CALGARY, AB, May 12, 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 March 31, 2021.
KEY HIGHLIGHTS
- Reduced net debt by over $135
million in first quarter, driven by continued excess cash
flow generation.
- Successfully closed accretive acquisition of Kaybob Duvernay
assets, further enhancing free cash flow profile.
- Expect to generate significant excess cash flow of
approximately $525 to $650 million in 2021 at US$55/bbl to US$65/bbl WTI.
- Increased target for emissions intensity reduction to 50
percent by 2025, demonstrating strong environmental
stewardship.
"Our first quarter results continued to demonstrate our strong
operational execution", said Craig
Bryksa, President and CEO of Crescent Point. "Against the
backdrop of a rising oil price environment, we have remained
disciplined and focused on enhancing balance sheet strength and the
sustainability of our business. The Kaybob Duvernay assets
strengthen our expected free cash flow outlook, accelerate our
deleveraging profile and improve our environmental performance,
positioning our company to create significant value for our
shareholders in 2021 and beyond."
FINANCIAL HIGHLIGHTS
- Adjusted funds flow totaled $262.7
million during first quarter 2021, or $0.49 per share diluted, driven by a strong
operating netback of $35.06 per
boe.
- For the quarter ended March 31,
2021, the Company's development capital expenditures, which
included drilling and development, facilities and seismic costs,
totaled $119.2 million.
- Net debt as at March 31, 2021
equated to approximately $2.0
billion, reflecting $135.8
million of net debt reduction in the quarter or over
$750 million since the beginning of
2020. Subsequent to the quarter, on April 1,
2021, Crescent Point closed its acquisition of Kaybob
Duvernay assets, which included a net cash payment of approximately
$670 million funded through the
Company's credit facilities. Crescent Point retains significant
liquidity with no material near-term senior note maturities. The
Company's credit facilities are not due for renewal until
October 2023.
- As part of its risk management program to protect against
commodity price volatility, 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 through the
remainder of 2021. These hedges primarily consist of swaps with an
average price of approximately CDN$65/bbl. The Company plans to remain
disciplined in its approach to layering on additional protection in
the context of commodity prices.
- Subsequent to first quarter, the Company declared a quarterly
cash dividend of $0.0025 per share
payable on July 2, 2021.
OPERATIONAL HIGHLIGHTS
- Crescent Point's average production in first quarter 2021 was
119,384 boe/d, comprised of over 90 percent oil and liquids.
- The Company plans to continue advancing its southeast and
southwest Saskatchewan assets
through a 2021 development program focused on a combination of
low-risk, high-return infill drilling and waterflood development.
Crescent Point also expects to continue advancing its North Dakota resource play by focusing on
maximizing efficiencies through multi-well pad development. These
assets are expected to continue to generate significant excess cash
flow in the current commodity price environment.
- During second quarter 2020, the Company established an
emissions intensity reduction target of 30 percent by 2025,
relative to its 2017 baseline. Crescent Point is currently on track
to exceed this target as a result of its proactive development
planning, enhanced gas conservation efforts and success reducing
flaring. Consequently, the Company has substantially increased its
target for emissions intensity reduction to 50 percent by 2025.
This target is expected to be achieved through a number of internal
initiatives, including significantly reducing the Company's methane
emissions. Crescent Point expects to release its third annual
sustainability report in 2021, which will highlight the Company's
continued commitment to strong environmental, social and governance
("ESG") practices and will include additional environmental
targets.
- As part of its continued focus on decline mitigation, the
Company successfully converted approximately 30 producing wells to
water injection in first quarter 2021. Crescent Point expects to
convert a total of over 135 wells in 2021 as part of its waterflood
program. In addition, the Company successfully advanced its plans
to pilot other enhanced oil recovery techniques during the quarter.
These activities are expected to continue to moderate Crescent
Point's decline rate, enhancing long-term free cash flow generation
and sustainability. The Company's base decline rate in 2021 is
expected to be approximately 25 percent.
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.
|
KAYBOB DUVERNAY
HIGHLIGHTS
- Subsequent to first quarter 2021, Crescent Point successfully
closed the previously announced accretive acquisition of Kaybob
Duvernay assets in Alberta
purchased from Shell Canada Energy ("Shell"). This strategic
transaction is expected to enhance the Company's free cash flow
profile, inventory depth and includes key infrastructure that is
expected to lower future capital requirements.
- During first quarter 2021, Shell completed and brought onstream
a number of previously drilled wells. Crescent Point now has over
30 days of production data for 10 of these wells, which flowed at
an average 30-day initial production ("IP30") rate of approximately
800 boe/d per well (79% condensate, 6% NGL and 15% shale gas).
- The Company plans to drill approximately 10 wells in Kaybob
Duvernay through the remainder of 2021. Crescent Point will seek to
leverage its significant expertise in horizontal multi-well pad
development and field technology to optimize efficiencies.
- The Company plans to maximize free cash flow generation from
the Kaybob Duvernay assets by targeting a sustainable decline rate
with an annual production base of approximately 30,000 boe/d.
Crescent Point expects the assets to generate approximately
$185 to $255
million of net operating income in excess of capital
expenditures at US$55/bbl to
US$65/bbl WTI. This assumes
approximately $180 million of annual
capital expenditures based on the current cost structure of the
assets.
OUTLOOK
The Company delivered strong first quarter results and is
currently on track to meet or exceed its current annual average
production guidance of 132,000 to 136,000 boe/d, while keeping
development capital expenditures within the previously announced
guidance range of $575 to
$625 million in 2021.
The addition of the Kaybob Duvernay assets to Crescent Point's
portfolio is expected to improve the Company's debt-adjusted per
share metrics, cash flow netback and further accelerates its net
debt reduction.
Through the remainder of 2021, the Company will target further
improvements to the business through the continued rollout of its
operational technology ("OT") platform, ongoing drilling and
completions optimization, decline mitigation programs and by
identifying additional opportunities to enhance efficiencies.
Crescent Point will also continue to evaluate opportunities to
further optimize its asset portfolio through strategic acquisitions
and dispositions in the context of its key priorities of balance
sheet strength and sustainability.
The Company is expected to generate significant excess cash flow
of approximately $525 to $650 million in 2021 at US$55/bbl to US$65/bbl WTI for the remainder of the year,
providing an increased opportunity to further enhance shareholder
value. Crescent Point plans to initially prioritize additional net
debt reduction in its excess cash flow allocation. The Company's
net debt to adjusted funds flow is expected to improve to 1.9x to
1.5x by year-end 2021 at US$55/bbl to
US$65/bbl WTI for the remainder of
the year. Crescent Point expects to generate significant excess
cash flow and recognize further improvement in its leverage profile
in 2022, assuming a similar commodity price range.
The Company will also evaluate the return of additional capital
to shareholders in the context of its capital allocation framework,
leverage targets and adjusted funds flow generation.
ANNUAL GENERAL MEETING
Crescent Point's 2021 Annual General Meeting ("AGM") will be
held on May 20, 2021. Due to the
ongoing COVID-19 pandemic, the Company is proceeding with the AGM
solely by virtual means as previously announced. For more
information, please review the press release dated April 20, 2021.
CONFERENCE CALL DETAILS
Crescent Point management will hold a conference call on
Wednesday, May 12, 2021 at
10:00 a.m. MT (12:00 p.m. ET) to discuss the Company's results
and outlook. A slide deck will accompany the conference call and
can be found on Crescent Point's website.
Participants can listen to this event
online. Alternatively, the conference call can be accessed by
dialing 1–888–390–0605.
The webcast will be archived for replay and can be accessed on
Crescent Point's website. The replay will be available
approximately one hour following completion of the call.
Shareholders and investors can also find the Company's most
recent investor presentation on Crescent Point's website.
2021 GUIDANCE
The Company's guidance for 2021 is as follows:
Total Annual
Average Production (boe/d) (1)
|
132,000 -
136,000
|
|
|
Capital
Expenditures
|
|
Development capital
expenditures ($ million)
|
$575 -
$625
|
Capitalized G&A
($ million)
|
$35
|
Total ($ million)
(2)
|
$610 -
$660
|
|
|
Other Information
for 2021 Guidance
|
|
Reclamation
activities ($ million) (3)
|
$15
|
Capital lease
payments ($ million)
|
$20
|
Annual operating
expenses
|
$625 - $645
million
($12.75 - $13.25/boe)
|
Royalties
|
11.5% -
12.5%
|
1)
|
Total annual average
production (boe/d) is comprised of 87% Oil & NGLs and 13%
Natural Gas
|
2)
|
Land expenditures and
net property acquisitions and dispositions are not included.
Development capital expenditures spend is allocated as follows: 87%
drilling & development and 13% facilities &
seismic
|
3)
|
Reflects Crescent
Point's portion of its expected total budget
|
The Company's unaudited financial statements and management's
discussion and analysis for the quarter ended March 31, 2021, will be available on the System
for Electronic Document Analysis and Retrieval ("SEDAR") at
www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on Crescent
Point's website at www.crescentpointenergy.com.
FINANCIAL AND OPERATING HIGHLIGHTS
|
Three months ended
March 31
|
(Cdn$ millions except
per share and per boe amounts)
|
2021
|
2020
|
Financial
|
|
|
Cash flow from
operating activities
|
303.7
|
329.3
|
Adjusted funds flow
from operations (1)
|
262.7
|
309.5
|
Per share (1)
(2)
|
0.49
|
0.59
|
Net income
(loss)
|
21.7
|
(2,324.1)
|
Per share
(2)
|
0.04
|
(4.40)
|
Adjusted net earnings
from operations (1)
|
95.1
|
48.7
|
Per share (1)
(2)
|
0.18
|
0.09
|
Dividends
declared
|
1.3
|
5.3
|
Per share
(2)
|
0.0025
|
0.0100
|
Net debt
(1)
|
2,013.4
|
2,327.9
|
Net debt to adjusted
funds flow from operations (1) (3)
|
2.4
|
1.4
|
Weighted average
shares outstanding
|
|
|
Basic
|
530.4
|
528.3
|
Diluted
|
536.6
|
528.3
|
Operating
|
|
|
Average daily
production
|
|
|
Crude oil
(bbls/d)
|
95,276
|
111,928
|
NGLs
(bbls/d)
|
13,319
|
17,493
|
Natural gas
(mcf/d)
|
64,732
|
71,451
|
Total
(boe/d)
|
119,384
|
141,330
|
Average selling
prices (4)
|
|
|
Crude oil
($/bbl)
|
65.17
|
49.21
|
NGLs
($/bbl)
|
37.70
|
17.28
|
Natural gas
($/mcf)
|
4.50
|
3.03
|
Total
($/boe)
|
58.65
|
42.64
|
Netback ($/boe)
|
|
|
Oil and gas
sales
|
58.65
|
42.64
|
Royalties
|
(7.98)
|
(5.68)
|
Operating
expenses
|
(13.27)
|
(12.31)
|
Transportation
expenses
|
(2.34)
|
(2.24)
|
Operating netback
(1)
|
35.06
|
22.41
|
Realized gain (loss)
on derivatives
|
(5.55)
|
4.38
|
Other
(5)
|
(5.06)
|
(2.73)
|
Adjusted funds flow
from operations netback (1)
|
24.45
|
24.06
|
Capital
Expenditures
|
|
|
Capital dispositions,
net (6)
|
(7.2)
|
(505.5)
|
Development capital
expenditures
|
|
|
Drilling and
development
|
105.6
|
293.6
|
Facilities and
seismic
|
13.6
|
26.5
|
Total
|
119.2
|
320.1
|
Land
expenditures
|
0.9
|
0.8
|
(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 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", "adjusted funds flow from operations",
"funds flow", "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 and funds flow are 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, the Company's share of asset retirement
obligations, 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
March 31
|
($
millions)
|
2021
|
|
|
2020
|
|
Cash flow from
operating activities
|
303.7
|
|
|
329.3
|
|
Changes in non-cash
working capital
|
(47.2)
|
|
|
(33.1)
|
|
Transaction
costs
|
0.1
|
|
|
4.7
|
|
Decommissioning
expenditures (1)
|
6.1
|
|
|
8.6
|
|
Adjusted funds flow
from operations
|
262.7
|
|
|
309.5
|
|
(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 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
March 31
|
|
($
millions)
|
2021
|
|
|
2020
|
|
Net income
(loss)
|
21.7
|
|
|
(2,324.1)
|
|
Amortization of
E&E undeveloped land
|
13.8
|
|
|
21.7
|
|
Impairment
|
—
|
|
|
3,557.8
|
|
Unrealized derivative
(gains) losses
|
81.7
|
|
|
(418.5)
|
|
Unrealized foreign
exchange (gain) loss on translation of hedged US dollar long-term
debt
|
(11.9)
|
|
|
135.9
|
|
Unrealized (gain)
loss on long-term investments
|
(2.2)
|
|
|
5.5
|
|
Net (gain) loss on
capital dispositions
|
17.3
|
|
|
(307.5)
|
|
Deferred tax relating
to adjustments
|
(25.3)
|
|
|
(622.1)
|
|
Adjusted net earnings
from operations
|
95.1
|
|
|
48.7
|
|
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, including deposit on acquisition, 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)
|
March 31,
2021
|
March 31,
2020
|
Long-term debt
(1)
|
2,149.4
|
|
2,539.2
|
Accounts payable and
accrued liabilities
|
369.0
|
|
418.2
|
Long-term
compensation liability (2)
|
32.8
|
|
2.4
|
Cash
|
(24.0)
|
|
(19.6)
|
Accounts
receivable
|
(251.2)
|
|
(196.7)
|
Prepaids and deposits
(3)
|
(66.0)
|
|
(12.6)
|
Long-term
investments
|
(4.7)
|
|
(1.2)
|
Excludes:
|
|
|
Unrealized foreign
exchange on translation of hedged US dollar long-term
debt
|
(191.9)
|
|
(401.8)
|
Net debt
|
2,013.4
|
|
2,327.9
|
(1)
|
Includes current
portion of long-term debt.
|
(2)
|
Includes current
portion of long-term compensation liability and is net of equity
derivative contracts.
|
(3)
|
Includes deposit on
acquisition.
|
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:
generating significant excess cash flow of approximately
$525 to $650
million in 2021 at US$55/bbl
to US$65/bbl WTI for the remainder of
the year; a greenhouse gas emissions intensity reduction of 50
percent of 2017 levels by 2025, its methane component, and the
means by which this is expected to be achieved; the benefits and
expectations of the Kaybob-Duvernay assets; creation of significant
value for shareholders in 2021 and beyond; Crescent Point retains
significant liquidity; extent and benefits of hedging program;
dividends; development plans North
Dakota, and southeast and southwest Saskatchewan; release of the Company's third
annual sustainability report; 2021 waterflood conversion
expectations; enhanced oil recovery pilots; moderation of decline
rate and enhanced long term cash flow generation and sustainability
through waterflooding and enhanced oil recovery projects; 2021
expected base decline rate; Kaybob-Duvernay drilling plans;
leveraging significant relevant experience; targeted
Kaybob-Duvernay free cash flow, decline rate and annual production;
expected generation, from the Kaybob-Duvernay assets, of
approximately $185 to $255 million of annual net operating income in
excess of capital expenditures at US$55/bbl to US$65/bbl WTI, assuming an annual capital
expenditures spending of $180 million
based on the current cost structure of the assets; further
improvements to the Company's business; continuing to evaluate
opportunities to further optimize the Company's asset portfolio
through strategic acquisitions and dispositions in the context of
key priorities of balance sheet strength and sustainability;
generate significant excess cash flow providing an increased
opportunity to further enhance shareholder value; priorities for
excess cash flow allocation; net debt to adjusted funds flow
expected to improve to 1.9x to 1.5x by year-end 2021 at
US$55/bbl to US$65/bbl WTI for the remainder of the year;
expectations of generating significant excess cash flow and further
improvement in leverage profile in 2022, assuming a similar
commodity price range; evaluating the return of additional capital
to shareholders in the context of the Company's capital allocation
framework, leverage targets and adjusted funds flow generation; and
2021 guidance including total annual average production (and the
potential to exceed its current annual average production
guidance), development capital expenditures (and proportion
allocated to drilling and development and facilities and seismic),
capitalized G&A, reclamation activities, capital lease payment,
annual operating expenses, and royalties.
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 March
31, 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 March 31, 2021, under
the headings "Overview", "Commodity Derivatives", "Liquidity and
Capital Resources", and "Guidance". In addition, risk factors
include: financial risk of marketing reserves at an acceptable
price given market conditions; volatility in market prices for oil
and natural gas, decisions or actions of OPEC and non-OPEC
countries in respect of supplies of oil and gas; delays in business
operations or delivery of services due to pipeline restrictions,
rail blockades, outbreaks, blowouts and business closures and
social distancing measures mandated by public health authorities in
response to COVID-19; uncertainty regarding the benefits and costs
of the Acquisition; failure to complete the Acquisition; the risk
of carrying out operations with minimal environmental impact;
industry conditions including changes in laws and regulations
including the adoption of new environmental laws and regulations
and changes in how they are interpreted and enforced; uncertainties
associated with estimating oil and natural gas reserves; risks and
uncertainties related to oil and gas interests and operations on
Indigenous lands; economic risk of finding and producing reserves
at a reasonable cost; uncertainties associated with partner plans
and approvals; 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; uncertainty regarding the
benefits and costs of dispositions; failure to complete
acquisitions and dispositions; uncertainties associated with credit
facilities and counterparty credit risk; changes in income tax
laws, tax laws, crown royalty rates and incentive programs relating
to the oil and gas industry; the wide-ranging impacts of the
COVID-19 pandemic, including on demand, health and supply chain;
and other factors, many of which are outside the control of the
Company. The impact of any one risk, uncertainty or factor on a
particular forward-looking statement is not determinable with
certainty as these are interdependent and Crescent Point's future
course of action depends on management's assessment of all
information available at the relevant time.
Additional information on these and other factors that could
affect Crescent Point's operations or financial results are
included in Crescent Point's reports on file with Canadian and U.S.
securities regulatory authorities. Readers are cautioned not to
place undue reliance on this forward-looking information, which is
given as of the date it is expressed herein or otherwise. Crescent
Point undertakes no obligation to update publicly or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, unless required to do so pursuant to
applicable law. All subsequent forward-looking statements, whether
written or oral, attributable to Crescent Point or persons acting
on the Company's behalf are expressly qualified in their entirety
by these cautionary statements.
Product Type Production Information
The Company's aggregate average production for the three months
ended March 31, 2021 and March 31, 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
March 31
|
|
2021
|
2020
|
Light & Medium
Crude Oil (bbl/d)
|
20,699
|
|
24,566
|
Heavy Crude Oil
(bbl/d)
|
4,118
|
|
4,752
|
Tight Oil
(bbl/d)
|
70,459
|
|
82,610
|
Total Crude Oil
(bbl/d)
|
95,276
|
|
111,928
|
|
|
|
NGLs
(bbl/d)
|
13,319
|
|
17,493
|
|
|
|
Shale Gas
(Mcf/d)
|
53,198
|
|
54,312
|
Conventional Natural
Gas (Mcf/d)
|
11,534
|
|
17,139
|
Total Natural Gas
(Mcf/d)
|
64,732
|
|
71,451
|
|
|
|
Total
(boe/d)
|
119,384
|
|
141,330
|
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.
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.