Crescent Point has reduced its capital program for 2021 to $950 million, a 39% drop from the 2000 spending, but output is still expected to rise compared with last year. At an average production rate of 165,000 boe/d, Crescent Point believes it can live within its cash flow this year if WTI oil averages just US$35 per barrel. Right now, WTI oil is at $US48 per barrel, so the cash flow situation is looking pretty good, and it gets even better if the crude recovery takes hold.
Crescent Point says it could deliver an additional $600 million in free cash flow if oil can average US$50 per barrel in 2001.
At the moment, that looks very attainable, and contrarian investors are getting excited.