Crescent Point raises 2021 production guidance as higher prices boost Q2 profits

Crescent point operations Image: Pipeline News file photo

Crescent Point Energy Corp. raised its 2021 production guidance stemming from higher energy prices after swinging to a $2.14-billion profit in the second quarter.

The Calgary-based company says it earned $3.65 per diluted share in the quarter, compared with a loss of 27 cents per share or $145.1 million a year earlier.

The gain flowed from a $1.9 billion after-tax reversal of non-cash impairment due to an increase in commodity prices and a gain of more than $70 million from an asset sale.

Adjusted profits for the three months ended June 30 were $117.6 million or 20 cents per share, up from a loss of $27.9 million or five cents per share in the second quarter of 2020.

Crescent Point was expected to post 22 cents per share in adjusted profits, according to financial data firm Refinitiv.

The company's average daily production in the quarter was 148,641 boe/d, up from 120,842 boe/d in the second quarter of 2020, while the average selling price was $62.78 per barrel of oil equivalent, up from $23.55 in the same quarter last year.

“We also closed two strategic transactions during the quarter, further enhancing our asset portfolio and long-term sustainability,'' said CEO Craig Bryksa. 

“The seamless integration of the Kaybob Duvernay assets and the constructive commodity price environment have set us up for a strong second half of the year and into 2022.''

It increased its annual average production guidance to 130,000 to 134,000 boe/d, up from the prior range of 128,000 to 132,000 boe/d, in part due to the reactivation of higher-cost production that was shut-in when energy prices were lower.

Adjusted cash flow from operations increased to $387.8 million from $109 million in the prior year quarter as production.

© 2021 The Canadian Press

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