CALGARY,
AB, May 10, 2023 /PRNewswire/ - Crescent Point
Energy Corp. ("Crescent Point" or the "Company") (TSX: CPG) (NYSE:
CPG) is pleased to announce that it has successfully closed its
previously announced strategic and accretive acquisition of oil and
liquids-rich Montney assets in
Alberta for $1.7 billion in cash (the "Transaction" or
"Acquisition").
This Acquisition aligns with Crescent Point's long-term strategy
and enhances the Company's portfolio by adding 600 high-return
Montney locations, further
extending its premium drilling inventory to 15 years. This
Transaction was also immediately accretive to Crescent Point's
adjusted funds flow and excess cash flow per share by 20 percent,
resulting in a higher return of capital profile for
shareholders.
Crescent Point believes these Montney assets have significant upside through
a combination of potential reserves growth due to the number of
unbooked locations, the opportunity to develop an additional
Montney bench based on the
significant resource in place and the potential for enhanced
efficiencies given the similarities and proximity to its existing
Kaybob Duvernay play.
UPDATE ON THE IMPACT OF THE
ALBERTA WILDFIRES
As previously announced on May 8,
2023, Crescent Point temporarily shut-in approximately
45,000 boe/d in the Kaybob Duvernay in response to the recent
Alberta wildfires. The Company has
since restored approximately 75 percent of the production with no
damage reported to its assets and plans to fully restore the
remaining production once it is safe to do so. Crescent Point will
continue to provide updates on its production impacted by the
wildfires when appropriate.
The Company's production and assets associated with the Montney
Acquisition were not impacted by the wildfires.
FOR MORE INFORMATION ON CRESCENT POINT ENERGY, PLEASE
CONTACT:
Shant Madian, Vice
President, Capital Markets, or
Sarfraz Somani, Manager,
Investor Relations
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.
Specified Financial
Measures
Throughout this press release, the Company uses the terms
"adjusted funds flow" (equivalent to "adjusted funds flow from
operations") and "excess cash flow per share". 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. For information on the composition of
these measures and how the Company uses the measures, refer to the
Specified Financial Measures section of the Company's MD&A for
the year ended December 31, 2022,
which section is incorporated herein by reference, and available on
SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.
The most directly comparable financial measure for adjusted
funds flow from operations disclosed in the Company's primary
financial statements is cash flow from operating activities, which
for the year ended December 31, 2022,
was $2.19 billion.
Excess cash flow per share is a non-GAAP ratio calculated as
excess cash flow divided by the number of shares outstanding.
Excess cash flow per share presents a measure of financial
performance to assess the ability of the Company to finance
dividends, potential share repurchases, debt repayments and
returns-based growth. This measure is based on current shares
outstanding.
Management believes the presentation of the specified financial
measures above provide useful information to investors and
shareholders as the measure provides increased transparency and the
ability to better analyze performance against prior periods on a
comparable basis.
Forward-Looking
Statements
Any "financial outlook" or "future oriented financial
information" in this press release, as defined by applicable
securities legislation has been approved by management of Crescent
Point. Such financial outlook or future oriented financial
information is provided for the purpose of providing information
about management's current expectations and plans relating to the
future. Readers are cautioned that reliance on such information may
not be appropriate for other purposes.
Certain statements contained in this press release constitute
"forward-looking statements" within the meaning of section 27A of
the Securities Act of 1933 and section 21E of the Securities
Exchange Act of 1934 and "forward-looking information" for the
purposes of Canadian securities regulation (collectively,
"forward-looking statements"). In particular, this press release
contains forward-looking statements pertaining, among other things,
to the following: drilling locations, inventory life (on a
corporate level and in the Montney); return of capital profile;
significant upside in the Montney
assets; potential reserves growth due to the number of unbooked
locations; the impact of Alberta
wildfires on production and capital expenditures, among other
matters, and timing for production restoration; opportunity to
develop an additional Montney
bench based on the significant resource in place; and the potential
for enhanced efficiencies.
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,
2022 under "Risk Factors" and our Management's Discussion
and Analysis for the year ended December 31,
2022 under the headings "Risk Factors" and "Forward-Looking
Information". The material assumptions are disclosed in the
Management's Discussion and Analysis for the year ended
December 31, 2022, under the headings
"Overview", "Commodity Derivatives", "Liquidity and Capital
Resources", "Guidance", "Royalties" and "Operating Expenses". 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; 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; the impact of
severe weather events; 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 and as a result of the COVID-19 pandemic; changes in
interest rates and inflation; uncertainties associated with
regulatory approvals; geopolitical conflicts, including the Russian
invasion of Ukraine; 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.
This press release references approximately 15 years of premium
locations in corporate inventory, which amounts include booked and
unbooked locations. This press release discloses approximately 600
net drilling locations associated with the acquired assets, of
which 163 are booked as proved plus probable and approximately 437
are not booked at year-end 2022. The Company's ability to drill and
develop unbooked locations and the drilling locations on which the
Company actually drills wells depends on a number of uncertainties
and factors, including, but not limited to, the availability of
capital, equipment and personnel, oil and natural gas prices,
costs, inclement weather, seasonal restrictions, drilling results,
additional geological, geophysical and reservoir information that
is obtained, production rate recovery, gathering system and
transportation constraints, the net price received for commodities
produced, regulatory approvals and regulatory changes. As a
result of these uncertainties, there can be no assurance that the
potential future drilling locations that the Company has identified
will ever be drilled and, if drilled, that such locations will
result in additional crude oil, natural gas or NGLs produced. As
such, the Company's actual drilling activities may differ
materially from those presently identified, which could adversely
affect the company's business.
All financial figures are approximate and in Canadian dollars
unless otherwise noted.
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SOURCE Crescent Point Energy Corp.