CALGARY, AB – Crescent Point Energy Corp. (“Crescent Point” or the “Company”) (TSX: CPG) (NYSE: CPG) is pleased to announce the Toronto Stock Exchange (“TSX”) has accepted its notice to implement a normal course issuer bid (“NCIB”) to purchase, for cancellation, up to 26,462,509 common shares, or five percent of the Company’s public float, as at February 26, 2021. The NCIB is scheduled to commence on March 9, 2021 and is due to expire on March 8, 2022.
Purchases of Crescent Point’s common shares under the NCIB may be made through the facilities of the TSX, the New York Stock Exchange (the “NYSE”) and alternative trading systems by means of open market transactions or by such other means as may be permitted by the Canadian Securities Administrators (the “CSA”) and under applicable securities laws, including by private agreement pursuant to issuer bid exemption orders issued by applicable securities regulatory authorities. The price the Company will pay for any common shares will be the market price at the time of purchase or such other price as may be permitted by the CSA. Any private purchase made under an exemption order issued by a securities regulatory authority will generally be at a discount to the prevailing market price.
In connection with the NCIB, Crescent Point will enter into an automatic purchase plan (“Plan”) with its designated broker to allow for purchases of its common shares during internal blackout periods. Such purchases would be at the discretion of the broker based on parameters established by the Company prior to any blackout period or any period when it is in possession of material undisclosed information. Outside of these periods, common shares will be repurchased in accordance with management’s discretion, subject to applicable law. The Plan has been reviewed by the TSX and may be terminated by Crescent Point or its broker in accordance with its terms or will terminate on the expiry of the NCIB.
As of February 26, 2021, the Company had a public float of 529,250,180 common shares and 530,364,516 common shares issued and outstanding. Crescent Point will not acquire, through the facilities of the TSX, more than 1,049,003 common shares during a trading day, being 25 percent of the average daily trading volume of the Company’s common shares on the TSX for the six calendar months prior to the date of approval of the NCIB by the TSX (being 4,196,012 common shares), and, in addition, will not acquire per day on the NYSE more than 25 percent of the average daily trading volume for the four calendar weeks preceding the date of purchase, subject to, in both cases, certain exceptions for block purchases.
The actual number of common shares that will be repurchased under the NCIB, and the timing of any such purchases, will be determined by Crescent Point on management’s discretion, subject to applicable securities laws. There cannot be any assurances as to how many common shares, if any, will ultimately be acquired by the Company.
Crescent Point has repurchased a total of approximately 26.2 million common shares under prior NCIBs first initiated on January 25, 2019. The Company did not repurchase any shares under its existing NCIB, which expires March 8, 2021, due to weak market conditions. Such share repurchases are evaluated as a form of returning capital to further enhance shareholder value and are evaluated in the context of the Company’s capital allocation framework and leverage targets.