Latest News and Analysis
Deals and Transactions
Track Drilling (Rigs by operator) | Completions (Frac Spreads)

Drilling & Completions | Quarterly / Earnings Reports | First Quarter (1Q) Update | Financial Results | Capital Markets | Capital Expenditure

Crescent Point Energy Corporation First Quarter 2023 Results

emailEmail    |    printPrint    |    bookmarkBookmark
   |    Monday,May 15,2023

Crescent Point Energy Corporation announced first quarter 2023 results.


  • Closed the strategic acquisition of Alberta Montney assets, which includes 38,000 boe/d and over 20 years of premium inventory.
  • Generated $153.4 million of excess cash flow in first quarter, driven by the Company's high netback asset base.
  • Returned over 60 percent of excess cash flow to shareholders during first quarter 2023.
  • Repurchased 10.5 million shares year-to-date, including 5.1 million shares during first quarter 2023.
  • Disciplined 2023 budget is expected to generate significant excess cash flow of $1.1 billion at US$75/bbl WTI.
Crescent Point Energy Corp. announced its operating and financial results for the quarter ended March 31, 2023.
Craig Bryksa, President and CEO of Crescent Point, said: "This has been a very exciting start to the year for Crescent Point, having announced and closed the strategic acquisition of Alberta Montney assets."

"This acquisition enhances the depth of our premium inventory, excess cash flow per share and return of capital to shareholders. It also aligns with our long-term strategy to focus on high quality, scalable resource plays that meet our defined asset criteria. We are very excited to operate these assets and see the potential for significant upside through reserves growth, the opportunity to develop a second Montney bench given the significant resource in place and enhanced efficiencies given the similarity and proximity to our Kaybob Duvernay assets."


  • Adjusted funds flow totaled $524.9 million during first quarter 2023, or $0.95 per share diluted, driven by a strong operating netback of $44.77 per boe.
  • For the quarter ended March 31, 2023, development capital expenditures, which included drilling and development, facilities and seismic costs, totaled $314.2 million.
  • Crescent Point's net debt as at March 31, 2023 totaled approximately $1.4 billion, or 0.6 times adjusted funds flow. Subsequent to the quarter, the Company closed its previously announced acquisition of Alberta Montney assets on May 10, 2023, which included a net cash payment of approximately $1.7 billion funded through its existing credit facilities. At closing of the acquisition, Crescent Point's net debt totaled approximately $3.0 billion, or 1.3 times adjusted funds flow, with approximately $850 million of unutilized credit capacity.
  • As part of its risk management program, Crescent Point has hedged approximately 30 percent of its oil and liquids production for second and third quarter 2023, net of royalty interest, and approximately 10 percent in fourth quarter. The Company has also hedged a portion of its natural gas production, with hedges extending into 2024. Crescent Point will continue to layer on additional protection in the context of market conditions.
  • The Company reported net income of $216.7 million, or $0.39 per share diluted, for the quarter ended March 31, 2023.


  • Crescent Point's total return of capital to shareholders in first quarter 2023, including the base dividend, was $103.2 million, or over 60 percent of its excess cash flow. This included the repurchase of 5.1 million shares for $48.5 million, which equated to 50 percent of Crescent Point's discretionary excess cash flow.
  • Since the end of first quarter, the Company has repurchased an additional 5.4 million shares for $55.1 million for a total of 10.5 million shares year-to-date. The Company has approval to repurchase, for cancellation, up to 54.6 million shares, or 10 percent of its public float, under its normal course issuer bid ("NCIB") which expires on March 8, 2024.
  • Subsequent to the quarter, Crescent Point's Board of Directors declared a quarterly cash base dividend of $0.10 per share payable on July 4, 2023, to shareholders of record on June 15, 2023.


  • Average production during first quarter 2023 was 139,280 boe/d, comprised of approximately 80 percent oil and liquids.
  • On May 10, 2023, the Company successfully closed the previously announced strategic acquisition of oil and liquids-rich Montney assets in Alberta from Spartan Delta Corp. ("Spartan"). This acquisition was immediately accretive to the Company's adjusted funds flow and excess cash flow per share by 20 percent, further enhancing its overall return of capital profile. These Montney assets are strategically situated in the volatile oil fairway and provide over 20 years of premium drilling locations in the play with full-cycle returns that rank in the top quartile within Crescent Point's portfolio.
  • In late first quarter 2023, Spartan brought on stream a single well in the Gold Creek West area of the Alberta Montney play, which achieved an average 30-day initial production ("IP30") rate of approximately 1,900 boe/d (87% light crude oil, 2% NGLs and 11% shale gas). This well is currently exceeding booked type well expectations in the area and is expected to payout in less than six months from the initial on-stream date at current commodity prices. Crescent Point plans to drill approximately 15 wells in the Alberta Montney through the remainder of 2023. The Company will seek to optimize efficiencies in the play by leveraging its expertise in multi-well pad development and knowledge transfer across its asset base.
  • In the Kaybob Duvernay, Crescent Point continues its track record of operational execution, delivering strong full-cycle returns that also rank top quartile within its asset portfolio. The Company recently brought on-stream its seventh fully operated multi-well pad, which generated an average IP30 rate of over 1,000 boe/d per well (73% condensate, 8% NGLs and 19% shale gas). This pad is currently exceeding booked type well expectations in the area. Crescent Point plans to add a second rig in the Kaybob Duvernay in fourth quarter 2023 to further accelerate the development of its high-return inventory in the play.
  • In late first quarter 2023, Crescent Point hosted a Kaybob Duvernay Analyst Teach-In where the Company highlighted the quality of the asset and the technical evolution of the play alongside Crescent Point's disciplined strategy and operational execution to date. Further information, including a recording of the Analyst Teach-in presentation, can be found on Crescent Point's website.
  • As part of its commitment to strong environmental, social and governance ("ESG") practices, the Company expects to release its fifth annual sustainability report in mid-2023 which will include progress updates on greenhouse gas emissions, water management, asset retirement, safety performance and Indigenous engagement. Crescent Point remains on track to meet or exceed its environmental targets, including reducing its Scope 1 and 2 emissions intensity, surface freshwater use and inactive well inventory.


Crescent Point's strategic execution in 2023 has significantly enhanced the quality of its asset portfolio and the strength of its financial outlook. The Company now has 15 years of premium drilling inventory, underpinned by its Kaybob Duvernay, Alberta Montney and low-decline assets in Saskatchewan.

As previously announced on May 8, 2023, Crescent Point temporarily shut-in approximately 45,000 boe/d of production in the Kaybob Duvernay in response to the recent Alberta wildfires. The Company has now restored 85 percent of this production and continues to monitor the wildfires in Alberta, which have not yet fully stabilized. Crescent Point's 2023 annual average production guidance of 160,000 to 166,000 boe/d, weighted 75 percent to oil and liquids, currently remains unchanged as a result of the Company's strong start to the year. In terms of its budget, Crescent Point has entered into a number of agreements to secure a large portion of its drilling and completions services for the balance of 2023, providing further certainty to its annual program and development capital expenditures guidance, which remains unchanged at $1.15 to $1.25 billion.

Crescent Point expects to generate significant excess cash flow in 2023 of approximately $1.1 billion based on its guidance at US$75/bbl WTI. The Company's strong excess cash flow generation is supported by its high-netback asset base and is further enhanced by its significant tax pools. The Company plans to continue to return approximately 60 percent of its excess cash flow to its shareholders, with the remaining portion allocated to its balance sheet. Crescent Point expects to exit the year with a leverage ratio of 1.0 times adjusted funds flow at US$75/bbl WTI and will continue to evaluate non-core dispositions to further strengthen its financial position.

The Company is committed to creating long-term value for shareholders by returning capital and continually enhancing the profitability of the business on a per-share basis.

Related Categories :

First Quarter (1Q) Update   

More    First Quarter (1Q) Update News

Canada News >>>

Rockies News >>>