Canadian oil and gas producer Crescent Point Energy (NYSE: CPG) reported on Friday that its adjusted net earnings from operations declined by 15% year-over-year in the first quarter of 2024, dragged down by lower crude oil and natural gas realizations.
Crescent Point booked adjusted net earnings from operations of US$137 million (C$187 million) for Q1, down from US$160 million (C$219 million) for the same period of 2023.
Net loss was at US$301 million (C$412 million) for the quarter that ended March 31, 2024, primarily driven by a non-cash impairment charge recorded on classifying Crescent Point's non-core Saskatchewan assets as held for sale, prior to the recently announced disposition.
Earlier this week, Crescent Point Energy said it had entered into an agreement with Saturn Oil & Gas Inc. to sell certain non-core assets in Saskatchewan for US$438 million (C$600 million) in cash.
As a result of the sale, Crescent Point revised down its 2024 annual average production guidance to a range of 191,000 to 199,000 boe/d - a reduction of 7,000 boe/d compared to the mid-point of its prior guidance range. Crescent Point's development capital expenditures guidance for 2024 of US$1 billion to US$1.1 billion (C$1.4 billion to C$1.5 billion) remains unchanged.
"We are off to a great start this year, extending our track record of operational execution with strong first quarter results," Craig Bryksa, President and CEO of Crescent Point, said in a statement.
"We also remain committed to further optimizing our balance sheet and increasing our return of capital to shareholders," Bryksa added.
Crescent Point aims to reduce its net debt this year, as the proceeds from the non-core Saskatchewan assets are expected to be directed to the balance sheet. Net debt as of March 31, 2024, was US$2.6 billion (C$3.6 billion).
The company expects to reduce its net debt to US$2 billion (C$2.8 billion), or 1.1 times adjusted funds flow, by year-end 2024 based on average commodity prices of US$80 per barrel WTI crude and $2.10/Mcf AECO natural gas price for the full year.
By Tsvetana Paraskova for Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More