responsibility Committee. Previously, he was the Executive Director and Chief Operating Officer for BPI Industries Inc. and held several positions of increasing responsibility over a 20-year career at Burlington Resources Inc. He holds a Bachelor of Science in Mechanical Engineering from Texas A&M University.
Ms. Koury has over 35 years of professional experience, holding various senior executive positions with BHP Billiton from 2011 to 2017. Part of her responsibilities included the development of BHP Billiton's total rewards program for executives and employees of the Petroleum World-Wide Business. Prior to that, she was Vice President of Corporate Services for Enerplus Corp. from 2006 to 2011 and also held senior management positions with Imperial Oil/Exxon Mobil. Ms. Koury serves as a Director for the Calgary Zoo and is Chair of the first public/private partnership for the United Nations Women Global Innovation Coalition for Change. She holds a Bachelor of Commerce Degree from the University of Alberta and holds the ICD.D directors designation from the University of Toronto.
As previously announced, Peter Bannister and Gerald A. Romanzin will be retiring from Crescent Point's Board at its upcoming AGM. Since the announcement of Crescent Point's transition plan in September 2018, the Company's Board renewal process has included the appointment of Bob Heinemann as Chairman, John Dielwart as a new independent director and the nomination of Jim Craddock and Jennifer Koury as additional independent directors. Following the upcoming AGM, the Company will have undergone a complete Board renewal since 2014.
"On behalf of Crescent Point and our Board, I thank Peter and Gerry for their significant contributions," said Heinemann. "Their leadership and guidance helped shape the Company to become one of Canada's largest light oil producers. We wish them all the best in their future endeavours."
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
Forward-Looking Statements and Other Matters
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to: Mr. Craddock and Ms. Koury standing for election to the Board; the successful election of Mr. Craddock and Ms. Koury to the Board and the anticipated benefits to Crescent Point; planned retirements; and the anticipated timing for the Board to have undergone a complete renewal.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. The Company believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
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SOURCE Crescent Point Energy Corp.
Article Date
4/11/2019Crescent Point Announces Filing of 2018 Annual Information Form and Form 40-F
Source: PR Newswire
CALGARY, March 7, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) confirms the filing of its Annual Information Form ("AIF") for the year ended December 31, 2018, with the Canadian securities regulatory authorities on the System for Electronic Analysis and Retrieval ("SEDAR"). In addition, Crescent Point has filed its Form 40-F for the year ended December 31, 2018, which includes the AIF, with the United States Securities and Exchange Commission on the Electronic Data Gathering, Analysis and Retrieval ("EDGAR") system. The AIF contains the Company's reserves data and other oil and natural gas information, as required under National Instrument 51-101.
An electronic copy of the AIF may be obtained on Crescent Point's website at www.crescentpointenergy.com, on the Company's SEDAR profile at www.sedar.com and on the Company's EDGAR profile at www.sec.gov/edgar.shtml.
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
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SOURCE Crescent Point Energy Corp.
Article Date
3/7/2019Crescent Point Announces 2018 Results and Reserves
Source: PR Newswire
CALGARY, March 7, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is pleased to announce its operating and financial results for the year ended December 31, 2018.
KEY HIGHLIGHTS
"In 2018, we spent below budget, exceeded our production guidance and increased our net asset value per share," said Craig Bryksa, President and CEO of Crescent Point. "In mid-2018, new management began transitioning the company to be more focused and efficient, realizing cost structure improvements and prioritizing capital allocation based on returns while continuing to advance our core areas. In addition to these changes and those set out in our transition plan, we also welcome and look forward to the additional insight and expertise provided through our ongoing board renewal process."
FINANCIAL HIGHLIGHTS
DIFFERENTIALS AND MARKET ACCESS
All financial figures are approximate and in Canadian dollars unless otherwise noted. This press release contains forward-looking information and references to non-GAAP financial measures. Significant related assumptions and risk factors, and reconciliations are described under the Non-GAAP Financial Measures and Forward-Looking Statements sections of this press release, respectively. |
OPERATIONAL HIGHLIGHTS
RESERVES HIGHLIGHTS
NET ASSET VALUE HIGHLIGHTS
Before Tax Net Asset Value Per Share, Fully Diluted, as at December 31, 2018 at Flat Pricing of US$55.00/bbl
Reserves Category | NAV |
Proved and Probable | $13.38 |
Proved and Probable Developed Producing | $8.02 |
Proved Developed Producing | $5.37 |
(1) | NAV per share based on 553.4 million shares fully diluted and a 10% discount rate. |
(2) | NAV includes land, seismic and derivatives less net debt of of $4.0 billion as at December 31, 2018. |
BOARD RENEWAL PROCESS
As part of Crescent Point's ongoing Board of Directors ("Board") renewal process, and as previously announced, Mr. Dielwart has joined the Board as a new independent director. The Company also announces today the retirement of Rene Amirault from its Board.
"Rene has provided Crescent Point valuable guidance, especially in his most recent role as Chair of our Environmental, Health and Safety Committee," said Bob Heinemann, Chairman of the Board. "We've appreciated his strong focus on efficient operations, capital discipline and long-term strategy."
As previously announced, Peter Bannister and Gerald Romanzin both plan to retire from the Board at the Company's 2019 annual general meeting ("AGM"). Crescent Point remains committed to its deliberate and thoughtful Board renewal process and expects to replace its retiring members with additional independent Board members. Crescent Point's Board expects to have completed a full Board renewal since 2014, following its 2019 AGM.
OUTLOOK
Since the second half of 2018, Crescent Point's new management team has prioritized its key value drivers, which include disciplined capital allocation, cost reductions and balance sheet improvement.
The Company now allocates capital based on returns versus simple volume growth. This shift in focus has allowed Crescent Point to adopt a capital program with more consistent activity levels throughout the year and has resulted in increased competition for capital across the Company's portfolio of assets.
Crescent Point has increased its emphasis on cost reductions compared to its historical focus on operational outperformance. Since September 2018, management has reduced the Company's workforce, streamlined its executive team and implemented new initiatives that have resulted in significant savings in general and administrative costs, operating expenses and well costs. Crescent Point is also implementing new practices to further improve its controllable operating expenses. Further savings across the organization are expected as the Company continues to focus its asset base.
Crescent Point's financial flexibility remains strong with cash and unutilized credit capacity of $1.62 billion, no material near-term debt maturities and a strong portfolio of oil and gas commodity hedges. As part of its transition plan, Crescent Point is targeting to further improve its balance sheet through net debt reduction by way of free cash flow generation and proceeds from any dispositions.
On January 15, 2019, the Company revised its dividend strategy. This new strategy provides increased flexibility in the event of lower commodity prices and enhanced free cash flow generation as commodity prices improve. Crescent Point also initiated a disposition process during first quarter 2019 to market its southeast Saskatchewan conventional assets while at the same time progressing the strategic divestment of certain infrastructure assets. The Company plans to remain disciplined and flexible throughout its divestiture processes.
As the Company generates additional cash flow at higher commodity prices or realizes proceeds from potential asset dispositions, it plans to continue prioritizing the allocation of such funds to further net debt reduction and accretive share repurchases. Based on an updated adjusted funds flow sensitivity of approximately $40 million for every US$1.00/bbl change in WTI, the Company expects to realize over $400 million of excess cash flow in 2019 based on its guidance and current strip prices, including approximately $50 million of hedging gains.
As at March 1, 2019, Crescent Point had, on average, over 40 percent of its oil and liquids production, net of royalty interest, hedged through 2019. The Company has also recently added oil hedges at attractive prices extending through to third quarter 2020.
Crescent Point is on track with its 2019 budget, which remains unchanged, with annual average production of 170,000 to 174,000 boe/d and capital expenditures of $1.20 to $1.30 billion. The Company expects to update shareholders as it continues to execute its transition plan and elect new independent directors as part of its Board renewal process.
Summary of Reserves
The Company's reserves were independently evaluated by GLJ Petroleum Consultants Ltd. ("GLJ") and Sproule Associates Limited ("Sproule") as at December 31, 2018 and were aggregated by GLJ. The reserves evaluation and reporting was conducted in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGEH") and National Instrument 51-101 Standards for Disclosure of Oil and Gas Activities ("NI 51-101").
As at December 31, 2018 (1) (2) (3) (4) (5)
Tight Oil (Mbbls) | Light and Medium Oil (Mbbls) | Heavy Oil (Mbbls) | Natural Gas Liquids (Mbbls) | |||||||
Reserves Category | Gross | Net | Gross | Net | Gross | Net | Gross | Net | ||
Proved Developed Producing | 182,326 | 165,038 | 91,817 | 81,766 | 24,625 | 20,295 | 49,254 | 44,686 | ||
Proved Developed Non-Producing | 4,925 | 4,529 | 1,789 | 1,629 | 2,619 | 2,293 | 1,189 | 1,082 | ||
Proved Undeveloped | 138,096 | 122,293 | 33,819 | 31,420 | 1,771 | 1,545 | 25,357 | 22,408 | ||
Total Proved | 325,347 | 291,861 | 127,424 | 114,815 | 29,015 | 24,133 | 75,800 | 68,176 | ||
Total Probable | 209,486 | 185,354 | 71,959 | 64,954 | 7,903 | 6,370 | 42,302 | 37,904 | ||
Total Proved plus Probable | 534,833 | 477,215 | 199,383 | 179,769 | 36,918 | 30,502 | 118,102 | 106,080 | ||
Shale Gas (MMcf) | Natural Gas (MMcf) | Total (Mboe) | ||||
Reserves Category | Gross | Net | Gross | Net | Gross | Net |
Proved Developed Producing | 162,060 | 147,915 | 71,229 | 66,719 | 386,903 | 347,558 |
Proved Developed Non-Producing | 5,287 | 4,686 | 1,154 | 930 | 11,595 | 10,470 |
Proved Undeveloped | 119,169 | 104,552 | 12,882 | 11,927 | 221,051 | 197,079 |
Total Proved | 286,515 | 257,154 | 85,264 | 79,576 | 619,549 | 555,107 |
Total Probable | 178,677 | 158,549 | 39,955 | 36,980 | 368,089 | 327,169 |
Total Proved plus Probable | 465,193 | 415,702 | 125,219 | 116,557 | 987,638 | 882,276 |
(1) | Based on Sproule's December 31, 2018, escalated price forecast. |
(2) | "Gross" Reserves are the total Company's working-interest share before the deduction of any royalties and without including any royalty interest of the Company. |
(3) | "Net" Reserves are the total Company's interest share after deducting royalties and including any royalty interest. |
(4) | Numbers may not add due to rounding. |
(5) | Detailed reserves and analysis are provided in the Company's Annual Information Form for the year-ended December 31, 2018 (the "AIF"). |
Summary of Before Tax Net Present Values
As at December 31, 2018 (1) (2) (3)
Before Tax Net Present Value ($ millions) | ||||||
Discount Rate | ||||||
Price Deck | Reserves Category | Gross Reserves | 0% | 5% | 10% | 15% |
Sproule Forecast | Proved Developed Producing | 386,903 | 13,918 | 10,392 | 8,358 | 7,044 |
Proved and Probable Developed Producing Total Proved Total Proved plus Probable | 523,223 | 20,295 | 13,763 | 10,518 | 8,601 | |
619,549 | 19,894 | 14,319 | 11,053 | 8,953 | ||
987,638 | 35,283 | 22,832 | 16,596 | 12,925 | ||
US$55.00/bbl WTI Flat | Proved Developed Producing | 365,403 | 8,764 | 6,950 | 5,798 | 5,007 |
Proved and Probable Developed Producing | 493,811 | 12,321 | 9,078 | 7,265 | 6,114 | |
Total Proved | 552,005 | 11,479 | 8,726 | 6,971 | 5,777 | |
Total Proved plus Probable | 917,872 | 19,713 | 13,620 | 10,232 | 8,115 | |
(1) | Sproule Forecast based on Sproule's December 31, 2018, escalated price forecast. |
(2) | Reserve values as of December 31, 2018. |
(3) | Numbers may not add due to rounding. |
RESERVES RECONCILIATION
Gross Reserves (1) (2) (3) (4)
Tight Oil (Mbbls) | Light and Medium Oil (Mbbls) | Heavy Oil (Mbbls) | |||||||||
Factors | Proved | Probable | Proved | Proved | Probable | Proved | Proved | Probable | Proved | ||
December 31, 2017 | 323,698 | 204,252 | 527,950 | 143,580 | 84,179 | 227,759 | 26,335 | 7,237 | 33,571 | ||
Extensions and Improved Recovery | 48,896 | 32,368 | 81,264 | 14,731 | 8,858 | 23,590 | 1,613 | 710 | 2,323 | ||
Technical Revisions | (9,293) | (26,229) | (35,522) | (707) | (7,768) | (8,474) | 2,732 | (37) | 2,696 | ||
Acquisitions | 596 | 107 | 702 | 22 | 51 | 73 | - | - | - | ||
Dispositions | (3,039) | (1,503) | (4,542) | (17,379) | (14,080) | (31,459) | - | - | - | ||
Economic Factors | (223) | 492 | 269 | 1,318 | 718 | 2,036 | 115 | (7) | 108 | ||
Production | (35,288) | - | (35,288) | (14,141) | - | (14,141) | (1,780) | - | (1,780) | ||
December 31, 2018 | 325,347 | 209,486 | 534,833 | 127,424 | 71,959 | 199,383 | 29,015 | 7,903 | 36,918 | ||
Natural Gas Liquids (Mbbls) | Shale Gas (MMcf) | Natural Gas (MMcf) | |||||||||
Factors | Proved | Probable | Proved | Proved | Probable | Proved | Proved | Probable | Proved | ||
December 31, 2017 | 69,090 | 39,039 | 108,129 | 300,259 | 175,023 | 475,281 | 111,140 | 54,695 | 165,834 | ||
Extensions and Improved Recovery | 8,061 | 4,986 | 13,047 | 33,558 | 31,237 | 64,795 | 3,810 | 2,437 | 6,247 | ||
Technical Revisions | 7,954 | (651) | 7,303 | (13,549) | (27,643) | (41,192) | 4,456 | (2,889) | 1,567 | ||
Acquisitions | 13 | 3 | 16 | 463 | 122 | 586 | - | - | - | ||
Dispositions | (1,934) | (1,122) | (3,056) | (3,147) | (1,025) | (4,172) | (16,725) | (12,754) | (29,479) | ||
Economic Factors | (156) | 47 | (109) | (3,004) | 962 | (2,042) | (5,924) | (1,534) | (7,458) | ||
Production | (7,229) | - | (7,229) | (28,064) | - | (28,064) | (11,493) | - | (11,493) | ||
December 31, 2018 | 75,800 | 42,302 | 118,102 | 286,515 | 178,677 | 465,193 | 85,264 | 39,955 | 125,219 | ||
Total Oil Equivalent (Mboe) | |||||
Factors | Proved | Probable | Proved plus Probable | ||
December 31, 2017 | 631,270 | 372,993 | 1,004,262 | ||
Extensions and Improved Recovery | 79,529 | 52,535 | 132,064 | ||
Technical Revisions | (829) | (39,773) | (40,602) | ||
Acquisitions | 708 | 108 | 889 | ||
Dispositions | (25,664) | (19,001) | (44,665) | ||
Economic Factors | (434) | 1,155 | 721 | ||
Production | (65,031) | - | (65,031) | ||
December 31, 2018 | 619,549 | 368,089 | 987,638 | ||
(1) | Based on Sproule's December 31, 2018, escalated price forecast. |
(2) | "Gross Reserves" are the Company's working-interest share before deduction of any royalties and without including any royalty interests of the Company. |
(3) | Numbers may not add due to rounding. |
(4) | Detailed descriptions for significant changes in values are included in the AIF. |
Finding and Development Costs
2018 Totals | Change in | Total | |
Capital ($ millions) (1) | |||
Total Proved plus Probable | 1,770 | 501 | 2,271 |
Total Proved | 1,770 | 279 | 2,049 |
Proved Developed Producing | 1,770 | (52) | 1,717 |
Reserves Additions (Mboe) (2) | |||
Total Proved plus Probable | 92,183 | - | 92,183 |
Total Proved | 78,266 | - | 78,266 |
Proved Developed Producing | 74,873 | - | 74,873 |
(1) | The capital expenditures exclude capitalized administration costs and transaction costs. |
(2) | Gross Company interest reserves are used in this calculation (working interest reserves, before deduction of any royalties and without including any royalty interests of the Company). |
Excluding changes in FDC ($/boe, except recycle ratios) | Including changes in FDC ($/boe, except recycle ratios) | |||||
2018 | 2017 | 3 Years Ended | 2018 | 2017 | 3 Years Ended | |
F&D Cost (1) | ||||||
Total Proved plus Probable | $19.20 | $18.56 | $18.42 | $24.64 | $21.64 | $18.93 |
Total Proved | $22.61 | $20.76 | $20.97 | $26.18 | $23.57 | $21.17 |
Proved Developed Producing | $23.64 | $19.79 | $21.15 | $22.94 | $19.96 | $20.97 |
F&D Recycle Ratio (2) | ||||||
Total Proved plus Probable | 1.9 | 1.6 | 1.6 | 1.4 | 1.4 | 1.5 |
Total Proved | 1.6 | 1.4 | 1.4 | 1.4 | 1.2 | 1.4 |
Proved Developed Producing | 1.5 | 1.5 | 1.4 | 1.5 | 1.5 | 1.4 |
(1) | F&D costs are calculated by dividing the identified capital expenditures by the applicable reserves additions. F&D costs can include or exclude changes to future development capital costs. |
(2) | Recycle Ratio is calculated as netback before hedging divided by F&D costs. Based on a 2018 netback (before hedging) of $35.52 per boe, a 2017 netback (before hedging) of $29.42 per boe and a three-year weighted average netback (before hedging) of $29.17 per boe. |
Future Development Capital
At year-end 2018, FDC for 2P reserves totaled $7.0 billion, compared to $6.9 billion at year-end 2017. Net of A&D, FDC at year-end 2018 increased primarily due to the addition of new drilling locations identified by the Company.
Company Annual Capital Expenditures ($ millions) | |||||||
Canada | U.S. | Total | |||||
Year | Total | Total | Total | Total | Total | Total | |
2019 | 770 | 1,010 | 371 | 489 | 1,141 | 1,498 | |
2020 | 780 | 1,097 | 406 | 558 | 1,186 | 1,655 | |
2021 | 584 | 997 | 374 | 655 | 958 | 1,652 | |
2022 | 455 | 790 | 255 | 504 | 711 | 1,293 | |
2023 | 193 | 590 | 227 | 303 | 420 | 893 | |
2024 | 8 | 2 | 1 | - | 9 | 2 | |
2025 | 2 | 2 | - | - | 2 | 2 | |
2026 | 1 | 2 | - | 1 | 1 | 3 | |
2027 | 4 | 1 | - | - | 4 | 1 | |
2028 | 1 | 5 | - | - | 1 | 5 | |
2029 | 3 | 1 | - | - | 3 | 1 | |
2030 | 1 | 3 | - | - | 1 | 3 | |
Subtotal (1) | 2,800 | 4,498 | 1,635 | 2,510 | 4,435 | 7,008 | |
Remainder | 12 | 15 | - | - | 12 | 15 | |
Total (1) | 2,812 | 4,513 | 1,635 | 2,510 | 4,447 | 7,023 | |
10% Discounted | 2,333 | 3,658 | 1,332 | 2,025 | 3,665 | 5,683 | |
(1) | Numbers may not add due to rounding. |
CONFERENCE CALL DETAILS
Crescent Point management will host a conference call on Thursday, March 7, 2019 at 10:00 a.m. MT (12:00 p.m. ET) to discuss the Company's results and outlook. A slide deck will accompany the conference call and can be found on Crescent Point's home page.
Participants can listen to this event online at https://event.on24.com/wcc/r/1938081/3C8AE3F85E3132D87BFE894A568308B4. Alternatively, the conference call can be accessed by dialing 1‑888‑390‑0605.
The webcast will be archived for replay and can be accessed on Crescent Point's website at https://www.crescentpointenergy.com/invest/conference-calls-webcasts. The replay will be available approximately one hour following completion of the call.
Shareholders and investors can also find the Company's most recent investor presentation on Crescent Point's website.
2019 GUIDANCE
The Company's guidance for 2019 is as follows:
Total annual average production (boe/d) % Oil and NGLs | 170,000 - 174,000 91% |
Capital expenditures ($ millions) (1) Drilling and development (%) Facilities and seismic (%) | $1,200 to $1,300 90% 10% |
(1) | Capital expenditures excludes any potential net property and land acquisitions and approximately $35 million of capitalized G&A. |
The Company's audited financial statements and management's discussion and analysis for the year ended December 31, 2018, will be available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on Crescent Point's website at www.crescentpointenergy.com.
FINANCIAL AND OPERATING HIGHLIGHTS
Three months ended December 31 | Year ended December 31 | ||||||
(Cdn$ millions except per share and per boe amounts) | 2018 | 2017 | 2018 | 2017 | |||
Financial | |||||||
Cash flow from operating activities | 359.1 | 449.6 | 1,748.0 | 1,718.7 | |||
Adjusted funds flow from operations (1) | 337.3 | 494.7 | 1,741.2 | 1,728.8 | |||
Per share (1) (2) | 0.61 | 0.90 | 3.16 | 3.16 | |||
Net income (loss) | (2,390.5) | (56.4) | (2,616.9) | (124.0) | |||
Per share (2) | (4.35) | (0.10) | (4.77) | (0.23) | |||
Adjusted net earnings (loss) from operations (1) | (16.3) | (35.1) | 234.6 | 100.0 | |||
Per share (1) (2) | (0.03) | (0.06) | 0.43 | 0.18 | |||
Dividends declared | 49.4 | 49.5 | 198.5 | 197.7 | |||
Per share (2) | 0.09 | 0.09 | 0.36 | 0.36 | |||
Payout ratio (%) (1) | 15 | 10 | 11 | 11 | |||
Net debt (1) | 4,011.3 | 4,024.9 | 4,011.3 | 4,024.9 | |||
Net debt to adjusted funds flow from operations (1) (3) | 2.3 | 2.3 | 2.3 | 2.3 | |||
Weighted average shares outstanding | |||||||
Basic | 550.2 | 545.8 | 549.1 | 545.2 | |||
Diluted | 550.2 | 546.9 | 550.2 | 546.8 | |||
Operating | |||||||
Average daily production | |||||||
Crude oil (bbls/d) | 140,281 | 140,544 | 140,298 | 139,996 | |||
NGLs (bbls/d) | 20,210 | 19,437 | 19,805 | 18,250 | |||
Natural gas (mcf/d) | 106,236 | 113,963 | 108,376 | 106,599 | |||
Total (boe/d) | 178,198 | 178,975 | 178,166 | 176,013 | |||
Average selling prices (4) | |||||||
Crude oil ($/bbl) | 54.38 | 64.27 | 69.43 | 59.05 | |||
NGLs ($/bbl) | 32.76 | 34.16 | 33.66 | 27.80 | |||
Natural gas ($/mcf) | 2.95 | 2.31 | 2.25 | 2.61 | |||
Total ($/boe) | 48.28 | 55.64 | 59.78 | 51.43 | |||
Netback ($/boe) | |||||||
Oil and gas sales | 48.28 | 55.64 | 59.78 | 51.43 | |||
Royalties | (7.61) | (7.44) | (9.11) | (7.35) | |||
Operating expenses | (12.86) | (12.53) | (13.13) | (12.56) | |||
Transportation expenses | (2.06) | (2.07) | (2.02) | (2.08) | |||
Operating netback (1) | 25.75 | 33.60 | 35.52 | 29.44 | |||
Realized gain (loss) on derivatives | (1.34) | 0.84 | (4.00) | 1.58 | |||
Other (5) | (3.84) | (4.39) | (4.75) | (4.11) | |||
Adjusted funds flow from operations netback (1) | 20.57 | 30.05 | 26.77 | 26.91 | |||
Capital Expenditures | |||||||
Capital acquisitions (dispositions), net (6) | (42.5) | (156.0) | (340.5) | 1.8 | |||
Development capital expenditures | |||||||
Drilling and development | 278.4 | 332.9 | 1,536.2 | 1,452.3 | |||
Facilities and seismic | 23.9 | 42.3 | 200.4 | 172.7 | |||
Land | 4.9 | 104.5 | 33.2 | 187.1 | |||
Total | 307.2 | 479.7 | 1,769.8 | 1,812.1 | |||
(1) | Adjusted funds flow from operations, adjusted funds flow from operations per share, adjusted net earnings from operations, adjusted net earnings from operations per share, payout ratio, net debt, net debt to adjusted funds flow from operations, operating netback and adjusted funds flow from operations netback as presented do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other entities. |
(2) | The per share amounts (with the exception of dividends per share) are the per share – diluted amounts. |
(3) | Net debt to adjusted funds flow from operations is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters. |
(4) | The average selling prices reported are before realized derivatives and transportation. |
(5) | Other includes net purchased products, general and administrative expenses, interest on long-term debt, foreign exchange and cash-settled share-based compensation and excludes transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items. |
(6) | Capital acquisitions (dispositions), net represent total consideration for the transactions, including long-term debt and working capital assumed, and exclude transaction costs. |
Non-GAAP Financial Measures
Throughout this press release, the Company uses the terms "adjusted funds flow from operations", "adjusted funds flow from operations per share - diluted", "adjusted net earnings from operations", "adjusted net earnings from operations per share - diluted", "excess cash flow", "free cash flow", "net debt", "net debt to adjusted funds flow from operations", "netback" and "payout ratio". These terms do not have any standardized meaning as prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other issuers.
Adjusted funds flow is equivalent to adjusted funds flow from operations. Adjusted funds flow from operations is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Adjusted funds flow from operations per share - diluted is calculated as adjusted funds flow from operations divided by the number of weighted average diluted shares outstanding. Transaction costs are excluded as they vary based on the Company's acquisition activity and to ensure that this metric is more comparable between periods. Decommissioning expenditures are excluded as the Company has a voluntary reclamation fund to fund decommissioning costs. Management utilizes adjusted funds flow from operations as a key measure to assess the ability of the Company to finance dividends, operating activities, capital expenditures and debt repayments. Adjusted funds flow from operations as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.
The following table reconciles cash flow from operating activities to adjusted funds flow from operations:
Three months ended December 31 | Year ended December 31 | ||||||
($ millions) | 2018 | 2017 | 2018 | 2017 | |||
Cash flow from operating activities | 359.1 | 449.6 | 1,748.0 | 1,718.7 | |||
Changes in non-cash working capital | (27.9) | 35.5 | (37.2) | (18.7) | |||
Transaction costs | 0.8 | 1.4 | 5.1 | 3.7 | |||
Decommissioning expenditures | 5.3 | 8.2 | 25.3 | 25.1 | |||
Adjusted funds flow from operations | 337.3 | 494.7 | 1,741.2 | 1,728.8 | |||
Adjusted net earnings from operations is calculated based on net income before amortization of exploration and evaluation ("E&E") undeveloped land, impairment or impairment recoveries on property, plant and equipment ("PP&E"), unrealized derivative gains or losses, unrealized foreign exchange gain or loss on translation of hedged US dollar long-term debt, unrealized gains or losses on long-term investments and gains or losses on capital acquisitions and dispositions. Adjusted net earnings from operations per share - diluted is calculated as adjusted net earnings from operations divided by the number of weighted average diluted shares outstanding. Management utilizes adjusted net earnings from operations to present a measure of financial performance that is more comparable between periods. Adjusted net earnings from operations as presented is not intended to represent net earnings or other measures of financial performance calculated in accordance with IFRS.
The following table reconciles net income to adjusted net earnings from operations:
Three months ended December 31 | Year ended December 31 | |||||||||
($ millions) | 2018 | 2017 | 2018 | 2017 | ||||||
Net income (loss) | (2,390.5) | (56.4) | (2,616.9) | (124.0) | ||||||
Amortization of E&E undeveloped land | 39.0 | 34.8 | 157.2 | 134.3 | ||||||
Impairment to PP&E | 3,690.7 | (102.9) | 3,705.9 | 203.6 | ||||||
Unrealized derivative (gains) losses | (737.9) | 180.0 | (439.4) | 163.6 | ||||||
Unrealized foreign exchange (gain) loss on translation of hedged US dollar long-term debt | 184.4 | (53.7) | 254.2 | (201.2) | ||||||
Unrealized (gain) loss on long-term investments | 3.8 | (3.8) | 16.2 | 3.4 | ||||||
(Gain) loss on sale of long-term investments | 1.0 | — | (0.7) | — | ||||||
Net (gain) loss on capital dispositions | 28.3 | (21.0) | 129.1 | (31.1) | ||||||
Deferred tax relating to adjustments | (835.1) | (12.1) | (971.0) | (48.6) | ||||||
Adjusted net earnings (loss) from operations | (16.3) | (35.1) | 234.6 | 100.0 | ||||||
Free cash flow is calculated as adjusted funds flow less capital expenditures. Excess cash flow is calculated as free cash flow less dividends. Management utilizes excess cash flow and free cash flow as key measures to assess the ability of the Company to finance dividends, potential share repurchases, debt repayments and returns-based growth.
Net debt is calculated as long-term debt plus accounts payable and accrued liabilities, dividends payable and long-term compensation liability, less cash, accounts receivable, prepaids and deposits and long-term investments, excluding the unrealized foreign exchange on translation of US dollar long-term debt. Management utilizes net debt as a key measure to assess the liquidity of the Company.
The following table reconciles long-term debt to net debt:
($ millions) | 2018 | 2017 | ||
Long-term debt (1) | 4,276.7 | 4,111.0 | ||
Accounts payable and accrued liabilities | 532.9 | 613.3 | ||
Dividends payable | 16.5 | 16.8 | ||
Long-term compensation liability (2) | 10.0 | 22.9 | ||
Cash | (15.3) | (62.4) | ||
Accounts receivable | (322.6) | (380.2) | ||
Prepaids and deposits | (4.6) | (4.5) | ||
Long-term investments | (8.7) | (72.6) | ||
Excludes: | ||||
Unrealized foreign exchange on translation of hedged US dollar long-term debt | (473.6) | (219.4) | ||
Net debt | 4,011.3 | 4,024.9 |
(1) | Includes current portion of long-term debt. |
(2) | Includes current portion of long-term compensation liability. |
Net debt to adjusted funds flow from operations is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters. The ratio of net debt to adjusted funds flow from operations is used by management to measure the Company's overall debt position and to measure the strength of the Company's balance sheet. Crescent Point monitors this ratio and uses this as a key measure in making decisions regarding financing, capital spending and dividend levels.
Operating netback is calculated on a per boe basis as oil and gas sales, less royalties, operating and transportation expenses. Funds flow from operations netback is calculated on a per boe basis as operating netback less net purchased products, realized derivative gains and losses, general and administrative expenses, interest on long-term debt, foreign exchange and cash-settled share-based compensation, excluding transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items. Operating netback and funds flow from operations netback are common metrics used in the oil and gas industry and are used by management to measure operating results on a per boe basis to better analyze performance against prior periods on a comparable basis. Netback calculations are shown in the Financial and Operating Highlights section in this press release.
Payout ratio is calculated on a percentage basis as dividends declared divided by adjusted funds flow from operations. Payout ratio is used by management to monitor the dividend policy and the amount of adjusted funds flow from operations retained by the Company for capital reinvestment.
Management believes the presentation of the Non-GAAP measures above provide useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.
Notice to US Readers
The oil and natural gas reserves contained in this press release have generally been prepared in accordance with Canadian disclosure standards, which are not comparable in all respects of United States or other foreign disclosure standards. For example, the United States Securities and Exchange Commission (the "SEC") generally permits oil and gas issuers, in their filings with the SEC, to disclose only proved reserves (as defined in SEC rules), but permits the optional disclosure of "probable reserves" and "possible reserves" (each as defined in SEC rules). Canadian securities laws require oil and gas issuers, in their filings with Canadian securities regulators, to disclose not only proved reserves (which are defined differently from the SEC rules) but also probable reserves and permits optional disclosure of "possible reserves", each as defined in NI 51-101. Accordingly, "proved reserves", "probable reserves" and "possible reserves" disclosed in this news release may not be comparable to US standards, and in this news release, Crescent Point has disclosed reserves designated as "proved plus probable reserves". Probable reserves are higher-risk and are generally believed to be less likely to be accurately estimated or recovered than proved reserves. "Possible reserves" are higher risk than "probable reserves" and are generally believed to be less likely to be accurately estimated or recovered than "probable reserves". In addition, under Canadian disclosure requirements and industry practice, reserves and production are reported using gross volumes, which are volumes prior to deduction of royalties and similar payments. The SEC rules require reserves and production to be presented using net volumes, after deduction of applicable royalties and similar payments. Moreover, Crescent Point has determined and disclosed estimated future net revenue from its reserves using forecast prices and costs, whereas the SEC rules require that reserves be estimated using a 12-month average price, calculated as the arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period. Consequently, Crescent Point's reserve estimates and production volumes in this news release may not be comparable to those made by companies using United States reporting and disclosure standards. Further, the SEC rules are based on unescalated costs and forecasts.
All amounts in the news release are stated in Canadian dollars unless otherwise specified.
Forward-Looking Statements
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: over $400 million of excess cash flow expected to be available in 2019; and the expected use of such funds for net debt repayment and additional share repurchases; forecasts of net debt to adjusted funds flow; expectations of improving oil price differential to approximately $8.75/bbl during first quarter 2019; expectations of an improved realized oil price for the Corporation by approximately 15 percent relative to fourth quarter 2018; the effect of the Alberta Government's production curtailment on the Company; the Company's expectation that its oil production will continue receiving a premium during periods of increased market access constraints; the Company's expectations of solutions to further enhance its realized pricing; the anticipated effects of the settlement agreement related to a National Energy Board complaint, including improved netbacks for the Company's oil production in southeast Saskatchewan; expected base decline rates in Viewfield; the timing of pay out for recent two-mile horizontal wells in Flat Lake; an increased number of two-mile horizontal wells in 2019; the Company's plans to spend less capital in Uinta in 2019; the Company's plans to convert waterflood wells to injections wells and the associated costs therewith; the timing and effectiveness of director appointments and retirements; board renewal and its benefits and timing; cash and credit capacity; oil and gas hedges; no material near-term debt maturities; the Company's plans to further improve its controllable operating costs and achieve further savings across the organization; the Company's target to further improve its balance sheet through debt reduction by way of excess cash flows and proceeds from dispositions; expectations of additional savings as the asset base is further focused; the dividend strategy and reasons for revision; the disposition process in southeast Saskatchewan; that the Company will remain disciplined and flexible throughout its divestiture processes; the Company's priorities for excess cash flow at higher commodity prices and proceeds realized form potential asset dispositions; the Company's expectations for free cash flow, including hedging gains of approximately $50 million in 2019; 2019 annual average production and capital expenditures and 2019 performance with respect to budget; the Company's plans to update shareholders as it continues to execute its transition plan and elect new independent directors as part of its board renewal process; and the Company's 2019 guidance.
Statements relating to "reserves" are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. Actual reserve values may be greater than or less than the estimates provided herein.
Unless otherwise noted, reserves referenced herein are given as at December 31, 2018. Also, estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates and future net revenue for all properties due to the effect of aggregation. All required reserve information for the Company is contained in its Annual Information Form for the year ended December 31, 2018, which is accessible at www.sedar.com.
With respect to disclosure contained herein regarding resources other than reserves, there is uncertainty that it will be commercially viable to produce any portion of the resources and there is significant uncertainty regarding the ultimate recoverability of such resources.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material risks discussed in the Company's Annual Information Form for the year ended December 31, 2018 under "Risk Factors" and our Management's Discussion and Analysis for the year ended December 31, 2018, under the headings "Risk Factors" and "Forward-Looking Information". The material assumptions are disclosed in the Management's Discussion and Analysis for the year ended December 31, 2018, under the headings "Capital Expenditures", "Liquidity and Capital Resources", "Critical Accounting Estimates", "Risk Factors", "Changes in Accounting Policies" and "Outlook". In addition, risk factors include: financial risk of marketing reserves at an acceptable price given market conditions; volatility in market prices for oil and natural gas; delays in business operations, pipeline restrictions, blowouts; the risk of carrying out operations with minimal environmental impact; industry conditions, including changes in laws and regulations and the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; risks and uncertainties related to all oil and gas interests and operations on tribal lands; uncertainties associated with estimating oil and natural gas reserves; economic risk of finding and producing reserves at a reasonable cost; uncertainties associated with partner plans and approvals; operational matters related to non-operated properties; increased competition for, among other things, capital, acquisitions of reserves and undeveloped lands; competition for and availability of qualified personnel or management; incorrect assessments of the value of acquisitions and exploration and development programs; unexpected geological, technical, drilling, construction and processing problems; availability of insurance; fluctuations in foreign exchange and interest rates; stock market volatility; failure to realize the anticipated benefits of acquisitions; general economic, market and business conditions; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities and counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates and incentive programs relating to the oil and gas industry; and other factors, many of which are outside the control of Crescent Point. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
DEFINITIONS
Decline rate is the reduction in the rate of production from one period to the next. This rate is usually expressed on an annual basis.
Finding and development (F&D) costs are calculated by dividing the identified capital expenditures by the applicable reserves additions. F&D costs can include or exclude changes to future development capital costs.
Future development capital (FDC) reflects the independent evaluator's best estimate of the cost required to bring undeveloped proved and probable reserves on production. Changes in FDC can result from acquisition and disposition activities, development plans or changes in capital efficiencies due to inflation or reductions in service costs and/or improvements to drilling and completion methods.
Net asset value (NAV) or 2P NAV is a snapshot in time as at year-end, and is based on the Company's reserves evaluated using the independent evaluators forecast for future prices, costs and foreign exchange rates. The Company's NAV is calculated on a before tax basis and is the sum of the present value of proved and probable reserves based on Sproule's December 31, 2018 escalated price forecast, the fair value for land and seismic, the fair value for the Company's oil and gas hedges based on Sproule's December 31, 2018 escalated price forecast, less outstanding net debt. The NAV per share is calculated on a fully diluted basis. 1P NAV is calculated similarly to 2P NAV but is based solely on the present value of proved reserves. Developed Producing Reserve value is calculated similarly but excludes probable and proved reserves that are not producing.
N1 51-101 means "National Instrument 51-101 - Standards for Disclosure for Oil and Gas Activities".
Recycle Ratio is calculated as operating netback divided by F&D. Based on a 2018 netback (before hedging), of $35.52 per boe, a 2017 netback (before hedging) of $29.42 per boe and a three-year weighted average netback (before hedging) of $29.17 per boe.
Replacement is calculated by dividing total proved and probable reserves additions by annual average production during the same year.
Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological, geophysical and engineering data; the use of established technology; and specified economic conditions, which are generally accepted as being reasonable. Proved reserves are reserves estimated to have a high degree of certainty of recoverability. Probable reserves are less certain to be recoverable than proved reserves and possible reserves are less certain than probable reserves.
Reserves and Drilling Data
The reserves information contained in this press release has been prepared in accordance with NI 51-101. Complete NI 51-101 reserves disclosure will be included in our Annual Information Form for the year ended December 31, 2018, which will be filed on or before March 7, 2019.
Where applicable, a barrels of oil equivalent ("boe") conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent (6Mcf:1bbl) has been used based on an energy equivalent conversion method primarily applicable at the burner tip. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the 6:1 conversion ratio, utilizing the 6:1 conversion ratio may be misleading as an indication of value.
This press release contains metrics commonly used in the oil and natural gas industry, including "netbacks", "F&D costs", "FDC", "NAV", "recycle ratio", "replacement", "decline rate", and "drilling inventory". These terms do not have a standardized meaning and may not be comparable to similar measures presented by other companies and, therefore, should not be used to make such comparisons.
F&D costs, including changes in FDC have been presented in this news release because they provide a useful measure of capital efficiency. F&D costs, including land, facility and seismic expenditures and excluding changes in FDC have also been presented in this news release because they provide a useful measure of capital efficiency.
Management uses recycle ratio for its own performance measurements and to provide shareholders with measures to compare the Company's performance over time.
Netback is calculated on a per boe basis as oil and gas sales, less royalties, operating and transportation expenses and realized derivative gains and losses. Netback is used by management to measure operating results on a per boe basis to better analyze performance against prior periods on a comparable basis.
Drilling inventory is calculated in years as the Company's 2018 year-end inventory divided by the number of wells in its 2019 drilling program. Drilling inventory is used by management to assess the amount of available drilling opportunities.
There are numerous uncertainties inherent in estimating quantities of crude oil, natural gas and NGL reserves and the future cash flows attributed to such reserves. The reserve and associated cash flow information set forth above are estimates only. In general, estimates of economically recoverable crude oil, natural gas and NGL reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserve recovery, timing and amount of capital expenditures, marketability of oil and natural gas, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary materially. For these reasons, estimates of the economically recoverable crude oil, NGL and natural gas reserves attributable to any particular group of properties, classification of such reserves based on risk of recovery and estimates of future net revenues associated with reserves prepared by different engineers, or by the same engineers at different times, may vary. The Company's actual production, revenues, taxes and development and operating expenditures with respect to its reserves will vary from estimates thereof and such variations could be material.
Individual properties may not reflect the same confidence level as estimates of reserves for all properties due to the effects of aggregation. This press release contains estimates of the net present value of the Company's future net revenue from our reserves. Such amounts do not represent the fair market value of our reserves. The recovery and reserve estimates of the Company's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered.
The reserve data provided in this news release presents only a portion of the disclosure required under National Instrument 51-101. All of the required information will be contained in the Company's Annual Information Form for the year ended December 31, 2018, which will be filed on SEDAR (accessible at www.sedar.com) and EDGAR (accessible at www.sec.gov/edgar.shtml) on or before March 7, 2019.
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-2018-results-and-reserves-300808277.html
SOURCE Crescent Point Energy Corp.
Article Date
3/7/2019Crescent Point Announces Year-End 2018 Conference Call
Source: PR Newswire
CALGARY, Feb. 28, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) plans to report its year-end 2018 financial and operating results via press release prior to the opening of markets on Thursday, March 7, 2019. Crescent Point management will host a conference call at 10:00 a.m. MST (12:00 p.m. EST) the same day to discuss the results and outlook for the Company.
Participants can listen to this event online via webcast. Alternatively, the conference call can be accessed by dialing 1‑888‑390‑0605.
The webcast will be archived for replay and can be accessed on Crescent Point's conference calls and webcasts webpage under the invest tab. The replay will be available approximately one hour following completion of the call.
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-year-end-2018-conference-call-300804358.html
SOURCE Crescent Point Energy Corp.
Article Date
2/28/2019Crescent Point Appoints John Dielwart to Board of Directors
Source: PR Newswire
CALGARY, Feb. 19, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is pleased to announce the appointment of John P. Dielwart to its Board of Directors (the "Board"), effective March 7, 2019.
"I'm pleased to welcome John Dielwart as an independent Director on Crescent Point's Board," said Bob Heinemann, Chairman of the Board. "John obviously brings a wealth of valuable business, leadership and governance expertise that he has earned during more than 40 years in the oil and gas industry. We look forward to his contributions as Crescent Point continues to execute its transition plan."
Crescent Point remains committed to its deliberate and thoughtful Board renewal process, which it expects to further through planned retirements. Mr. Dielwart will become the Company's eighth independent Director since 2014. Following its 2019 annual general meeting, Crescent Point expects to have completed a full Board renewal since its inception.
Mr. Dielwart is one of ARC Resources Ltd.'s founders, held the position of Chief Executive Officer from 2001 to 2013 and serves as a Director on its Board. He is also Vice-Chairman and Director of ARC Financial Corp. and a member of its Investment and Governance Committees. Mr. Dielwart received a Bachelor of Science degree in Civil Engineering with Distinction from the University of Calgary. He is a Professional Engineer, an Institute of Corporate Directors Certified Director and a Past-Chairman of the Board of Governors for the Canadian Association of Petroleum Producers. In 2015, Mr. Dielwart was inducted into the Calgary Business Hall of Fame and received the Oil and Gas Council's Canadian Lifetime Achievement Award in 2018.
For Mr. Dielwart's full biography and more background on Crescent Point's Board and management team, please visit www.crescentpointenergy.com/about-us.
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
Forward-Looking Statements and Other Matters
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to: when Mr. Dielwart will join the Board; Crescent Point's commitment to its Board renewal process, which is expects to further with planned retirements; and the anticipated timing for the Board to have completed a full renewal from inception.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. The Company believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-appoints-john-dielwart-to-board-of-directors-300796866.html
SOURCE Crescent Point Energy Corp.
Article Date
2/19/2019Crescent Point Receives Approval for Normal Course Issuer Bid
Source: PR Newswire
CALGARY, Jan. 23, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is pleased to announce the Toronto Stock Exchange ("TSX") has accepted its notice to implement a normal course issuer bid ("NCIB") to purchase, for cancellation, up to 38,424,678 common shares, or seven percent of the Company's public float, as at January 14, 2019. The NCIB is scheduled to commence on January 25, 2019 and is due to expire on January 24, 2020.
"We believe share repurchases provide an accretive form of returning capital to shareholders at current share prices," said Craig Bryksa, President and CEO of Crescent Point. "We will be disciplined during the execution of this repurchase program, which will be funded within cash flow. In the current commodity price environment, the Company plans to allocate excess cash flow to debt reduction, share repurchases or a combination thereof."
Purchases of Crescent Point's common shares under the NCIB may be made through the facilities of the TSX, the New York Stock Exchange (the "NYSE") and alternative trading systems by means of open market transactions or by such other means as may be permitted by the TSX and under applicable securities laws, including by private agreement pursuant to issuer bid exemption orders issued by applicable securities regulatory authorities. The price the Company will pay for any common shares will be the market price at the time of purchase or such other price as may be permitted by the TSX. Any private purchase made under an exemption order issued by a securities regulatory authority will generally be at a discount to the prevailing market price.
In connection with the NCIB, Crescent Point will enter into an automatic purchase plan ("Plan") with its designated broker to allow for purchases of its common shares during internal blackout periods. Such purchases would be at the discretion of the broker based on parameters established by the Company prior to any blackout period or any period when it is in possession of material undisclosed information. Outside of these periods, common shares will be repurchased in accordance with management's discretion, subject to applicable law. The Plan has been reviewed by the TSX and may be terminated by Crescent Point or its broker in accordance with its terms, or will terminate on the expiry of the NCIB.
As of January 14, 2019, the Company had a public float of 548,923,981 common shares and 550,611,816 common shares issued and outstanding. Crescent Point will not acquire, through the facilities of the TSX, more than 1,022,228 common shares during a trading day, being 25 percent of the average daily trading volume of the Company's common shares on the TSX for the six calendar months prior to the date of approval of the NCIB by the TSX (being 4,088,914 common shares), and, in addition, will not acquire per day on the NYSE more than 25 percent of the average daily trading volume for the four calendar weeks preceding the date of purchase, subject to, in both cases, certain exceptions for block purchases.
The actual number of common shares that will be repurchased under the NCIB, and the timing of any such purchases, will be determined by Crescent Point on management's discretion, subject to applicable securities laws. There cannot be any assurances as to how many common shares, if any, will ultimately be acquired by the Company.
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
Forward-Looking Statements and Other Matters
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the Company's normal course issuer bid, the use of cash flow to fund purchases under the NCIB, the process the Company plans to follow to evaluate purchases under the NCIB, and the expected benefits to shareholders associated with the NCIB and the Plan and its operation.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. The Company believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material risks discussed in the Company's Annual Information Form for the year ended December 31, 2017 under "Risk Factors," in our Management's Discussion and Analysis for the year ended December 31, 2017, under the headings "Risk Factors" and "Forward-Looking Information" and for the quarter ended September 30, 2018 under "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policy" and "Outlook".
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE CONTACT:
Brad Borggard, Senior Vice President, Corporate Planning and Capital Markets, or
Shant Madian, Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020 Toll-free (US and Canada): 888-693-0020 Fax: (403) 693-0070
Address: Crescent Point Energy Corp. Suite 2000, 585 - 8th Avenue S.W. Calgary AB T2P 1G1
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-receives-approval-for-normal-course-issuer-bid-300782493.html
SOURCE Crescent Point Energy Corp.
Article Date
1/23/2019Crescent Point Announces 2019 Budget and Quarterly Dividend
Source: PR Newswire
CALGARY, Jan. 15, 2019 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) is pleased to announce its 2019 budget.
KEY HIGHLIGHTS
"This year's budget highlights the new team's emphasis on returns and capital allocation," said Craig Bryksa, President and CEO of Crescent Point. "Given the significant decline and volatility in commodity prices, we have reduced our 2019 capital budget by approximately $500 million, or 30 percent, compared to the prior year. Due to our revised approach to capital allocation and taking into account improved overall efficiencies, our annual average production is unchanged from the prior year, net of dispositions. Additionally, we are on track to meet our 2018 guidance with capital expenditures approximately $35 million below budget."
2019 PRODUCTION AND CAPITAL EXPENDITURES BUDGET
Crescent Point's reduced 2019 capital expenditures budget of $1.20 to $1.30 billion is expected to generate annual average production of 170,000 to 174,000 boe/d. After adjusting for dispositions that added approximately 4,500 boe/d to the 2018 annual average production, the Company's 2019 production guidance is unchanged from the prior year.
In total, Crescent Point disposed of assets producing approximately 7,000 boe/d in 2018 for proceeds of approximately $355 million. This includes approximately 2,000 boe/d of gas weighted production in the second half of 2018 for proceeds of approximately $65 million. Consistent with its previously stated transition plan, the Company is currently exploring further disposition opportunities, including certain upstream and infrastructure assets. Crescent Point will be disciplined during its divestiture process to ensure appropriate asset values are realized for shareholders.
SHARE REPURCHASE PROGRAM AND DIVIDEND
Given Crescent Point's current share price compared to the fundamental underlying value of its common shares, the Board of Directors ("Board") has authorized a share repurchase program. Based on current market conditions and the Company's commitment to living within cash flow, Crescent Point will pursue approval from the Toronto Stock Exchange ("TSX") for a normal course issuer bid ("NCIB") to acquire up to seven percent of its public float. The commencement of the NCIB will be announced following receipt of approval from the TSX.
The Board has also approved a move to a quarterly cash dividend of CDN$0.01 per share, with the first quarterly dividend payable on April 1, 2019 to shareholders of record on March 15, 2019. The Company's cash dividend of CDN$0.03 per share for the month of December 2018 is payable January 15, 2019, as previously announced.
"Dividends remain a valuable component of our total return offering to shareholders," said Bryksa. "Based on our current share price, we believe share repurchases are a more accretive form of returning capital and provide a permanent benefit for all shareholders. We will revisit potential dividend increases over time in a sustainable manner."
The reduced dividend and lower 2019 capital budget provides Crescent Point with increased flexibility in the current oil price environment. The Company's capital allocation process, which is driven by risk-adjusted returns, now incorporates share repurchases as a new tool for value creation. The NCIB is expected to be funded within adjusted funds flow, including a portion of funds that were previously directed to the Company's monthly dividend payment.
FINANCIAL DISCIPLINE AND COST REDUCTIONS
The Company anticipates a total payout ratio in 2019 of approximately 85 to 95 percent, including capital expenditures, dividends and potential share repurchases. Under Crescent Point's budgeted oil price of WTI US$50.00/bbl, and assuming the midpoint of the Company's capital budget range, over $150 million of funds is forecast to be available for debt reduction, share repurchases or a combination thereof.
"Our 2019 budget is disciplined, focused and flexible," said Bryksa. "Should oil prices fall below our budgeted WTI assumption of US$50.00/bbl, we have the ability to further revise our capital program with a continued focus on returns and operating within cash flow. If oil prices strengthen, we are well positioned to generate excess cash flow and increased value for shareholders."
Incremental funds realized from higher commodity prices and potential proceeds from future dispositions will be allocated based on the most value added opportunities available, with a priority on debt reduction, accretive share repurchases and returns based growth. The Company's adjusted funds flow sensitivity to a US$1.00/bbl change in WTI is approximately $50 million in 2019.
The Company will remain flexible in its 2019 capital spending plans as it continuously monitors commodity prices, costs and returns. Crescent Point's capital spending guidance excludes any potential expenditures on land, which are expected to be modest at approximately one to two percent of incremental capital.
The Company's 2019 capital budget incorporates realized capital cost reductions to date of approximately five percent on average across its asset base. Consistent with the key value drivers within its transition plan, management has focused Crescent Point's efforts on efficiencies, including reduced drilling days, completion optimization and improved logistics. The Company has also lowered its expected 2019 general and administrative expenses by approximately 10 percent compared to 2018, excluding one-time severance costs. Crescent Point remains committed to achieving additional cost improvements in 2019 as part of its plan.
2019 CAPITAL SPENDING BY AREA
Crescent Point has allocated approximately 55 percent of its total capital expenditures budget in 2019 to its key focus areas in the Viewfield Bakken, Shaunavon and Flat Lake resource plays. This is an increase from approximately 45 percent in the prior year, reflecting the Company's commitment to risk-adjusted returns. The Company plans to develop these resource plays through a combination of low-risk, high-return drilling, waterflood programs and new infrastructure investments to support future growth.
As part of its waterflood initiatives, Crescent Point plans to convert approximately 145 producing wells to water injection wells in 2019, compared to approximately 70 conversions in 2018. This increase demonstrates the Company's ongoing focus on the consistent advancement of decline mitigation techniques, as previously outlined in its transition plan. Crescent Point's 2019 production guidance includes the anticipated impact on production of approximately 2,000 boe/d from converting existing producing wells to water injection wells.
The Company has further enhanced the horizontal well economics within its emerging Uinta Basin resource play by focusing on stacked, multi-well pad development. Unit costs for Crescent Point's two-mile horizontal wells have improved by over 10 percent compared to the prior year, reflecting drilling efficiencies and completion optimization. Based on existing market access in the Uinta Basin and risk-adjusted returns at current oil prices in the earlier stage East Shale Duvernay play, the Company has reduced capital allocated to these resource plays. Approximately 15 percent of Crescent Point's total capital expenditures budget is allocated to these plays in 2019, in comparison to approximately 25 percent in the prior year. The Company may increase spending in these areas as they continue to advance, or as oil prices improve.
"Approximately 70 percent of our 2019 budget is allocated to our focus areas, including emerging and earlier stage plays," said Bryksa. "We allocate capital based on risk-adjusted returns taking into account the long-term development plans for each area."
RISK MANAGEMENT AND FINANCIAL FLEXIBILITY
As previously highlighted during third quarter 2018 results, Crescent Point's assets currently receive a premium to Canadian index prices as approximately 90 percent of its oil production is located either downstream of recent apportionment points or in the United States. The Company is forecasting an oil differential for 2019 in line with current strip prices for its various crude streams.
As at January 9, 2019, Crescent Point had, on average, approximately 40 percent of its 2019 oil and liquids production, net of royalty interest, hedged at a weighted average market value price of approximately CDN$76.00/bbl.
The Company retains significant financial flexibility and liquidity with no material near-term debt maturities and approximately $1.7 billion of cash and unutilized credit capacity on its covenant-based, unsecured credit facility, as at September 30, 2018. Crescent Point's credit facility is not due for renewal until June 2021.
2019 BUDGET AND GUIDANCE SUMMARY
Total average annual production (boe/d) % Oil and NGLs | 170,000 to 174,000 91% |
Total Capital expenditures ($ millions) (1) Drilling and development (%) Facilities and seismic (%) | $1,200 to $1,300 90% 10% |
Net wells drilled (mid-point of guidance range) | ~465 |
Adjusted funds flow netback ($/boe) (2) (3) | ~$24.00 |
Adjusted funds flow sensitivity for every US$1.00/bbl change in WTI ($ millions) | ~$50 |
(1) | Capital expenditures excludes any potential net property and land acquisitions and approximately $35 million of capitalized G&A. |
(2) | Adjusted funds flow netback as presented does not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and, therefore, may not be comparable with the calculation of similar measures presented by other entities |
(3) | Adjusted funds flow netback based on US$50.00/bbl WTI, $0.75 US/CAD, MSW differential of -US$8.75/bbl and WCS differential of -US$18.00/bbl for 2019. |
Non-GAAP Financial Measures
Throughout this press release, the Company uses the terms "total payout ratio", "adjusted funds flow", and "adjusted funds flow netback". These terms do not have any standardized meaning as prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other issuers.
Total payout ratio is calculated on a percentage basis as capital expenditures, dividends declared and potential share repurchases, divided by adjusted funds flow. Total payout ratio is used by management to monitor the Company's capital reinvestment and dividend policy, as a percentage of the amount of adjusted funds flow.
Adjusted funds flow is equivalent to adjusted funds flow from operations. Adjusted funds flow is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Transaction costs are excluded as they vary based on the Company's acquisition activity, and to ensure that this metric is more comparable between periods. Decommissioning expenditures are excluded as the Company has a voluntary reclamation fund to fund decommissioning costs. Adjusted funds flow netback is calculated on a per boe basis as adjusted funds operations divided by total production. Management utilizes adjusted funds flow as a key measure to assess the ability of the Company to finance dividends, operating activities, capital expenditures and debt repayments. Adjusted funds flow as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.
Management believes the presentation of the Non-GAAP measures above provide useful information to investors and shareholders as the measures provide increased transparency and the ability to better analyze performance against prior periods on a comparable basis.
Forward-Looking Statements and Other Matters
Any "financial outlook" or "future oriented financial information" in this press release, as defined by applicable securities legislation has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and "forward-looking information" for the purposes of Canadian securities regulation (collectively, "forward-looking statements"). The Company has tried to identify such forward-looking statements by use of such words as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "intend", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and other similar expressions, but these words are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking statements pertaining, among other things, to the following: the anticipated impacts of the share buyback program ; the Company's 2019 capital budget; expected 2019 annual average production; excess cash flow allocation to be allocated to debt reduction and share repurchases at a budgeted WTI oil price of US$50.00/bbl; the focus on key value drivers previously outlined in the Company's transition plan, including balance sheet improvement, disciplined capital allocation and cost reductions; the expectation that the Company will commence its NCIB program and will announce the same following receipt of TSX approval; the Company's expectation that the NCIB will provide an accretive method of returning capital to shareholders and will be funded through adjusted funds flow; the Company's plan to revisit potential dividend increases over time in a sustainable manner; the Company's 2019 target total payout ratio and that it is based on US$50/bbl WTI; that $150 million of funds is forecast to be available for debt reduction, share repurchases or a combination thereof; the allocation of incremental funds realized from higher commodity prices and potential proceeds; the Company's plan to remain flexible in its capital budget; Crescent Point's expectation that 2019 capital expenditures on land will be modest; the Company's expectation that it will continue to focus on additional cost improvements as part of its transition plan and that 2019 general and administrative expenses will be lower than 2019 general and administrative expenses; the Company's 2019 budget and divestiture discipline; the Company's expectations for 2019 oil differentials; the Company's ongoing exploration of disposition opportunities; the Company's commitment to living within cash flow; the Company's planned 2019 capital allocation to its key focus areas and its plans to develop areas through a combination of low-risk, high-return drilling, waterflood programs and new infrastructure investments; the Company's 2019 waterflood plans, including expected well conversions, and the expected impact such conversion will have on 2019 production; the focus on the consistent advancement of decline mitigation techniques; the Company's ability to allocate additional capital to the Uinta Basin resource play and to the East Shale Duvernay play; the percentage of the Company's 2019 total capital budget allocated to the Uinta and East Shale Duvernay plays; the portion of the Company's 2019 capital expenditures budget allocated to the Company's focus areas; the Company's belief that it retains significant financial flexibility and liquidity; the Company's expected 2019 net wells drilled, adjusted funds flow netback, total payout including dividend based on US$50/bbl WTI, and adjusted funds flow sensitivities.
All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. Crescent Point believes that the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, expressed or implied by such statements, including those material risks discussed in the Company's Annual Information Form for the year ended December 31, 2017 under "Risk Factors," in our Management's Discussion and Analysis for the year ended December 31, 2017, under the headings "Risk Factors" and "Forward-Looking Information" and for the quarter ended September 30, 2017 under "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policies" and "Outlook". The material assumptions are disclosed in the Management's Discussion and Analysis for the year ended December 31, 2017, under the headings "Capital Expenditures", "Liquidity and Capital Resources", "Critical Accounting Estimates", "Risk Factors", "Changes in Accounting Policies" and "Outlook" and are disclosed in the Management's Discussion and Analysis for the quarter ended September 30, 2018 under the headings "Derivatives", "Liquidity and Capital Resources", "Changes in Accounting Policy" and "Outlook". In addition, risk factors include: financial risk of marketing reserves at an acceptable price given market conditions; volatility in market prices for oil and natural gas; delays in business operations, pipeline restrictions, blowouts; the risk of carrying out operations with minimal environmental impact; industry conditions including changes in laws and regulations and the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; risks and uncertainties related to all oil and gas interests and operations on tribal lands; uncertainties associated with estimating oil and natural gas reserves; economic risk of finding and producing reserves at a reasonable cost; uncertainties associated with partner plans and approvals; operational matters related to non-operated properties; competition for, among other things, capital, acquisitions of reserves and undeveloped lands; competition for and availability of qualified personnel or management; incorrect assessments of the value of acquisitions and exploration and development programs; unexpected geological, technical, drilling, construction and processing problems; availability of insurance; fluctuations in foreign exchange and interest rates; stock market volatility; failure to realize the anticipated benefits of acquisitions; general economic, market and business conditions; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities and counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates and incentive programs relating to the oil and gas industry; and other factors, many of which are outside the control of Crescent Point. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Crescent Point's future course of action depends on management's assessment of all information available at the relevant time.
Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian and U.S. securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise. Crescent Point undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. All subsequent forward-looking statements, whether written or oral, attributable to Crescent Point or persons acting on the Company's behalf are expressly qualified in their entirety by these cautionary statements.
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-announces-2019-budget-and-quarterly-dividend-300778166.html
SOURCE Crescent Point Energy Corp.
Article Date
1/15/2019Crescent Point Energy Confirms December 2018 Dividend
Source: PR Newswire
CALGARY, Dec. 17, 2018 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) confirms that the dividend to be paid on January 15, 2019, in respect of December 2018 production, for shareholders of record on December 31, 2018, will be CDN$0.03 per share.
These dividends are designated as "eligible dividends" for Canadian income tax purposes. For U.S. income tax purposes, Crescent Point's dividends are considered "qualified dividends."
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
For Further Information, Please Contact:
Crescent Point Energy Corp.
Brad Borggard
Senior Vice President, Corporate Planning and Capital Markets
Shant Madian
Vice President, Investor Relations and Corporate Communications
Telephone: (403) 693-0020
Toll-free (US and Canada): 888-693-0020
Fax: (403) 693-0070
Crescent Point Energy Corp.
Suite 2000, 585 - 8th Avenue S.W.
Calgary, Alberta T2P 1G1
www.crescentpointenergy.com
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG
View original content:http://www.prnewswire.com/news-releases/crescent-point-energy-confirms-december-2018-dividend-300767443.html
SOURCE Crescent Point Energy Corp.
Article Date
12/17/2018Crescent Point Energy Confirms November 2018 Dividend
Source: PR Newswire
CALGARY, Nov. 15, 2018 /PRNewswire/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE: CPG) confirms that the dividend to be paid on December 17, 2018, in respect of November 2018 production, for shareholders of record on November 30, 2018, will be CDN$0.03 per share.
These dividends are designated as "eligible dividends" for Canadian income tax purposes. For U.S. income tax purposes, Crescent Point's dividends are considered "qualified dividends."
Crescent Point is a leading North American light oil producer, driven to enhance shareholder returns by cost-effectively developing a focused asset base in a responsible and sustainable manner.
Crescent Point shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol CPG.
View original content:http://www.prnewswire.com/news-releases/crescent-point-energy-confirms-november-2018-dividend-300751393.html
SOURCE Crescent Point Energy Corp.
Article Date
11/15/2018Projects & Assets
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