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Crescent Point Energy reports Q3 profit up from year ago as energy prices surge

CALGARY — Strong results for Crescent Point Energy Corp.

CALGARY — Strong results for Crescent Point Energy Corp. in its latest quarter isn't just the result of high oil prices, but the result of an industry-wide focus on operational efficiencies and debt repayment during years of downturn, the company's chief executive said Thursday.

In a conference call with analysts, Crescent Point CEO Craig Bryksa said he believes the Canadian energy sector is well-placed to take advantage of the current commodities surge. 

Oil prices are higher than they've been since 2014, but Bryksa said the industry has also undergone fundamental change in the intervening time, becoming leaner and more focused.

"For those that have watched our industry evolve over the past several years, you can appreciate how much stronger companies are now versus past cycles. Balance sheets are healthy and continue to strengthen daily," Bryksa said.

On Thursday, the Calgary-based company reported a third-quarter profit of $77.5 million or 13 cents per diluted share, up from $500,000 a year earlier. 

Oil and gas sales totalled $826.7 million for the quarter ended Sept. 30, up from $437 million a year ago. On an adjusted basis, Crescent Point says its net earnings from operations were 24 cents per diluted share, up from 13 cents per diluted share in the same quarter last year.

The increase came as average daily production came in at 132,186 barrels of oil equivalent per day, up from 113,383 boe/d a year ago.

The company also provided an update to its outlook for the remainder of the year.

"As we near the end of the year, we are narrowing our 2021 average production guidance to 132,000 to 134,000 boe per day, which is at the higher end of our previous range," Bryksa said.

In September, Crescent Point said it would increase its quarterly dividend to shareholders to three cents per share as of Dec. 15, up from 0.25 of a cent per share. Crescent Point said Thursday it expects to generate upwards of $925 million of excess cash flow in 2022 based on its preliminary guidance of a US$75 price for West Texas Intermediate crude.

As of Sept. 30, Crescent Point's net debt totalled $2.1 billion. The company said it is on track to achieve net debt at or below $2 billion by the end of the year.

In a note to clients, Desjardins analyst Chris MacCulloch said Crescent Point's success in meeting its debt reduction targets suggest that "future dividend increases and/or share buybacks could be on the horizon in mid-2022."

Crescent Point also provided an update on its Kaybob Duvernay assets in Alberta, which it acquired for $900 million earlier this year from Shell Canada. 

Crescent Point said it initiated its first multi-well pad drilling program in the Kaybob during the third quarter, and expects these wells to be completed during the fourth quarter of 2021.

This report by The Canadian Press was first published Oct. 28, 2021.

Companies in this story: (TSX:CPG)

Amanda Stephenson, The Canadian Press

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