CALGARY,
AB, May 12, 2022 /CNW/ - 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 March 31, 2022 and an
increase to its quarterly dividend.
KEY HIGHLIGHTS
- Increasing quarterly dividend by over 40 percent to
$0.065 per share, representing an
annualized dividend of $0.26 per
share.
- Repurchased approximately 13.5 million shares since
December 2021 for total consideration
of approximately $110 million.
- Generated approximately $290
million of excess cash flow in first quarter, supporting
further debt reduction and return of capital.
- On-track to achieve near-term net debt target of $1.3 billion during third quarter 2022 at current
commodity prices.
- Expect to generate significant excess cash flow of $1.2 to $1.4
billion in 2022 at US$80/bbl
to US$100/bbl WTI.
- Achieved emissions intensity reduction target of 50 percent
well ahead of 2025 timeframe, demonstrating strong ESG
practices.
"As a result of our execution, improving financial position and
focus on returning capital to shareholders, we are further
increasing our dividend", said Craig
Bryksa, President and CEO of Crescent Point. "We also remain
active on our share repurchase plan given our compelling valuation
and the investment opportunity it provides to enhance our per share
metrics. Based on our revised dividend and planned share
repurchases, we expect to return approximately 30 percent of our
excess cash flow to shareholders during the first half of the year.
As we move closer to attaining our near-term net debt target, we
expect to release an updated return of capital framework and will
be in a better position to further increase the level of excess
cash flow currently returned to shareholders."
FINANCIAL HIGHLIGHTS
- Adjusted funds flow totaled $534.0
million during first quarter 2022, or $0.92 per share diluted, driven by a strong
operating netback of $62.33 per
boe.
- For the quarter ended March 31,
2022, development capital expenditures, which included
drilling and development, facilities and seismic costs, totaled
$204.3 million.
- Net debt as at March 31, 2022
equated to approximately $1.8
billion, reflecting approximately $230 million of net debt reduction in the
quarter. The Company retains significant liquidity with an
unutilized credit capacity of over $2.0
billion as at March 31,
2022.
- Crescent Point reported net income of approximately
$1.2 billion for first quarter 2022,
primarily driven by a $1.5 billion
($1.2 billion after-tax) reversal of
non-cash impairment resulting from an increase in forward commodity
prices and the independent engineers' price forecast. Adjusted net
earnings from operations during first quarter was $240.9 million.
RETURN OF CAPITAL
HIGHLIGHTS
- Given its continued execution and the recent strength in
commodity prices, the Company now expects to attain its near-term
net debt target of approximately $1.3
billion during third quarter 2022. Consistent with Crescent
Point's focus on returning capital to shareholders, the Board of
Directors ("Board") has approved and declared a second quarter 2022
dividend increase to $0.065 per share
to be paid on July 4, 2022 to
shareholders of record on June 15,
2022. This equates to an annualized dividend of $0.26 per share, representing an increase of over
40 percent from the prior level. The Company's dividend policy and
payout ratio is based on a framework that targets dividend
sustainability at lower commodity prices, allows for flexibility in
its capital allocation process and the potential for dividend
growth over time.
- Since initiating its planned share repurchases in December 2021, Crescent Point has repurchased for
cancellation approximately 13.5 million shares to-date for total
consideration of approximately $110
million. This includes approximately 7.3 million shares
repurchased during first quarter 2022 for total consideration of
approximately $62 million. The
Company is on track to execute the remainder of its previously
announced share repurchase plan of up to $150 million by mid-2022. Crescent Point plans to
revisit its budget for share repurchases for the second half of the
year as part of an updated return of capital framework. The Company
has approval to repurchase, for cancellation, up to 10 percent of
its public float under its normal course issuer bid ("NCIB") which
expires on March 8, 2023.
OPERATIONAL HIGHLIGHTS
- Average production for the quarter ended March 31, 2022 was 132,788 boe/d, comprised of
over 80 percent oil and liquids.
- During first quarter 2022, Crescent Point commenced completion
activities on its second fully operated multi-well pad in the
Kaybob Duvernay, which it expects to bring on production in second
quarter 2022. Initial production rates from the Company's first
fully operated multi-well pad in the play, which were previously
released, remain strong and continue to demonstrate the high impact
nature of the asset. Crescent Point also expects to bring on
production the final multi-well pad completed as part of its
previously announced farm-in agreement with a Kaybob Duvernay
operator in late second quarter. In aggregate, the Company expects
to bring on production 18 gross (16 net) additional wells in the
Kaybob Duvernay through the balance of the year.
- Crescent Point continues to demonstrate a strong track record
of execution and knowledge transfer across its asset base. In the
Kaybob Duvernay, the Company has reduced drilling days by over 30
percent since entering the play, averaging fewer than 15 days per
well on its most recent pad. Crescent Point has also enhanced
efficiencies in North Dakota by
lowering drilling days by 15 percent since 2021. This represents
less than 10 days of drilling, which is a new record for the
Company in the play.
- Through its continued commitment to Environmental, Social and
Governance ("ESG") practices, Crescent Point has surpassed its
emissions intensity reduction target of 50 percent relative to the
Company's 2017 baseline, reaching an emissions intensity of
approximately 0.02 tCO2e/boe. This achievement is well
ahead of its expected timeframe of 2025 and also includes a 70
percent reduction in absolute methane emissions. Crescent Point is
currently working to establish new environmental targets and
expects to provide more details along with its sustainability
report in the early second half of 2022.
OUTLOOK
First quarter 2022 results demonstrated continued capital
discipline, resulting in significant excess cash flow generation
and the opportunity to create additional value for
shareholders.
The Company now expects to generate $1.2 to $1.4
billion of excess cash flow in 2022, at US$80/bbl to US$100/bbl WTI for the remainder of the year,
further benefiting in the current environment from its high netback
production and significant tax pools.
Crescent Point's 2022 annual average production guidance of
133,000 to 137,000 boe/d, remains unchanged, despite a severe storm
affecting electricity distribution in North Dakota during late April that has
temporarily impacted the Company's operations. Based on progress
to-date and expectations from the local power utility, Crescent
Point expects to fully restore the remainder of its North Dakota production by the end of May. The
Company estimates that up to 1,500 boe/d of annual average
production will be impacted as a result of this unexpected
downtime, or approximately one percent of its annual guidance.
Crescent Point continues to expect higher production during the
second half of the year based on the schedule of its development
program.
In light of the current commodity price environment, the
Company's development capital expenditures guidance now assumes a
slightly higher cost inflation assumption of up to 15 percent. As a
result, Crescent Point has narrowed its 2022 development capital
expenditures guidance to $875 to
$900 million, which is within its
prior range of $825 to $900 million.
The Company continues to realize internal efficiencies from its
ongoing drilling and completions optimization and other
initiatives, which are expected to partially offset higher
inflation costs. Crescent Point has also controlled a significant
portion of its capital costs through its supply chain management,
providing further cost predictability in current environment. The
Company will continue to monitor its cost assumptions, net of any
potential efficiencies, as the year progresses.
Crescent Point's balance sheet continues to re-rate at a rapid
pace given its significant excess cash flow generation in the
current commodity price environment. Based on the Company's revised
dividend and planned share repurchases, approximately 30 percent of
its excess cash flow is expected to be returned to shareholders
during the first half of the year. As Crescent Point moves closer
to attaining its near-term net debt target, it will be in a
position to further increase the level of excess cash flow it
currently returns to shareholders.
ANNUAL GENERAL MEETING
Crescent Point's 2022 Annual General Meeting ("AGM") will be
held on May 19, 2022. As part of its
ongoing Board renewal process, Crescent Point also recently
announced that Mindy Wight, a new
independent nominee director, will stand for election at the
upcoming AGM. For more information, please visit Crescent Point's
website or review the press release dated May 5, 2022.
CONFERENCE CALL DETAILS
Crescent Point management will hold a conference call on
Thursday, May 12, 2022 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 website.
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
online at Crescent Point's conference calls and webcasts page. 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.
2022 GUIDANCE
The Company's guidance for 2022 is as follows:
|
Prior
|
Revised
|
Total Annual Average
Production (boe/d) (1)
|
133,000 -
137,000
|
133,000 -
137,000
|
|
Capital
Expenditures
|
|
|
Development capital
expenditures ($ millions)
|
$825 - $900
|
$875 - $900
|
Capitalized G&A ($
millions)
|
$40
|
$40
|
Total ($ millions)
(2)
|
$865 - $940
|
$915 - $940
|
|
Other Information
for 2022 Guidance
|
|
|
Reclamation activities
($ millions) (3)
|
$20
|
$20
|
Capital lease payments
($ millions)
|
$20
|
$20
|
Annual operating
expenses ($/boe)
|
$13.25 -
$13.75
|
$13.75 -
$14.25
|
Royalties
|
12.5% -
13.5%
|
13.5% -
14.0%
|
1) Total annual average
production (boe/d) is comprised of approximately 80% Oil,
Condensate & NGLs and 20% Natural Gas
2) Land expenditures and net property acquisitions and dispositions
are not included. Development capital expenditures spend is
allocated on an approximate basis as follows: 85% drilling &
development and 15% facilities & seismic
3) Reflects Crescent Point's portion of its expected total
budget
|
The Company's unaudited financial statements and management's
discussion and analysis for the quarter ended March 31, 2022, will be available on the System
for Electronic Document Analysis and Retrieval ("SEDAR") at
www.sedar.com, on EDGAR at www.sec.gov/edgar and on Crescent
Point's website at www.crescentpointenergy.com.
FINANCIAL AND OPERATING
HIGHLIGHTS
|
Three months ended
March 31
|
(Cdn$ millions except
per share and per boe amounts)
|
2022
|
2021
|
Financial
|
|
|
Cash flow from
operating activities
|
426.1
|
303.7
|
Adjusted funds flow
from operations
|
534.0
|
262.7
|
Per
share (2)
|
0.92
|
0.49
|
Net income
|
1,183.6
|
21.7
|
Per
share (2)
|
2.03
|
0.04
|
Adjusted net earnings
from operations
|
240.9
|
95.1
|
Per
share (1) (2)
|
0.41
|
0.18
|
Dividends
declared
|
(0.2)
|
1.3
|
Per
share (2)
|
—
|
0.0025
|
Net debt
|
1,775.2
|
2,013.4
|
Net debt to adjusted
funds flow from operations (1) (3)
|
1.0
|
2.4
|
Weighted average shares
outstanding
|
|
|
Basic
|
576.9
|
530.4
|
Diluted
|
582.7
|
536.6
|
Operating
|
|
|
Average daily
production
|
|
|
Crude oil and condensate (bbls/d)
|
92,971
|
95,276
|
NGLs (bbls/d)
|
17,039
|
13,319
|
Natural gas (mcf/d)
|
136,667
|
64,732
|
Total
(boe/d)
|
132,788
|
119,384
|
Average selling prices
(4)
|
|
|
Crude oil and condensate ($/bbl)
|
113.66
|
65.17
|
NGLs ($/bbl)
|
47.84
|
37.70
|
Natural gas ($/mcf)
|
5.55
|
4.50
|
Total
($/boe)
|
91.43
|
58.65
|
Netback
($/boe)
|
|
|
Oil
and gas sales
|
91.43
|
58.65
|
Royalties
|
(12.25)
|
(7.98)
|
Operating expenses
|
(14.12)
|
(13.27)
|
Transportation expenses
|
(2.73)
|
(2.34)
|
Operating
netback
|
62.33
|
35.06
|
Realized loss on
commodity derivatives
|
(13.84)
|
(5.55)
|
Other
(5)
|
(3.81)
|
(5.06)
|
Adjusted funds flow
from operations netback (1)
|
44.68
|
24.45
|
Capital
Expenditures
|
|
|
Capital acquisitions
(6)
|
0.9
|
—
|
Capital dispositions
(6)
|
(2.9)
|
(7.2)
|
Development capital
expenditures
|
|
|
Drilling and development
|
188.2
|
105.6
|
Facilities and seismic
|
16.1
|
13.6
|
Total
|
204.3
|
119.2
|
Land
expenditures
|
5.7
|
0.9
|
(1) Specified financial
measure that does not have any standardized meaning prescribed by
IFRS and, therefore, may not be comparable with the calculation of
similar measures presented by other entities. Refer to the
Specified Financial Measures section for further information.
(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 acquisitions and dispositions represent total
consideration for the transactions, including long-term debt and
working capital assumed, and exclude transaction costs.
|
Specified Financial
Measures
Throughout this press release, the Company uses the terms
"adjusted funds flow" (equivalent to "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",
"net debt", "net debt to adjusted funds flow" (equivalent to "net
debt to adjusted funds flow from operations"), "total operating
netback", "total netback", "operating netback", "netback",
"adjusted funds flow from operations netback" and "adjusted working
capital deficiency". 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. For information on the composition of these measures and
how the Company uses these measures, refer to the Specified
Financial Measures section of the Company's MD&A for the period
ended March 31, 2022, which section
is incorporated herein by reference, and available on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov/edgar.
Adjusted funds flow from operations netback is a non-GAAP
financial ratio and is calculated as adjusted funds flow from
operations divided by total production. Adjusted funds flow from
operations netback is a common metric used in the oil and gas
industry and is used to measure operating results on a per boe
basis.
The following table reconciles oil and gas sales to total
operating netback, total netback and adjusted funds flow from
operations netback:
|
Three months ended
March 31
|
|
($ millions)
|
2022
|
|
2021
|
|
% Change
|
|
Oil and gas
sales
|
1,092.7
|
|
630.2
|
|
73
|
|
Royalties
|
(146.4)
|
|
(85.7)
|
|
71
|
|
Operating
expenses
|
(168.7)
|
|
(142.6)
|
|
18
|
|
Transportation
expenses
|
(32.6)
|
|
(25.1)
|
|
30
|
|
Total operating
netback
|
745.0
|
|
376.8
|
|
98
|
|
Realized loss on
commodity derivatives
|
(165.4)
|
|
(59.7)
|
|
177
|
|
Total
netback
|
579.6
|
|
317.1
|
|
83
|
|
Other
(1)
|
(45.6)
|
|
(54.4)
|
|
(16)
|
|
Total adjusted funds
flow from operations netback
|
534.0
|
|
262.7
|
|
103
|
|
(1) 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.
|
The following table reconciles cash flow from operating
activities to adjusted funds flow from operations and excess cash
flow:
|
Three months ended
March 31
|
|
($ millions)
|
2022
|
|
2021
(1)
|
|
% Change
|
|
Cash flow from
operating activities
|
426.1
|
|
303.7
|
|
40
|
|
Changes in non-cash
working capital
|
101.4
|
|
(47.2)
|
|
(315)
|
|
Transaction
costs
|
0.1
|
|
0.1
|
|
—
|
|
Decommissioning
expenditures (2)
|
6.4
|
|
6.1
|
|
5
|
|
Adjusted funds flow
from operations
|
534.0
|
|
262.7
|
|
103
|
|
Capital
expenditures
|
(226.8)
|
|
(134.4)
|
|
69
|
|
Payments on lease
liability
|
(5.1)
|
|
(5.1)
|
|
—
|
|
Decommissioning
expenditures
|
(6.4)
|
|
(6.1)
|
|
5
|
|
Other items
(3)
|
(6.4)
|
|
12.8
|
|
(150)
|
|
Excess cash
flow
|
289.3
|
|
129.9
|
|
123
|
|
(1) Comparative period
revised to reflect current year presentation.
(2) Excludes amounts received from government subsidy programs.
(3) Other items include, but are not limited to, unrealized gains
and losses on equity derivative contracts and transaction costs.
Other items exclude net acquisitions and dispositions.
|
Adjusted funds flow from operations per share - diluted is a
supplementary financial measure and is calculated as adjusted funds
flow from operations divided by the number of weighted average
diluted shares outstanding. It is used as a key measure to assess
the ability of the Company to finance dividends, operating
activities, capital expenditures and debt repayments.
The following table reconciles adjusted working capital
deficiency:
($ millions)
|
March 31,
2022
|
|
December 31,
2021
|
|
% Change
|
|
Accounts payable and
accrued liabilities
|
536.3
|
|
450.7
|
|
19
|
|
Dividends
payable
|
25.8
|
|
43.5
|
|
(41)
|
|
Long-term compensation
liability (1)
|
61.2
|
|
42.6
|
|
44
|
|
Cash
|
(5.7)
|
|
(13.5)
|
|
(58)
|
|
Accounts
receivable
|
(508.9)
|
|
(314.3)
|
|
62
|
|
Prepaids and
deposits
|
(16.9)
|
|
(7.4)
|
|
128
|
|
Adjusted working
capital deficiency
|
91.8
|
|
201.6
|
|
(54)
|
|
(1) Includes current
portion of long-term compensation liability and is net of equity
derivative contracts.
|
The following table reconciles long-term debt to net debt:
($ millions)
|
March 31, 2022
|
|
December 31,
2021
|
|
% Change
|
|
Long-term debt
(1)
|
1,830.9
|
|
1,970.2
|
|
(7)
|
|
Adjusted working
capital deficiency
|
91.8
|
|
201.6
|
|
(54)
|
|
Unrealized foreign
exchange on translation of US dollar long-term debt
|
(147.5)
|
|
(166.8)
|
|
(12)
|
|
Net debt
|
1,775.2
|
|
2,005.0
|
|
(11)
|
|
(1) Includes current
portion of long-term debt.
|
The following table reconciles net income to adjusted net
earnings from operations:
|
Three months ended
March 31
|
|
($ millions)
|
2022
|
|
2021
|
|
% Change
|
|
Net income
|
1,183.6
|
|
21.7
|
|
5,354
|
|
Amortization of E&E
undeveloped land
|
6.6
|
|
13.8
|
|
(52)
|
|
Impairment
reversal
|
(1,484.9)
|
|
—
|
|
100
|
|
Unrealized derivative
losses
|
313.2
|
|
81.7
|
|
283
|
|
Unrealized foreign
exchange gain on translation of hedged US dollar long-term
debt
|
(19.3)
|
|
(11.9)
|
|
62
|
|
Unrealized gain on
long-term investments
|
—
|
|
(2.2)
|
|
(100)
|
|
Net (gain) loss on
capital dispositions
|
(2.9)
|
|
17.3
|
|
(117)
|
|
Deferred tax
adjustments
|
244.6
|
|
(25.3)
|
|
(1,067)
|
|
Adjusted net earnings
from operations
|
240.9
|
|
95.1
|
|
153
|
|
Excess cash flow forecasted for 2022 is a forward-looking
non-GAAP measure and is calculated consistently with the measure
disclosed in the Company's MD&A. Refer to the Specified
Financial Measures section of the Company's MD&A for the period
ended March 31, 2022.
Management believes the presentation of the specified financial
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:
achieving the near-term net debt target of $1.3 billion during third quarter 2022 at current
commodity prices; generating significant 2022 excess cash flow of
$1.2 billion to $1.4 billion in 2022 at US$80/bbl to US$100/bbl WTI, and related benefits; dividend
expectations, policy and basis; payout ratio basis; compelling
investment opportunity at current valuation; expectations to return
approximately 30 percent of excess cash flow to shareholders in the
first half of the year; plans to release an updated return of
capital framework and further increase the level of excess cash
flow returned to shareholders; share repurchase progress, budget
and plans; 2022 average production guidance of 133,000 to 137,000
boe/d; second fully operated multi-well pad in the Kaybob Duvernay
play brought on production in second quarter 2022; bringing on to
production the final multi-well pad completed as part of the
Company's previously announced farm-in agreement with a Kaybob
Duvernay operator in late second quarter, 2022; plans to bring on
production approximately 18 gross (16 net) additional wells in the
Kaybob Duvernay through the balance of the year; new environmental
targets announced in the early second half of 2022; significant tax
pools; narrowed 2022 development capital expenditures guidance to
$875 to $900
million, reflecting the impact of an increase in its cost
inflation assumption of up to 15 percent; ongoing drilling and
completions optimization and other initiatives partially offset
inflationary pressures; proactive steps taken to insulate the
capital program from cost pressures in 2022; continued monitoring
of cost assumptions over 2022; balance sheet improvements
permitting the Company to further increase the level of excess cash
flow returned to shareholders; plan to release an updated return of
capital framework; 2022 guidance including total annual average
production, development capital expenditures (and proportion
allocated to drilling and development and facilities and seismic),
capitalized G&A, reclamation activities, capital lease payment,
annual operating expenses, and royalties; timing to restore power
in North Dakota; the expected
impact weather in North Dakota
will have on production; and expected relative production during
the second half of the year.
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, 2021.
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, 2021 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,
2021 under "Risk Factors" and our Management's Discussion
and Analysis for the year ended December 31,
2021, and for the quarter ended March
31, 2022, under the headings "Risk Factors" and
"Forward-Looking Information". The material assumptions are
disclosed in the Management's Discussion and Analysis for the three
months ended March 31, 2022, under
the headings "Overview", "Commodity Derivatives", "Liquidity and
Capital Resources","Guidance", "Royalties" and "Operating
Expenses". 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, decisions or
actions of OPEC and non-OPEC countries in respect of supplies of
oil and gas; delays in business operations or delivery of services
due to pipeline restrictions, rail blockades, outbreaks, blowouts
and business closures and social distancing measures mandated by
public health authorities in response to COVID-19; uncertainty
regarding the benefits and costs of the Acquisition; failure to
complete the Acquisition; the risk of carrying out operations with
minimal environmental impact; industry conditions including changes
in laws and regulations including 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; risks and uncertainties related to oil and gas
interests and operations on Indigenous lands; economic risk of
finding and producing reserves at a reasonable cost; uncertainties
associated with partner plans and approvals; geopolitical conflict,
including the Russian invasion of Ukraine; 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 and likelihood of
acquisitions and dispositions, and exploration and development
programs; unexpected geological, technical, drilling, construction,
processing and transportation problems; the impact of severe
weather events; availability of insurance; fluctuations in foreign
exchange and interest rates; stock market volatility; general
economic, market and business conditions, including uncertainty in
the demand for oil and gas and economic activity in general as a
result of the COVID-19 pandemic; uncertainties associated with
regulatory approvals; uncertainty of government policy changes; the
impact of the implementation of the Canada-United States Mexico
Agreement; uncertainty regarding the benefits and costs of
dispositions; failure to complete acquisitions and dispositions;
uncertainties associated with credit facilities and counterparty
credit risk; changes in income tax laws, tax laws, crown royalty
rates and incentive programs relating to the oil and gas industry;
the wide-ranging impacts of the COVID-19 pandemic, including on
demand, health and supply chain; and other factors, many of which
are outside the control of the Company. 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.
Product Type Production
Information
The Company's aggregate average production for the three months
ended March 31, 2022 and March 31, 2021 and the references to "natural
gas" and "crude oil", reported in this Press Release consist of the
following product types, as defined in NI 51-101 and using a
conversion ratio of 6 mcf : 1 bbl where applicable:
|
Three months ended
March 31
|
|
2022
|
2021
|
Light & Medium Crude Oil (bbl/d)
|
15,365
|
20,699
|
Heavy Crude Oil (bbl/d)
|
4,034
|
4,118
|
Tight Oil (bbl/d)
|
55,837
|
70,459
|
Total Crude Oil
(bbl/d)
|
75,236
|
95,276
|
|
|
|
NGLs (bbl/d)
|
34,774
|
13,319
|
|
|
|
Shale Gas (mcf/d)
|
126,622
|
53,198
|
Conventional Natural Gas (mcf/d)
|
10,045
|
11,534
|
Total Natural Gas
(mcf/d)
|
136,667
|
64,732
|
|
|
|
Total
(boe/d)
|
132,788
|
119,384
|
Barrels of oil equivalent ("boe") may be misleading,
particularly if used in isolation. A boe conversion ratio of 6 mcf
: 1 bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead. Given that the value ratio based
on the current price of crude oil as compared to natural gas is
significantly different from the energy equivalency of oil,
utilizing a conversion on a 6:1 basis may be misleading as an
indication of value.
NI 51-101 includes condensate within the natural gas liquids
(NGLs) product type. The Company has disclosed condensate as
combined with crude oil and/or separately from other natural gas
liquids in this press release since the price of condensate as
compared to other natural gas liquids is currently significantly
higher and the Company believes that this crude oil and condensate
presentation provides a more accurate description of its operations
and results therefore.
FOR MORE INFORMATION ON CRESCENT
POINT ENERGY, PLEASE CONTACT:
Shant Madian, Vice
President, Capital Markets, or
Sarfraz Somani, Manager,
Investor Relations
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.