Globe says Crescent Point not reacting to bullish calls
This company need to slow down on production and pay down debt.
Crescent Point Energy Corp (C:CPG)
Shares Issued 546,471,635
Last Close 3/2/2018 $8.53
Monday March 5 2018 - In the News
The Globe and Mail reports in its Monday, March 5, edition that chief executive officer Scott Saxberg has stuck to the script that investors had demanded of Crescent Point Energy and it is paying off in its results. The Globe's Jeffrey Jones writes that Mr. Saxberg is reducing debt through asset sales, and he has stayed away from capital markets as a way to pay for more big acquisitions inside or outside Crescent Point's main operations in Saskatchewan, North Dakota and Utah. The market, however, is not rewarding him for it. In fact, Crescent Point shares have dropped to near all-time lows, even after reporting fourth quarter earnings that largely beat expectations. This dichotomy comes after about a decade of underperformance when measured against most other large companies on the Toronto Stock Exchange. Several analysts have maintained "buy" or "outperform" ratings on the stock. The market has ignored those calls, and instead has zeroed in on higher-than-expected spending in the quarter on land purchases and drilling. Mr. Saxberg says that 2018 spending, currently budgeted at $1.8-billion, could be reduced by $50-million as a result.