CALGARY, AB, Oct. 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 September 30,
2021.
KEY HIGHLIGHTS
- Generated over $180 million of
excess cash flow, or over $580
million year-to-date, further enhancing balance sheet
strength.
- Successfully commenced Kaybob Duvernay drilling program, with
completions expected in fourth quarter 2021.
- Entered into farm-in agreement with a Kaybob Duvernay operator
and completed partner wells 20 percent below budget.
- Net debt to adjusted funds flow expected to be at 1.0 times in
early 2022, based on current forward strip commodity prices.
- Recently accelerated shareholder returns by increasing
quarterly dividend to $0.03 per
share, as previously announced.
- Excess cash flow generation of approximately $925 million expected in 2022, after dividends,
at US$75/bbl WTI.
"Our third quarter and year-to-date results continue to
demonstrate the success of our operational, financial and strategic
execution," said Craig Bryksa,
President and CEO of Crescent Point. "We are focused on continually
enhancing the business and shareholder returns through our key
pillars of balance sheet strength and sustainability. Our recently
increased dividend also demonstrates our commitment to returning
capital to shareholders, with a goal to increase such returns over
time."
FINANCIAL HIGHLIGHTS
- Adjusted funds flow totaled $393.9
million or $0.67 per share
diluted during third quarter, supported by a strong operating
netback of $44.15 per boe. Crescent
Point's adjusted funds flow generation continues to benefit from
its improved cost structure, high liquids weighting and strong
market access that positively impacted realized pricing in the
quarter. In particular, the Company's liquids product streams in
its North Dakota and Kaybob
Duvernay assets currently trade at a premium to WTI.
- For the quarter ended September 30,
2021, the Company's development capital expenditures, which
included drilling and development, facilities and seismic costs,
totaled $187.1 million.
- Crescent Point's net debt as at September 30, 2021 totaled approximately
$2.1 billion, reflecting over
$180 million of net debt reduction in
the quarter. Since the closing of the Kaybob Duvernay acquisition
in second quarter 2021, the Company has reduced its net debt by
approximately $550 million, or over
80 percent of the cash portion of the purchase price.
- As part of its risk management program to reduce cash flow
volatility, Crescent Point maintains an active and diversified
hedging portfolio. The Company currently has approximately 45
percent of its oil and liquids production, net of royalty interest,
hedged for 2022 utilizing a portfolio of swaps and collars that
provide a combination of price protection with upside
participation. 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 $77.5
million for the three month period ended September 30, 2021. Crescent Point's third
quarter net income included approximately $44 million in non-recurring charges primarily
related to a re-evaluation of the Company's tax pools in addition
to costs incurred related to the closure of its U.S. corporate
office.
- During the quarter, the Company's Board of Directors approved
and declared a fourth quarter dividend increase to $0.03 per share, payable on January 4, 2022 to shareholders of record on
December 15, 2021. This equates to an
annualized dividend of $0.12 per
share, an increase of $0.11 per share
from the prior level.
OPERATIONAL HIGHLIGHTS
- Crescent Point's average third quarter production was 132,186
boe/d, comprised of over 80 percent oil and liquids. The Company's
production reflects the recent disposition of non-core assets, a
conservative 2021 program with expenditures below sustaining
capital requirements and the timing of several high impact
multi-well pads that were brought onstream during the first half of
the year.
- In the Kaybob Duvernay, the Company initiated its first
multi-well pad drilling program during third quarter with strong
operational execution to date. These wells are expected to be
completed during fourth quarter 2021. Crescent Point plans to
further enhance economics in the Kaybob Duvernay, which are already
highly competitive, through a combination of realizing potential
cost efficiencies and improved productivity from modifications to
the completions design of the prior operator.
- During third quarter, the Company also entered into a farm-in
agreement with a Kaybob Duvernay operator to complete certain wells
in exchange for a working interest in such wells and additional
lands in the play. Crescent Point successfully completed a related
five-well pad in late third quarter, achieving completion costs
approximately 20 percent below those that were expected by the
Company when it entered the Kaybob Duvernay play in early
2021.
- Crescent Point's other operating activities remain focused on
low-risk, high-return development in its major operating areas of
Saskatchewan and North Dakota. The Company also recently
expanded the economic boundaries of its Viewfield and Shaunavon resource plays through a successful
2021 step-out drilling program.
- As part of its decline mitigation initiatives, the Company has
converted approximately 115 producing wells to water injection
wells year-to-date and currently remains on track to convert over
135 wells in 2021. During the quarter, Crescent Point received
approval from the Government of Saskatchewan to fully unitize an additional
two units in the Viewfield Bakken. The Company now has six fully
unitized units in the play, providing the opportunity to expand its
waterflood program over the coming years.
- As part of its continued commitment to strong environmental,
social and governance ("ESG") practices, Crescent Point introduced
a target in its 2021 Sustainability Report to reduce its inactive
well inventory by 30 percent over the next 10 years. The Company is
accelerating progress towards this target by increasing its 2021
reclamation activities spending and planning for the safe
retirement of approximately 500 wells, up from approximately 400
wells. Year-to-date, Crescent Point has successfully retired
approximately 450 wells, further reducing its environmental
footprint.
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.
|
OUTLOOK
Based on strong year-to-date results, the Company now expects to
generate 2021 average production of 132,000 to 134,000 boe/d, at
the higher end of its previous guidance range of 130,000 to 134,000
boe/d. Crescent Point's 2021 capital expenditures are now expected
to be approximately $625 million,
within its prior guidance range of $600 to $625
million. This budget includes capital associated with the
additional completions of partner wells in the Kaybob Duvernay
along with reductions in other operating areas, highlighting the
Company's capital discipline.
Crescent Point recently established its preliminary guidance for
2022, which it expects to formalize prior to the end of the year.
The Company is expected to generate annual average production of
131,000 to 135,000 boe/d within a conservative budget of
$825 to $900
million in development capital expenditures, including
long-term and environmental initiatives as well as an assumption
for cost inflation.
Crescent Point anticipates its 2022 annual program, along with
the recently increased dividend, will be fully funded at a low oil
price of approximately US$40/bbl WTI.
Assuming US$75/bbl WTI, this budget
is expected to generate significant excess cash flow of
approximately $925 million, after
dividends, providing the opportunity to create further shareholder
value.
The Company is currently prioritizing its balance sheet with its
excess cash flow allocation and expects to achieve 1.0 times net
debt to adjusted funds flow in early 2022 based on current forward
strip commodity prices.
Crescent Point will continue to evaluate its excess cash flow
allocation in the context of its capital allocation framework. The
Company is committed to returning capital to shareholders while
also generating returns through debt-adjusted per share growth.
CONFERENCE CALL DETAILS
Crescent Point management will hold a conference call on
Thursday, October 28, 2021 at
10:00 a.m. MT (12:00 p.m. ET) to discuss the Company's results
and outlook. A slide deck will accompany the conference call and
can be found on Crescent Point's website.
Participants can listen to this event
online. Alternatively, the conference call can be accessed by
dialing 1–888–390–0605.
The webcast will be archived for replay and can be accessed on
Crescent Point's website. The replay will be available
approximately one hour following completion of the call.
Shareholders and investors can also find the Company's most
recent investor presentation and sustainability report on Crescent
Point's website.
2021 GUIDANCE
The Company's guidance for 2021 is as follows:
|
Prior
|
Revised
|
Total Annual
Average Production (boe/d) (1)
|
130,000 -
134,000
|
132,000 -
134,000
|
|
|
|
Capital
Expenditures
|
|
|
Development capital
expenditures ($ million)
|
$600 -
$625
|
$625
|
Capitalized G&A
($ million)
|
$35
|
$40
|
Total ($ million)
(2)
|
$635 -
$660
|
$665
|
|
|
|
Other Information
for 2021 Guidance
|
|
|
Reclamation
activities ($ million) (3)
|
$15
|
$20
|
Capital lease
payments ($ million)
|
$20
|
$20
|
Annual operating
expenses
|
$615 - $635
million
($12.75 - $13.25/boe)
|
$635 million
($13.00 - $13.20/boe)
|
Royalties
|
12.0 -
12.5%
|
12.5 -
13.0%
|
1)
|
Total annual average
production (boe/d) is comprised of approximately 85% Oil &
Liquids and 15% Natural Gas
|
2)
|
Land expenditures and
net property acquisitions and dispositions are not included.
Development capital expenditures spend is allocated on an
approximate basis as follows: 85% drilling & development and
15% facilities & seismic
|
3)
|
Reflects Crescent
Point's portion of its expected total budget
|
The Company's unaudited financial statements and management's
discussion and analysis for the period ended September 30, 2021, will be available on the
System for Electronic Document Analysis and Retrieval ("SEDAR") at
www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on Crescent
Point's website at www.crescentpointenergy.com.
FINANCIAL AND OPERATING HIGHLIGHTS
|
|
|
|
Three months ended
September 30
|
Nine months ended
September 30
|
(Cdn$ millions except
per share and per boe amounts)
|
2021
|
2020
|
2021
|
2020
|
Financial
|
|
|
|
|
Cash flow from
operating activities
|
414.2
|
219.5
|
1,003.4
|
615.4
|
Adjusted funds flow
from operations (1)
|
393.9
|
235.7
|
1,044.4
|
654.2
|
Per share (1)
(2)
|
0.67
|
0.44
|
1.83
|
1.23
|
Net income
(loss)
|
77.5
|
0.5
|
2,242.5
|
(2,468.7)
|
Per share
(2)
|
0.13
|
—
|
3.93
|
(4.67)
|
Adjusted net earnings
from operations (1)
|
142.6
|
71.0
|
355.3
|
91.8
|
Per share (1)
(2)
|
0.24
|
0.13
|
0.62
|
0.17
|
Dividends
declared
|
19.0
|
1.3
|
21.8
|
8.0
|
Per share
(2)
|
0.0325
|
0.0025
|
0.0375
|
0.0150
|
Net debt
(1)
|
2,138.8
|
2,189.2
|
2,138.8
|
2,189.2
|
Net debt to adjusted
funds flow from operations (1) (3)
|
1.7
|
2.0
|
1.7
|
2.0
|
Weighted average
shares outstanding
|
|
|
|
|
Basic
|
582.0
|
529.7
|
564.9
|
529.1
|
Diluted
|
587.1
|
532.9
|
570.7
|
530.5
|
Operating
|
|
|
|
|
Average daily
production
|
|
|
|
|
Crude oil and
condensate (bbls/d)
|
92,206
|
89,260
|
98,298
|
98,662
|
NGLs
(bbls/d)
|
18,176
|
13,458
|
16,719
|
15,048
|
Natural gas
(mcf/d)
|
130,823
|
63,988
|
110,604
|
68,593
|
Total
(boe/d)
|
132,186
|
113,383
|
133,451
|
125,142
|
Average selling
prices (4)
|
|
|
|
|
Crude oil and
condensate ($/bbl)
|
82.45
|
48.24
|
74.54
|
41.74
|
NGLs
($/bbl)
|
45.24
|
19.05
|
40.12
|
14.93
|
Natural gas
($/mcf)
|
4.29
|
2.94
|
4.07
|
2.90
|
Total
($/boe)
|
67.99
|
41.89
|
63.30
|
36.29
|
Netback ($/boe)
|
|
|
|
|
Oil and gas
sales
|
67.99
|
41.89
|
63.30
|
36.29
|
Royalties
|
(8.35)
|
(5.35)
|
(8.07)
|
(4.65)
|
Operating
expenses
|
(12.97)
|
(13.10)
|
(12.93)
|
(12.42)
|
Transportation
expenses
|
(2.52)
|
(2.33)
|
(2.41)
|
(2.27)
|
Operating netback
(1)
|
44.15
|
21.11
|
39.89
|
16.95
|
Realized gain (loss)
on commodity derivatives
|
(7.26)
|
5.62
|
(6.74)
|
5.96
|
Other
(5)
|
(4.50)
|
(4.13)
|
(4.48)
|
(3.83)
|
Adjusted funds flow
from operations netback (1)
|
32.39
|
22.60
|
28.67
|
19.08
|
Capital
Expenditures
|
|
|
|
|
Capital acquisitions
(6)
|
0.9
|
—
|
937.2
|
1.4
|
Capital dispositions
(6)
|
(3.8)
|
(0.9)
|
(98.9)
|
(509.3)
|
Development capital
expenditures
|
|
|
|
|
Drilling and
development
|
161.3
|
76.6
|
324.8
|
434.2
|
Facilities and
seismic
|
25.8
|
16.7
|
69.9
|
51.2
|
Total
|
187.1
|
93.3
|
394.7
|
485.4
|
Land
expenditures
|
1.2
|
1.2
|
4.1
|
2.8
|
(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 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", "excess
cash flow", "adjusted net earnings from operations", "adjusted net
earnings from operations per share - diluted", "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 and excess cash
flow:
|
|
|
|
Three months ended
September 30
|
Nine months ended
September 30
|
($
millions)
|
2021
|
2020
|
2021
|
2020
|
Cash flow from
operating activities
|
414.2
|
219.5
|
1,003.4
|
615.4
|
Changes in non-cash
working capital
|
(23.7)
|
14.8
|
17.5
|
22.8
|
Transaction
costs
|
0.4
|
0.1
|
12.2
|
5.4
|
Decommissioning
expenditures (1)
|
3.0
|
1.3
|
11.3
|
10.6
|
Adjusted funds flow
from operations
|
393.9
|
235.7
|
1,044.4
|
654.2
|
Capital
expenditures
|
(198.1)
|
(102.8)
|
(433.2)
|
(517.2)
|
Payments on lease
liability
|
(5.4)
|
(5.2)
|
(15.6)
|
(24.8)
|
Decommissioning
expenditures
|
(3.0)
|
(1.3)
|
(11.3)
|
(10.6)
|
Other cash items
(2)
|
14.1
|
(6.5)
|
21.7
|
(12.6)
|
Dividends
|
(19.0)
|
(1.3)
|
(21.8)
|
(8.0)
|
Excess cash
flow
|
182.5
|
118.6
|
584.2
|
81.0
|
(1)
|
Excludes amounts
received from government subsidy programs.
|
(2)
|
Excluding net
acquisitions and dispositions.
|
Adjusted net earnings from operations is calculated based on net
income before amortization of exploration and evaluation
("E&E") undeveloped land, impairment or impairment reversals,
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, gains or losses on
capital acquisitions and dispositions and deferred tax related to
these adjustments. Adjusted net earnings from operations for the
three and nine months ended September 30,
2021, also excludes deferred tax related to a change in
estimated usable tax pools resulting from a recent potential
precedent setting Federal Court case. Adjusted net earnings from
operations per share - diluted is calculated as adjusted net
earnings from operations divided by the number of weighted average
diluted shares outstanding. Management utilizes adjusted net
earnings from operations to present a measure of financial
performance that is more comparable between periods. Adjusted net
earnings from operations as presented is not intended to represent
net earnings or other measures of financial performance calculated
in accordance with IFRS.
The following table reconciles net income to adjusted net
earnings from operations:
|
|
|
|
Three months ended
September 30
|
Nine months ended
September 30
|
($
millions)
|
2021
|
2020
|
2021
|
2020
|
Net income
(loss)
|
77.5
|
0.5
|
2,242.5
|
(2,468.7)
|
Amortization of
E&E undeveloped land
|
14.3
|
16.7
|
41.4
|
58.0
|
Impairment
(impairment reversal)
|
—
|
—
|
(2,514.4)
|
3,557.8
|
Unrealized derivative
(gains) losses
|
3.2
|
116.3
|
228.5
|
(73.0)
|
Unrealized foreign
exchange (gain) loss on translation of
|
|
|
|
|
hedged US dollar
long-term debt
|
25.9
|
(37.7)
|
(23.9)
|
24.1
|
Unrealized (gain)
loss on long-term investments
|
3.0
|
0.8
|
(3.1)
|
5.1
|
Gain on sale of
long-term investments
|
(7.0)
|
—
|
(7.0)
|
—
|
Net (gain) loss on
capital dispositions
|
(1.9)
|
0.4
|
(58.4)
|
(307.9)
|
Deferred tax
adjustments
|
27.6
|
(26.0)
|
449.7
|
(703.6)
|
Adjusted net earnings
from operations
|
142.6
|
71.0
|
355.3
|
91.8
|
Net debt is calculated as long-term debt plus accounts payable
and accrued liabilities, dividends payable 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)
|
September 30,
2021
|
September 30,
2020
|
Long-term debt
(1)
|
2,209.9
|
2,413.7
|
Accounts payable and
accrued liabilities
|
415.4
|
276.5
|
Dividends
payable
|
19.0
|
1.3
|
Long-term
compensation liability (2)
|
31.9
|
11.6
|
Cash
|
(22.0)
|
(8.6)
|
Accounts
receivable
|
(307.2)
|
(189.5)
|
Prepaids and
deposits
|
(28.3)
|
(24.1)
|
Long-term
investments
|
—
|
(1.7)
|
Excludes:
|
|
|
Unrealized foreign
exchange on translation of hedged US dollar long-term
debt
|
(179.9)
|
(290.0)
|
Net debt
|
2,138.8
|
2,189.2
|
(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. 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",
"plans", "well-positioned" and other similar expressions, but these
words are not the exclusive means of identifying such
statements.
In particular, this press release contains forward-looking
statements pertaining, among other things, to the following: the
expected timing to complete the Kaybob Duvernay drilling program;
net debt to adjusted funds flow expected to be at 1.0 times in
early 2022, based on current forward strip commodity prices; excess
cash flow generation expected in 2022, after dividends, at
US$75/bbl WTI; focused on continually
enhancing the business and shareholder returns through key pillars;
commitment to returning capital to shareholders, with a goal to
increase such returns over time; hedging portfolio, plans and
characteristics; plans to enhance Kaybob Duvernay economics; the
focus of Crescent Point's other operating activities; 2021 well
conversion expectations; waterflood program expansion; targeting an
inactive well inventory reduction of 30 percent over the next 10
years; increasing 2021 reclamation activities spending; safe
retirement of approximately 500 wells in 2021; 2021 average
production of 132,000 to 134,000 boe/d; 2021 capital expenditures
of approximately $625 million; 2022
annual average production of 131,000 to 135,000 boe/d within a
conservative budget of $825 to
$900 million in development capital
expenditures, including long-term and environmental initiatives as
well as an assumption for cost inflation; 2022 annual program,
along with dividend, fully funded at approximately US$40/bbl WTI; assuming US$75/bbl WTI, 2022 budget expected to generate
significant excess cash flow of approximately $925 million, after dividends; balance sheet
prioritized with excess cash flow allocation; achievement of 1.0
times net debt to adjusted funds flow in early 2022 based on
current forward strip commodity prices; continued evaluation of
excess cash flow allocation in the context of its capital
allocation framework; commitment to returning capital to
shareholders while also generating returns through debt-adjusted
per share growth; 2021 capitalized G&A, reclamation activities,
capital lease payments, annual operating expenses and
royalties.
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 September 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 and nine months ended September 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, including current and new
variants thereof; 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; 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
nine months ended September 30, 2021
and September 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
September 30
|
Nine months ended
September 30
|
|
2021
|
2020
|
2021
|
2020
|
Light & Medium
Crude Oil (bbl/d)
|
15,046
|
18,846
|
18,651
|
20,781
|
Heavy Crude Oil
(bbl/d)
|
4,199
|
4,223
|
4,196
|
4,414
|
Tight Oil
(bbl/d)
|
58,233
|
66,191
|
64,689
|
73,468
|
Total Crude Oil
(bbl/d)
|
77,478
|
89,260
|
87,536
|
98,663
|
NGLs
(bbl/d)
|
32,904
|
13,458
|
27,481
|
15,047
|
Shale Gas
(Mcf/d)
|
117,339
|
50,776
|
98,959
|
54,102
|
Conventional Natural
Gas (Mcf/d)
|
13,484
|
13,212
|
11,644
|
14,491
|
Total Natural Gas
(Mcf/d)
|
130,823
|
63,988
|
110,603
|
68,593
|
Total
(boe/d)
|
132,186
|
113,383
|
133,451
|
125,142
|
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.
View original
content:https://www.prnewswire.com/news-releases/crescent-point-announces-q3-2021-results-301410429.html
SOURCE Crescent Point Energy Corp.