Crescent Point Energy (CPG) Tops Q1 EPS by 18c

Crescent Point Energy (NYSE: CPG) reported Q1 EPS of $0.18, $0.18 better than the analyst estimate of $0.00.

"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."

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.

For earnings history and earnings-related data on Crescent Point Energy (CPG) click here.

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