Crescent Point Energy Corp. ("Crescent Point" or the "Company")
(TSX:CPG) (NYSE:CPG) announces changes to its executive management
team and provides an update on recent dispositions.
Mr. Craig Bryksa, interim President and Chief Executive Officer,
is pleased to announce that Mr. Ryan Gritzfeldt, formerly the Vice
President, Marketing and Innovation, and prior to that, Vice
President, Engineering and Business Development East, has assumed
the role of Chief Operating Officer. Mr. Gritzfeldt is a
professional engineer who has been an integral contributor to the
Company’s operational success during his 14 years at Crescent
Point. The Company’s financial operations will continue to be led
by Mr. Ken Lamont in his current role as Chief Financial
Officer.
Mr. Neil Smith, Chief Operating Officer, and Ms. Tamara
MacDonald, Senior Vice President, Corporate and Business
Development, have stepped down as officers of the Company. Crescent
Point and its Board of Directors would like to thank both Mr. Smith
and Ms. MacDonald for their hard work, dedication and
contributions over the past 15 years.
Crescent Point also announces it has entered into definitive
purchase and sale agreements to dispose of certain non-core assets
in the Williston Basin for proceeds of approximately $280 million.
These transactions include both the disposition previously
announced on May 3, 2018, where the Company announced it signed a
non-binding letter of intent for approximately $225 million,
along with a second transaction agreed to in late second quarter,
valued at approximately $55 million. These transactions are each
expected to close at the end of second quarter.
Current operated and non-operated production from these non-core
assets is approximately 4,800 boe/d. As a result of these announced
dispositions, Crescent Point is adjusting its 2018 average
production guidance to 181,000 boe/d and exit production guidance
to 190,000 boe/d. The Company expects to allocate proceeds from
these dispositions toward debt reduction and continued
strengthening of its balance sheet. Crescent Point’s capital
expenditures guidance for 2018 remains unchanged at $1.775 billion,
as minimal capital expenditures were planned for the disposed
assets for the remainder of the year.
The Company’s revised business strategy is reprioritizing key
value drivers, including continuing improvement of the balance
sheet, disciplined capital allocation and cost reductions. These
value drivers are expected to result in improved rates of return on
capital employed, debt adjusted per share metrics, free cash flow
generation and, ultimately, the Company’s long-term sustainability.
More specific details on Crescent Point’s revised strategy will be
communicated subsequent to a formal portfolio review, which is
currently underway.
The Company’s updated guidance for 2018, which is set forth
below, reflects the announced dispositions of non-core assets and
does not reflect potential changes that may be implemented as part
of Crescent Point’s new strategic direction.
2018 Guidance Total average annual production
(boe/d) % Oil and NGLs |
Prior 183,500 90% |
Revised 181,000 90% |
Exit production (boe/d) |
|
195,000 |
|
190,000 |
Total capital expenditures, before net land and property
acquisitions ($ million) (1) |
|
$1,775 |
|
$1,775 |
(1) The projection of capital expenditures excludes
property and land acquisitions, which are separately considered and
evaluated.
Non-GAAP Financial Measures
In this press release, the Company uses the terms “return on
capital employed” and “free cash flow generation”. These terms do
not have standardized meaning as prescribed by IFRS and, therefore,
may not be comparable with the calculation of similar measures
presented by other issuers. Return on capital employed is defined
as return on average capital employed and is calculated as earnings
before interest and taxes divided by average capital employed. Free
cash flow is calculated as funds flow from operations less capital
expenditures.
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 following: the
expected timing to close two non-core asset sale transactions; 2018
annual and exit production guidance; 2018 total capital
expenditures guidance; the expected use of proceeds from the sale
of non-core assets; the Company’s plans to prioritize key value
drivers and how these key areas of focus are expected to improve
Crescent Point’s rates of return on capital employed, debt adjusted
per share metrics, free cash flow generation and long-term
sustainability; and the expectation that the Company will provide
more details on its revised strategy following a formal portfolio
review.
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 March 31,
2018 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, 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 March
31, 2018 under the headings “Derivatives”, “Liquidity and
Capital Resources”, “Changes in Accounting Policy” 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.
CRESCENT POINT ENERGY CORP.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE
CONTACT:
Ken Lamont, Chief Financial Officer, or Brad Borggard, Vice
President, Corporate Planning and Investor Relations
Telephone: (403)
693-0020
|
Toll-free (US and
Canada): 888-693-0020 |
Fax: (403)
693-0070 |
Website:
www.crescentpointenergy.com |
Crescent Point shares are traded on the Toronto Stock
Exchange and New York Stock Exchange under the symbol
CPG.
Crescent Point Energy Corp.
Suite 2000, 585 - 8th Avenue S.W.
Calgary, Alberta T2P 1G1
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