Crescent Point Energy: A Sustainable 9.5% Dividend Yield For 2015
Crescent Point Energy: A 7% Dividend Yield And 30% Potential Upside
Caiman Valores • 39 Comments
Caiman Valores • 39 Comments
Wed, Jun. 8, 12:49 PM
- Penn West Petroleum (PWE +9.9%) has received at least four bids from companies for its Viking light oil assets which could fetch more than C$500M ($395M), Reuters reports.
- Bidders include Raging River Exploration (OTC:RRENF), Crescent Point Energy (NYSE:CPG), Whitecap Resources (OTC:SPGYF) and Teine Energy, according to the report; all four bidders have a presence in the Viking area of Saskatchewan, a light oil region that is attractive to energy producers because of its low costs to recover crude and competitive production costs.
- PWE's Viking assets, which produce nearly 20K boe/day, are important to the company, and its willingness to sell them highlights the company's financial pressure over its large debt burden.
Wed, Mar. 9, 9:11 AM
- Crescent Point Energy (NYSE:CPG) +2% premarket reporting Q4 earnings of C$0.51/share excluding a C$589M impairment charge, but the company slashed its dividend as it looks to conserve cash.
- CPG is cutting its monthly dividend to C$0.03/share from C$0.10, which it says will save ~C$430M (US$321M) annually; it had cut its dividend by 57% in August.
- CPG also trims its 2016 spending plans, guiding for capex of C$950M (US$708M), at the low end of previous guidance of $950M-$1.3B and 39% below its 2015 budget.
- CPG says it achieved record average daily production of ~176K boe/day in Q4, which was weighted 90% to light and medium crude oil and liquids, and reiterates its 2016 average production guidance of 165K boe/day, unchanged from the lower end of prior guidance.
- Q4 cash flow fell 13% Y/Y but rose 3% Q/Q on higher production and lower operating costs.
Mon, Jan. 25, 5:41 PM
Aug. 13, 2015, 3:34 PM
- Crescent Point Energy (CPG -2.1%) is lower after surprising analysts by slashing its dividend 57% to $0.10/share, eliminating its dividend reinvestment program and reporting weaker than expected Q2 earnings.
- CPG also sliced C$100M from its capital budget for the rest of the year, bringing total planned spending to C$1.45B for 2015, citing the low oil price environment and the risk that prices may remain depressed for longer than expected.
- CPG says cash flow at the end of Q2 fell 18% Y/Y, while overall production climbed 10% to 151.6K boe/day; production guidance for the year remains unchanged at 163.5K boe/day.
- During the quarter, CPG bought up heavily indebted Legacy Oil + Gas for $1.5B and used its own stock to buy Coral Hill Energy for $258M.
Jul. 10, 2015, 10:29 AM
- Crescent Point Energy (CPG -4%) opens sharply lower on news it has filed to offer up to C$2.5B of securities over the next two years in Canada and the U.S.
- CPG says proceeds from the offering will be used to pay off debt, for general purposes, and to fund possible acquisitions.
Mar. 11, 2015, 12:58 PM
- Crescent Point Energy (CPG +2%) is higher after Q4 earnings of $0.27/share exceed expectations and posting a 7% gain in its cash flow operations.
- CPG reiterated its 2015 capex guidance of $1.45B to produce an average of 152.5K boe/day - basically flat vs. CPG's Q4 output of 153.8K boe/day, which was up 21% Y/Y - while maintaining an annual dividend of $0.276/share.
- CPG said its expects cost savings of 15%-20% in certain projects relative to 2014 and that further savings can be achieved.
- CPG's year-end 2014 reserves jumped 22% Y/Y to 807.4M boe at a finding cost of $22/boe.
- Also raised its syndicated credit facility by $1B to reach $3.6B but has used only $1.27B.
Sep. 11, 2014, 11:56 AM
- Crescent Point Energy (CPG -2%) is trying to reverse declining U.S. ownership of its shares as investors chase soaring output growth by U.S. shale producers; American investment in the company has dropped to 24% from 43% two years ago.
- While CPG's dividend yield is almost double the average for North American peers, the company also isn’t getting as much credit in Canada for its returns as others emulating its model, according to CEO Scott Saxberg.
- Saxberg says his challenge is to explain why CPG provides a dividend instead of reinvesting all its cash into producing more oil, but analysts say CPG may struggle to win over U.S. investors unless it boosts production and dividends while paying for acquisitions out of cash flow rather than equity.
Sep. 3, 2014, 9:59 AM
- Crescent Point Energy (CPG -2.9%) agrees to acquire producing conventional oil assets in Saskatchewan and Manitoba, along with undeveloped land, from Lightstream Resources for C$378M ($346M).
- CPG says the assets produce ~3,300 boe/day, and come with 76 net sections of land adjacent to its existing land base in the area.
- CPG also raises its 2014 forecast, based on the Lightstream deal and other acquisitions made YTD, along with successful drilling results at its Torquay resource play in Saskatchewan.
Jun. 13, 2014, 11:34 AM
- Crescent Point Energy (CPG +1.8%) is higher after last night's news that it agreed to acquire assets in the Viking oil play in Saskatchewan from privately-held Polar Star Canadian Oil and Gas for cash and stock worth ~C$334M.
- CPG says the deal will increase its land base in the play by 38% and include more than 2,800 boe/day of production.
- CPG also raised its production forecast for 2014 to 135.5K boe/day from its earlier forecast of 134K and its year-end exit production rate to 148K boe/day from 145K; it also increased its capex budget by $25M to $1.8B.
Crescent Point Energy Corp. is an oil and gas exploration, development and production company. It is conventional oil and gas producer with assets strategically focused in properties comprised of quality, long life, operated, light and medium oil and natural gas reserves in Western Canada and... More
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
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