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    CPG   CA22576C1014


Delayed Toronto Stock Exchange  -  04:00 2022-08-08 pm EDT
9.180 CAD   +1.10%
07/28SECTOR UPDATE : Energy Stocks Sputtering Slightly Ahead of Thursday Close
07/28SECTOR UPDATE : Energy
07/28CORRECTION : Crescent Point Energy Buy Rating Reiterated at TPH Following Q2 Results; Price Target Kept at C$12
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Crescent Point Announces 2021 Results and Reserves and Increases Share Repurchases

03/04/2022 | 08:25am EDT

CALGARY - Crescent Point Energy Corp. ('Crescent Point' or the 'Company') (TSX: CPG) and (NYSE: CPG) is pleased to announce its operating and financial results for the year ended December 31, 2021 and increased share repurchases.


Generated over $785 million of excess cash flow in 2021 with capital expenditures and production in-line with annual guidance.

Increased PDP reserves by 17 percent with a strong FD&A recycle ratio of 2.7 times, including change in FDC.

Replaced 197 percent of 2021 production on a 2P basis, resulting in a FD&A recycle ratio of 2.2 times, including change in FDC.

Improved full-cycle returns in the Kaybob Duvernay through additional well cost reductions now totaling 20 percent.

Achieved strong IP rate of over 825 boe/d per well, based on approximately 30 days, on first fully operated Kaybob Duvernay pad.

Fully repaid $670 million of debt to acquire the Kaybob Duvernay assets, in addition to reducing net debt by $144 million in 2021.

Disciplined 2022 budget, which is expected to generate approximately $1.1 billion of excess cash flow at US$80/bbl WTI.

Increasing planned share repurchases to up to $150 million, to be executed by mid-2022, from $100 million announced previously.

On track to meet or exceed targets to reduce emissions intensity and inactive wells, highlighting strong ESG practices.

'Our discipline and execution over the past few years positioned us to not only capitalize on strategic opportunities during 2021, but also to begin returning additional capital to shareholders,' said Craig Bryksa, President and CEO of Crescent Point. 'We are very pleased with our initial success in the Kaybob Duvernay, including our strong operational execution that has resulted in increased rates of return. Due to our continued discipline and focus, we are on track to achieve our near-term leverage targets over the next six months at current commodity prices. As we continue to strengthen our balance sheet we will look to provide increased returns to shareholders in the context of a more defined return of capital framework.'

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: excess cash flow generation in 2022; timing and amount of share repurchases and renewal of NCIB program; retention of significant liquidity; the risk management program protects cash flow generation; the Company remaining disciplined in its hedging program; the Company's strengthening financial position; well cost savings providing additional insulation to the Company's capital budget in the current inflationary environment; the Company seeking to further enhance returns in the Kaybob-Duvernay play, through ongoing drilling and completions optimization; sustainable cost efficiencies; Kaybob Duvernay wells generating full-cycle rates of return of over 120 percent and payout in less than a year, at current commodity priced and budged cost inflation assumptions; the Company's 2022 waterflood program; continued progression of decline mitigation programs; target for emissions intensity reduction to 50 percent of 2017 levels by 2025, including a 70 percent reduction in methane emissions (compared to 2017 levels); Crescent Point on track to meet or exceed its existing emissions targets before 2025 and plans to revisit its current emissions reduction goals in second quarter 2022; plans to retire approximately 350 wells in 2022; prospects for the Kaybob Duvernay assets; the opportunity to enhance shareholder value through potential cost efficiencies, productivity improvements, new locations and reserves; 2P reserves life index; the Company is on track to meet its 2022 average production guidance of 133,000 to 137,000 boe/d within its development capital expenditures budget of $825 to $900 million; management remains disciplined and focused on generating significant excess cash flow to create shareholder value; Crescent Point's 5 year plan and related FDC spending; assuming US$80/bbl WTI, Crescent Point's budget is expected to generate approximately $1.1 billion of excess cash flow in 2022; prioritized balance sheet; moving toward the Company's near-term leverage target of approximately 1.0 times net debt to adjusted funds flow at US$55/bbl WTI, or approximately $1.3 to $1.4 billion of absolute net debt; at current commodity prices, the Company expects to achieve its near-term debt target over the next six months; Crescent Point's plans to provide increased returns to shareholders alongside a more defined return of capital framework as the balance sheet strengthens; the Company's commitment to a model that returns capital to shareholders while also generating additional returns through debt-adjusted per share growth; Crescent Point's 2022 production and development capital expenditures guidance and other information for Crescent Point's 2022 guidance, including capitalized G&A, reclamation activities, capital lease payments, 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, 2021. 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, 2021, which is 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, 2021 under 'Risk Factors' and our Management's Discussion and Analysis for the year ended December 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 year ended December 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 acquisitions and dispositions; failure to complete 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; 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.


Shant Madian

Tel: (403) 693-0020

Fax: (403) 693-0070

Web: www.crescentpointenergy.com

(C) 2022 Electronic News Publishing, source ENP Newswire

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Analyst Recommendations on CRESCENT POINT ENERGY CORP.
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Sales 2022 4 851 M 3 778 M 3 778 M
Net income 2022 2 092 M 1 629 M 1 629 M
Net Debt 2022 872 M 679 M 679 M
P/E ratio 2022 2,46x
Yield 2022 2,82%
Capitalization 5 210 M 4 057 M 4 057 M
EV / Sales 2022 1,25x
EV / Sales 2023 1,31x
Nbr of Employees 748
Free-Float 99,6%
Duration : Period :
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Mean consensus BUY
Number of Analysts 13
Last Close Price 9,18 CAD
Average target price 15,42 CAD
Spread / Average Target 67,9%
EPS Revisions
Managers and Directors
Craig Bryksa President, Chief Executive Officer & Director
Kenneth R. Lamont Chief Financial Officer
Barbara Munroe Chairman
Justin Foraie Vice President-Engineering & Marketing
Ryan Gritzfeldt Chief Operating Officer
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