Crescent Point Energy today provides its preliminary 2024 budget and an updated five-year outlook.

KEY HIGHLIGHTS 

• Annual production of 145,000 to 151,000 boe/d in 2024 based on development capital expenditures of $1.05 to $1.15 billion.
• Generating significant excess cash flow of over $1.0 billion in 2024 at US$80/bbl WTI.
• Increasing proportion of capital allocated to Kaybob Duvernay and Alberta Montney, which represent 70 percent of 2024 budget.
• Enhancing balance sheet strength with expected net debt of $1.7 billion, or 0.7 times funds flow, at year-end 2024.
• Disciplined growth of five percent per year within longer-term outlook with production increasing to 180,000 boe/d by 2028.
• Significant cumulative after-tax excess cash flow of over $4.3 billion expected in the updated five-year plan at US$75/bbl WTI.
• Returning approximately 60 percent of excess cash flow to shareholders through dividends and share repurchases.

"Throughout 2023, our strong results and outperformance have demonstrated the benefits of our improved asset base alongside our ongoing operational execution", said Craig Bryksa, President and CEO of Crescent Point. "This inflection we are seeing in our business is a direct result of our strategy, which is focused on maintaining a resilient portfolio of high-return short- and long-cycle assets. Our disciplined approach is expected to generate sustainable returns and significant excess cash flow for shareholders."

PRELIMINARY 2024 BUDGET

Based on its initial budgeting process and the current commodity price outlook, Crescent Point expects to generate annual average production of 145,000 to 151,000 boe/d in 2024 with development capital expenditures of $1.05 to $1.15 billion. This preliminary production and development capital expenditures guidance incorporates the impact of the Company's recently announced disposition of its North Dakota assets, which is expected to close in fourth quarter 2023.

Approximately 70 percent of Crescent Point's 2024 budget is expected to be allocated to its Kaybob Duvernay and Alberta Montney plays, which provide the Company with top quartile returns, scalability and quick well payouts. Year-over-year production from these Alberta assets is expected to grow by approximately 10 percent by the end of 2024, with continued growth reflected in Crescent Point's five-year plan.

The remaining capital budget will be allocated to the Company's long-cycle assets in Saskatchewan. This area provides Crescent Point with a combination of high-return locations and low-decline production that generates significant excess cash flow.

The Company's 2024 preliminary budget includes allocating approximately three to five percent of its spending to environmental stewardship projects, consistent with its capital allocation framework.

Crescent Point expects to generate significant excess cash flow of over $1.0 billion at US$80/bbl WTI under its preliminary 2024 budget. As part of the Company's return of capital framework, approximately 60 percent of excess cash flow is expected to be returned to shareholders through dividends and share repurchases. Crescent Point's net debt is expected to total approximately $1.7 billion, or 0.7 times adjusted funds flow, at year-end 2024.

The Company will retain flexibility in its overall capital allocation as it finalizes its budget, which is expected to be released toward the end of the year. Additional details within Crescent Point's formal guidance will be provided at that time.

2024 PRELIMINARY GUIDANCE

Capital Expenditures

UPDATED FIVE-YEAR OUTLOOK

Crescent Point's strategy is centered around creating sustainable long-term returns for shareholders through a combination of per-share growth, return of capital and balance sheet strength, as reflected within the Company's longer-term outlook.

Crescent Point is targeting production of approximately 180,000 boe/d by 2028 under its updated five-year plan, which equates to a compounded annual growth rate of five percent. This growth is expected to be driven from each of the Company's Kaybob Duvernay and Alberta Montney assets, which are expected to generate over 70 percent of Crescent Point's total production by 2028.

This disciplined growth is in addition to cumulative after-tax excess cash flow generation of over $4.3 billion ($8.15 per share) through 2028, at US$75/bbl WTI. Crescent Point's updated five-year plan is expected to generate significant return of capital for shareholders and a strong balance sheet with net debt improving to approximately $500 million, or 0.2 times adjusted funds flow, in 2028.

KeyFacts Energy: Crescent Point Energy Canada country profile   l   KeyFacts Energy: CapEx news