CALGARY, Alberta, June 19, 2018 (GLOBE NEWSWIRE) — Crescent Point Energy Corp. (“Crescent Point” or the “Company”) (TSX:CPG) (NYSE:CPG) announces changes to its executive management team and provides an update on recent dispositions.
Mr. Craig Bryksa, interim President and Chief Executive Officer, is pleased to announce that Mr. Ryan Gritzfeldt, formerly the Vice President, Marketing and Innovation, and prior to that, Vice President, Engineering and Business Development East, has assumed the role of Chief Operating Officer. Mr. Gritzfeldt is a professional engineer who has been an integral contributor to the Company’s operational success during his 14 years at Crescent Point. The Company’s financial operations will continue to be led by Mr. Ken Lamont in his current role as Chief Financial Officer.
Mr. Neil Smith, Chief Operating Officer, and Ms. Tamara MacDonald, Senior Vice President, Corporate and Business Development, have stepped down as officers of the Company. Crescent Point and its Board of Directors would like to thank both Mr. Smith and Ms. MacDonald for their hard work, dedication and contributions over the past 15 years.
Crescent Point also announces it has entered into definitive purchase and sale agreements to dispose of certain non-core assets in the Williston Basin for proceeds of approximately $280 million. These transactions include both the disposition previously announced on May 3, 2018, where the Company announced it signed a non-binding letter of intent for approximately $225 million, along with a second transaction agreed to in late second quarter, valued at approximately $55 million. These transactions are each expected to close at the end of second quarter.
Current operated and non-operated production from these non-core assets is approximately 4,800 boe/d. As a result of these announced dispositions, Crescent Point is adjusting its 2018 average production guidance to 181,000 boe/d and exit production guidance to 190,000 boe/d. The Company expects to allocate proceeds from these dispositions toward debt reduction and continued strengthening of its balance sheet. Crescent Point’s capital expenditures guidance for 2018 remains unchanged at $1.775 billion, as minimal capital expenditures were planned for the disposed assets for the remainder of the year.
The Company’s revised business strategy is reprioritizing key value drivers, including continuing improvement of the balance sheet, disciplined capital allocation and cost reductions. These value drivers are expected to result in improved rates of return on capital employed, debt adjusted per share metrics, free cash flow generation and, ultimately, the Company’s long-term sustainability. More specific details on Crescent Point’s revised strategy will be communicated subsequent to a formal portfolio review, which is currently underway.
The Company’s updated guidance for 2018, which is set forth below, reflects the announced dispositions of non-core assets and does not reflect potential changes that may be implemented as part of Crescent Point’s new strategic direction.
Total average annual production (boe/d)
% Oil and NGLs
|Exit production (boe/d)||195,000||190,000|
|Total capital expenditures, before net land and property acquisitions ($ million) (1)||$1,775||$1,775|
(1) The projection of capital expenditures excludes property and land acquisitions, which are separately considered and evaluated.