CPG:CC - Crescent Point Energy's Q2 results 'solid' with FFO topping estimates

2023-07-26 15:31:37 ET

Crescent Point Energy ( NYSE: CPG ) +3.1% in Wednesday's trading despite reporting Q2 profit fell 36% Y/Y to $212.3M compared to $331.5M in the same period a year ago.

The company's Q2 operating results were still " solid ," RBC Capital analyst Michael Harvey said, noting adjusted funds from operations work out to $1.01/share, beating Wall Street consensus of $0.97/share.

Crescent Point ( CPG ) said its average selling price in the quarter was C$67.31/boe, well below C$109.44/boe in the year-earlier quarter.

On the earnings conference call with analysts, CEO Craig Bryksa said early results from wells in the new Montney play have been "prolific," adding Crescent Point ( CPG ) is excited about the opportunities in the area .

Crescent Point ( CPG ) said downtime from wildfires resulted in a loss of ~7K boe/day in Q2, with total production averaging 155K boe/day, but it remains on track to meet its full-year production guidance of 160K-166K boe/day with development capital spending in-line with its C$1.15B-C$1.25B budget.

The company said it expects H2 production will average 179K boe/day, reflecting the Alberta Montney acquisition and continued momentum in the Kaybob Duvernay, generating more than C$1B of excess cash flow on an annualized basis.

More on Crescent Point Energy:

• Financial and valuation comparison to sector peers
• Analysis: Crescent Point Energy: Growth In A No-Growth Environment
• Stock price return: Up 21.5% YTD, up 8.5% in the past 12 months

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