New Rating!!!!! GLTALongs 9:43 AM EDT, 03/22/2023 (MT Newswires) -- Tudor, Pickering, Holt on Wednesday reiterated its buy rating one the shares of Crescent Point Energy (CPG.TO) and its C$13.00 price target following investor presentations from the oil and gas producer's management.
"Yesterday, CPG hosted the investor community for a Kaybob Duvernay Teach-in with senior management detailing a number of topics, including operations and infrastructure in the play alongside fresh outlooks to both the 5-year and 10-year development plans," analyst Matt Murphy wrote. "On production, management is forecasting a ~2% CAGR through 2032, emphasizing a sustainable and managed approach in growing to ~152mboepd in 2027 vs. previously guided 145mboepd (TPH 146mboepd) before reaching ~165mboepd in 2032; suggesting upside to our longer-term trajectory of 151mboepd in 2030 vs. implied ~161mboepd. Capital spend is expected to be in the C$1.1B range over the next 5-years, in-line with our modeling, before moderating to C$0.95B (TPH C$1.1B) through 2032, with ~15% allocated to long-term environmental projects embedded in the figures implying a lower level of sustaining capital. Altogether, the company expects to generate ~C$4.4B and ~C$4.9B in post-dividend cumulative free cash flow through 2027 and 2032, respectively, on a $75/bbl WTI and C$3.50/mcf AECO deck. Beyond the outlooks, ample time was spent by management and the investment community alike discussing the cadence of development in the play across the various windows, with CPG opting to lean into the condensate rich areas (volatile oil / liquids rich windows) through the next 5 years before shifting resources to the lean gas window thereafter."
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 9.05, Change: +0.25, Percent Change: +2.84