Crescent Point (CPG) Q2 Results - July 27

[dan_s]

Production came in slightly below my forecast for Q2, but (more important) their financial results were better than my forecast, primarily because I used a lot of conservative assumptions in the model just to be "safe".
----------------------------------
CALGARY, AB, July 27, 2022 /CNW/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX: CPG) (NYSE: CPG) is pleased to announce its operating and financial results for the quarter ended June 30, 2022.

KEY HIGHLIGHTS

Generated approximately $380 million of excess cash flow in second quarter, allowing for increased returns to shareholders.

Enhanced return of capital offering with an increased base dividend and an updated framework, as previously announced.

Achieved strong IP30 rate of 900 boe/d per well, comprised primarily of liquids, on second fully operated pad in Kaybob Duvernay.

Established new targets to reduce scope 1 and 2 emissions and freshwater use, as previously announced.

"Our second quarter results highlight our excess cash flow generation, continued operational execution and commitment to returning capital", said Craig Bryksa, President and CEO of Crescent Point. "Upon attaining our near-term debt target, we announced our updated framework, which now targets to return the majority of our excess cash flow to shareholders. We remain focused on creating long-term value through a combination of returning capital while also enhancing the balance sheet strength and sustainability of the business."

FINANCIAL HIGHLIGHTS

Adjusted funds flow totaled $599.1 million during second quarter 2022, or $1.04 per share diluted, driven by a strong operating netback of $76.57 per boe. < Adjusted funds flow compares to my forecast of $547.5 million.

For the quarter ended June 30, 2022, development capital expenditures, which included drilling and development, facilities and seismic costs, totaled $196.9 million. < Capex was lower than I expected (a good thing).

Crescent Point's net debt as at June 30, 2022 was less than $1.5 billion, reflecting $307.3 million of net debt reduction in the quarter, including the repayment of approximately $225 million of senior note maturities. Subsequent to the quarter, the Company successfully closed the disposition of certain non-core assets allowing Crescent Point to attain its near-term net debt target of $1.3 billion, earlier than anticipated.

Crescent Point reported net income of $331.5 million, or $0.58 per share diluted, for second quarter 2022. < Compares to my Adjusted Net Income forecast of $257.3 million.

RETURN OF CAPITAL HIGHLIGHTS

During second quarter, the Company returned $108.0 million or approximately 30 percent of its excess cash flow to shareholders through its base dividend and share repurchases. Subsequent to the quarter, Crescent Point released an updated framework which targets to return up to 50 percent of its discretionary excess cash flow, in addition to its base dividend, through a combination of share repurchases and special dividends. < Investors should like this.

The Company repurchased approximately 7.2 million shares, for cancellation, for $70.9 million during second quarter and continues to remain active on its share repurchase program. Crescent Point has approval to repurchase, for cancellation, approximately 10 percent of its public float under its existing normal course issuer bid ("NCIB"), which expires on March 8, 2023.

On July 6, 2022, the Company announced an increase to its third quarter 2022 base dividend by over 20 percent to $0.08/share or $0.32/share annually. Crescent Point's third quarter 2022 dividend will be paid on October 3, 2022 to shareholders of record on September 15, 2022.

I will be updating my forecast/valuation model tomorrow after I work on AR and EQT.

[Fraser921]

The Canadian energy stocks are just as undervalued as the US counter parts. In Play was strong today