Crescent Point Energy Corp. (CPG-T) C$2.95 KEY HIGHLIGHTS
• Crescent Point's 2021 budget is fully funded at approximately US$40/bbl WTI. The Company expects to generate approximately $150 million to $300 million of excess cash flow at US$45/bbl to US$50/bbl WTI, and has targeted a reinvestment ratio of less than 75 percent.
• Capital expenditures of $475 to $525 million and annual average production guidance of 108,000 to 112,000 boe/d.
• Disciplined, flexible and returns focused budget fully funded at approximately US$40/bbl WTI.
• Excess cash flow of approximately $150 to $300 million expected in 2021 at US$45 /bbl to US$50/bbl WTI. I with a target reinvestment ratio of less than 75 percent.
• Continued to incorporate ESG initiatives within budgeting process, including emissions reduction and environmental targets.
• While Crescent Point's wells do not typically produce the barnstorming production rates reported by peers in the Permian or U.S. Bakken, the firm still enjoys very favorable economics (even at lower oil prices). In fact, cash break-even prices on Crescent Point's crude production are less than $45 per barrel of oil equivalent West Texas Intermediate.
• Working to offset the higher costs, management is using production optimization techniques and waterflood technology to generate free cash flows from its established Viewfield Bakken and Shaunavon assets. Cash flow from these mature assets is being deployed to fund the buildout of the emerging Flat Lake and Uinta assets, which could represent the next significant growth pillar. Furthermore, the company is divesting some of its less profitable assets in an effort to focus on cash flow.
• "We remained disciplined and flexible throughout 2020 and, as a result of our efforts, we are on track to execute our annual program on budget with net debt reduction of approximately $600 million during the year," said Craig Bryksa, President and CEO of Crescent Point. "Our plans for 2021 remain aligned with our returns based capital allocation framework, with a continued focus on further enhancing our balance sheet strength and sustainability. The 2021 budget is designed to position the Company defensively given the current volatility iy in commodity prices, while also providing exposure to significant excess cash flow generation in a rising oil price environment."
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•Crescent Point's 2021 capital expenditures budget of $475 to $525 million is expected to generate annual average production of 108,000 to 112,000 boe/d. The Company's 2021 capital expenditures budget is reduced in comparison to 2020, highlighting a lower pace of activity, improved capital efficiencies and a moderation in its decline rate to 25 percent from approximately 30 percent.