The following is a summary of the Crescent Point Energy Corp. (CPG) Q1 2024 Earnings Call Transcript:
Financial Performance:
Crescent Point Energy displayed a productive Q1 2024, producing over 198,000 BOE/day and generating $130 million of excess cash flow.
60% of the excess cash flow was returned to shareholders through dividends and share repurchases.
The company reduced its net debt by over $150 million.
After disposing non-core assets in Saskatchewan for $600 million, Crescent Point intends to use this for further debt reduction.
Crescent Point anticipates a significant net debt reduction of $1billion since year-end 2023, estimating the net debt at the end of 2024 to be around $2.8 billion or 1.1x debt to cash flow.
The company also anticipates generating $875 million of excess cash flow in 2024, with 60% returning to shareholders and 40% allocated to balance sheet.
Business Progress:
Crescent Point continues to enhance operation execution across its portfolio, notably in Alberta Montney and Karr West.
The company announced drilling the longest onshore well in Canadian history, demonstrating its operational excellence.
Following a non-core asset disposition in Saskatchewan, Crescent Point adjusted its 2024 annual production guidance to between 191,000 to 199,000 BOE per day.
The company remains committed to improving operational efficiency and has managed to drill wells at a quicker pace, this has a positive impact on capital structure.
Specific focus for the remainder of the year includes cost and operational efficiency, optimising well spacing and efficient use of drilling technologies.
Reaching a one-time debt to cash flow at a $50 U.S. WTI is a long-term objective, which corresponds to about $1.7 billion of absolute debt.
No additional acquisitions and upstream dispositions are planned as the company is satisfied with the current portfolio alignment.
Crescent Point aims to return more to shareholders as soon as debt reduction targets are achieved, projecting nearly 70%-75% of excess cash flow to be returned once the debt level reaches $2.2 billion.
More details: Crescent Point Energy IR
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