Crescent Point Energy Q2 Highlights: EPS Down Y/Y On Lower Oil & Gas Sales, Outlook Maintained

Crescent Point Energy Corp CPG reported Q2 2023 adjusted EPS of C$0.38 versus C$0.47 a year ago. 

Oil and gas sales declined 26% Y/Y to C$949.6 million, and royalties fell 28% Y/Y to C$124.0 million. 

Average production rose to 155,031 boe/d from 129,176 boe/d in the prior year, comprising around 78% of oil and liquids.

The average selling price declined to C$67.31/boe from C$109.44/boe a year ago.

Operating cash flow fell 13% Y/Y to C$462.1 million. CPG generated an excess cash flow of C$277.8 million in Q2 2023.

As of June 30, 2023, net debt was around C$3.0 billion. 

Craig Bryksa, President and CEO, said, "Through our recent Alberta Montney acquisition, we have bolstered our portfolio of high-return, scalable drilling locations while enhancing our per-share metrics and return of capital profile. This acquisition also provides us with the opportunity to create additional value for shareholders over time through productivity enhancements, cost efficiencies and reserves growth."

2023 Guidance Reiterated: CPG projects average annual production of 160,000 boe/d - 166,000 boe/d, with development expenditure of C$1.15 billion-C$1.25 billion. 

In H2 2023, production is expected to average around 179,000 boe/d, reflecting the recent Alberta Montney acquisition and persistent momentum in the Kaybob Duvernay. 

The company projects an excess cash flow of over C$1.0 billion on an annualized basis at $75/bbl WTI.

Repurchases: CPG repurchased 9.7 million shares in Q2 2023 for C$93.1 million and bought back 1.7 million shares for C$16.0 million post Q2-end.

Dividend: The company disclosed a quarterly dividend per share of C$0.10, payable on October 2, 2023, for shareholders of record as on September 15, 2023.

Also, CPG declared a special cash dividend of C$0.035 per share, payable on August 15, 2023, to shareholders of record as on August 8, 2023.

Price Action: CPG shares are trading higher by 1.89% at $8.07 on the last check Wednesday.