Capital Expenditure - 2022

Crescent Point Unveils 2022 Plan; Budget Up 38% YOY, Production Flat

Share Print Bookmark    |    Monday,September 13,2021

Crescent Point Energy Corp. has detailed its preliminary 2022 budget.

Highlights:

• Preliminary 2022 outlook for production of 131,000 – 135,000 boe/d and development capital expenditures of $825 – $900 million.

• Expected excess cash flow generation of $625 – $875 million in 2022, after dividends, at US$65/bbl – US$75/bbl WTI.

Craig Bryksa, President and CEO of Crescent Point, said: “Our continued execution and capital discipline has positioned us to begin returning additional capital to shareholders. We are prioritizing debt reduction as part of our capital allocation framework including the establishment of a core dividend that is sustainable, provides flexibility and has the ability to grow over time. We are committed to a model that returns capital to shareholders while also generating returns through debt-adjusted per share growth.”

2022 Outlook - Increased Capex, Flat Production

Based on its initial budgeting process and the current outlook for commodity prices, Crescent Point is expecting to generate annual average production of 131,000 – 135,000 boe/d in 2022 based on development capital expenditures of $825 – $900 million. Consistent with its capital allocation framework, the Company’s annual budget will continue to include a portion of capital allocated to long-term projects, such as decline mitigation, and various environmental initiatives.

Crescent Point’s preliminary 2022 budget is expected to generate significant excess cash flow, after dividends, of approximately $625 – $875 million at US$65/bbl – US$75/bbl WTI. Crescent Point has approximately 30 percent of its oil and liquids production currently hedged for 2022 and will continue add further protection in the context of commodity prices.

The Company will retain flexibility in its overall capital allocation as it formalizes its budget, which is expected to be released prior to the end of the year.