Crescent Point Energy Corp. Announces Third Quarter 2012 Results
CALGARY, Alberta, November 8, 2012 /PRNewswire/ --
Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX: CPG) is pleased to announce its operating and financial results for the quarter ended September 30, 2012. The Company also announces that its unaudited financial statements and management's discussion and analysis for the quarter ended September 30, 2012, will be available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at http://www.sedar.com and on Crescent Point's website at http://www.crescentpointenergy.com.
FINANCIAL AND OPERATING HIGHLIGHTS
Three months ended
September 30
(Cdn$000s except shares, per share and per boe amounts) 2012 2011 % Change
Financial
Funds flow from operations (1) 384,237 303,315 27
Per share (1) (2) 1.13 1.09 4
Net income (3) 2,352 204,624 (99)
Per share (2) (3) 0.01 0.74 (99)
Dividends paid or declared 240,010 195,021 23
Per share (2) 0.69 0.69 -
Payout ratio (%) (1) (4) 62 64 (2)
Per share (%) (1)
(2) (4) 61 63 (2)
Net debt (1) (5) 1,453,647 1,072,615 36
Capital acquisitions (net) (6) 14,976 163,298 (91)
Development capital expenditures 313,910 349,660 (10)
Weighted average shares
outstanding (mm)
Basic 338.1 275.3 23
Diluted 340.5 277.9 23
Operating
Average daily production
Crude oil and NGLs
(bbls/d) 89,648 65,253 37
Natural gas (mcf/d) 59,896 42,029 43
Total (boe/d) 99,631 72,258 38
Average selling prices(7)
Crude oil and NGLs
($/bbl) 78.20 83.65 (7)
Natural gas ($/mcf) 2.40 3.87 (38)
Total ($/boe) 71.81 77.79 (8)
Netback ($/boe)
Oil and gas sales 71.81 77.79 (8)
Royalties (12.47) (14.27) (13)
Operating expenses (12.64) (10.64) 19
Transportation (1.61) (1.78) (10)
Netback prior to
realized
derivatives 45.09 51.10 (12)
Realized gain
(loss) on
derivatives 0.31 (1.40) 122
Netback (1) 45.40 49.70 (9)
<end_table
Nine months ended September 30
(Cdn$000s except shares, per share
and per boe amounts) 2012 2011 % Change
Financial
Funds flow from operations (1) 1,171,464 911,335 29
Per share (1) (2) 3.65 3.32 10
Net income (3) 285,894 287,331 (1)
Per share (2) (3) 0.89 1.05 (15)
Dividends paid or declared 675,779 571,493 18
Per share (2) 2.07 2.07 -
Payout ratio (%) (1) (4) 58 63 (5)
Per share (%) (1)
(2) (4) 57 62 (5)
Net debt (1) (5) 1,453,647 1,072,615 36
Capital acquisitions (net) (6) 2,094,245 198,548 955
Development capital expenditures 1,025,509 779,921 31
Weighted average shares
outstanding (mm)
Basic 318.7 271.6 17
Diluted 321.1 274.2 17
Operating
Average daily production
Crude oil and NGLs
(bbls/d) 87,009 64,224 35
Natural gas (mcf/d) 51,809 42,470 22
Total (boe/d) 95,644 71,302 34
Average selling prices(7)
Crude oil and NGLs
($/bbl) 81.16 86.37 (6)
Natural gas ($/mcf) 2.31 4.01 (42)
Total ($/boe) 75.08 80.18 (6)
Netback ($/boe)
Oil and gas sales 75.08 80.18 (6)
Royalties (12.57) (13.77) (9)
Operating expenses (11.46) (11.16) 3
Transportation (1.86) (1.87) (1)
Netback prior to
realized
derivatives 49.19 53.38 (8)
Realized gain
(loss) on
derivatives (1.11) (2.82) (61)
Netback (1) 48.08 50.56 (5)
1. Funds flow from operations, payout ratio, net debt and netback as
presented do not have any standardized meaning prescribed by International
Financial Reporting Standards ("IFRS") and, therefore, may not be comparable
with the calculation of similar measures presented by other entities. Please
refer to the Non-GAAP Financial Measures section of this press release.
2. The per share amounts (with the exception of per share dividends) are
the per share - diluted amounts.
3. Net income for the three and nine month periods ended September 30,
2012, includes unrealized derivative losses of $74.1 million and unrealized
derivative gains of $205.9 million, respectively. Net income for the three and
nine month periods ended September 30, 2011, includes unrealized derivative
gains of $302.6 million and $265.1 million, respectively.
4. Payout ratio is calculated as dividends paid or declared (including
the value of dividends paid pursuant to the Company's dividend reinvestment
plans) divided by funds flow from operations.
5. Net debt includes long-term debt, working capital and long-term
investments, but excludes derivative asset, derivative liability and unrealized
foreign exchange on translation of US dollar senior guaranteed notes.
6. Capital acquisitions represent total consideration for the
transactions, including long-term debt and working capital assumed, and exclude
transaction costs.
7. The average selling prices reported are before realized derivatives
and transportation charges.
THIRD QUARTER 2012 HIGHLIGHTS
In third quarter 2012, Crescent Point continued to execute its integrated
business strategy of acquiring, exploiting and developing high-quality,
long-life light and medium oil and natural gas properties.
- Crescent Point achieved a new production record in third quarter 2012 and averaged 99,631 boe/d, weighted 90 percent to light and medium crude oil and liquids. This represents a growth rate of three percent over second quarter 2012 and 38 percent over third quarter 2011.
- During third quarter, the Company spent $259.4 million on drilling and development activities, drilling 149 (84.7 net) wells with a 100 percent success rate. Crescent Point also spent $54.5 million on land, seismic and facilities, for total capital expenditures of $313.9 million.
- Crescent Point generated funds flow from operations of $384.2 million ($1.13 per share - diluted) in third quarter 2012, representing a 27 percent increase over third quarter 2011 funds flow from operations of $303.3 million ($1.09 per share - diluted).
- Crescent Point maintained consistent monthly dividends of $0.23 per share, totaling $0.69 per share for third quarter 2012. This is unchanged from $0.69 per share paid in third quarter 2011. On an annualized basis, the third quarter dividend equates to a yield of 6.5 percent, based on a volume weighted average quarterly share price of $42.54.
- During the quarter, the Company closed a bought deal financing and the associated over-allotment option granted to the underwriters. A total of 15,433,000 Crescent Point shares were issued at a price of $41.00 per share for aggregate gross proceeds of approximately $632.8 million.
- Subsequent to the quarter, on November 1, 2012, the Company announced the acquisition (the "Ute Acquisition") of Ute Energy Upstream Holdings LLC ("Ute"), a privately held oil and gas producer with assets in the Uinta Basin light oil resource play in northeast Utah. The assets expected to be acquired include production of approximately 7,800 boe/d and approximately 270 net sections of land in the centre of the resource play. Closing is expected to occur on or about November 30, 2012.
- Also on November 1, 2012, Crescent Point announced a bought deal financing with a syndicate of underwriters to raise gross proceeds of approximately $750 million. The bought deal financing includes an over-allotment option for underwriters. Closing is expected to occur on or about November 21, 2012.
- The Company's balance sheet remains strong, with projected average net debt to 12-month cash flow of approximately 1.0 times and significant unutilized credit capacity.
- The Company continued to increase oil deliveries through its Stoughton rail terminal, providing access to diversified refining markets and more stable price differentials to WTI. Third quarter average throughput was more than 15,500 bbl/d, with an additional 1,000 bbl/d also being delivered to third-party sites. Expansion of the Stoughton rail facility, which is expected to be completed in fourth quarter 2012, will increase shipping capacity to 40,000 bbl/d. In late third quarter, the Company completed preparation of its rail-loading facility in the Dollard area of southwest Saskatchewan and delivered its first loads in October. Current capacity is approximately 4,000 bbl/d.
- Crescent Point continued to implement its disciplined hedging strategy to provide increased certainty over cash flow and dividends. As at October 31, 2012, the Company had hedged 56 percent, 54 percent, 35 percent, 17 percent and 3 percent of its oil production, net of royalty interest, for the balance of 2012, 2013, 2014, 2015 and the first quarter of 2016, respectively. Average quarterly hedge prices range from Cdn$88 per bbl to Cdn$94 per bbl.
OPERATIONS REVIEW Third Quarter Operations Summary During third quarter 2012, Crescent Point continued to aggressively implement management's business strategy of creating sustainable, value-added growth in reserves, production and cash flow through acquiring, exploiting and developing high-quality, long-life light and medium oil and natural gas properties. Crescent Point achieved a new production record in the third quarter and averaged 99,631 boe/d, which represents a 38 percent increase over third quarter 2011. During third quarter, the Company spent $259.4 million on drilling and development activities, drilling 148 (84.3 net) oil wells, achieving a 100 percent success rate. Crescent Point also spent $54.5 million on land, seismic and facilities, for total capital expenditures of $313.9 million during the quarter. DrillingResults The following tables summarize our drilling results for the three and nine months ended September 30, 2012:
Three months ended
September 30, 2012 Gas Oil D&A Service Standing Total Net % Success
Southeast
Saskatchewan and
Manitoba - 66 - - - 66 43.8 100
Southwest
Saskatchewan - 20 - - - 20 14.5 100
South/Central
Alberta and West
Central SK - 32 - - - 32 20.6 100
Northeast BC and
Peace River Arch,
Alberta - - - - - - - -
United States (1) - 30 - 1 - 31 5.8 100
Total - 148 - 1 - 149 84.7 100
Nine months ended
September 30, 2012 Gas Oil D&A Service Standing Total Net % Success
Southeast
Saskatchewan and
Manitoba - 182 - - 1 183 131.6 100
Southwest
Saskatchewan - 57 - - - 57 43.7 100
South/Central
Alberta and West
Central SK 1 83 - - - 84 48.3 100
Northeast BC and
Peace River Arch,
Alberta - 7 - - - 7 4.7 100
United States (1) - 61 - 1 - 62 13.6 100
Total 1 390 - 1 1 393 241.9 100
(1) The net well count is subject to final working interest determination.
Southeast Saskatchewan and Manitoba In third quarter 2012, Crescent Point participated in the drilling of 66 (43.8 net) wells in southeast Saskatchewan and Manitoba, achieving a 100 percent success rate. Of the wells drilled, 44 (35.6 net) were horizontal wells in the Bakken light oil resource play. The Company also participated in the drilling of 22 (8.2 net) horizontal oil wells in conventional zones. During the quarter, the Company converted six additional Viewfield Bakken producing wells to water injection wells. By end of third quarter 2012, the Company had converted a total of 41 producing wells to water injection wells in the play. Production performance from water injection patterns in the Viewfield Bakken resource play continues to exceed Crescent Point's expectations and has demonstrated the field wide applicability of waterflood to the play. Discussions with potential unit partners and the Saskatchewan government to implement a unit-wide waterflood are advancing. Across Crescent Point's asset base, the Company continues to pursue multiple applications of new technologies to maximize recoveries and improve efficiencies. In the Saskatchewan Bakken, this has included re-entering existing wells that were originally completed with 8-stage and 16-stage cemented liners and increasing them to 25-stage and 30-stage cemented liner completions. The Company has identified 90 wells in the play as candidates for this process. Crescent Point has also drilled three 2-mile horizontal wells to date in the Flat Lake Bakken play, achieving a 100 percent success rate. Based on this success, the Company plans to drill a fourth 2-mile horizontal well in fourth quarter 2012. Crescent Point continues to increase deliveries of crude oil through its new Stoughton rail facility, allowing the Company to diversify its markets for Bakken crude oil, to more effectively manage pipeline disruptions and to increase netbacks. On average, more than 15,500 bbl/d of Bakken production was delivered through the facility during third quarter. Expansion of the Stoughton rail facility, which is expected to be completed in fourth quarter 2012, will increase shipping capacity to 40,000 bbl/d. Southwest Saskatchewan During third quarter, the Company participated in the drilling of 20 (14.5 net) oil wells in southwest Saskatchewan, achieving a 100 percent success rate. Of these wells, 11 (9.8 net) were drilled in the Shaunavon area. The Company is currently injecting water into seven horizontal injection wells in five pressure maintenance programs in the Lower Shaunavon zone. Crescent Point continues to be encouraged by results to date in all programs. Through acquisitions completed in 2012, Crescent Point has acquired 17 injection wells that are injecting water into an additional five patterns in the Upper Shaunavon formation. Based on success to date, the Company plans to begin injecting water into an additional five wells in the Upper Shaunavon by year end. In total, Crescent Point expects to have up to 30 water injection wells into the play by year-end 2012. To date, 30 wells have been drilled at eight wells per section spacing in both the Lower and Upper Shaunavon zones with no signs of interference. By the end of third quarter, the Company had drilled two wells in the Lower Shaunavon at 16 wells per section, with plans to drill another two by year end. In late third quarter, the Company completed preparation of its rail-loading facility in the Dollard area and delivered its first loads in October. Current capacity is approximately 4,000 bbl/d, with plans for further expansion in 2013. Crescent Point also completed construction and commissioned the second of three new batteries planned for 2012. Construction on the remaining battery is underway, with commissioning anticipated by the end of fourth quarter 2012. South/Central Alberta and West Central Saskatchewan During third quarter, 32 (20.6 net) oil wells were drilled, achieving a 100 percent success rate. The Company's plans for its first waterflood pilot in the Beaverhill Lake light oil resource play are well underway. Crescent Point expects the pilot to be operational in early 2013. To date, the Company has drilled 17 (17.0 net) wells with a 100 percent success rate in the Viking area on lands acquired in the Cutpick Energy Inc. acquisition, which closed on June 20, 2012. The successful drilling results from this initial program have expanded the pool boundary by eight sections, beyond the 83 net sections expected at the time of the acquisition. Late in third quarter, Crescent Point converted a producing well to a water injection well on the Cutpick lands, bringing the total number of water injection wells to three. The waterflood program began in the area in 1998 and, in August 2011, a second pilot was established. With encouraging production performance to date, the Company plans to convert an additional three producing wells to water injection wells on these lands in 2013. Crescent Point has access to a significant land base in southern Alberta and has been pursuing several exploration projects in the area. In fourth quarter 2012, the Company plans to drill up to an additional seven wells to follow up on previously drilled unconventional exploration wells in the Alberta Bakken play. United States During third quarter, the Company participated in the drilling of 30 (5.4 net) oil wells, of which 14 (2.2 net) targeted the Three Forks formation, achieving a 100 percent success rate. Crescent Point also drilled 1 (0.4 net) service well. In total in 2012, the Company expects to drill up to 16 net wells targeting the Bakken and Three Forks zones. Crescent Point is currently working with its service providers to reduce capital costs that have seen upward pressure due to high industry activity levels in North Dakota. ACQUISITIONS Subsequent to the quarter, on November 1, 2012, the Company announced the acquisition of Ute, a privately held oil and gas producer with assets in the Uinta Basin light oil resource play in northeast Utah. The assets expected to be acquired include production of approximately 7,800 boe/d and approximately 270 net sections of land in the centre of the resource play. Closing is expected to occur on or about November 30, 2012. Also, as announced on November 1, a number of consolidation acquisitions in Crescent Point's core Beaverhill Lake and Shaunavon areas closed in third quarter 2012 or are expected to close in fourth quarter 2012. Total consideration paid or expected to be paid for the consolidation acquisitions is approximately $65 million, of which approximately $20 million closed in third quarter. The production expected to be acquired is approximately 450 boe/d. OUTLOOK Crescent Point continues to execute its business plan of creating sustainable value-added growth in reserves, production and cash flow through management's integrated strategy of acquiring, exploiting and developing high-quality, long-life light and medium oil and natural gas properties in United States and Canada. Crescent Point executed a strong third quarter, achieving a new production record and increasing crude oil shipments through its Stoughton rail facility. Subsequent to the quarter, the Company announced the acquisition of a new core area in northeast Utah through the Ute Acquisition. The Ute Acquisition is consistent with the Company's strategy of acquiring large oil-in-place assets with high-netback production that has long-term upside and the ability to increase recovery factors through horizontal drilling and multi-stage fracture stimulation. In the near term, the Company expects to focus on the successful integration of Ute's assets. Crescent Point plans to implement a development strategy of moderate growth for the Uinta Basin, similar to other new areas the Company has developed in Canada. "We are excited to expand our presence in the United States with the acquisition of such a significant resource play," said Scott Saxberg, president and CEO of Crescent Point. "We believe the potential upside in the Uinta Basin will create value for our shareholders over the long term." The Company continues to focus on executing organic growth projects across Crescent Point's asset base and on the application of new techniques and concepts across many of its resource plays. For the remainder of 2012, the Company expects to continue to develop its emerging plays in Beaverhill Lake, North Dakota Bakken/Three Forks and southern Alberta. The Company also plans to continue to expand the waterflood programs in the Viewfield Bakken, Shaunavon and Viking resource plays, which continue to show positive results. Crescent Point expects to release its 2013 capital expenditure plans in early December. Funds flow from operations for 2012 is expected to be approximately $1.59 billion ($4.81 per share - diluted), based on forecast pricing of US$94.25 per barrel WTI, Cdn$2.30 per mcf AECO gas and a US$/Cdn$1.00 exchange rate. The Company's guidance for funds flow from operations continues to include wider corporate oil price differentials for the remainder of 2012. To provide a hedge against price differential volatility, Crescent Point plans to continue to increase crude oil deliveries through its new Stoughton and southwest Saskatchewan rail facilities, which are providing access to new markets. By year end, capacity at the facilities is expected to be 40,000 bbl/d and 4,000 bbl/d, respectively. The Company's balance sheet remains strong, with projected average net debt to 12-month cash flow of approximately 1.0 times and significant unutilized credit capacity. Crescent Point continues to implement its disciplined hedging strategy to provide increased certainty over cash flow and dividends. As at October 31, 2012, the Company had hedged 56 percent, 54 percent, 35 percent, 17 percent and 3 percent of its expected oil production, net of royalty interest, for the balance of 2012, 2013, 2014, 2015 and the first quarter of 2016, respectively. Average quarterly hedge prices range from Cdn$88 per bbl to Cdn$94 per bbl. Crescent Point's management believes that with the Company's high-quality reserve base and development drilling inventory, excellent balance sheet and solid risk management program, the Company is well-positioned to continue generating strong operating and financial results through 2012 and beyond. 2012 GUIDANCE Crescent Point's 2012 guidance is as follows:
Production
Oil and NGL (bbls/d) 88,167
Natural gas (mcf/d) 53,000
Total (boe/d) 97,000
Exit (boe/d) 109,000
Funds flow from operations
($000) 1,590,000
Funds flow per share - diluted
($) 4.81
Cash dividends per share ($) 2.76
Capital expenditures (1)
Drilling and completions
($000) 1,177,000
Facilities, land and
seismic ($000) 223,000
Total ($000) 1,400,000
Pricing
Crude oil - WTI (US$/bbl) 94.25
Crude oil - WTI (Cdn$/bbl) 94.25
Corporate oil differential
(%) 14
Natural gas - Corporate
(Cdn$/mcf) 2.30
Exchange rate (US$/Cdn$) 1.00
(1) The projection of capital expenditures excludes acquisitions, which are
separately considered and evaluated.
ON BEHALF OF THE BOARD OF DIRECTORS Scott Saxberg President and Chief Executive Officer November 8, 2012 Non-GAAP Financial Measures Any "financial outlook" or "future oriented financial information" in the press release, as defined by applicable securities legislation, has been approved by management of Crescent Point. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Throughout this press release, the Company uses the terms "funds flow from operations", "funds flow from operations per share - diluted", "net debt", "netback", "payout ratio" and "payout ratio per share - diluted". These terms do not have any standardized meaning as prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other issuers. Funds flow from operations is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Funds flow from operations per share - diluted are calculated as funds flow from operations divided by the number of weighted average diluted shares outstanding, respectively. Management utilizes funds flow from operations as a key measure to assess the ability of the Company to finance dividends, operating activities, capital expenditures and debt repayments. Funds flow from operations as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. The following table reconciles the cash flow from operating activities to funds flow from operations:
Three months ended September 30 Nine months ended September 30
($000s) 2012 2011 % Change 2012 2011 % Change
Cash flow from
operating
activities 403,980 309,622 30 1,122,345 936,695 20
Changes in
non-cash
working capital (24,212) (7,679) 215 30,238 (30,248) 200
Transaction
costs 2,465 721 242 9,897 2,488 298
Decommissioning
expenditures 2,004 651 208 8,984 2,400 274
Funds flow from
operations 384,237 303,315 27 1,171,464 911,335 29
Net debt is calculated as current liabilities plus long-term debt less current assets and long-term investments, but excludes derivative asset, derivative liability and unrealized foreign exchange on translation of US dollar senior guaranteed notes. Management utilizes net debt as a key measure to assess the liquidity of the Company. The following table reconciles long-term debt to net debt:
($000s) September 30, 2012 September 30, 2011 % Change
Long-term debt 1,294,682 996,881 30
Current liabilities 550,738 482,999 14
Current assets (317,928) (310,701) 2
Long-term investments (92,546) (122,967) (25)
Excludes:
Derivative asset 22,150 51,139 (57)
Derivative liability (9,066) (7,230) 25
Unrealized foreign exchange on
translation of US dollar senior
guaranteed notes
5,617 (17,506) 132
Net debt 1,453,647 1,072,615 36
Netback is calculated on a per boe basis as oil and gas sales, less
royalties, operating and transportation expenses and realized derivative gains
and losses. Netback is used by management to measure operating results on a per
boe basis to better analyze performance against prior periods on a comparable
basis.
Payout ratio and payout ratio per share - diluted are calculated on a
percentage basis as dividends paid or declared (including the value of dividends
issued pursuant to the Company's dividend reinvestment plan) divided by funds
flow from operations. Payout ratio is used by management to monitor the dividend
policy and the amount of funds flow from operations retained by the Company for
capital reinvestment.
Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking
statements. All forward-looking statements are based on Crescent Point's beliefs
and assumptions based on information available at the time the assumption was
made. The use of any of the words "could", "should", "can", "anticipate",
"expect", "believe", "will", "may", "projected", "sustain", "continues",
"strategy", "potential", "projects", "grow", "take advantage", "estimate",
"well-positioned" and similar expressions are intended to identify
forward-looking statements. By their nature, such forward-looking statements
involve known and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those anticipated in such
forward-looking statements. Crescent Point believes that the expectations
reflected in those forward-looking statements are reasonable but no assurance
can be given that these expectations will prove to be correct and such
forward-looking statements included in this report should not be unduly relied
upon. These statements speak only as of the date of this press release or, if
applicable, as of the date specified in those documents specifically referenced
herein.
In particular, this press release contains forward-looking statements
pertaining to the following: the performance characteristics of Crescent Point's
oil and natural gas properties; oil and natural gas production levels; capital
expenditure programs; drilling programs; well conversion and water injection
programs; the quantity of Crescent Point's oil and natural gas reserves and
anticipated future cash flows from such reserves; the expected closing of the
Ute Acquisition, the integration of Ute's assets and the expected nature of the
production and lands to be acquired; the expected closing of certain
consolidation acquisitions and the production associated with such acquisitions;
the expected closing of the Company's recently announced bought deal financing;
the expected completion of the expansion of the Stoughton rail facility and its
impact on shipping capacity; rail loading expansion plans at Dollard; the
quantity of drilling locations in inventory and drilling plans; projections of
commodity prices and costs; supply and demand for oil and natural gas;
expectations regarding the ability to raise capital and to continually add to
reserves through acquisitions and development; expected debt levels and credit
facilities; facility construction plans at the Viewfield gas plant; expected
additional water injection well conversions; expected new battery construction;
and treatment under governmental regulatory regimes.
By their nature, such forward-looking statements are subject to a number of
risks, uncertainties and assumptions, which could cause actual results or other
expectations to differ materially from those anticipated, including those
material risks discussed in our annual information form under "Risk Factors" and
our Management's Discussion and Analysis for the year ended December 31, 2011,
under the headings "Risk Factors" and "Forward-Looking Information." The
material assumptions are disclosed in the Management's Discussion and Analysis
for the year ended December 31, 2011, under the headings "Dividends", "Capital
Expenditures", "Decommissioning Liability", "Liquidity and Capital Resources",
"Critical Accounting Estimates", "Future Changes in Accounting Policies" and
"Outlook," and in Management's Discussion and Analysis for the period ended
September 30, 2012, under the headings "Dividends", "Capital Expenditures",
"Decommissioning Liability", "Liquidity and Capital Resources" and "Outlook."
The actual results could differ materially from those anticipated in these
forward-looking statements as a result of the material risks set forth under the
noted headings, which include, but are not limited to: financial risk of
marketing reserves at an acceptable price given market conditions; volatility in
market prices for oil and natural gas; delays in business operations, pipeline
restrictions, blowouts; the risk of carrying out operations with minimal
environmental impact; industry conditions including changes in laws and
regulations including the adoption of new environmental laws and regulations and
changes in how they are interpreted and enforced; uncertainties associated with
estimating oil and natural gas reserves; economic risk of finding and producing
reserves at a reasonable cost; uncertainties associated with partner plans and
approvals; operational matters related to non-operated properties; increased
competition for, among other things, capital, acquisitions of reserves and
undeveloped lands; competition for and availability of qualified personnel or
management; incorrect assessments of the value of acquisitions and exploration
and development programs; unexpected geological, technical, drilling,
construction and processing problems; availability of insurance; fluctuations in
foreign exchange and interest rates; stock market volatility; failure to realize
the anticipated benefits of acquisitions; general economic, market and business
conditions; uncertainties associated with regulatory approvals; uncertainty of
government policy changes; uncertainties associated with credit facilities and
counterparty credit risk; and changes in income tax laws, tax laws, crown
royalty rates and incentive programs relating to the oil and gas industry.
Barrels of oil equivalent ("boes") may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 Mcf : 1 Bbl is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead.
The aggregate of the exploration and development costs incurred in the most
recent financial year and the change during the year in estimated future
development costs generally will not reflect total finding and development costs
related to reserves additions for the year.
Additional information on these and other factors that could affect Crescent
Point's operations or financial results are included in Crescent Point's reports
on file with Canadian securities regulatory authorities. Readers are cautioned
not to place undue reliance on this forward-looking information, which is given
as of the date it is expressed herein or otherwise and Crescent Point undertakes
no obligation to update publicly or revise any forward-looking information,
whether as a result of new information, future events or otherwise, unless
required to do so pursuant to applicable law.
Crescent Point is a conventional oil and gas producer with assets
strategically focused in properties comprised of high-quality, long-life,
operated light and medium oil and natural gas reserves in United States and
Canada.
Crescent Point shares are traded on the Toronto
Stock Exchange under the symbol CPG.
Crescent Point Energy Corp.
Suite 2800, 111-5th
Avenue S.W.
Calgary, Alberta T2P 3Y6
FOR FURTHER INFORMATION ON CRESCENT POINT ENERGY
CORP. PLEASE CONTACT:
Greg Tisdale, Chief Financial Officer, or Trent Stangl, Vice President
Marketing and Investor Relations.
Telephone:
+1(403)693-0020
Toll-free (US & Canada): 888-693-0020
Fax:
+1(403)693-0070
Website: http://www.crescentpointenergy.com
(CPG.)
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