Notable Stock to Watch: Crescent Point Energy Corp (NYSE: CPG)

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On Friday, Crescent Point Energy Corp (NYSE: CPG) stock observed trading -80.42% off 52-week high price. On the other end, the stock has been noted 85.75% away from low price over the last 52-weeks. The stock disclosed a move of -46.91%away from 50 day moving average and -70.85% away from 200 day moving average. Moving closer, we can see that shares have been trading 13.20% off 20-day moving average.

Crescent Point Energy Corp. (CPG) is happy to announce its operating and financial results for the year ended December 31, 2019.

FINANCIAL HIGHLIGHTS

  • For the year ended December 31, 2019, the Company’s adjusted funds flow totaled $1.83B, or $3.34 per share diluted. In fourth quarter, adjusted funds flow totaled $418.4M, or $0.78 per share diluted.
  • For the year ended December 31, 2019, Crescent Point’s capital expenditures on drilling and development, facilities and seismic totaled $1.25B, including $343.4M spent during fourth quarter. Capital expenditures in 2019 were at the mid-point of the Company’s yearly guidance range.
  • As at December 31, 2019, the Company’s net debt was about $2.8B with unutilized credit capacity of about $2.2B. Subsequent to the quarter, Crescent Point closed its before reported sale of certain gas infrastructure assets for $500M, further reducing its net debt and enhancing its unutilized credit capacity to about $2.7B.
  • As part of its risk management program to protect against commodity price volatility, the Company has presently hedged, on average, about 50 percent of its oil and liquids production, net of royalty interest, through 2020 at a weighted average price of over CDN$76 /bbl. Crescent Point’s oil hedges extend through to first quarter 2021 at attractive prices.
  • For the year ended December 31, 2019, the Company incurred a net loss of $1.03B, including a non-cash asset impairment charge of $1.21B ($884.0M after-tax) in fourth quarter 2019 primarily Because of a decrease in the independent engineering price forecast. The impairment charge does not impact Crescent Point’s adjusted funds flow or its credit capacity, and is reversible in future periods should there be any indicators that the value of the assets has increased.
  • Crescent Point reduced its future ARO by over $220M, or about 18 percent since year-end 2018, primarily driven by dispositions of its non-core assets and ongoing reclamation activities. The Company continues to allocate capital towards ARO activities on a yearly basis as it remains committed to strong ESG practices.
  • Since initiating the NCIB in first quarter 2019, the Company repurchased and canceled 26.2M shares for total consideration of about $135M , representing about five percent of its public float. The Toronto Stock Exchange has accepted Crescent Point’s notice of the intention to renew the NCIB, which expired in first quarter 2020. Refer to the Company’s press release issued on March 5, 2020 for further information.
  • Subsequent to the quarter, Crescent Point reported a quarterly cash dividend of $0.01 per share payable on April 1, 2020.

OPERATIONAL HIGHLIGHTS

  • Yearly average production in 2019 was 162,230 boe/d, which was at the mid-point of the Company’s guidance range and was comprised of about 91 percent oil and liquids. Average production during fourth quarter was 145,191 boe/d, reflecting the impact of asset dispositions executed during the quarter.
  • Crescent Point realized operating cost savings of about $70M in 2019, not including any impact from dispositions, demonstrating a raised focus on new workflow improvements and the continued adoption of digital technologies.
  • The Company’s key focus areas continued to generate free cash flow in 2019, with important contribution from the Viewfield and Shaunavon resource plays. These areas are also benefiting from Crescent Point’s continued advancement of its decline mitigation programs, which included about 200 injector conversions in 2019. In Flat Lake, Crescent Point improved risk-adjusted returns within its Torquay program through two-mile horizontal development and capital cost reductions of about 15 percent. The Company’s North Dakota operations also generated strong results in 2019 driven by successful multi-well pad development and optimization of completion techniques.

Crescent Point Energy Corp (CPG) moved with change of 11.39% to $ 0.95 with the total traded volume of 1,666,453 shares in recent session versus to an average volume of 2.71M. The stock was observed in the 5 days activity at -7.07%.

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