Crescent Point hikes capital budget

Crescent Point hikes capital budget

Sept. 9, 2016, 7:37 a.m.


Crescent Point Energy Corp. is increasing its fourth quarter capital budget by $150 million, resulting in budgeted annual capital expenditures of $1.1 billion and upward revised annual average production guidance of 167,000 boe per day.

The company has also entered into an agreement, on a bought deal basis, to sell 33.7 million common shares at $19.30 per share to raise gross proceeds of approximately C$650 million. The net proceeds will be used to fund incremental growth capital expenditures during 2016 and 2017 and to reduce bank indebtedness.

“This financing allows us to accelerate our drilling program across our portfolio, including our emerging Uinta and Flat Lake resource plays, which are continuing to demonstrate strong results,” said Scott Saxberg, president and CEO of Crescent Point. “We have been very successful at reducing our cost structure during this commodity price downturn and have a large drilling inventory that is highly economic at US$45 WTI. This is the first phase of a strong organic growth plan.”

The additional fourth quarter capital is expected to add incremental production volumes in early 2017 and further improve the company’s growth plans.

This updated guidance compares to the company’s previously announced capital budget of $950 million and annual average production guidance of 165,000 boe a day.

The company’s preliminary 2017 budget of $1.4 billion includes $450 million of incremental growth capital above its sustaining capital budget of $950 million. This is expected to result in 2017 exit production of approximately 175,000 to 177,000 boe a day, or an annual growth rate of approximately five to eight per cent.

Crescent Point plans to finalize its 2017 budget in late fourth quarter 2016 or early January 2017.




About prosperitysaskatchewan

Consultant on Saskatchewan's natural resources.

Posted on September 9, 2016, in economic impact, oil, political. Bookmark the permalink. Leave a comment.

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