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, 2018.
KEY HIGHLIGHTS
- Announced updated strategy and transition plan on September 5,
2018, with a goal of becoming a more focused and efficient company
with a stronger balance sheet.
- Completed previously announced organizational restructuring,
resulting in approximately $50 million of annual cost savings.
- Strong third quarter production with current operations on
track to meet or exceed 2018 guidance within capital budget.
FINANCIAL HIGHLIGHTS
- Funds flow from operations totaled $474.7 million during third
quarter, or $0.86 per share diluted, including an operating netback
of $41.14 per boe.
- Capital expenditures were $416.0 million in the quarter. The
Company spent $366.4 million on drilling and development
activities, drilling 215 (169.2 net) wells, $44.7 million on
facilities and seismic and $4.9 million on land.
- Crescent Point's 2018 capital expenditures guidance remains
unchanged at $1.775 billion, with free cash flow generation
expected to improve in 2019, based on a preliminary capital
expenditures budget of $1.55 billion to $1.60 billion.
- As at September 30, 2018, net debt to funds flow from
operations was 2.1 times, with cash and unutilized credit capacity
of approximately $1.7 billion. The Company is targeting net debt to
funds flow from operations of 1.3 times or less, which it expects
to achieve as part of its transition plan deliverables.
- General and administrative ("G&A") expenses totaled $29.0
million or $1.81/boe in the quarter, including $5.7 million of
incremental severance costs associated with the recent
organizational restructuring. Crescent Point expects to realize
savings from this restructuring starting in fourth quarter 2018, a
portion of which will reduce G&A expenses. The Company's
transition plan also includes further cost reduction pilots and
initiatives targeting additional operating expense and capital cost
savings.
- As at October 19, 2018, Crescent Point had, on average, over 40
percent of its oil and liquids production, net of royalty interest,
hedged through the remainder of 2018 and 2019, at a weighted
average market value price of approximately CDN$78.00/bbl.
OPERATIONAL HIGHLIGHTS
- Third quarter production averaged 174,275 boe/d, comprised of
approximately 90 percent oil and liquids. Average production during
the quarter was slightly ahead of forecast and takes into account
approximately 4,800 boe/d of previously announced non-core asset
dispositions that closed at the end of second quarter. The
Company's fourth quarter production estimate is currently tracking
ahead of forecast, based on an annual guidance of 177,000
boe/d.
- Operating activity within Crescent Point’s Canadian assets
resumed at the beginning of third quarter following normal
seasonality related to spring break-up. In the Viewfield Bakken and
Shaunavon resource plays, the Company is focused on a combination
of low-risk, high-return infill drilling and waterflood
development. In the Flat Lake resource play, Crescent Point's
return-focused development strategy is expected to generate
improved efficiencies by utilizing new facilities, implementing pad
drilling and reducing costs.
- In the Company's emerging and earlier stage resource plays,
Crescent Point remains encouraged with well results, including
recent two-mile horizontal wells targeting multiple zones in the
Uinta Basin. The Company is focused on improving well costs and
overall efficiencies in this resource play through stacked,
multi-well pad development. Crescent Point will continue to pursue
new opportunities for increased market access in the Uinta Basin
and monitor well results in the East Shale Duvernay before
increasing capital allocated to these resource plays.
- The Company's average selling price per barrel of crude oil was
CDN$80.11 during third quarter. Despite the recent widening of
Canadian oil differentials, Crescent Point expects its realized oil
pricing in fourth quarter to be significantly stronger than
Canadian index prices as approximately 90 percent of the Company's
oil production is either located downstream of recent apportionment
points or in the United States. As a result, Crescent Point
currently expects its average crude oil selling price in fourth
quarter to be only approximately 15 percent lower compared to third
quarter, based on realized prices to date and current forward
pricing.
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.
Summary of Drilling ResultsThe following table
summarizes the Company’s drilling results for the three months
ended September 30, 2018:
Three Months Ended September 30,
2018 |
Total |
Net |
Williston Basin (1) |
112 |
107.2 |
Southwest Saskatchewan |
90 |
54.7 |
Uinta Basin (1) |
8 |
3.6 |
Other |
5 |
3.7 |
Total |
215 |
169.2 |
(1) The net well count is subject to final working interest
determination.
OUTLOOK
Crescent Point remains committed to achieving its transition
plan deliverables, which are centered around a focused asset base,
balance sheet strength, improved margins and increased free cash
flow generation.
During its recent strategy review, the Company identified a
number of assets as potential divestment candidates. Crescent Point
is targeting a net debt to funds flow from operations of 1.3 times
or less over the next 12 to 24 months and will be disciplined
during the divestiture process to ensure appropriate asset values
are realized for shareholders.
“We are in the early stages of our transition and have already
completed an organizational restructuring as part of our cost
reduction initiatives," said Craig Bryksa, President and CEO of
Crescent Point. “We remain committed to achieving each of our
deliverables and will keep our shareholders informed as we execute
our strategy. Once we achieve our goals, we expect to be in a
stronger position to allocate increased free cash flow to other
value creating opportunities."
On October 23, 2018, the Canadian federal government announced a
new carbon pricing policy, which is expected to apply to Crescent
Point's Saskatchewan operations beginning in April 2019. The direct
impact from this policy is expected to be minimal, with incremental
costs representing less than one percent of annual funds flow from
operations. The Company's operations and capital investments
continue to reflect its commitment to environmentally responsible
development.
GUIDANCE
Crescent Point’s 2018 guidance remains unchanged, with an annual
average production of 177,000 boe/d and capital expenditures of
$1.775 billion. As previously released on September 5, 2018, the
Company's preliminary 2019 capital expenditures guidance is
expected to be approximately $1.55 billion to $1.60 billion, with
annual average production of approximately 176,000 to 180,000
boe/d. As disclosed previously, the Company's guidance excludes
expenditures on land, which are expected to be modest at
approximately one to two percent of incremental capital.
Crescent Point plans to announce its formal 2019 guidance upon
completion of its 2018 capital program. The Company will continue
to monitor oil differentials and their impact on corporate returns
as it finalizes its guidance and capital allocation for 2019.
CONFERENCE CALL DETAILS
The Company’s management will host a conference call on
Thursday, October 25, 2018 at 10:00 a.m. MT (12:00 p.m. ET), to
discuss Crescent Point’s results and outlook. A slide deck will
accompany the conference call and can be found on Crescent Point’s
website under the "Invest" heading.
Participants can listen to this event online by entering
https://edge.media-server.com/m6/p/pe6eo46k in a web browser.
Alternately, the conference can be accessed by dialing 844-231-0101
or 216-562-0389 and entering passcode 5172225. For those unable to
participate in the conference call at the scheduled time, the
webcast will be archived for replay and can be accessed on the
Company's website at www.crescentpointenergy.com. The replay will
be available approximately one hour after the completion of the
call.
The Company's unaudited financial statements and management’s
discussion and analysis for the quarter ended September 30, 2018,
are available on the System for Electronic Document Analysis and
Retrieval ("SEDAR") at www.sedar.com, on EDGAR
at www.sec.gov/edgar.shtml and on Crescent Point’s website at
www.crescentpointenergy.com.
FINANCIAL AND OPERATING HIGHLIGHTS
|
Three months ended September
30 |
|
Nine months ended September
30 |
|
(Cdn$ millions except per share and per boe
amounts) |
2018 |
|
2017 |
|
|
2018 |
|
2017 |
|
|
Financial |
|
|
|
|
|
|
Cash flow from operating activities |
474.1 |
|
437.0 |
|
|
1,388.9 |
|
1,269.1 |
|
|
Funds flow from operations (1) |
474.7 |
|
389.0 |
|
|
1,403.9 |
|
1,234.1 |
|
|
Per share (1) (2) |
0.86 |
|
0.71 |
|
|
2.55 |
|
2.26 |
|
|
Net income (loss) |
30.5 |
|
(270.6 |
) |
|
(226.4 |
) |
(67.6 |
) |
|
Per share (2) |
0.06 |
|
(0.50 |
) |
|
(0.41 |
) |
(0.12 |
) |
|
Adjusted net earnings from operations (1) |
84.8 |
|
33.7 |
|
|
250.9 |
|
135.1 |
|
|
Per share (1) (2) |
0.15 |
|
0.06 |
|
|
0.46 |
|
0.25 |
|
|
Dividends declared |
49.8 |
|
49.4 |
|
|
149.1 |
|
148.2 |
|
|
Per share (2) |
0.09 |
|
0.09 |
|
|
0.27 |
|
0.27 |
|
|
Payout ratio (%) (1) |
10 |
|
13 |
|
|
11 |
|
12 |
|
|
Net debt (1) |
4,006.9 |
|
4,135.9 |
|
|
4,006.9 |
|
4,135.9 |
|
|
Net debt to funds flow from operations (1)
(3) |
2.1 |
|
2.5 |
|
|
2.1 |
|
2.5 |
|
|
Climate change initiatives and asset retirement
(4) |
12.5 |
|
0.7 |
|
|
27.5 |
|
18.2 |
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
Basic |
549.8 |
|
545.4 |
|
|
548.8 |
|
545.0 |
|
|
Diluted |
551.1 |
|
546.2 |
|
|
550.2 |
|
546.7 |
|
|
Operating |
|
|
|
|
|
|
Average daily production |
|
|
|
|
|
|
Crude oil (bbls/d) |
134,146 |
|
139,254 |
|
|
140,304 |
|
139,811 |
|
|
NGLs (bbls/d) |
22,257 |
|
18,811 |
|
|
19,668 |
|
17,850 |
|
|
Natural gas (mcf/d) |
107,231 |
|
108,021 |
|
|
109,098 |
|
104,117 |
|
|
Total (boe/d) |
174,275 |
|
176,069 |
|
|
178,155 |
|
175,014 |
|
|
Average selling prices (5) |
|
|
|
|
|
|
Crude oil ($/bbl) |
80.11 |
|
54.74 |
|
|
74.50 |
|
57.28 |
|
|
NGLs ($/bbl) |
33.35 |
|
25.89 |
|
|
33.98 |
|
25.46 |
|
|
Natural gas ($/mcf) |
2.00 |
|
2.10 |
|
|
2.01 |
|
2.72 |
|
|
Total ($/boe) |
67.15 |
|
47.35 |
|
|
63.66 |
|
49.97 |
|
|
Netbacks ($/boe) |
|
|
|
|
|
|
Oil and gas sales |
67.15 |
|
47.35 |
|
|
63.66 |
|
49.97 |
|
|
Royalties |
(10.68 |
) |
(7.08 |
) |
|
(9.62 |
) |
(7.32 |
) |
|
Operating expenses |
(13.56 |
) |
(12.97 |
) |
|
(13.22 |
) |
(12.58 |
) |
|
Transportation expenses |
(1.77 |
) |
(1.96 |
) |
|
(2.01 |
) |
(2.09 |
) |
|
Operating netback (1) |
41.14 |
|
25.34 |
|
|
38.81 |
|
27.98 |
|
|
Realized gain (loss) on derivatives |
(7.14 |
) |
3.29 |
|
|
(4.89 |
) |
1.83 |
|
|
Other (6) |
(4.39 |
) |
(4.62 |
) |
|
(5.05 |
) |
(3.98 |
) |
|
Funds flow from operations netback (1) |
29.61 |
|
24.01 |
|
|
28.87 |
|
25.83 |
|
|
Capital Expenditures |
|
|
|
|
|
|
Capital acquisitions (dispositions), net
(7) |
(21.4 |
) |
(12.7 |
) |
|
(298.0 |
) |
157.8 |
|
|
Development capital expenditures (4) |
|
|
|
|
|
|
Drilling and development |
366.4 |
|
423.7 |
|
|
1,257.8 |
|
1,119.4 |
|
|
Facilities and seismic |
44.7 |
|
42.5 |
|
|
176.5 |
|
130.4 |
|
|
Land |
4.9 |
|
39.5 |
|
|
28.3 |
|
82.6 |
|
|
Total |
416.0 |
|
505.7 |
|
|
1,462.6 |
|
1,332.4 |
|
|
(1) |
Funds flow from
operations, 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 funds flow from
operations, operating netback and 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 funds flow
from operations is calculated as the period end net debt divided by
the sum of funds flow from operations for the trailing four
quarters. |
(4) |
Climate change initiatives
and asset retirement includes environmental emission reduction
expenditures, which are also included in development capital
expenditures in the table above. |
(5) |
The average selling prices
reported are before realized derivatives and transportation. |
(6) |
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. |
(7) |
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 "funds flow from operations", "funds flow from operations
per share - diluted", "adjusted net earnings from operations",
"adjusted net earnings from operations per share - diluted",
"payout ratio", "net debt", "net debt to funds flow from
operations", "operating netback" and "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.
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. Funds flow from
operations per share - diluted is calculated as 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 excluded as the Company has a
voluntary reclamation fund to fund decommissioning costs.
Management utilizes 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. 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 funds flow from operations:
|
Three months ended September
30 |
|
Nine months ended September
30 |
|
($ millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Cash flow from operating activities |
474.1 |
|
|
437.0 |
|
|
1,388.9 |
|
|
1,269.1 |
|
|
Changes in non-cash working capital |
(6.2 |
) |
|
(52.5 |
) |
|
(9.3 |
) |
|
(54.2 |
) |
|
Transaction costs |
1.4 |
|
|
(0.4 |
) |
|
4.3 |
|
|
2.3 |
|
|
Decommissioning expenditures |
5.4 |
|
|
4.9 |
|
|
20.0 |
|
|
16.9 |
|
|
Funds flow from operations |
474.7 |
|
|
389.0 |
|
|
1,403.9 |
|
|
1,234.1 |
|
|
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) |
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Net income (loss) |
30.5 |
|
|
(270.6 |
) |
|
(226.4 |
) |
|
(67.6 |
) |
|
Amortization of E&E undeveloped land |
39.9 |
|
|
33.7 |
|
|
118.2 |
|
|
99.5 |
|
|
Impairment |
15.2 |
|
|
306.5 |
|
|
15.2 |
|
|
306.5 |
|
|
Unrealized derivative (gains) losses |
29.2 |
|
|
58.0 |
|
|
298.5 |
|
|
(16.4 |
) |
|
Unrealized foreign exchange (gain) loss on
translation of hedged US dollar long-term debt |
(62.9 |
) |
|
(13.4 |
) |
|
69.8 |
|
|
(147.5 |
) |
|
Unrealized loss on long-term investments |
6.1 |
|
|
0.6 |
|
|
12.4 |
|
|
7.2 |
|
|
(Gain) loss on sale of long-term
investments |
2.8 |
|
|
— |
|
|
(1.7 |
) |
|
— |
|
|
Net (gain) loss on capital dispositions |
30.2 |
|
|
(10.1 |
) |
|
100.8 |
|
|
(10.1 |
) |
|
Deferred tax relating to adjustments |
(6.2 |
) |
|
(71.0 |
) |
|
(135.9 |
) |
|
(36.5 |
) |
|
Adjusted net earnings from operations |
84.8 |
|
|
33.7 |
|
|
250.9 |
|
|
135.1 |
|
|
Payout ratio is calculated on a percentage basis as dividends
declared divided by funds flow from operations. Payout ratio is
used by management to monitor the dividend policy and the amount of
funds flow from operations retained by the Company for capital
reinvestment.
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) |
September 30,
2018 |
|
September 30, 2017 |
|
Long-term debt (1) |
4,156.2 |
|
|
4,149.9 |
|
|
Accounts payable and accrued liabilities |
653.2 |
|
|
644.8 |
|
|
Dividends payable |
16.8 |
|
|
16.7 |
|
|
Long-term compensation liability (2) |
18.1 |
|
|
12.3 |
|
|
Cash |
(65.5 |
) |
|
(74.4 |
) |
|
Accounts receivable |
(455.7 |
) |
|
(304.3 |
) |
|
Prepaids and deposits |
(7.0 |
) |
|
(7.4 |
) |
|
Long-term investments |
(20.0 |
) |
|
(28.6 |
) |
|
Excludes: |
|
|
|
|
Unrealized foreign exchange on translation of
US dollar long-term debt |
(289.2 |
) |
|
(273.1 |
) |
|
Net debt |
4,006.9 |
|
|
4,135.9 |
|
|
(1) Includes current portion of long-term
debt.(2) Includes current portion of long-term compensation
liability.
Net debt to funds flow from operations is calculated as the
period end net debt divided by the sum of funds flow from
operations for the trailing four quarters. The ratio of net debt to
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. The
calculation of operating netback and funds flow from operations
netback is 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 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
Company’s goal of becoming a more focused and efficient company
with a stronger balance sheet; the anticipated annual cost savings
associated with organization restructuring; Crescent Point’s
expectation that free cash flow generation will improve in 2019
based on the Company’s preliminary capital expenditures budget; the
Company’s net debt to funds flow from operations target, and its
expectation that the target will be met as part of its transition
plan; the expected timing to realize savings in relation to the
restructuring; further anticipated cost reduction pilots and
initiatives targeting additional operating expenses and capital
cost savings; the Company's continued exploration of asset
disposition opportunities; the Company's development strategy;
Crescent Point's development strategy for Flat Lake and its
expected impact on efficiencies; the Company’s focus on improving
well costs and overall efficiencies in the Uinta Basin through
stacked, multi-well pad development; Crescent Point’s plans
to continue to pursue new opportunities for increased market access
in the Uinta Basin and monitor well results in the East Shale
Duvernay before increasing capital allocated to these resource
plays; Crescent Point’s expectation that its realized oil pricing
in fourth quarter will be significantly stronger than posted
indexes due to approximately 90 percent of its oil production is
either located downstream of recent apportionment points or
produced in the United States; the Company’s current expectation
that its average fourth quarter crude oil selling price will be
approximately 15 percent lower compared to third quarter, based on
realized prices to date and current forward pricing; Crescent
Point’s ongoing commitment to achieving each of its transition plan
deliverables; the Company’s net debt to funds flow from operations
target over the next 12 to 24 months; the Company’s plan to remain
disciplined during the transition process to ensure appropriate
asset values are realized for shareholders; the Company’s
expectation that once its transition goals are achieved, the
Company expects to be in a stronger position to allocate increased
free cash flow to other value creating opportunities; the Company’s
plan to keep shareholders informed as it executes its strategy; the
expected impact the recently announced new carbon pricing policy
will have on the Company; Crescent Point’s 2018 guidance; the
Company’s preliminary 2019 capital expenditures and annual average
production guidance; Crescent Point’s expected timing to announce
its formal 2019 guidance; anticipated 2018 land spending; and the
Company’s plan to continue to monitor oil differentials and their
impact on overall corporate returns as it finalizes its guidance
and capital allocation plan for 2019.
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, 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
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;
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.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE
CONTACT:
Brad Borggard, Senior Vice President, Corporate
Planning and Capital Markers, orShant Madian, Vice
President, Investor Relations and Corporate
CommunicationsTelephone: (403) 693-0020 Toll-free (US and Canada):
888-693-0020 Fax: (403) 693-0070Address: 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.
PDF available:
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