CALGARY, AB, July 28, 2021 /PRNewswire/ - Crescent Point
Energy Corp. ("Crescent Point" or the "Company")
(TSX: CPG) (NYSE: CPG) is pleased to announce its
operating and financial results for the quarter ended June 30, 2021.
KEY HIGHLIGHTS
- Successfully closed the acquisition of Kaybob Duvernay assets
and disposition of southeast Saskatchewan conventional assets, both as
previously announced, further enhancing the Company's balance sheet
strength and sustainability.
- Reduced net debtŦ by approximately $360 million following the closing of the Kaybob
Duvernay acquisition.
- Upwardly revised 2021 production guidance while keeping capital
expenditures within the previously indicated range.
- Released third annual sustainability report highlighting
Crescent Point's increased commitment to strong ESG performance
through its enhanced targets, compensation framework and capital
allocation process.
- Received recognition of improved ESG practices from MSCI Inc.,
which upgraded its rating on the Company to "A" from "BBB".
"Our second quarter results demonstrate our continued focus on
maximizing excess cash flow generation through our strong capital
discipline and successful operational execution", said Craig Bryksa, President and CEO of Crescent
Point. "We also closed two strategic transactions during the
quarter, further enhancing our asset portfolio and long-term
sustainability. The seamless integration of the Kaybob Duvernay
assets and the constructive commodity price environment have set us
up for a strong second half of the year and into 2022. We expect to
generate significant excess cash flow in the current commodity
price environment, allowing for further net debt reduction and
return of capital to shareholders."
FINANCIAL HIGHLIGHTS
- Adjusted funds flowŦ totaled $387.8 million during second quarter 2021, or
$0.66 per share diluted, driven by a
strong operating netbackŦ of $39.87 per boe.
- For the quarter ended June 30,
2021, the Company's development capital expenditures, which
included drilling and development, facilities and seismic costs,
totaled $88.4 million.
- Crescent Point's net debt as at June 30,
2021 totaled approximately $2.3
billion, including approximately $670
million in cash consideration paid for the acquisition of
Kaybob Duvernay assets, which closed on April 1, 2021. Subsequent to the closing of the
acquisition, the Company successfully reduced its net debt during
the quarter by approximately $360
million, or over half of the cash portion of the purchase
price of the Kaybob Duvernay assets. This reduction was achieved
through significant excess cash flowŦ generation and the
proceeds from the previously announced disposition, and is in
addition to over $135 million of net
debt reduction in first quarter 2021.
- During second quarter, the Company repaid senior note
maturities totaling approximately $185
million. Crescent Point's next senior note maturities,
totaling approximately $225 million,
are not due until second quarter 2022. The Company retains
significant liquidity and its credit facilities are not due for
renewal until October 2023.
- As part of its risk management program to protect cash flow
generation and returns, the Company maintains an active hedging
portfolio. Crescent Point currently has over 40 percent of its oil
and liquids production, net of royalty interest, hedged for the
second half of 2021 at a weighted average price of approximately
CDN$66/bbl. The Company also has
approximately 20 percent of its oil and liquids production hedged
for 2022. Crescent Point plans to remain disciplined in its
approach to layering on additional protection in the context of
commodity prices.
- The Company reported net income of $2.1
billion for the three month period ending June 30, 2021, primarily resulting from a
$2.5 billion ($1.9 billion after-tax) reversal of non-cash
impairment due to an increase in forward commodity prices and the
independent engineers' price forecast. Crescent Point's second
quarter net income also included a gain on sale of over
$70 million related to the previously
announced disposition. Adjusted net earnings from
operationsŦ during second quarter was $117.6 million, or $0.20 per share diluted.
- Subsequent to the quarter, the Company declared a quarterly
cash dividend of $0.0025 per share
payable on October 1, 2021.
Ŧ These are non-GAAP
measures. All financial figures are approximate and in Canadian
dollars unless otherwise noted. This press release contains
forward-looking information and references to non-GAAP financial
measures. Significant related assumptions and risk factors, and
reconciliations are described under the Non-GAAP Financial Measures
and Forward-Looking Statements sections of this press release,
respectively.
|
OPERATIONAL HIGHLIGHTS
- Crescent Point's average production in second quarter 2021 was
148,641 boe/d, comprised of approximately 85 percent oil and
liquids.
- The Company recently commenced drilling the first pad of its
second half 2021 development program in the Kaybob Duvernay, with
production expected to be onstream toward the end of the year.
Crescent Point is pursuing a conservative development plan with a
focus on generating strong full-cycle returns. The Company will
seek to leverage its significant expertise in horizontal multi-well
pad development and field technology to further optimize
efficiencies and returns in the play.
- Within the Company's southeast and southwest Saskatchewan resource plays, Crescent Point
continued to focus on low-risk, high-return infill drilling and the
advancement of its decline mitigation programs. During the first
half of the year, Crescent Point converted approximately 55
producing wells to water injection wells and remains on track with
its plan to convert a total of over 135 wells in 2021. The Company
is also advancing other decline mitigation programs and enhanced
oil recovery techniques, including the continued development of its
polymer floods in southwest Saskatchewan, to further enhance long-term
free cash flowŦ and sustainability.
- During second quarter 2021, the Company released its third
annual sustainability report, outlining its latest progress and
commitment to strong environmental, social and governance ("ESG")
practices. The 2021 Sustainability Report was highlighted by an
increased target for emissions intensity reduction to 50 percent by
2025, including a 70 percent reduction in absolute methane
emissions, relative to a 2017 baseline. Crescent Point also
introduced a target to reduce its inactive well inventory by 30
percent over the next 10 years, excluding the impact of the
previously announced disposition and including the planned safe
retirement of approximately 400 wells in 2021. In addition, the
Company is progressing the development of freshwater use targets,
which are anticipated to be released later this year. In order to
support these initiatives and additional ESG progress, Crescent
Point will allocate three to five percent of its annual maintenance
capital budget to environmental stewardship moving forward.
- Crescent Point's commitment to strong ESG practices was
recognized with an improved rating of "A" in the Morgan Stanley
Capital International ("MSCI") Inc. ESG Ratings assessment. This
rating was released prior to the issuance of the Company's 2021
Sustainability Report which included several enhanced ESG
targets.
OUTLOOK
The Company's second quarter results highlight management's
continued strong execution and capital discipline.
Crescent Point's recent strategic acquisition and disposition
activities are expected to deliver meaningful improvements to the
business by enhancing the Company's free cash flow generation and
deleveraging profile, improving its cost structure, increasing
overall scalability and reducing future decommissioning
liabilities.
Crescent Point is upwardly revising its 2021 annual average
production guidance to be 130,000 to 134,000 boe/d, up from its
prior range of 128,000 to 132,000 boe/d. This increase reflects the
Company's continued operational outperformance in addition to the
reactivation of higher cost production that was previously shut-in
during a lower commodity price environment. Crescent Point is also
narrowing its 2021 development capital expenditures guidance,
within its prior range, to approximately $600 to $625
million.
Crescent Point anticipates generating excess cash flow of
approximately $675 to $775 million in 2021 at US$65/bbl to US$75/bbl WTI for the remainder of the year. The
Company's improved excess cash flow outlook is expected to
accelerate its deleveraging process, increasing its ability to
further enhance shareholder value.
As Crescent Point's balance sheet continues to strengthen toward
its leverage targets, the Company will evaluate the return of
additional capital to shareholders, including its current dividend,
in the context of its capital allocation framework.
CONFERENCE CALL DETAILS
Crescent Point management will hold a conference call on
Wednesday, July 28, 2021 at
10:00 a.m. MT (12:00 p.m. ET) to discuss the Company's results
and outlook. A slide deck will accompany the conference call and
can be found on Crescent Point's website.
Participants can listen to this event
online. Alternatively, the conference call can be accessed by
dialing 1–888–390–0605.
The webcast will be archived for replay and can be accessed on
Crescent Point's website. The replay will be available
approximately one hour following completion of the call.
Shareholders and investors can also find the Company's most
recent investor presentation and sustainability report on Crescent
Point's website.
2021 GUIDANCE
The Company's guidance for 2021 is as follows:
|
Prior
|
Revised
|
Total Annual
Average Production (boe/d) (1)
|
128,000 -
132,000
|
130,000 -
134,000
|
|
|
|
Capital
Expenditures
|
|
|
Development capital
expenditures ($ million)
|
$575 -
$625
|
$600 -
$625
|
Capitalized G&A
($ million)
|
$35
|
$35
|
|
|
|
Total ($ million)
(2)
|
$610 -
$660
|
$635 -
$660
|
|
|
|
Other Information
for 2021 Guidance
|
|
|
Reclamation
activities ($ million) (3)
|
$15
|
$15
|
Capital lease
payments ($ million)
|
$20
|
$20
|
Annual operating
expenses
|
$595 - $615
million
($12.45 - $12.95/boe)
|
$615 - $635
million
($12.75 - $13.25/boe)
|
Royalties
|
11.5% -
12.5%
|
12.0% -
12.5%
|
1)
|
Total annual average
production (boe/d) is comprised of 86% Oil & Liquids and 14%
Natural Gas
|
2)
|
Land expenditures and
net property acquisitions and dispositions are not included.
Development capital expenditures spend is allocated as follows: 84%
drilling & development and 16% facilities
& seismic
|
3)
|
Reflects Crescent
Point's portion of its expected total budget
|
The Company's unaudited financial statements and management's
discussion and analysis for the period ended June 30, 2021, will be available on the System
for Electronic Document Analysis and Retrieval ("SEDAR") at
www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on Crescent
Point's website at www.crescentpointenergy.com.
FINANCIAL AND OPERATING HIGHLIGHTS
|
Three months ended
June 30
|
Six months ended June
30
|
(Cdn$ millions except
per share and per boe amounts)
|
2021
|
2020
|
2021
|
2020
|
Financial
|
|
|
|
|
Cash flow from
operating activities
|
285.5
|
66.6
|
589.2
|
359.9
|
Adjusted funds flow
from operations (1)
|
387.8
|
109.0
|
650.5
|
418.5
|
Per share (1)
(2)
|
0.66
|
0.21
|
1.16
|
0.79
|
Net income
(loss)
|
2,143.3
|
(145.1)
|
2,165.0
|
(2,469.2)
|
Per share
(2)
|
3.65
|
(0.27)
|
3.85
|
(4.67)
|
Adjusted net earnings
from operations (1)
|
117.6
|
(27.9)
|
212.7
|
20.8
|
Per share (1)
(2)
|
0.20
|
(0.05)
|
0.38
|
0.04
|
Dividends
declared
|
1.5
|
1.4
|
2.8
|
6.7
|
Per share
(2)
|
0.0025
|
0.0025
|
0.0050
|
0.0125
|
Net debt
(1)
|
2,324.2
|
2,308.6
|
2,324.2
|
2,308.6
|
Net debt to adjusted
funds flow from operations (1) (3)
|
2.1
|
1.9
|
2.1
|
1.9
|
Weighted average
shares outstanding
|
|
|
|
|
Basic
|
581.7
|
529.3
|
556.2
|
528.8
|
Diluted
|
587.8
|
531.2
|
562.1
|
529.7
|
Operating
|
|
|
|
|
Average daily
production
|
|
|
|
|
Crude oil and
condensate (bbls/d)
|
107,444
|
94,900
|
101,394
|
103,414
|
NGLs
(bbls/d)
|
18,608
|
14,210
|
15,978
|
15,852
|
Natural gas
(mcf/d)
|
135,531
|
70,391
|
100,327
|
70,921
|
Total
(boe/d)
|
148,641
|
120,842
|
134,093
|
131,086
|
Average selling
prices (4)
|
|
|
|
|
Crude oil and
condensate ($/bbl)
|
75.88
|
26.74
|
70.88
|
38.90
|
NGLs
($/bbl)
|
36.78
|
8.11
|
37.16
|
13.17
|
Natural gas
($/mcf)
|
3.64
|
2.74
|
3.92
|
2.88
|
Total
($/boe)
|
62.78
|
23.55
|
60.95
|
33.84
|
Netback ($/boe)
|
|
|
|
|
Oil and gas
sales
|
62.78
|
23.55
|
60.95
|
33.84
|
Royalties
|
(7.90)
|
(2.77)
|
(7.93)
|
(4.34)
|
Operating
expenses
|
(12.63)
|
(11.89)
|
(12.91)
|
(12.12)
|
Transportation
expenses
|
(2.38)
|
(2.24)
|
(2.36)
|
(2.24)
|
Operating netback
(1)
|
39.87
|
6.65
|
37.75
|
15.14
|
Realized gain (loss)
on commodity derivatives
|
(7.22)
|
8.15
|
(6.48)
|
6.12
|
Other
(5)
|
(3.98)
|
(4.89)
|
(4.46)
|
(3.72)
|
Adjusted funds flow
from operations netback (1)
|
28.67
|
9.91
|
26.81
|
17.54
|
Capital
Expenditures
|
|
|
|
|
Capital acquisitions
(6)
|
936.3
|
—
|
936.3
|
1.4
|
Capital dispositions
(6)
|
(87.9)
|
(1.5)
|
(95.1)
|
(508.4)
|
Development capital
expenditures
|
|
|
|
Drilling and
development
|
57.9
|
64.0
|
163.5
|
357.6
|
Facilities and
seismic
|
30.5
|
8.0
|
44.1
|
34.5
|
Total
|
88.4
|
72.0
|
207.6
|
392.1
|
Land
expenditures
|
2.0
|
0.8
|
2.9
|
1.6
|
(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 commodity 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 acquisition
and dispositions represent total consideration for the
transactions, including long-term debt and working capital assumed,
and exclude transaction costs.
|
Non-GAAP Financial Measures
Throughout this press release, the Company uses the terms
"adjusted funds flow", "adjusted funds flow from operations",
"adjusted funds flow from operations per share - diluted",
"adjusted net earnings from operations", "adjusted net earnings
from operations per share - diluted", "free cash flow", "excess
cash flow", "net debt", "net debt to adjusted funds flow from
operations", "netback", "operating netback" and "adjusted funds
flow from operations netback". These terms do not have any
standardized meaning as prescribed by IFRS and, therefore, may not
be comparable with the calculation of similar measures presented by
other issuers.
Adjusted funds flow 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
funded by the Company. Adjusted funds flow from operations per
share - diluted is calculated as adjusted funds flow from
operations divided by the number of weighted average diluted shares
outstanding. Transaction costs are excluded as they vary based on
the Company's acquisition and disposition activity and to ensure
that this metric is more comparable between periods.
Decommissioning expenditures are discretionary and are excluded as
they may vary based on the stage of Company's assets and operating
areas. Management utilizes adjusted funds flow from operations as a
key measure to assess the ability of the Company to finance
dividends, operating activities, capital expenditures and debt
repayments. Adjusted funds flow from operations as presented is not
intended to represent cash flow from operating activities, net
earnings or other measures of financial performance calculated in
accordance with IFRS.
Excess cash flow is defined as adjusted funds flow from
operations less capital expenditures, payments on lease liability,
decommissioning expenditures funded by the Company, dividends and
other cash items (excluding net acquisitions and dispositions).
Management utilizes excess cash flow as a key measure to assess the
ability of the Company to finance dividends, potential share
repurchases, debt repayments and returns-based growth.
The following table reconciles cash flow from operating
activities to adjusted funds flow from operations:
|
Three months ended
June 30
|
Six months ended June
30
|
($
millions)
|
2021
|
2020
|
2021
|
2020
|
Cash flow from
operating activities
|
285.5
|
66.6
|
589.2
|
395.9
|
Changes in non-cash
working capital
|
88.4
|
41.1
|
41.2
|
8.0
|
Transaction
costs
|
11.7
|
0.6
|
11.8
|
5.3
|
Decommissioning
expenditures (1)
|
2.2
|
0.7
|
8.3
|
9.3
|
Adjusted funds flow
from operations
|
387.8
|
109.0
|
650.5
|
418.5
|
(1)
|
Excludes amounts
received from government subsidy programs.
|
Adjusted net earnings from operations is calculated based on net
income before amortization of exploration and evaluation
("E&E") undeveloped land, impairment or impairment reversal,
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)
|
2021
|
2020
|
2021
|
2020
|
Net income
(loss)
|
2,143.3
|
(145.1)
|
2,165.0
|
(2,469.2)
|
Amortization of
E&E undeveloped land
|
13.3
|
19.6
|
27.1
|
41.3
|
Impairment
(impairment reversal)
|
(2,514.4)
|
—
|
(2,514.4)
|
3,557.8
|
Unrealized derivative
(gains) losses
|
143.6
|
229.2
|
225.3
|
(189.3)
|
Unrealized foreign
exchange (gain) loss on translation of
|
|
|
|
|
hedged US dollar long-term debt
|
(37.9)
|
(74.1)
|
(49.8)
|
61.8
|
Unrealized (gain)
loss on long-term investments
|
(3.9)
|
(1.2)
|
(6.1)
|
4.3
|
Net (gain) loss on
capital dispositions
|
(73.8)
|
(0.8)
|
(56.5)
|
(308.3)
|
Deferred tax relating
to adjustments
|
447.4
|
(55.5)
|
422.1
|
(677.6)
|
Adjusted net earnings
from operations
|
117.6
|
(27.9)
|
212.7
|
20.8
|
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). Management utilizes free cash flow
as a key measure to assess the ability of the Company to finance
dividends, potential share repurchases, debt repayments and
returns-based growth.
Net debt is calculated as long-term debt plus accounts payable
and accrued liabilities and long-term compensation liability net of
equity derivative contracts, less cash, accounts receivable,
prepaids and deposits, and long-term investments, excluding the
unrealized foreign exchange on translation of US dollar long-term
debt. Management utilizes net debt as a key measure to assess the
liquidity of the Company.
The following table reconciles long-term debt to net debt:
($
millions)
|
June 30,
2021
|
June 30,
2020
|
Long-term debt
(1)
|
2,462.1
|
2,597.6
|
Accounts payable and
accrued liabilities
|
340.8
|
270.3
|
Long-term
compensation liability (2)
|
25.3
|
5.9
|
Cash
|
(4.4)
|
(27.6)
|
Accounts
receivable
|
(308.1)
|
(183.7)
|
Prepaids and
deposits
|
(28.9)
|
(23.7)
|
Long-term
investments
|
(8.6)
|
(2.5)
|
Excludes:
|
|
|
Unrealized foreign
exchange on translation of hedged US dollar long-term
debt
|
(154.0)
|
(327.7)
|
Net debt
|
2,324.2
|
2,308.6
|
(1)
|
Includes current
portion of long-term debt.
|
(2)
|
Includes current
portion of long-term compensation liability and is net of equity
derivative contracts.
|
Net debt to adjusted funds flow from operations is calculated as
the period end net debt divided by the sum of adjusted funds flow
from operations for the trailing four quarters. The ratio of net
debt to adjusted funds flow from operations is used by management
to measure the Company's overall debt position and to measure the
strength of the Company's balance sheet. Crescent Point monitors
this ratio and uses this as a key measure in making decisions
regarding financing, capital spending and dividend levels.
Operating netback is calculated on a per boe basis as oil and
gas sales, less royalties, operating and transportation expenses.
Adjusted funds flow netback is equivalent to adjusted funds flow
from operations netback. Adjusted funds flow from operations
netback is calculated on a per boe basis as operating netback less
net purchased products, realized derivative gains and losses,
general and administrative expenses, interest on long-term debt,
foreign exchange, cash-settled share-based compensation and certain
cash items, excluding transaction costs, foreign exchange on US
dollar long-term debt and certain non-cash items. Cash flow netback
is equivalent to adjusted funds flow from operations netback.
Operating netback and adjusted funds flow from operations netback
are common metrics used in the oil and gas industry and are used by
management to measure operating results on a per boe basis to
better analyze performance against between prior periods on a
comparable basis. Netback calculations are shown in the Financial
and Operating Highlights section in this press release. Oil and gas
metrics such as operating netback and netback do not have
standardized meaning and as such may not be reliable, and should
not be used to make comparisons.
Management believes the presentation of the Non-GAAP measures
above provide useful information to investors and shareholders as
the measures provide increased transparency and the ability to
better analyze performance against prior periods on a comparable
basis.
All amounts in the news release are stated in Canadian dollars
unless otherwise specified.
Forward-Looking Statements
Any "financial outlook" or "future oriented financial
information" in this press release, as defined by applicable
securities legislation has been approved by management of Crescent
Point. Such financial outlook or future oriented financial
information is provided for the purpose of providing information
about management's current expectations and plans relating to the
future. Readers are cautioned that reliance on such information may
not be appropriate for other purposes.
Certain statements contained in this press release constitute
"forward-looking statements" within the meaning of section 27A of
the Securities Act of 1933 and section 21E of the Securities
Exchange Act of 1934 and "forward-looking information" for the
purposes of Canadian securities regulation (collectively,
"forward-looking statements"). The Company has tried to identify
such forward-looking statements by use of such words as "could",
"should", "can", "anticipate", "expect", "believe", "will", "may",
"intend", "projected", "sustain", "continues", "strategy",
"potential", "projects", "grow", "take advantage", "estimate",
"well-positioned" and other similar expressions, but these words
are not the exclusive means of identifying such statements.
In particular, this press release contains forward-looking
statements pertaining, among other things, to the following:
benefits of acquisitions and dispositions; a strong second half of
2021 and into 2022; generating significant excess cash flow in the
current commodity price environment, allowing for further net debt
reduction and return of capital to shareholders; extent and
benefits of hedging portfolio; Kaybob Duvernay production timing,
conservative development plan with a focus on full-cycle returns;
and leveraging expertise to optimize efficiencies in the play;
water injection well conversion plans; enhanced oil recovery
techniques and benefits thereof; increased target for scope 1
emissions intensity reduction to 50 percent by 2025, including a 70
percent reduction in absolute methane emissions, relative to a 2017
baseline; reducing inactive well inventory by 30 percent over the
next 10 years, excluding the impact of the previously announced
disposition and including the planned safe retirement of
approximately 400 wells in 2021; progressing the development of
freshwater use targets, which are anticipated to be released later
this year; allocating three to five percent of the annual
maintenance capital budget to environmental stewardship moving
forward; 2021 annual average production guidance; 2021 capital
expenditures guidance including development capital expenditures
and capitalized G&A; 2021 reclamation activities; capital lease
payments, annual operation expenses and royalties; development
capital expenditures guidance; generating excess cash flow of
approximately $675 to $775 million in 2021 at US$65/bbl to US$75/bbl WTI for the remainder of 2021; the
Company's improved excess cash flow outlook is expected to
accelerate its deleveraging process, increasing its ability to
further enhance shareholder value; reestablishing a core dividend;
and additional forms of returning capital to shareholders,
including potential share repurchases, in the context of its
returns-based capital allocation framework.
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, 2020.
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, 2020, and in its
material change report dated February 26,
2021, which are 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,
2020 under "Risk Factors" and our Management's Discussion
and Analysis for the year ended December 31,
2020, and for the quarter ended June
30, 2021, 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 June 30, 2021, under the
headings "Overview", "Commodity Derivatives", "Liquidity and
Capital Resources", and "Guidance" (as updated herein). 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 acquisitions and dispositions; 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; 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; 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; uncertainties associated
with credit facilities and counterparty credit risk; cybersecurity
risks; 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 and six
months ended June 30, 2021 and
June 30, 2020 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
June 30
|
Six months ended June
30
|
|
2021
|
2020
|
2021
|
2020
|
Light & Medium
Crude Oil (bbl/d)
|
20,181
|
18,952
|
20,482
|
21,863
|
Heavy Crude Oil
(bbl/d)
|
4,269
|
4,269
|
4,193
|
4,511
|
Tight Oil
(bbl/d)
|
65,595
|
71,679
|
67,972
|
77,041
|
Total Crude Oil
(bbl/d)
|
90,045
|
94,900
|
92,647
|
103,415
|
|
|
|
|
|
NGLs
(bbl/d)
|
36,007
|
14,210
|
24,725
|
15,851
|
|
|
|
|
|
Shale Gas
(Mcf/d)
|
125,830
|
57,254
|
89,618
|
55,569
|
Conventional Natural
Gas (Mcf/d)
|
9,701
|
13,137
|
10,709
|
15,352
|
Total Natural Gas
(Mcf/d)
|
135,531
|
70,391
|
100,327
|
70,921
|
Total
(boe/d)
|
148,641
|
120,842
|
134,093
|
131,086
|
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 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 therefrom.
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.