CALGARY, March 5, 2020 /PRNewswire/ - Crescent Point
Energy Corp. ("Crescent Point" or the "Company") (TSX and NYSE:
CPG) is pleased to announce its operating and financial results for
the year ended December 31, 2019.
KEY HIGHLIGHTS
- Successfully completed 2019 program on budget, demonstrating
strong operational execution and capital discipline.
- Reduced net debt by approximately $1.25
billion in 2019, or $1.75
billion including closing of infrastructure sale in
January 2020.
- Realized over $170 million of
annual internal cost efficiencies across the organization,
including continued improvement in operating expenses during fourth
quarter.
- Increased Proved Developed Producing ("PDP") net asset value
("NAV") per share by over 20 percent from the prior year assuming
flat US$55/bbl WTI.
- Reduced future asset retirement obligations ("ARO") by over
$220 million in 2019 and continued to
enhance environmental, social and governance ("ESG") practices,
including the launch of its inaugural sustainability report.
- Repurchased approximately five percent of public float, or
$135 million of shares, since
initiating normal course issuer bid ("NCIB") in first quarter 2019,
including approximately $125 million
during 2019.
- Remain on track with 2020 guidance with a flexible budget that
is fully funded at approximately US$46/bbl WTI.
"Our 2019 results highlight the Company's focus on operating a
high-return and sustainable portfolio of assets with a strong
balance sheet," said Craig Bryksa,
President and CEO of Crescent Point. "2019 was the first full year
of our team's new strategic direction and involved significant
realignment in many parts of our business. We substantially reduced
our debt and cost structure while also returning a meaningful
amount of capital to shareholders."
FINANCIAL HIGHLIGHTS
- For the year ended December 31,
2019, the Company's adjusted funds flow totaled $1.83 billion, or $3.34 per share diluted. In fourth quarter,
adjusted funds flow totaled $418.4
million, or $0.78 per share
diluted.
- For the year ended December 31,
2019, Crescent Point's capital expenditures on drilling and
development, facilities and seismic totaled $1.25 billion, including $343.4 million spent during fourth quarter.
Capital expenditures in 2019 were at the mid-point of the Company's
annual guidance range.
- As at December 31, 2019, the
Company's net debt was approximately $2.8
billion with unutilized credit capacity of approximately
$2.2 billion. Subsequent to the
quarter, Crescent Point closed its previously announced sale of
certain gas infrastructure assets for $500
million, further reducing its net debt and enhancing its
unutilized credit capacity to approximately $2.7 billion.
- As part of its risk management program to protect against
commodity price volatility, the Company has currently hedged, on
average, approximately 50 percent of its oil and liquids
production, net of royalty interest, through 2020 at a weighted
average price of over CDN$76/bbl.
Crescent Point's oil hedges extend through to first quarter 2021 at
attractive prices.
- For the year ended December 31,
2019, the Company incurred a net loss of $1.03 billion, including a non-cash asset
impairment charge of $1.21 billion
($884.0 million after-tax) in fourth
quarter 2019 primarily due to a decrease in the independent
engineering price forecast. The impairment charge does not impact
Crescent Point's adjusted funds flow or its credit capacity, and is
reversible in future periods should there be any indicators that
the value of the assets has increased.
- Crescent Point reduced its future ARO by over $220 million, or approximately 18 percent since
year-end 2018, primarily driven by dispositions of its non-core
assets and ongoing reclamation activities. The Company continues to
allocate capital towards ARO activities on an annual basis as it
remains committed to strong ESG practices.
- Since initiating the NCIB in first quarter 2019, the Company
repurchased and canceled 26.2 million shares for total
consideration of approximately $135
million, representing approximately five percent of its
public float. The Toronto Stock Exchange has accepted Crescent
Point's notice of the intention to renew the NCIB, which expired in
first quarter 2020. Refer to the Company's press release issued on
March 5, 2020 for further
information.
- Subsequent to the quarter, Crescent Point declared a quarterly
cash dividend of $0.01 per share
payable on April 1, 2020.
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.
|
OPERATIONAL HIGHLIGHTS
- Annual average production in 2019 was 162,230 boe/d, which was
at the mid-point of the Company's guidance range and was comprised
of approximately 91 percent oil and liquids. Average production
during fourth quarter was 145,191 boe/d, reflecting the impact of
asset dispositions executed during the quarter.
- Crescent Point realized operating cost savings of approximately
$70 million in 2019, excluding any
impact from dispositions, demonstrating an increased focus on new
workflow improvements and the continued adoption of digital
technologies.
- The Company's key focus areas continued to generate free cash
flow in 2019, with significant contribution from the Viewfield and
Shaunavon resource plays. These
areas are also benefiting from Crescent Point's continued
advancement of its decline mitigation programs, which included
approximately 200 injector conversions in 2019. In Flat Lake,
Crescent Point enhanced risk-adjusted returns within its
Torquay program through two-mile
horizontal development and capital cost reductions of approximately
15 percent. The Company's North
Dakota operations also generated strong results in 2019
driven by successful multi-well pad development and optimization of
completion techniques.
RESERVES AND NET ASSET VALUE HIGHLIGHTS
"Our 2019 reserves reflect a transformational year that included
significant dispositions and a disciplined capital expenditures
program which focused on returns and free cash flow generation
versus step-out and exploration drilling to add new booked
locations," said Bryksa. "Excluding dispositions and revisions, our
proved plus probable reserves additions more than replaced our
annual production and resulted in a recycle ratio of approximately
two times driven by a strong operating netback of approximately
$34 per boe."
- The Company's Proved plus Probable ("2P") NAV was $16.82 per share at year-end 2019, based on
independent engineering escalated pricing, or $10.57 per share based on a flat pricing
assumption of US$55/bbl WTI, both
excluding land and seismic.
- On a PDP basis, NAV per share increased by over 20 percent
compared to the prior year based on flat US$55/bbl WTI, excluding land and seismic, or
approximately 12 percent incorporating changes to the Canadian Oil
and Gas Evaluation Handbook ("COGEH") adopted in 2019 pertaining to
future ARO.
- Crescent Point achieved 2P reserves of 740.2 million boe
("MMboe") (91 percent oil and liquids), including a decrease of
177.5 MMboe associated with net dispositions. Total 2P reserves
benefited from 54.2 MMboe of extensions and improved recovery,
which were offset by 55.6 MMboe of technical revisions, primarily
comprised of probable reserves revisions. The Company's 2P reserve
life index ("RLI") is approximately 14.3 years.
- Crescent Point's Future Development Capital ("FDC") decreased
by over $1.9 billion on a 2P basis,
primarily driven by dispositions of its non-core assets which
accounted for approximately $1.7
billion of the reduction.
- The Company's reserves evaluators continue to recognize
reserves addition from Crescent Point's consistent waterflood
program, marking the seventh consecutive addition with over 65
MMboe of cumulative additions since 2013.
Certain reserves metrics, including Finding and Development
("F&D") costs and recycle ratios, may not be meaningful or
comparable year-over-year given significant changes executed in
2019, including non-core asset dispositions. Additional information
on Crescent Point's 2019 reserves is provided in its Annual
Information Form ("AIF") for the year-ended December 31, 2019.
Before Tax Net Asset Value Per Share, Fully Diluted, as at
December 31, 2019 at Flat Pricing of
US$55/bbl WTI
|
|
Reserves
Category
|
NAV
|
Total Proved plus
Probable (2P)
|
$10.57
|
Proved and Probable
Developed Producing (P+PDP)
|
$6.15
|
Total Proved
(1P)
|
$5.25
|
Proved Developed
Producing (PDP)
|
$3.75
|
Land and
Seismic
|
$1.33
|
|
|
(1)
|
NAV per share based
on 533.4 million shares fully diluted and a 10% discount
rate.
|
(2)
|
NAV does not include
land and seismic and is less net debt of $2.77 billion as at
December 31, 2019.
|
(3)
|
NAV per share
includes approximately $0.45 per share of additional future ARO as
recommended in COGEH's 2019 industry guidelines.
|
OUTLOOK
Crescent Point's successful execution in 2019 significantly
enhanced its financial position and sustainability. The Company
plans to build on this success in 2020 and will continue to focus
on its key value drivers of disciplined capital allocation, cost
efficiencies and balance sheet strength.
Throughout 2020, Crescent Point will continue to remain
proactive in identifying new opportunities to realize additional
cost efficiencies and further strengthen overall netbacks. This
includes the continued adoption of digital technologies, further
optimization of its drilling and completion techniques and
rationalizing its asset portfolio, where appropriate. The Company
also recently optimized its work space within its Calgary head office, reducing its annual
office lease commitments starting in 2020.
Crescent Point's budget for 2020 is disciplined, returns-focused
and flexible. Assuming the low-end of its capital expenditures
guidance, the Company's program is fully funded at approximately
US$46/bbl WTI and is still forecast
to generate excess cash flow at current strip prices. Crescent
Point will remain disciplined in its capital allocation and plans
to continue prioritizing further net debt reduction and accretive
share repurchases given the current discounted share price.
The Company remains on track with its 2020 budget, which remains
unchanged, with annual average production of 140,000 to 144,000
boe/d and capital expenditures of $1.10 to $1.20
billion.
Summary of Reserves
The Company's reserves were independently evaluated by GLJ
Petroleum Consultants Ltd. ("GLJ") and Sproule Associates Limited
("Sproule") as at December 31, 2019
and were aggregated by GLJ. The reserves evaluation and reporting
was conducted in accordance with the definitions, standards and
procedures contained in the COGEH and National Instrument 51-101
Standards for Disclosure of Oil and Gas Activities ("NI
51-101").
As at December 31, 2019 (1)
(2) (3) (4)
|
|
|
|
|
|
Tight Oil
(Mbbls)
|
Light and Medium
Oil
(Mbbls)
|
Heavy Oil
(Mbbls)
|
Natural Gas
Liquids
(Mbbls)
|
Reserves
Category
|
Gross
|
Net
|
Gross
|
Net
|
Gross
|
Net
|
Gross
|
Net
|
Proved Developed
Producing
|
137,803
|
126,638
|
71,484
|
63,986
|
24,175
|
20,066
|
42,785
|
38,906
|
Proved Developed
Non-Producing
|
1,318
|
1,213
|
1,341
|
1,246
|
1,979
|
1,731
|
618
|
570
|
Proved
Undeveloped
|
95,922
|
85,679
|
28,122
|
26,013
|
1,645
|
1,419
|
19,659
|
17,566
|
Total
Proved
|
235,043
|
213,531
|
100,947
|
91,245
|
27,799
|
23,216
|
63,062
|
57,042
|
Total
Probable
|
150,052
|
135,767
|
58,348
|
52,860
|
6,894
|
5,508
|
33,315
|
30,195
|
Total Proved plus
Probable
|
385,094
|
349,298
|
159,295
|
144,104
|
34,693
|
28,724
|
96,377
|
87,237
|
|
|
|
|
|
Shale
Gas
(MMcf)
|
Natural
Gas
(MMcf)
|
Total
(Mboe)
|
Reserves
Category
|
Gross
|
Net
|
Gross
|
Net
|
Gross
|
Net
|
Proved Developed
Producing
|
111,492
|
101,501
|
60,040
|
55,970
|
304,836
|
275,841
|
Proved Developed
Non-Producing
|
1,219
|
1,062
|
1,297
|
1,073
|
5,675
|
5,116
|
Proved
Undeveloped
|
66,614
|
59,038
|
10,750
|
9,743
|
158,242
|
142,141
|
Total
Proved
|
179,325
|
161,601
|
72,086
|
66,787
|
468,753
|
423,098
|
Total
Probable
|
103,163
|
93,005
|
33,640
|
31,003
|
271,409
|
244,998
|
Total Proved plus
Probable
|
282,488
|
254,606
|
105,726
|
97,790
|
740,161
|
668,096
|
|
|
(1)
|
Based on Sproule's
December 31, 2019, escalated price forecast.
|
(2)
|
"Gross Reserves" are
the total Company's working-interest share before the deduction of
any royalties and without including any royalty interest of the
Company.
|
(3)
|
"Net Reserves" are
the total Company's interest share after deducting royalties and
including any royalty interest.
|
(4)
|
Numbers may not add
due to rounding.
|
Summary of Before Tax Net Present Values
As at
December 31, 2019
(1) (2)
|
|
|
|
|
|
|
Before Tax Net
Present Value ($ millions)
|
|
|
|
Discount
Rate
|
Price
Deck
|
Reserves
Category
|
Gross Reserves
(Mboe)
|
0%
|
5%
|
10%
|
15%
|
Sproule
Forecast
|
Proved Developed
Producing
|
304,836
|
9,383
|
7,432
|
6,090
|
5,179
|
Proved and Probable
Developed Producing
|
413,219
|
14,353
|
10,078
|
7,782
|
6,395
|
Total
Proved
|
468,753
|
13,036
|
9,785
|
7,657
|
6,242
|
Total Proved plus
Probable
|
740,161
|
24,273
|
16,082
|
11,787
|
9,223
|
US$55.00/bbl WTI
Flat
|
Proved Developed
Producing
|
297,180
|
6,862
|
5,603
|
4,710
|
4,079
|
Proved and Probable
Developed Producing
|
403,451
|
10,061
|
7,484
|
5,989
|
5,034
|
Total
Proved
|
428,126
|
8,765
|
6,838
|
5,512
|
4,591
|
Total Proved plus
Probable
|
723,299
|
15,946
|
11,095
|
8,347
|
6,628
|
|
|
(1)
|
Sproule Forecast
based on Sproule's December 31, 2019, escalated price
forecast
|
(2)
|
Numbers may not add
due to rounding
|
RESERVES RECONCILIATION
Gross
Reserves (1) (2) (3) (4)
|
|
|
|
|
Tight
Oil
(Mbbls)
|
Light and Medium
Oil
(Mbbls)
|
Heavy
Oil
(Mbbls)
|
Factors
|
Proved
|
Probable
|
Proved
plus
Probable
|
Proved
|
Probable
|
Proved
plus
Probable
|
Proved
|
Probable
|
Proved
plus
Probable
|
December 31,
2018
|
325,347
|
209,486
|
534,833
|
127,424
|
71,959
|
199,383
|
29,015
|
7,903
|
36,918
|
Extensions and
Improved Recovery
|
23,679
|
15,023
|
38,702
|
3,743
|
2,045
|
5,788
|
133
|
10
|
143
|
Technical
Revisions
|
(18,852)
|
(21,977)
|
(40,828)
|
(648)
|
(5,637)
|
(6,285)
|
670
|
(951)
|
(281)
|
Acquisitions
|
379
|
266
|
644
|
2,403
|
590
|
2,993
|
-
|
-
|
-
|
Dispositions
|
(60,061)
|
(51,101)
|
(111,162)
|
(18,884)
|
(9,986)
|
(28,871)
|
-
|
-
|
-
|
Economic
Factors
|
(2,098)
|
(1,646)
|
(3,743)
|
(2,107)
|
(622)
|
(2,729)
|
(285)
|
(69)
|
(354)
|
Production
|
(33,352)
|
-
|
(33,352)
|
(10,984)
|
-
|
(10,984)
|
(1,733)
|
-
|
(1,733)
|
December 31,
2019
|
235,043
|
150,052
|
385,094
|
100,947
|
58,348
|
159,295
|
27,799
|
6,894
|
34,693
|
|
|
|
|
|
Natural Gas
Liquids
(Mbbls)
|
Shale
Gas
(MMcf)
|
Natural
Gas
(MMcf)
|
Factors
|
Proved
|
Probable
|
Proved
plus
Probable
|
Proved
|
Probable
|
Proved
plus
Probable
|
Proved
|
Probable
|
Proved
plus
Probable
|
December 31,
2018
|
75,800
|
42,302
|
118,102
|
286,515
|
178,677
|
465,193
|
85,264
|
39,955
|
125,219
|
Extensions and
Improved Recovery
|
3,398
|
1,968
|
5,366
|
14,707
|
9,734
|
24,440
|
572
|
442
|
1,014
|
Technical
Revisions
|
(217)
|
(4,733)
|
(4,950)
|
(686)
|
(12,250)
|
(12,936)
|
(2,104)
|
(4,344)
|
(6,448)
|
Acquisitions
|
74
|
60
|
134
|
216
|
168
|
384
|
1
|
1
|
1
|
Dispositions
|
(7,656)
|
(5,699)
|
(13,355)
|
(94,570)
|
(71,813)
|
(166,383)
|
(546)
|
(1,032)
|
(1,578)
|
Economic
Factors
|
(765)
|
(583)
|
(1,348)
|
(668)
|
(1,354)
|
(2,021)
|
(3,858)
|
(1,382)
|
(5,240)
|
Production
|
(7,573)
|
-
|
(7,573)
|
(26,188)
|
-
|
(26,188)
|
(7,243)
|
-
|
(7,243)
|
December 31,
2019
|
63,062
|
33,315
|
96,377
|
179,325
|
103,163
|
282,488
|
72,086
|
33,640
|
105,726
|
|
|
|
Total Oil
Equivalent
(Mboe)
|
Factors
|
Proved
|
Probable
|
Proved
plus
Probable
|
December 31,
2018
|
619,549
|
368,089
|
987,638
|
Extensions and
Improved Recovery
|
33,500
|
20,742
|
54,242
|
Technical
Revisions
|
(19,512)
|
(36,063)
|
(55,574)
|
Acquisitions
|
2,892
|
944
|
3,836
|
Dispositions
|
(102,454)
|
(78,927)
|
(181,381)
|
Economic
Factors
|
(6,009)
|
(3,376)
|
(9,385)
|
Production
|
(59,214)
|
-
|
(59,214)
|
December 31,
2019
|
468,753
|
271,409
|
740,161
|
|
|
(1)
|
Based on Sproule's
December 31, 2019, escalated price forecast.
|
(2)
|
"Gross Reserves" are
the total Company's working-interest share before the deduction of
any royalties and without including any royalty interest of the
Company
|
(3)
|
Extensions and
Improved Recovery includes Discoveries.
|
(4)
|
Numbers may not add
due to rounding.
|
Finding and Development Costs
The Company's F&D
costs and recycle ratios may not be meaningful or comparable
year-over-year given significant changes executed in 2019.
|
|
|
|
|
2019
Totals
|
Change in
FDC
|
Total
|
Capital ($
millions) (1)
|
|
|
|
Total Proved plus
Probable
|
1,268
|
(195)
|
1,073
|
Total
Proved
|
1,268
|
(58)
|
1,209
|
Proved Developed
Producing
|
1,268
|
(8)
|
1,260
|
|
|
|
|
Reserves Additions
(Mboe) (2)
|
|
|
|
Total Proved plus
Probable
|
(10,718)
|
-
|
(10,718)
|
Total
Proved
|
7,980
|
-
|
7,980
|
Proved Developed
Producing
|
26,789
|
-
|
26,789
|
|
|
(1)
|
The capital
expenditures include the announced purchase price of corporate
acquisitions rather than the amounts allocated to property, plant
and equipment for accounting purposes. The capital expenditures
also exclude capitalized administration costs and transaction
costs.
|
(2)
|
Gross Company
interest reserves are used in this calculation (working interest
reserves, before deduction of any royalties and without including
any royalty interests of the Company).
|
|
|
|
|
Excluding changes
in FDC
|
Including changes
in FDC
|
|
($/boe, except
recycle ratios)
|
($/boe, except
recycle ratios)
|
|
2019
|
2018
|
3 Years Ended
Dec. 31, 2019
(Weighted Avg.)
|
2019
|
2018
|
3 Years Ended
Dec. 31, 2019
(Weighted Avg.)
|
F&D Cost
(1)
|
|
|
|
|
|
|
Total Proved plus
Probable
|
($118.27)
|
$19.20
|
$27.08
|
($100.09)
|
$24.64
|
$30.47
|
Total
Proved
|
$158.85
|
$22.61
|
$27.95
|
$151.57
|
$26.18
|
$30.63
|
Proved Developed
Producing
|
$47.32
|
$23.64
|
$25.10
|
$47.03
|
$22.94
|
$24.87
|
|
|
|
|
|
|
|
F&D Recycle
Ratio (2)
|
|
|
|
|
|
|
Total Proved plus
Probable
|
(0.3)
|
1.9
|
1.2
|
(0.3)
|
1.4
|
1.1
|
Total
Proved
|
0.2
|
1.6
|
1.2
|
0.2
|
1.4
|
1.1
|
Proved Developed
Producing
|
0.7
|
1.5
|
1.3
|
0.7
|
1.5
|
1.3
|
|
|
(1)
|
F&D is calculated
by dividing the identified capital expenditures by the applicable
reserves additions. F&D can include or exclude changes to
future development capital costs.
|
(2)
|
Recycle Ratio is
calculated as operating netback before hedging divided by F&D
costs. Based on a 2019 netback of $33.81 per boe, a 2018 netback of
$35.52 per boe and a three-year weighted average netback of $32.90
per boe.
|
Future Development Capital
At year-end 2019, FDC for
2P reserves totaled $5.1 billion,
compared to $7.0 billion at year-end
2018. The Company's FDC decreased by $1.9
billion, primarily driven by dispositions of its non-core
assets which accounted for $1.7
billion of the reduction.
|
Company Annual
Capital Expenditures ($ millions)
|
|
Canada
|
U.S.
|
Total
|
Year
|
Total
Proved
|
Total
Proved
+ Probable
|
Total
Proved
|
Total
Proved
+ Probable
|
Total
Proved
|
Total
Proved
+ Probable
|
2020
|
614
|
698
|
184
|
237
|
798
|
935
|
2021
|
621
|
841
|
287
|
339
|
907
|
1,180
|
2022
|
613
|
871
|
217
|
268
|
831
|
1,139
|
2023
|
398
|
781
|
157
|
185
|
555
|
966
|
2024
|
116
|
366
|
203
|
203
|
319
|
569
|
2025
|
5
|
70
|
-
|
-
|
5
|
70
|
2026
|
3
|
49
|
-
|
-
|
3
|
49
|
2027
|
2
|
60
|
-
|
-
|
2
|
60
|
2028
|
7
|
47
|
-
|
-
|
7
|
47
|
2029
|
3
|
59
|
-
|
-
|
3
|
59
|
2030
|
1
|
2
|
-
|
-
|
1
|
2
|
2031
|
1
|
2
|
-
|
-
|
1
|
2
|
Subtotal
(1)
|
2,383
|
3,845
|
1,048
|
1,232
|
3,431
|
5,077
|
Remainder
|
10
|
17
|
-
|
-
|
10
|
17
|
Total
(1)
|
2,393
|
3,862
|
1,048
|
1,232
|
3,441
|
5,094
|
10%
Discounted
|
1,986
|
3,031
|
839
|
995
|
2,825
|
4,025
|
|
|
(1)
|
Numbers may not add
due to rounding
|
CONFERENCE CALL DETAILS
Crescent Point management will
host a conference call on Thursday, March 5,
2020 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 home page.
Participants can listen to this event online via webcast.
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 conference calls and webcasts webpage under the
invest tab. 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.
2020 GUIDANCE
The Company's guidance for 2020 is as
follows:
|
|
Total annual average
production (boe/d)
|
140,000 -
144,000
|
% Oil and
NGLs
|
91%
|
Development capital
expenditures ($ millions) (1)
|
$1,100 to
$1,200
|
Drilling and
development (%)
|
90%
|
Facilities and seismic
(%)
|
10%
|
|
|
(1)
|
Development capital
expenditures excludes any potential net property and land
acquisitions and approximately $32 million of capitalized
G&A
|
The Company's audited financial statements and management's
discussion and analysis for the year ended December 31, 2019, will be available on the
System for Electronic Document Analysis and Retrieval ("SEDAR") at
www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on Crescent
Point's website at www.crescentpointenergy.com.
FINANCIAL AND OPERATING HIGHLIGHTS
|
|
|
|
Three months ended
December 31
|
Year ended December
31
|
(Cdn$ millions except
per share and per boe amounts)
|
2019
|
2018
|
2019
|
2018
|
Financial
|
|
|
|
|
Cash flow from
operating activities
|
396.5
|
359.1
|
1,742.9
|
1,748.0
|
Adjusted funds flow
from operations (1)
|
418.4
|
337.3
|
1,825.4
|
1,741.2
|
Per share (1)
(2)
|
0.78
|
0.61
|
3.34
|
3.16
|
Net income
(loss)
|
(932.1)
|
(2,390.5)
|
(1,033.3)
|
(2,616.9)
|
Per share
(2)
|
(1.73)
|
(4.35)
|
(1.89)
|
(4.77)
|
Adjusted net earnings
(loss) from operations (1)
|
49.9
|
(16.3)
|
386.8
|
234.6
|
Per share (1)
(2)
|
0.09
|
(0.03)
|
0.71
|
0.43
|
Dividends
declared
|
5.4
|
49.4
|
22.0
|
198.5
|
Per share
(2)
|
0.01
|
0.09
|
0.04
|
0.36
|
Net debt
(1)
|
2,765.3
|
4,011.3
|
2,765.3
|
4,011.3
|
Net debt to adjusted
funds flow from operations (1) (3)
|
1.5
|
2.3
|
1.5
|
2.3
|
Weighted average
shares outstanding
|
|
|
|
|
Basic
|
537.4
|
550.2
|
545.7
|
549.1
|
Diluted
|
538.7
|
550.2
|
546.0
|
550.2
|
Operating
|
|
|
|
|
Average daily
production
|
|
|
|
|
Crude oil
(bbls/d)
|
111,394
|
140,281
|
126,219
|
140,298
|
NGLs
(bbls/d)
|
21,406
|
20,210
|
20,746
|
19,805
|
Natural gas
(mcf/d)
|
74,347
|
106,236
|
91,592
|
108,376
|
Total
(boe/d)
|
145,191
|
178,198
|
162,230
|
178,166
|
Average selling
prices (4)
|
|
|
|
|
Crude oil
($/bbl)
|
65.27
|
54.38
|
67.14
|
69.43
|
NGLs
($/bbl)
|
19.02
|
32.76
|
19.94
|
33.66
|
Natural gas
($/mcf)
|
3.35
|
2.95
|
2.75
|
2.25
|
Total
($/boe)
|
54.60
|
48.28
|
56.34
|
59.78
|
Netback ($/boe)
|
|
|
|
|
Oil and gas
sales
|
54.60
|
48.28
|
56.34
|
59.78
|
Royalties
|
(7.79)
|
(7.61)
|
(8.15)
|
(9.11)
|
Operating
expenses
|
(11.24)
|
(12.86)
|
(12.29)
|
(13.13)
|
Transportation
expenses
|
(2.12)
|
(2.06)
|
(2.09)
|
(2.02)
|
Operating netback
(1)
|
33.45
|
25.75
|
33.81
|
35.52
|
Realized gain (loss)
on derivatives
|
1.71
|
(1.34)
|
0.73
|
(4.00)
|
Other
(5)
|
(3.84)
|
(3.84)
|
(3.72)
|
(4.75)
|
Adjusted funds flow
from operations netback (1)
|
31.32
|
20.57
|
30.82
|
26.77
|
Capital
Expenditures
|
|
|
|
|
Capital dispositions,
net (6)
|
(663.8)
|
(42.5)
|
(924.1)
|
(340.5)
|
Development capital
expenditures
|
|
|
|
|
Drilling and
development
|
312.7
|
278.4
|
1,155.9
|
1,536.2
|
Facilities and
seismic
|
30.7
|
23.9
|
96.2
|
200.4
|
Total
|
343.4
|
302.3
|
1,252.1
|
1,736.6
|
Land
expenditures
|
5.2
|
4.9
|
15.5
|
33.2
|
|
|
(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 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",
"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 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. 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.
The following table reconciles cash flow from operating
activities to adjusted funds flow from operations:
|
|
|
|
Three months ended
December 31
|
Year ended December
31
|
($
millions)
|
2019
|
|
|
2018
(1)
|
2019
|
|
|
2018
(1)
|
Cash flow from
operating activities
|
396.5
|
|
|
359.1
|
1,742.9
|
|
|
1,748.0
|
Changes in non-cash
working capital
|
6.6
|
|
|
(27.9)
|
47.5
|
|
|
(37.2)
|
Transaction
costs
|
2.1
|
|
|
0.8
|
6.3
|
|
|
5.1
|
Decommissioning
expenditures
|
13.2
|
|
|
5.3
|
28.7
|
|
|
25.3
|
Adjusted funds flow
from operations
|
418.4
|
|
|
337.3
|
1,825.4
|
|
|
1,741.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) On initial
adoption of IFRS 16, the Company elected to use the modified
retrospective approach; therefore, comparative information has not
been restated. Refer to the Changes in Accounting Policies
section in the Company's MD&A for the year ended December 31,
2019.
|
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
December 31
|
Year ended December
31
|
($
millions)
|
2019
|
|
|
2018
(1)
|
2019
|
|
|
2018
(1)
|
Net income
(loss)
|
(932.1)
|
|
|
(2,390.5)
|
(1,033.3)
|
|
|
(2,616.9)
|
Amortization of
E&E undeveloped land
|
21.3
|
|
|
39.0
|
129.1
|
|
|
157.2
|
Impairment
|
1,216.5
|
|
|
3,690.7
|
1,466.4
|
|
|
3,705.9
|
Unrealized derivative
(gains) losses
|
153.9
|
|
|
(737.9)
|
269.6
|
|
|
(439.4)
|
Unrealized foreign
exchange (gain) loss on translation of
|
|
|
|
|
|
|
|
|
hedged US dollar
long-term debt
|
(52.5)
|
|
|
184.4
|
(207.7)
|
|
|
254.2
|
Unrealized loss on
long-term investments
|
0.5
|
|
|
3.8
|
2.0
|
|
|
16.2
|
(Gain) loss on sale
of long-term investments
|
—
|
|
|
1.0
|
—
|
|
|
(0.7)
|
Net (gain) loss on
capital dispositions
|
(0.1)
|
|
|
28.3
|
199.2
|
|
|
129.1
|
Deferred tax relating
to adjustments
|
(357.6)
|
|
|
(835.1)
|
(438.5)
|
|
|
(971.0)
|
Adjusted net earnings
(loss) from operations
|
49.9
|
|
|
(16.3)
|
386.8
|
|
|
234.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
On initial adoption
of IFRS 16, the Company elected to use the modified retrospective
approach; therefore, comparative information has not been restated.
Refer to the Changes in Accounting Policies section in the
Company's MD&A for the year ended December 31, 2019.
|
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). Excess cash flow is calculated as
free cash flow less dividends. Management utilizes free cash flow
and excess cash flow as key measures 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, 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)
|
2019
|
|
|
2018
|
Long-term debt
(1)
|
2,905.1
|
|
|
4,276.7
|
Accounts payable and
accrued liabilities
|
479.4
|
|
|
549.4
|
Long-term
compensation liability (2)
|
13.1
|
|
|
10.0
|
Cash
|
(56.9)
|
|
|
(15.3)
|
Accounts
receivable
|
(295.9)
|
|
|
(322.6)
|
Prepaids and
deposits
|
(6.9)
|
|
|
(4.6)
|
Long-term
investments
|
(6.7)
|
|
|
(8.7)
|
Excludes:
|
|
|
|
|
Unrealized foreign
exchange on translation of hedged US dollar long-term
debt
|
(265.9)
|
|
|
(473.6)
|
Net debt
|
2,765.3
|
|
|
4,011.3
|
|
|
|
|
|
|
|
(1)
|
Includes current
portion of long-term debt.
|
(2)
|
Includes current
portion of long-term compensation liability.
|
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 prior periods on a comparable
basis. Netback calculations are shown in the Financial and
Operating Highlights section in this press release.
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.
Notice to US Readers
The oil and natural gas reserves contained in this press release
have generally been prepared in accordance with Canadian disclosure
standards, which are not comparable in all respects of United States or other foreign disclosure
standards. For example, the United States Securities and Exchange
Commission (the "SEC") generally permits oil and gas issuers, in
their filings with the SEC, to disclose only proved reserves (as
defined in SEC rules), but permits the optional disclosure of
"probable reserves" and "possible reserves" (each as defined in SEC
rules). Canadian securities laws require oil and gas issuers, in
their filings with Canadian securities regulators, to disclose not
only proved reserves (which are defined differently from the SEC
rules) but also probable reserves and permits optional disclosure
of "possible reserves", each as defined in NI 51-101. Accordingly,
"proved reserves", "probable reserves" and "possible reserves"
disclosed in this news release may not be comparable to US
standards, and in this news release, Crescent Point has disclosed
reserves designated as "proved plus probable reserves". Probable
reserves are higher-risk and are generally believed to be less
likely to be accurately estimated or recovered than proved
reserves. "Possible reserves" are higher risk than "probable
reserves" and are generally believed to be less likely to be
accurately estimated or recovered than "probable reserves".
In addition, under Canadian disclosure requirements and industry
practice, reserves and production are reported using gross volumes,
which are volumes prior to deduction of royalties and similar
payments. The SEC rules require reserves and production to be
presented using net volumes, after deduction of applicable
royalties and similar payments. Moreover, Crescent Point has
determined and disclosed estimated future net revenue from its
reserves using forecast prices and costs, whereas the SEC rules
require that reserves be estimated using a 12-month average price,
calculated as the arithmetic average of the first-day-of-the-month
price for each month within the 12-month period prior to the end of
the reporting period. Consequently, Crescent Point's reserve
estimates and production volumes in this news release may not be
comparable to those made by companies using United States reporting and disclosure
standards. Further, the SEC rules are based on unescalated costs
and forecasts.
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: a
focus on operating a high-return and sustainable portfolio of
assets with a strong balance sheet; that an asset impairment charge
is reversible in future periods; that the Company allocates capital
toward ARO activities on an annual basis; dividends and payment
dates; continued advancement of the Company's decline mitigation
program; building on success in 2020 and continuing to focus on key
value drivers of disciplined capital allocation, cost efficiencies
and balance sheet strength; continuing to remain proactive in
identifying new opportunities to realize additional cost
efficiencies and further strengthen overall netbacks, and the
techniques by which this is expected to be accomplished; the
Company's budget for 2020 being disciplined, returns-focused and
flexible; the capital program being fully funded at approximately
US$46/bbl WTI and being forecast to
generate excess cash flow at current strip prices; that the Company
will remain disciplined in its capital allocation and plans to
continue prioritizing further net debt reduction and accretive
share repurchases; the Company's 2020 guidance including annual
average production of 140,000 to 144,000 boe/d (and percentages of
oil and NGLs) and capital expenditures of $1.10 to $1.20
billion (and its allocation); net asset values; and future
development costs
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, 2019. 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, 2019, 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,
2019 under "Risk Factors" and our Management's
Discussion and Analysis for the year ended December 31, 2019, 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,
2019, under the headings "Capital Expenditures",
"Liquidity and Capital Resources", "Critical Accounting
Estimates", "Risk Factors", "Changes in Accounting
Policies" and "Outlook". 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; delays in business operations, pipeline
restrictions, blowouts; the risk of carrying out operations with
minimal environmental impact; industry conditions, including
changes in laws and regulations and the adoption of new
environmental laws and regulations and changes in how they are
interpreted and enforced; risks and uncertainties related to all
oil and gas interests and operations on indigenous lands;
uncertainties associated with estimating oil and natural gas
reserves; 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 of acquisitions and exploration and
development programs; unexpected geological, technical, drilling,
construction and processing problems; availability of insurance;
fluctuations in foreign exchange and interest rates; stock market
volatility; failure to realize the anticipated benefits of
acquisitions and dispositions; general economic, market and
business conditions; uncertainties associated with regulatory
approvals; uncertainty of government policy changes; uncertainties
associated with credit facilities and counterparty credit risk; and
changes in income tax laws, tax laws, crown royalty rates and
incentive programs relating to the oil and gas industry; outbreaks
and other factors, many of which are outside the control of
Crescent Point. 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.
DEFINITIONS
Decline rate is the reduction in the rate of
production from one period to the next. This rate is usually
expressed on an annual basis.
Finding and development (F&D) costs are
calculated by dividing the identified capital expenditures by the
applicable reserves additions. F&D costs can include or exclude
changes to future development capital costs.
Future development capital (FDC) reflects the
independent evaluator's best estimate of the cost required to bring
undeveloped proved and probable reserves on production. Changes in
FDC can result from acquisition and disposition activities,
development plans or changes in capital efficiencies due to
inflation or reductions in service costs and/or improvements to
drilling and completion methods.
Net asset value (NAV) or 2P NAV or PDP NAV is a snapshot
in time as at year-end, and is based on the Company's reserves
evaluated using the independent evaluators forecast for future
prices, costs and foreign exchange rates. The Company's NAV is
calculated on a before tax basis and is the sum of the present
value of proved and probable reserves based on Sproule's
December 31, 2019 escalated price
forecast, the fair value for the Company's oil and gas hedges based
on Sproule's December 31, 2019
escalated price forecast, less outstanding net debt. The NAV per
share is calculated on a fully diluted basis. 1P NAV is calculated
similarly to 2P NAV but is based solely on the present value of
proved reserves. Developed Producing Reserve value is calculated
similarly but excludes probable and proved reserves that are not
producing.
N1 51-101 means "National Instrument 51-101 -
Standards for Disclosure for Oil and Gas Activities".
Recycle Ratio is calculated as operating
netback divided by F&D. Based on a 2019 netback (before
hedging), of $33.81 per boe, a 2018
netback (before hedging) of $35.52
per boe and a three-year weighted average netback (before hedging)
of $32.90 per boe.
Reserves are estimated remaining quantities of oil
and natural gas and related substances anticipated to be
recoverable from known accumulations, as of a given date, based on
the analysis of drilling, geological, geophysical and engineering
data; the use of established technology; and specified economic
conditions, which are generally accepted as being reasonable.
Proved reserves are reserves estimated to have a high degree of
certainty of recoverability. Probable reserves are less certain to
be recoverable than proved reserves and possible reserves are less
certain than probable reserves.
Reserves Life Index is calculated as proved plus
probable reserves divided by production.
Reserves and Drilling Data
The reserves information
contained in this press release has been prepared in accordance
with NI 51-101. Complete NI 51-101 reserves disclosure will be
included in our Annual Information Form for the year ended
December 31, 2019, which will be
filed on or before March 5,
2020.
Where applicable, a barrels of oil equivalent ("boe") conversion
rate of six thousand cubic feet of natural gas to one
barrel of oil equivalent (6Mcf:1bbl) has been used based on an
energy equivalent conversion method primarily applicable at the
burner tip. Given that the value ratio based on the current price
of crude oil as compared to natural gas is significantly different
than the energy equivalency of the 6:1 conversion ratio, utilizing
the 6:1 conversion ratio may be misleading as an indication of
value.
This press release contains metrics commonly used in the oil and
natural gas industry, including "netbacks", "F&D costs", "FDC",
"NAV", "recycle ratio", "reserve life index", and "decline rate".
These terms do not have a standardized meaning and may not be
comparable to similar measures presented by other companies and,
therefore, should not be used to make such comparisons.
F&D costs, including changes in FDC have been presented in
this news release because they provide a useful measure of capital
efficiency. F&D costs, including land, facility and seismic
expenditures and excluding changes in FDC have also been presented
in this news release because they provide a useful measure of
capital efficiency.
Management uses recycle ratio for its own performance
measurements and to provide shareholders with measures to compare
the Company's performance over time.
Netback is calculated on a per boe basis as oil and gas sales,
less royalties, operating and transportation expenses and realized
derivative gains and losses. Netback is used by management to
measure operating results on a per boe basis to better analyze
performance against prior periods on a comparable basis.
There are numerous uncertainties inherent in estimating
quantities of crude oil, natural gas and NGL reserves and the
future cash flows attributed to such reserves. The reserve and
associated cash flow information set forth above are estimates
only. In general, estimates of economically recoverable crude oil,
natural gas and NGL reserves and the future net cash flows
therefrom are based upon a number of variable factors and
assumptions, such as historical production from the properties,
production rates, ultimate reserve recovery, timing and amount of
capital expenditures, marketability of oil and natural gas, royalty
rates, the assumed effects of regulation by governmental agencies
and future operating costs, all of which may vary materially. For
these reasons, estimates of the economically recoverable crude oil,
NGL and natural gas reserves attributable to any particular group
of properties, classification of such reserves based on risk of
recovery and estimates of future net revenues associated with
reserves prepared by different engineers, or by the same engineers
at different times, may vary. The Company's actual production,
revenues, taxes and development and operating expenditures with
respect to its reserves will vary from estimates thereof and such
variations could be material.
Individual properties may not reflect the same confidence level
as estimates of reserves for all properties due to the effects of
aggregation. This press release contains estimates of the net
present value of the Company's future net revenue from our
reserves. Such amounts do not represent the fair market value of
our reserves. The recovery and reserve estimates of the Company's
reserves provided herein are estimates only and there is no
guarantee that the estimated reserves will be recovered.
The reserve data provided in this news release presents only a
portion of the disclosure required under National Instrument
51-101. All of the required information will be contained in the
Company's Annual Information Form for the year ended December 31, 2019, which will be filed on SEDAR
(accessible at www.sedar.com) and EDGAR (accessible at
www.sec.gov/edgar.shtml) on or before March 5, 2020.
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.
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SOURCE Crescent Point Energy Corp.