Crescent Point Energy: Their Shares Becoming Much Rarer

Summary

• Crescent Point Energy benefited immensely during 2022 thanks to the booming oil and gas prices.
• This saw them deleverage significantly and also start directing more cash toward shareholder returns.
• When looking ahead into the medium term, their share buybacks look set to run rampant and thus remove upwards of 40%+ of their outstanding shares.
• Colorfully speaking, this means their shares could get rarer and therefore foretell a higher share price given the supply-to-demand change.
• This also boosts their dividend prospects as well as limits downside risk and thus, I believe that maintaining my buy rating is appropriate.

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Introduction

When last reviewing Crescent Point Energy (CPG) back in late 2022, at the time they were seemingly on autopilot in 2023 but excitingly as my previous article highlighted, I could see big things possibly coming in 2024. Since the market

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CPG over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.