Press release from PR Newswire
Crescent Point Energy Corp. Announces Third Quarter 2011 Results
Thursday, November 10, 2011
Crescent Point Energy Corp. Announces Third Quarter 2011 Results09:00 EST Thursday, November 10, 2011CALGARY, Alberta, November 10, 2011 /PRNewswire/ --Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX: CPG) is pleased to announce its operating and financial results for the third quarter ended September 30, 2011. The unaudited financial statements and notes, as well as management's discussion and analysis, will be available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at http://www.sedar.com and on Crescent Point's website at http://www.crescentpointenergy.com.FINANCIAL AND OPERATING HIGHLIGHTS Three months ended Nine months ended September 30 September 30 (Cdn$000s except shares, per share and per boe amounts) 2011 2010 % Change 2011 2010 % Change Financial Funds flow from operations (1) 303,315 230,424 32 911,335 619,641 47 Per share (1)(2) 1.09 0.91 20 3.32 2.70 23 Net income (loss) (3) 204,624 (7,804) 2,722 287,331 101,826 182 Per share (2)(3) 0.74 (0.03) 2,567 1.05 0.44 139 Dividends paid or declared 195,021 175,753 11 571,493 472,832 21 Per share (2) 0.69 0.69 - 2.07 2.07 - Payout ratio (%) (1)(4) 64 76 (12) 63 76 (13) Per share (%)(1)(2)(4) 63 76 (13) 62 77 (15) Net debt (1)(5) 1,072,615 1,340,196 (20)1,072,615 1,340,196 (20) Capital acquisitions (net) (6) 163,298 1,446,164 (89) 198,548 1,996,277 (90) Development capital expenditures 349,660 348,513 - 779,921 712,058 10 Weighted average shares outstanding (mm) Basic 275.3 250.0 10 271.6 225.2 21 Diluted 277.9 254.0 9 274.2 229.1 20 Operating Average daily production Crude oil and NGLs (bbls/d) 65,253 58,390 12 64,224 52,519 22 Natural gas (mcf/d) 42,029 42,947 (2) 42,470 38,134 11 Total (boe/d) 72,258 65,548 10 71,302 58,875 21 Average selling prices (7) Crude oil and NGLs ($/bbl) 83.65 70.54 19 86.37 72.44 19 Natural gas ($/mcf) 3.87 3.69 5 4.01 4.21 (5) Total ($/boe) 77.79 65.25 19 80.18 67.35 19 Netback ($/boe) Oil and gas sales 77.79 65.25 19 80.18 67.35 19 Royalties (14.27) (11.65) 22 (13.77) (12.78) 8 Operating expenses (10.64) (11.27) (6) (11.16) (10.89) 2 Transportation (1.78) (1.49) 19 (1.87) (1.64) 14 Netback prior to realized derivatives 51.10 40.84 25 53.38 42.04 27 Realized gain (loss) on derivatives (1.40) 1.25 (212) (2.82) 0.66 (527) Netback (1) 49.70 42.09 18 50.56 42.70 18 (1) Funds flow from operations, payout ratio, net debt and netback as presented do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and, therefore, may not be comparable with the calculation of similar measures presented by other entities. Please refer to the Non-GAAP Financial Measures section of this press release. (2) The per share amounts (with the exception of per share dividends) are the per share - diluted amounts. (3) Net income for the three and nine month periods ended September 30, 2011, includes unrealized derivative gains of $302.6 million and $265.1 million, respectively. Net income for the three and nine month periods ended September 30, 2010, includes unrealized derivative losses of $80.9 million and unrealized derivative gains of $8.2 million, respectively. (4) Payout ratio is calculated as dividends paid or declared (including the value of dividends issued pursuant to the Company's dividend reinvestment plan) divided by funds flow from operations. (5) Net debt includes long-term debt, working capital and long-term investments, but excludes derivative asset, derivative liability and unrealized foreign exchange on translation of US dollar senior guaranteed notes. (6) Capital acquisitions represent total consideration for the transactions, including long-term debt and working capital assumed, and exclude transaction costs. (7) The average selling prices reported are before realized derivatives and transportation charges. <end_table> HIGHLIGHTS In third quarter 2011, Crescent Point continued to execute its integrated business strategy of acquiring, exploiting and developing high-quality, long-life light and medium oil and natural gas properties. Crescent Point grew third quarter 2011 production by 9 percent over second quarter 2011 and 10 percent over third quarter 2010. The Company produced an average of 72,258 boe/d, weighted 90 percent to light and medium crude oil. Current production exceeds 76,500 boe/d and the Company remains on track to achieve exit production guidance of 77,500 boe/d.During third quarter, Crescent Point spent a record $279.5 million on drilling and completions, drilling a record 164 (116.5 net) oil wells and 2 (2.0 net) service wells with a 100 percent success rate. Crescent Point also spent $70.2 million on land and facilities, for total capital expenditures of $349.7 million.Crescent Point's funds flow from operations increased by 32 percent to $303.3 million ($1.09 per share - diluted) in third quarter 2011, compared to $230.4 million ($0.91 per share - diluted) in third quarter 2010.During the quarter, Crescent Point maintained consistent monthly dividends of $0.23 per share, totaling $0.69 per share for third quarter 2011. This is unchanged from $0.69 per share paid in third quarter 2010. On an annualized basis, the third quarter dividend equates to a yield of 6.6 percent, based on a volume weighted average quarterly share price of $41.55.On July 14, 2011, Crescent Point announced its land position in Alberta's emerging Beaverhill Lake light oil resource play. Drilling results to date in the play have exceeded the Company's expectations, with production hitting more than 2,000 boe/d by the end of third quarter from zero at the beginning of the year. There are currently six non-operated drilling rigs running on working interest lands and operators plan to add two more rigs for the remainder of the year. The Company has accumulated more than 380 (165 net) sections of land highly prospective for the Beaverhill Lake zone in the Swan Hills area, as well as approximately 19 percent of the issued and outstanding common shares of a leading Beaverhill Lake producer, Arcan Resources Ltd. ("Arcan").Crescent Point grew production from the Shaunavon area to more than 9,900 boe/d by the end of third quarter, an increase of more than 2,600 boe/d. The increase was a result of the announced reallocation of a portion of planned capital spending to the Shaunavon area from the Viewfield Bakken play due to the prolonged spring break-up and unusual flooding conditions in southeast Saskatchewan, which demonstrates the depth of the Company's drilling inventory and the flexibility of its operations. Production growth in the Shaunavon area continues to be strong, with current levels at more than 11,000 boe/d.On August 31, 2011, the Company announced the acquisition of approximately 750 boe/d of production and more than 78 net sections of land in North Dakota, U.S., through two strategic acquisitions. Crescent Point believes the land to be prospective for the lower-risk Bakken and Three Forks zones.Also on August 31, 2011, Crescent Point announced a $50 million increase to its 2011 capital expenditures budget, to $1.05 billion from $1.0 billion, as well as an increase in its 2011 exit production rate, to 77,500 boe/d from 76,500 boe/d. The Company also announced a $375 million bought deal financing with an over-allotment option for its underwriters. Including the over-allotment option, a total of 9,025,000 Crescent Point shares were issued pursuant to the financing at a price of $43.50, for total gross proceeds of $392.6 million.The Company's balance sheet remains strong, with projected average net debt to 12-month cash flow of less than 1.0 times and approximately $1.1 billion unutilized on its bank lines as at September 30, 2011.Crescent Point continues to implement its disciplined hedging strategy to provide increased certainty over cash flow and dividends. As of November 8, 2011, the Company had hedged 55 percent, 56 percent, 43 percent and 23 percent of production, net of royalty interest, for the balance of 2011, 2012, 2013 and 2014, respectively. Average quarterly hedge prices range from Cdn$84 per boe to Cdn$97 per boe. The Company also initiated its first quarter 2015 hedge position, with nine percent of production hedged at approximately Cdn$93 per boe. OPERATIONS REVIEW Third Quarter Operations Summary During third quarter 2011, Crescent Point continued to implement management's business strategy of creating sustainable, value-added growth in reserves, production and cash flow through acquiring, exploiting and developing high-quality, long-life light and medium oil and natural gas properties. Crescent Point achieved average production of 72,258 boe/d in third quarter, weighted 90 percent to light and medium crude oil. The Company remains on track to achieve annual guidance of 72,500 boe/d and its upwardly revised 2011 exit production rate of 77,500 boe/d. Current production exceeds 76,500 boe/d. After a prolonged spring break-up due to unusual flooding in western Canada, capital development activities resumed in early July. During third quarter, the Company spent a record $279.5 million on drilling and completions, drilling 164 (116.5 net) oil wells and 2 (2.0 net) service wells with a 100 percent success rate. Crescent Point also spent $70.2 million on land and facilities, for total capital expenditures of $349.7 million during the quarter. Drilling Results The following tables summarize our drilling results for the three and nine months ended September 30, 2011: Three months ended September 30, % 2011 Gas Oil D&A Service Standing Total Net Success Southeast Saskatchewan and Manitoba - 55 - 2 - 57 43.0 100 Southwest Saskatchewan - 78 - - - 78 58.7 100 South/Central Alberta - 22 - - - 22 13.3 100 Northeast BC and Peace River Arch, Alberta - 2 - - - 2 1.4 100 United States(1) - 7 - - - 7 2.1 100 Total - 164 - 2 - 166 118.5 100 Nine months ended September 30, % 2011 Gas Oil D&A Service Standing Total Net Success Southeast Saskatchewan and Manitoba - 159 - 2 - 161 127.1 100 Southwest Saskatchewan - 126 - - - 126 89.6 100 South/Central Alberta - 30 - - - 30 16.9 100 Northeast BC and Peace River Arch, Alberta - 4 - - - 4 2.7 100 United States(1) - 16 - - - 16 3.4 100 Total - 335 - 2 - 337 239.7 100 (1) The net well count is subject to final working interest determination. Southeast Saskatchewan and Manitoba In response to severe flooding in second quarter in southeast Saskatchewan, Crescent Point reallocated a portion of planned 2011 capital spending from the Viewfield Bakken play to the Shaunavon area in southwest Saskatchewan. The Company reduced its 2011 drilling expectations in southeast Saskatchewan by approximately 60 net wells, primarily in the Viewfield Bakken resource play. Since then, weather conditions have significantly improved, allowing for increased access and accelerated drilling. Production in the Viewfield Bakken play grew by more than 4,400 boe/d by the end of third quarter. If conditions remain favourable, Crescent Point may exceed its current 2011 capital expenditures budget for the area. These drilling activities would position the Company to exceed its current exit production guidance for 2011 and allow for an early start to the 2012 capital program. During third quarter 2011, Crescent Point participated in the drilling of 55 (41.0 net) oil wells and 2 (2.0 net) service wells in southeast Saskatchewan and southwest Manitoba, achieving a 100 percent success rate. Of the oil wells drilled, 37 (31.7 net) were horizontal wells in the Viewfield Bakken light oil resource play, 2 (2.0 net) were Flat Lake horizontal wells, 10 (5.5 net) were conventional horizontal wells in southeast Saskatchewan and 4 (1.0 net) were in Manitoba. Production performance from water injection patterns in the Viewfield Bakken resource play continues to exceed the Company's expectations and has demonstrated the applicability of water flood to the play. To date, the Company has converted 18 wells to injection wells in the Bakken play. Crescent Point now has more than 12 months of history on 11 injection wells across five different areas of the play. Each one has demonstrated positive water flood response in offsetting producer wells. Based on promising results from nearly three years of production in the Company's first Bakken water flood pilot, Crescent Point believes that water flood implementation could increase ultimate recovery factors to greater than 30 percent from an expected 19 percent on primary recovery. Preliminary meetings with partners to unitize a portion of the centre of the play are underway. The Company will continue to develop the water flood program and anticipates having more than 50 injection wells in the Viewfield Bakken play by year end 2012. Expansion of the Viewfield gas plant, to 30 mmcf/d from 21 mmcf/d, was completed and brought on line during third quarter. In addition, more than 90 kilometres of pipeline were constructed. Southwest Saskatchewan In response to the unusual flooding experienced in southeast Saskatchewan during second quarter, Crescent Point reallocated a portion of planned capital spending from the Viewfield Bakken play to the Shaunavon area in southwest Saskatchewan where surface conditions were more favourable. As a result, production grew to more than 9,900 boe/d by the end of third quarter, an increase of more than 2,600 boe/d. Production growth in the Shaunavon area continues to be strong, with current levels at more than 11,000 boe/d. During third quarter, the Company participated in the drilling of 78 (58.7 net) oil wells in southwest Saskatchewan, of which 34 (32.6 net) were Lower Shaunavon wells and 8 (6.1 net) were Upper Shaunavon wells, achieving a 100 percent success rate. To the end of third quarter, the Company has drilled 89 (69.4 net) wells in the Shaunavon area. In total, Crescent Point has budgeted to drill 114 (86 net) wells in the Shaunavon area during 2011, compared to original plans to drill 44 net wells. The Company is currently injecting water into six horizontal injection wells in four pressure maintenance programs in the Lower Shaunavon zone. Crescent Point is encouraged by results to date. Plans to convert up to 3 wells in the Upper Shaunavon zone to water injection wells in 2012 are also underway. Crescent Point continued to focus on adding infrastructure in the Shaunavon area. The Company has commenced construction of a 6 mmcf/d gas plant, which is designed to be expandable to12 mmcf/d. The plant is expected to be operational by early 2012. During third quarter, more than 50 kilometres of pipeline were constructed. Plans to design and construct an additional battery in 2012 to accommodate increased production have commenced. Operating costs are expected to be reduced with the infrastructure development. The Company drilled 23 (14.0 net) horizontal oil wells, of a planned 26 wells for the Viking area in 2011. The remaining 3 (1.5 net) wells were drilled in early fourth quarter. As of the end of third quarter, 11 of the wells had been fracture stimulated and are expected to be put on production during fourth quarter 2011. Construction of a battery to accommodate increased production and future development began in fourth quarter 2011. At Battrum/Cantuar, the Company participated in the drilling of 13 (6.0 net) oil wells, achieving a 100 percent success rate. Overall production remains steady, with minimal capital required to maintain the area's production rates. Alberta Due to the Company's positive results to date in the Swan Hills Beaverhill Lake light oil resource play and the flooding in southeast Saskatchewan during second quarter, Crescent Point reallocated a portion of its planned 2011 capital spending from the Viewfield Bakken to the Swan Hills area. During third quarter, 22 (13.3 net) oil wells were drilled, including 12 (4.5 net) wells in the Beaverhill Lake light oil resource play. As of the end of third quarter, the Company has participated in a total of 19 (7.1 net) successful wells in the Beaverhill Lake play and has plans to participate in up to 44 (18.8 net) wells in 2011. There are currently six non-operated drilling rigs running on working interest lands. Operators plan to add two more rigs for the remainder of the year. As of the end of third quarter, 16 (5.9 net) wells have been placed on stream in the Swan Hills area, with 13 (4.9 net) of those wells on stream for more than 30 days. The average initial 30-day rate for those wells exceeds 750 boe/d. Initial results from the wells have exceeded the Company's expectations, with organic production growth from zero to over 2,000 boe/d by the end of third quarter. Crescent Point has access to more than one million net acres of undeveloped land in southern Alberta and has been pursuing several exploration projects in the area. During third quarter, the Company participated in the drilling of 10 (8.8 net) conventional oil wells, of which 6 (4.9 net) were horizontal oil wells in various zones. During fourth quarter 2011, the Company plans to drill 2.0 net wells to follow up on previously drilled unconventional exploration wells in the Alberta Bakken play, for a total of 3.0 net wells in 2011. United States On August 31, 2011, the Company announced the acquisition of approximately 750 boe/d of production and more than 78 net sections of land in North Dakota, U.S., through two strategic acquisitions. Crescent Point has now accumulated more than 165 net sections of land in the state. During third quarter, the Company participated in the drilling of 7 (2.1 net) oil wells, of which 2 (1.3 net) were operated, achieving a 100 percent success rate. The two operated wells are expected to be completed by early 2012, as part of Crescent Point's two-year service agreement with a leading U.S. fracture stimulation company. The Company expects to participate in drilling up to 10 net wells in 2011, including 4 gross operated wells. OUTLOOK Crescent Point continues to execute its business plan of creating sustainable value-added growth in reserves, production and cash flow through management's integrated strategy of acquiring, exploiting and developing high-quality, long-life light and medium oil and natural gas properties in United States and Canada. Crescent Point delivered strong operational and financial results and executed a record development program in third quarter 2011. Crescent Point remains on track to achieve annual guidance of 72,500 boe/d and its 2011 exit production rate of 77,500 boe/d. Current production exceeds 76,500 boe/d. The Company successfully executed a reallocation of a portion of its planned capital spending from the Viewfield Bakken play to the Shaunavon and Beaverhill Lake areas, resulting in strong production growth in both areas and demonstrating the depth of its drilling inventory opportunities and flexibility of its operations. Improved conditions in southeast Saskatchewan have also allowed for increased drilling activities. Assuming weather conditions continue to be favourable in southeast Saskatchewan, Crescent Point may exceed its 2011 capital budget expectations due to increased drilling in the Viewfield Bakken play and strong growth in the Shaunavon area. The majority of the increased drilling would be completed in fourth quarter, which would position the Company to exceed its 2011 exit production forecast, and would provide an early start to the Company's 2012 capital program. Water tables in southeast Saskatchewan remain high despite the dry weather, so the Company is again planning for a prolonged, three-month spring break-up in 2012. Crescent Point expects to release its 2012 budget plans in early December, along with an update on its 2011 capital expenditures and production expectations. The Company expects 2011 annual funds flow from operations to be $1.21 billion ($4.36 per share - diluted), based on US$94.00/bbl WTI, Cdn$3.70/mcf AECO and a US$/Cdn$1.01 exchange rate. Crescent Point has more than 6,500 net low-risk drilling locations in inventory in four large resource plays, representing more than 450,000 boe/d of risked potential production additions. This depth of drilling inventory positions the Company well for long-term sustainable growth in production, reserves and net asset value, and also provides support for dividends over the long term. The Company's balance sheet remains strong, with projected average net debt to 12-month cash flow of less than 1.0 times and approximately $1.1 billion unutilized on its bank lines as at September 30, 2011. Crescent Point continues to implement its balanced 3½-year price risk management program, using a combination of swaps, collars and purchased put options with investment-grade counterparties. As of November 8, 2011, the Company had hedged 55 percent, 56 percent, 43 percent and 23 percent of production, net of royalty interest, for the balance of 2011, 2012, 2013 and 2014, respectively. Average quarterly hedge prices range from Cdn$84 per boe to Cdn$97 per boe. The Company also initiated its first quarter 2015 hedge position, with nine percent of production hedged at approximately Cdn$93 per boe. Crescent Point's management believes that with the Company's high-quality reserve base and development drilling inventory, excellent balance sheet and solid risk management program, the Company is well-positioned to continue generating strong operating and financial results. 2011 Guidance Crescent Point's 2011 guidance is as follows: Production Oil and NGL (bbls/d) 65,375 Natural gas (mcf/d) 42,750 Total (boe/d) 72,500 Exit (boe/d) 77,500 Funds flow from operations ($000) 1,210,000 Funds flow per share - diluted ($) 4.36 Cash dividends per share ($) 2.76 Capital expenditures ($000) (1) 1,050,000 Wells drilled, net 312 Pricing Crude oil - WTI (US$/bbl) 94.00 Crude oil - WTI (Cdn$/bbl) 93.07 Natural gas - Corporate (Cdn$/mcf) 3.70 Exchange rate (US$/Cdn$) 1.01 (1) The projection of capital expenditures excludes acquisitions, which are separately considered and evaluated. ON BEHALF OF THE BOARD OF DIRECTORS (signed) Scott Saxberg President and Chief Executive Officer November 10, 2011 Non-GAAP Financial Measures Throughout this press release, the Company uses the terms "funds flow from operations", "funds flow from operations per share - diluted", "net debt", "netback", "payout ratio" and "payout ratio per share - diluted." These terms do not have any standardized meaning as prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other issuers. Funds flow from operations is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Funds flow from operations per share - diluted is calculated based on cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Management utilizes funds flow from operations as a key measure to assess the ability of the Company to finance dividends, operating activities, capital expenditures and debt repayments. Funds flow from operations as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. The following table reconciles the cash flow from operating activities to funds flow from operations: Three months ended September 30 Nine months ended September 30 ($000s) 2011 2010 % Change 2011 2010 % Change Cash flow from operating activities 309,622 204,583 51 936,695 580,990 61 Changes in non-cash working capital (7,679) 24,480 (131) (30,248) 29,075 (204) Transaction costs 721 951 (24) 2,488 8,062 (69) Decommissioning expenditures 651 410 59 2,400 1,514 59 Funds flow from operations 303,315 230,424 32 911,335 619,641 47 Net debt is calculated as current liabilities plus long-term debt less current assets and long-term investments, but excludes derivative asset, derivative liability and unrealized foreign exchange on translation of US dollar senior guaranteed notes. Management utilizes net debt as a key measure to assess the liquidity of the Company. The following table reconciles long-term debt to net debt: As at September 30 ($000s) 2011 2010 % Change Long-term debt 996,881 1,214,705 -18 Current liabilities 482,999 357,110 35 Current assets -310,701 -171,755 81 Long-term investments -122,967 -46,161 166 Excludes: Derivative asset 51,139 14,110 262 Derivative liability -7,230 -25,079 -71 Unrealized foreign exchange on translation of US dollar senior guaranteed notes -17,506 -2,734 540 Net debt 1,072,615 1,340,196 -20 Netback is calculated on a per boe basis as oil and gas sales, less royalties, operating and transportation expenses and realized derivative gains and losses. Netback is used by management to measure operating results on a per boe basis to better analyze performance against prior periods on a comparable basis. Payout ratio and payout ratio per share - diluted are calculated on a percentage basis as dividends paid or declared (including the value of dividends issued pursuant to the Company's dividend reinvestment plan) divided by funds flow from operations. Payout ratio is used by management to monitor the dividend policy and the amount of funds flow from operations retained by the Company for capital reinvestment. Forward-Looking Statements Certain statements contained in this press release constitute forward-looking statements. All forward-looking statements are based on Crescent Point's beliefs and assumptions based on information available at the time the assumption was made. The use of any of the words "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "projected", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well-positioned" and similar expressions are intended to identify forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Crescent Point believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. These statements speak only as of the date of this press release or, if applicable, as of the date specified in those documents specifically referenced herein. In particular, this press release contains forward-looking statements pertaining to the following: the performance characteristics of Crescent Point's oil and natural gas properties; oil and natural gas production levels; capital expenditure programs; drilling programs; well conversion and water injection programs; the quantity of Crescent Point's oil and natural gas reserves and anticipated future cash flows from such reserves; the quantity of drilling locations in inventory; projections of commodity prices and costs; supply and demand for oil and natural gas; expectations regarding the ability to raise capital and to continually add to reserves through acquisitions and development; expected debt levels and credit facilities; expected pipeline capacity additions; facility construction plans; and treatment under governmental regulatory regimes. By their nature, such forward-looking statements are subject to a number of risks, uncertainties and assumptions, which could cause actual results or other expectations to differ materially from those anticipated, including those material risks discussed in our annual information form under "Risk Factors" and our Management's Discussion and Analysis for the year ended December 31, 2010, under the headings "Risk Factors" and "Forward-Looking Information." The material assumptions are disclosed in the Management's Discussion and Analysis for the year ended December 31, 2010, under the headings "Dividends", "Capital Expenditures", "Asset Retirement Obligation", "Liquidity and Capital Resources", "Critical Accounting Estimates", "New Accounting Pronouncements" and "Outlook", and in Management's Discussion and Analysis for the period ended September 30, 2011, under the headings "Dividends", "Capital Expenditures", "Decommissioning Liability", "Liquidity and Capital Resources", "Critical Accounting Estimates" and "Outlook". The actual results could differ materially from those anticipated in these forward-looking statements as a result of the material risks set forth under the noted headings, which include, but are not limited to: financial risk of marketing reserves at an acceptable price given market conditions; volatility in market prices for oil and natural gas; delays in business operations, pipeline restrictions, blowouts; the risk of carrying out operations with minimal environmental impact; industry conditions including changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; uncertainties associated with estimating oil and natural gas reserves and Discovered Petroleum Initially in Place; economic risk of finding and producing reserves at a reasonable cost; uncertainties associated with partner plans and approvals; operational matters related to non-operated properties; increased competition for, among other things, capital, acquisitions of reserves and undeveloped lands; competition for and availability of qualified personnel or management; incorrect assessments of the value of acquisitions and exploration and development programs; unexpected geological, technical, drilling, construction and processing problems; availability of insurance; fluctuations in foreign exchange and interest rates; stock market volatility; failure to realize the anticipated benefits of acquisitions; general economic, market and business conditions; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities and counterparty credit risk; and changes in income tax laws, tax laws, crown royalty rates and incentive programs relating to the oil and gas industry. A barrel of oil equivalent ("boe") is based on a conversion rate of six thousand cubic feet of natural gas to one barrel of oil. Additional information on these and other factors that could affect Crescent Point's operations or financial results are included in Crescent Point's reports on file with Canadian securities regulatory authorities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed herein or otherwise and Crescent Point undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required to do so pursuant to applicable law. Crescent Point is a conventional oil and gas producer with assets strategically focused in properties comprised of high-quality, long-life, operated light and medium oil and natural gas reserves in United States and Canada. For further information: ON CRESCENT POINT ENERGY CORP. PLEASE CONTACT: Greg Tisdale, Chief Financial Officer, or Trent Stangl, Vice President Marketing and Investor Relations. Telephone: +1(403)693-0020 Toll-free (US & Canada): 888-693-0020 Fax: +1(403)693-0070 Website: http://www.crescentpointenergy.com email@example.com Crescent Point shares are traded on the Toronto Stock Exchange under the symbol CPG. Crescent Point Energy Corp. Suite 2800, 111-5th Avenue S.W. Calgary, Alberta T2P 3Y6 SOURCE Crescent Point Energy Corp.For further information: .