Crescent Point Energy: The Stock Is Undervalued

SM Investor
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Summary

  • CPG’s operating netback increased from Cdn$44.15 in 3Q 2021 to Cdn$59.28 in 3Q 2022.
  • WTI crude oil price decreased in the past few weeks due to the increased number of COVID-19 new cases in China.
  • EU embargo on Russian oil and OPEC+ plans support oil prices. EIA expects WTI crude oil price to be US$86.51 per barrel in 4Q 2022.
  • With a WTI crude oil price of US$85 per barrel, CPG’s cumulative excess cash flow will increase to more than Cdn$2 billion in 2024.
  • The stock is a buy.

Oil and gas industry. Oil pump oil rig energy industrial machine for petroleum in the sunset background, Increase in oil production

Evgenii Mitroshin

From 26 September 2022 to 25 November 2022, Crescent Point Energy's (CPG) stock price increased from $5.54 per share to $7.84 per share, up 42%. In the third quarter of 2022, driven by a higher netback asset base, CPG generated Cdn$234 million

This article was written by

2.86K Followers
SM Investor focuses on medium to long-term investments, analyzing companies' financial metrics such as cash flow, growth, and valuation. As financial analysts with real market education and experience, we cover diversified portfolios including growth and value equities, and dividend stocks (including REITs and RICs). Our approach involves using diversified value investing strategies to identify profitable companies with strong financials and low risks at bargain prices.SM Investor collaborates with Morteza Moradi, who holds a Master's degree in Economics and has more than 10 years of experience writing data-driven analytical and investing content.

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