CALGARY, AB, May 10, 2024 /CNW/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX:CPG) (NYSE:CPG) is pleased to announce its operating and financial results for the quarter ended March 31, 2024. KEY HIGHLIGHTS  Strong operational execution year-to-date, including delivering 198,500 boe/d of production in first quarter. Generated $130 million of excess cash flow in first quarter, with over $80 million returned to shareholders. Successfully integrated recently acquired Alberta Montney assets, bringing 18 Montney wells on stream year-to-date. Entered into agreement to dispose of non-core assets in Saskatchewan for $600 million, as previously announced. Expect pro forma excess cash flow of $875 million at US$80/bbl WTI in 2024, with 60 percent returned to shareholders. "We are off to a great start this year, extending our track record of operational execution with strong first quarter results," said Craig Bryksa, President and CEO of Crescent Point. "We will build off this momentum as we move through the balance of the year and remain well positioned to deliver additional efficiencies and improve overall returns. We also remain committed to further optimizing our balance sheet and increasing our return of capital to shareholders." FINANCIAL HIGHLIGHTS  Adjusted funds flow totaled $568.2 million during first quarter 2024, or $0.91 per share diluted, driven by a strong operating netback of $36.60 per boe. For the quarter ended March 31, 2024, development capital expenditures, which included drilling and development, facilities and seismic costs, totaled $398.6 million. Net debt as at March 31, 2024 equated to $3.6 billion, reflecting a reduction of over $150 million in the quarter. Subsequent to the quarter, Crescent Point announced the disposition of certain non-core Saskatchewan assets for $600 million, with the net proceeds expected to be directed to the balance sheet. The Company expects to reduce its net debt to $2.8 billion, or 1.1 times adjusted funds flow, by year-end 2024 based on average commodity prices of US$80/bbl WTI and $2.10/Mcf AECO for the full year. Crescent Point has hedged 45 percent of its oil and liquids production and over 30 percent of its natural gas production for the remainder of 2024, net of royalty interest. The Company has also diversified its pricing exposure for natural gas, with the majority of its production through 2025 receiving a combination of fixed prices and pricing related to major U.S. markets. Crescent Point reported a net loss of $411.7 million for the quarter ended March 31, 2024, primarily driven by a non-cash impairment charge recorded on classifying its non-core Saskatchewan assets as held for sale, prior to the recently announced disposition. Excluding these non-cash charges, the Company reported adjusted net earnings from operations of $187.0 million. RETURN OF CAPITAL HIGHLIGHTS During first quarter 2024, the Company's total return of capital to shareholders, including the base dividend, was $81.3 million. Crescent Point remains committed to returning 60 percent of its annual excess cash flow to shareholders through dividends and share repurchases in 2024. The Company has repurchased 3.1 million shares for $36.7 million in 2024 year-to-date, including 0.9 million shares for $10.0 million in first quarter. Crescent Point has approval to repurchase, for cancellation, up to a total of 61.7 million shares, or 10 percent of its public float, under its normal course issuer bid ("NCIB") which expires on March 10, 2025. Subsequent to the quarter, the Company's Board of Directors declared a quarterly cash base dividend of $0.115 per share payable on July 2, 2024, to shareholders of record on June 15, 2024. OPERATIONAL HIGHLIGHTS Average production during first quarter 2024 was 198,551 boe/d, comprised of approximately 65 percent oil and liquids. In the Kaybob Duvernay, the Company continued to demonstrate the strength of its operational execution during first quarter, drilling the longest onshore well in Canadian history. This record well, which was part of a multi-well pad, was successfully drilled in the Volatile Oil window and had a total measured depth of 9,017 meters, including approximately 5,400 meters of lateral length. This well allowed Crescent Point to reach a portion of the reservoir that was not otherwise accessible. This pad is expected to be brought on stream in the second half of 2024. The Company has brought three multi-well pads on stream in the Volatile Oil window in 2024 year-to-date. The first pad generated average peak 30-day rate of 1,550 boe/d per well (75% liquids) while the two subsequent pads have been on stream for less than 30 days with strong initial production rates. The Company continues to optimize its completions design in the Alberta Montney, recently testing the plug-and-perforation technique on two of the four wells on a recent Gold Creek West pad with strong initial results. This pad was brought on stream with an average peak 30-day rate of 1,800 boe/d per well (85% liquids). Utilizing this change in design has the potential to enhance Crescent Point's overall returns compared to the current sliding sleeve design. In the Karr West area of its Alberta Montney, the Company has brought three multi-well pads on stream since the acquisition close in late 2023. These pads were drilled by the prior operator and the first two pads came on stream with peak 30-day rates per well ranging from 400 boe/d to 1,400 boe/d (85% liquids). The third pad has been on stream for less than 30 days with strong initial production rates. The Company is currently drilling its first fully operated pad in Karr West which will include Crescent Point's optimized drilling and completions design and is expected to come on stream early in the second half of the year. The Company continued to advance its open hole multi-lateral ("OHML") well development program in southeast Saskatchewan in first quarter, with plans to drill a total of 10 two-mile eight-leg wells in 2024. The Government of Saskatchewan recently announced a new multi-lateral well royalty incentive within its provincial budget which is expected to enhance the drilling economics of the Company's OHML program, including a 10 percent improvement to its net present value ("NPV") and payout per well. Through its continued commitment to strong environmental, social and governance ("ESG") practices, Crescent Point has achieved its target to reduce its inactive well inventory by 30 percent ahead of its expected 2031 timeframe. The Company remains on track to meet or exceed its other environmental targets, including reducing its emissions intensity and surface freshwater use, and expects to provide more detail in its sixth annual sustainability report in mid-2024. In late first quarter 2024, Crescent Point hosted an Investor Day where the Company highlighted the quality of its assets and the success of its operational execution alongside its corporate strategy and long-term development plan. Further information, including a recording of the Investor Day presentation, can be found on the Company's website. Adjusted funds flow, adjusted funds flow per share diluted, excess cash flow, operating netback, development capital expenditures, total return of capital and net debt are specified financial measures - refer to the Specified Financial Measures section in this press release for further information. All financial figures are approximate and in Canadian dollars unless otherwise noted. This press release contains forward-looking information and references to specified financial measures. Significant related assumptions and risk factors, and reconciliations are described under the Specified Financial Measures, Forward-Looking Statements and Reserves and Drilling Data sections of this press release, respectively. Further information breaking down the production information contained in this press release by product type can be found in the "Product Type Production Information" section of this press release. OUTLOOK Crescent Point's first quarter 2024 results demonstrated the Company's continued focus on its disciplined capital allocation and operational execution, resulting in significant excess cash flow generation. As previously announced, Crescent Point revised its 2024 annual average production guidance to 191,000 to 199,000 boe/d to reflect the impact of its disposition of non-core assets in Saskatchewan. The Company's development capital expenditures guidance of $1.4 billion to $1.5 billion remained unchanged as a result of minimal spending budgeted for these assets for the remainder of the year. Crescent Point expects to generate $875 million of pro forma excess cash flow in 2024 at US$80/bbl WTI and $2.10/Mcf AECO for the full year. The Company's full year excess cash flow generation is weighted to the second half of 2024 based on its development program and expected production growth through the remainder of the year. Crescent Point plans to continue allocating 60 percent of its annual excess cash flow to shareholders through the base dividend and share repurchases, with the remaining 40 percent directed toward the balance sheet. Including proceeds from its recently announced dispositions, the Company expects to significantly reduce its net debt to $2.8 billion, or 1.1 times adjusted funds flow, by year-end 2024 based on average commodity prices of US$80/bbl WTI and $2.10/Mcf AECO for the full year. As a result of its portfolio transformation executed over the last several years, the Company now has 20 years of premium drilling inventory, supporting organic production growth and significant excess cash flow generation. Crescent Point will continue to focus on operational execution, further strengthening its balance sheet and increasing its return of capital to shareholders. The Company recently announced its intention to change its name to Veren Inc. at its Investor Day in March 2024. The new name, which combines the Latin word for "truth" – veritas – and "energy", is representative of the Company's promising future and its purpose statement of "Bringing Energy To Our World – The Right Way". The Company will formally adopt the new name and visual identity upon receiving all necessary shareholder and regulatory approvals at its Annual and Special Meeting of Shareholders held today, May 10, 2024. The Company is expected to begin trading under its new symbol "VRN" on both the TSX and NYSE on or around May 15, 2024. CONFERENCE CALL DETAILS Crescent Point management will host a conference call on Friday, May 10, 2024 at 8:00 a.m. MT (10:00 a.m. ET) to discuss the Company's results and outlook. A slide deck will accompany the conference call and can be found on Crescent Point's website. Participants can listen to this event online via webcast. To join the call without operator assistance, participants may register online by entering their phone number to receive an instant automated call back. Alternatively, the conference call can be accessed with operated assistance by dialing 1‑888‑390‑0605. Participants will be able to take part in a question and answer session following management's opening remarks through both the webcast dashboard and the conference line. The webcast will be archived for replay and can be accessed online at Crescent Point's conference calls and webcasts page. The replay will be available shortly after the completion of the call. Shareholders and investors can also find the Company's most recent investor presentation on Crescent Point's website. 2024 GUIDANCE The Company's guidance for 2024 is as follows: Total Annual Average Production (boe/d) (1) 191,000 - 199,000 Capital Expenditures Development capital expenditures ($ millions) (2) $1,400 - $1,500 Capitalized administration ($ millions) $40 Total ($ million) (3) $1,440 - $1,540 Other Information for 2024 Guidance Reclamation activities ($ millions) (4) $40 Capital lease payments ($ millions) $20 Annual operating expenses ($/boe) $12.50 - $13.50 Royalties 10.00% - 11.00% 1) Total annual average production (boe/d) is comprised of approximately 65% Oil, Condensate & NGLs and 35% Natural Gas 2) Specified financial measure that does not have any standardized meaning prescribed by IFRS and, therefore may not be comparable with the calculation of similar measures presented by other entities. Refer to the Specified Financial Measures section for further information 3) Land expenditures and net property acquisitions and dispositions are not included. Development capital expenditures spend is allocated on an approximate basis as follows: 90% drilling & development and 10% facilities & seismic 4) Reflects Crescent Point's portion of its expected total budget RETURN OF CAPITAL OUTLOOK Base Dividend Current quarterly base dividend per share $0.115 Total Return of Capital % of excess cash flow (1) 60 % 1) Total return of capital is based on a framework that targets to return to shareholders 60% of excess cash flow on an annual basis The Company's unaudited consolidated financial statements and management's discussion and analysis for the quarter ended March 31, 2024, will be available on the System for Electronic Document Analysis and Retrieval ("SEDAR+") at www.sedarplus.ca, on EDGAR at www.sec.gov and on Crescent Point's website at www.crescentpointenergy.com. CONSOLIDATED FINANCIAL AND OPERATING HIGHLIGHTS Three months ended March 31 (Cdn$ millions except per share and per boe amounts) 2024 2023 Financial Cash flow from operating activities 411.2 473.4 Adjusted funds flow from operations (1) 568.2 524.9 Per share (1) (2) 0.91 0.95 Net income (loss) (411.7) 216.7 Per share (2) (0.66) 0.39 Adjusted net earnings from operations (1) 187.0 218.9 Per share (1) (2) 0.30 0.40 Dividends declared 71.3 17.1 Per share (2) 0.115 0.032 Net debt (1) 3,582.9 1,436.3 Net debt to adjusted funds flow from operations (1) (3) 1.5 0.6 Weighted average shares outstanding Basic 619.9 548.9 Diluted 622.6 552.7 Operating Average daily production Crude oil and condensate (bbls/d) 113,607 92,695 NGLs (bbls/d) 19,077 17,970 Natural gas (mcf/d) 395,204 171,692 Total (boe/d) 198,551 139,280 Average selling prices (4) Crude oil and condensate ($/bbl) 90.22 94.21 NGLs ($/bbl) 37.38 38.23 Natural gas ($/mcf) 3.07 4.26 Total ($/boe) 61.32 72.88 Netback ($/boe) Oil and gas sales 61.32 72.88 Royalties (6.30) (9.93) Operating expenses (13.89) (15.35) Transportation expenses (4.53) (2.83) Operating netback 36.60 44.77 Realized gain (loss) on commodity derivatives 0.25 (0.59) Other (5) (5.40) (2.31) Adjusted funds flow from operations netback (1) 31.45 41.87 Capital Expenditures Capital acquisitions (6) — 372.0 Capital dispositions (6) (105.8) (2.6) Development capital expenditures (1) Drilling and development 350.5 280.5 Facilities and seismic 48.1 33.7 Total 398.6 314.2 Land expenditures 7.7 1.3 (1) Specified financial measure that does not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other entities. Refer to the Specified Financial Measures section for further information. (2) The per share amounts (with the exception of dividends per share) are the per share – diluted amounts. (3) Net debt to adjusted funds flow from operations is calculated as the period end net debt divided by the sum of adjusted funds flow from operations for the trailing four quarters. (4) The average selling prices reported are before realized derivatives and transportation. (5) Other includes net purchased products, general and administrative expenses, interest on long-term debt, foreign exchange, cash-settled share-based compensation and certain cash items and excludes transaction costs, foreign exchange on US dollar long-term debt and certain non-cash items. (6) Capital acquisitions and dispositions, net represent total consideration for the transactions, including long-term debt and working capital assumed, and exclude transaction costs. FINANCIAL AND OPERATING HIGHLIGHTS FROM CONTINUING OPERATIONS Three months ended March 31 (Cdn$ millions except per share and per boe amounts) 2024 2023 Financial Cash flow from operating activities from continuing operations 411.2 369.8 Adjusted funds flow from continuing operations (1) 568.2 438.6 Per share (1) (2) 0.91 0.79 Net income (loss) from continuing operations (398.9) 184.8 Per share (2) (0.64) 0.33