Crescent Point Energy Lifts Base Dividend as It Turns Profit for Q4

Canadian oil and gas producer Crescent Point Energy (NYSE: CPG) is raising its quarterly base dividend by 15% as it reported on Thursday a net income for the fourth quarter, compared to a loss for the same period of 2022.

Crescent Point booked US$701 million (C$951 million) in net income for Q4 2023, compared to a loss of US$367 million (C$498 million) for the fourth quarter of 2022.

Adjusted net earnings from continuing operations fell by 8% in the quarter and by 3% for full-year 2023 compared to 2022. 

The company is increasing quarterly base dividend by 15% to C$0.115 per share, or C$0.46 per share annually.  

Crescent Point’s total average daily production rose to 162,269 barrels of oil equivalent per day (boed) in Q4 and averaged 159,411 boed for the full year, also higher than in 2022, thanks to a rise in natural gas production.

Looking ahead, Crescent Point reiterated a previously communicated 2024 annual average production guidance of 198,000 boed to 206,000 boed. Of the capital budget guidance for 2024 at US$1 billion-US$1.1 billion (C$1.4 billion to C$1.5 billion), about 45% is allocated to the Alberta Montney, 35% to Kaybob Duvernay, and 20% to Saskatchewan.

The 2024 capital budget, including the base dividend, remains fully funded at approximately US$55 a barrel WTI price, the company said.

“Crescent Point plans to continue allocating 60 percent of its excess cash flow to shareholders through the base dividend and share repurchases, with the remaining 40 percent directed toward the balance sheet,” it noted.

At the end of last year, Crescent Point entered into an agreement to buy Hammerhead Energy, an oil and liquids-rich Alberta Montney producer.

The transaction, which was completed in December, allowed Crescent Point to boost “the long-term sustainability of our business, including increasing the excess cash flow per share expected within our five-year plan by approximately 20 percent,” President and CEO Craig Bryksa said at the time. 

By Charles Kennedy for Oilprice.com

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