Crescent Point Energy Corp. said Thursday it is pleased with the results it has obtained so far from oilfield assets the company purchased earlier this year in a $1.7-billion deal.
The Calgary-based oil and gas company, acquired Spartan Delta Corp.’s assets in the Montney — one of North America’s largest unconventional petroleum plays, spanning northeast B.C. and northwest Alberta — earlier in 2023.
The deal saw Crescent Point significantly grow its presence in the area, acquiring 600 drilling locations in the Montney region and adding 38,000 barrels of oil equivalent to the company’s production capacity.
CEO Craig Bryksa said the company’s wells in the area as of the third quarter of 2023 were producing in line with or ahead of expectations.
“We are currently running a one-rig program in the Montney but will be evaluating that — eventually looking to add a second rig to further accelerate the high-return development of our deep inventory in the play,” Bryksa told analysts on a conference call to discuss Crescent Point’s financial results.
“Altogether, the addition of these Montney assets has significantly enhanced the quality of our overall portfolio and the company’s long-term outlook.”
Crescent Point has also been shoring up its position in the adjacent Kaybob Duvernay oilfield play, acquiring assets from Shell Canada for $900 million in 2021 and adding additional purchases since.
Together, the two regions represent what Crescent Point believes are its greatest opportunity. In August, the company announced it would sell off its North Dakota assets in order to focus more on the Montney and Duvernay.
“These transactions are consistent with our strategy to focus our portfolio on high return, high netback, short- and long-cycle plays,” Bryksa said on the call.
Crescent Point reported a loss of $809.9 million in its latest quarter related to non-cash charges in connection with the planned sale of its U.S. assets.
The company said the loss amounted to $1.52 per share for the quarter ended Sept. 30, compared with a profit of $466.4 million or 82 cents per share a year earlier.
On an adjusted basis, Crescent Point says its earnings from operations amounted to 59 cents per share, up from 43 cents per share in the same quarter last year.
Oil and gas revenue totalled $1.09 billion for the company’s third quarter, up from $970.5 million a year earlier.
Average daily production was 180,581 barrels of oil equivalent for the quarter, up from 133,019 a year ago.
While Crescent Point is yet to formalize its guidance for 2024, the company said its preliminary forecast suggests annual production for the year in the range of 145,000 to 151,000 barrels of oil per day, along with a capital expenditure budget of $1.05 to $1.15 billion.
The company has said it will allocate 70 per cent of its 2024 capital budget to its Kaybob Duvernay and Alberta Montney assets, with the balance going to its Saskatchewan assets.
At a forecast oil price of US$80 per barrel for West Texas Intermediate, Crescent Point said it could generate $1 billion in excess cash flow in 2024.
This report by The Canadian Press was first published Nov. 2, 2023.
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