CALGARY, July 25, 2019 /CNW/ - 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
- 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.
"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
- 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.
OPERATIONAL HIGHLIGHTS
- 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.
ASSET DISPOSITIONS
- 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.
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.
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SOURCE Crescent Point Energy Corp.