CS target $18Rating NEUTRAL [V] Price (26-Jul-17, C$) 9.83 Target price (C$) 18.00 52-week price range (C$) 21.90 - 9.05 Market cap (C$ m) 5,356.97 Target price is for 12 months. Q2 Beat; Raised Production Guidance CF and Production Beat: CPG reported higher cash flow of C$0.77 compared to our C$0.70 and company survey consensus of C$0.73, which looks to be largely driven by stronger operational results. Production of 175.6kboed in the quarter was better than our 165.5kboed and consensus at 169.1kboed. While operations seem to be fairly robust in the quarter, capex of C$295mln was higher than our expected C$200mln. Raising 2017 Production Guidance: On the back of strong operational results and better than expected spring break-up conditions, the company raised full year production guidance from 172.0kboed to 174.5kboed while keeping capex guidance unchanged. Within the mix, liquids is moving higher from 154kboed to 157.5kboed (+2%), while gas is lowered from 108mmcf/d to 102mmcf/d (-5%). Exit guidance of 183kboed remains unchanged as the company is currently planning to dispose some non-core assets. While capex was unchanged, CPG highlighted that pressure pumping and steel costs increased during the quarter which may temper any positive expectations on capex going forward. Other Notables: 1) Encouraging results in the Uinta Tested two 2-mile horizontal wells with increased tonnage per stage in the Castle Peak reached IP30 of ~1kboed (payout <1yr at="" us$50="" wti)="" vs="" 1-mile="" type="" curve="" of="" ip30="" 0.6kboed.="" cpg="" is="" also="" testing="" new="" zones="" with="" a="" 1-mile="" horizontal="" well="" completed="" in="" the="" wasatch="" zone="" with="" an="" ip30="" of="" 1.7kboed="" (payout=""><1 year at us$50wti). cpg plans to provide an update to its inventory towards year end; 2) cpg recently consolidated ~80k acres of undeveloped land in the western portion of uinta for us$72.5mln and includes 1.7kboed of production; 3) cpg is currently marketing ~c$180mln of non-core assets with an expected transaction date in h217. cpg also plans to market an additional asset package later this year with similar expected proceeds. cs view: overall, with the stock underperforming year-to-date, performance could improve in our view with the company continuing to deliver consistent operations, inflection to growth, and positive resource updates. we will look for further execution of organic growth, advancement in key plays, as well as improved shareholder engagement before taking a more positive view of the stock. year="" at="" us$50wti).="" cpg="" plans="" to="" provide="" an="" update="" to="" its="" inventory="" towards="" year="" end;="" 2)="" cpg="" recently="" consolidated="" ~80k="" acres="" of="" undeveloped="" land="" in="" the="" western="" portion="" of="" uinta="" for="" us$72.5mln="" and="" includes="" 1.7kboed="" of="" production;="" 3)="" cpg="" is="" currently="" marketing="" ~c$180mln="" of="" non-core="" assets="" with="" an="" expected="" transaction="" date="" in="" h217.="" cpg="" also="" plans="" to="" market="" an="" additional="" asset="" package="" later="" this="" year="" with="" similar="" expected="" proceeds.="" ="" cs="" view:="" overall,="" with="" the="" stock="" underperforming="" year-to-date,="" performance="" could="" improve="" in="" our="" view="" with="" the="" company="" continuing="" to="" deliver="" consistent="" operations,="" inflection="" to="" growth,="" and="" positive="" resource="" updates.="" we="" will="" look="" for="" further="" execution="" of="" organic="" growth,="" advancement="" in="" key="" plays,="" as="" well="" as="" improved="" shareholder="" engagement="" before="" taking="" a="" more="" positive="" view="" of="" the="">