RE:CPG's fireside talk at CIBC energy conferenceManagement mumbo jumbo word salad for saying... we had more of our employees work from home because we use Microsoft Teams and Zoom. The real savings were likely realized by fewer free meals cooked up at the company bistro and a lower beverage bill for keeping the free beer and wine fridge stocked.
Long term shareholders need to see and receive proof. The well of shareholder good will dried up a few years ago.
highalpha1 wrote: As already expressed by others, the past couple of days have been frustrating indeed -- although frustration may be extended to the price action of virtually all Canadian O&G companies.
In any event, CIBC held its energy conference last week in the form of 14 fireside talks. The bank just released a synoposis of each individual company that participated, including CPG. Here are the notes about CPG.
Spoiler alert: Shareholder returns appear to be top of mind. However, from reading the comments on this board, it seems that a lot of shareholders are jaded and will only believe it when CPG begins delivering on this promise.
Crescent Point
Focus on free cash flow generation and lowering leverage.
Crescent Point continues to focus on optimizing its assets to drive free cash flow generation. The company is lowering outstanding leverage with an intent to restarting growth of returns to shareholders. We estimate the company will show D/CF of ~1.2x by year-end 2021 on strip pricing and could show free cash flow of up to $650 million in 2022 if oil price averages US$65/Bbl WTI.
Revised Kaybob Duvernay development strategy will help generate free cash flow.
The company is focused on operating the asset in a manner which maximizes free cash flow, opting to keep production relatively flat, while deploying optimizations in frac design to appropriately capitalize the play. Crescent Point’s Gen V well design incorporates higher well spacing of 600m and additional frac design improvements (with increases to lateral length, lower sand intensity, and higher frac entry points) relative to the previous operator’s Gen I – Gen IV well design.
Pandemic was an opportunity for Operational Technology (OT) adoption.
Through the pandemic, Crescent Point implemented an operational technology platform across fields and which helped drive ~$130MM of cost saving. The OT platform also helped reduce environmental impact by optimizing workflows and improving overall safety through fewer kilometers driven and improved quality of maintenance. This culminated in reduced downtime and less administration (on top of lower cost structure). The company continues to plan a structured roll-out of the OT platform across is areas of operation.