Crescent Point Energy (TSE: CPG)(NYSE: CPG) reported a profit in Q4 2022 compared to a loss in the same quarter a year ago. The Calgary-based oil and gas company benefited from higher gas and oil prices.
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Sales & Earnings
Total oil and gas sales came in at C$900.4 million in Q4 2021, up 7.8% from C$447.8 million in Q4 2020.
The company’s average selling price was C$75.05 per barrel of oil equivalent in the fourth quarter, 71.5% higher than C$43.76 in the same quarter last year.
Average daily production increased to 130,407 barrels of oil equivalent per day (boe/d) from 111,217 bpd.
Crescent Point reported a profit of C$121.6 million (C$0.21 per share) for the quarter ended December 31, compared with a loss of C$51.2 billion (C$0.10 per share) in Q4 2020.
On an adjusted basis, the company earned C$160 million (C$0.27 per share) for the quarter, compared to adjusted earnings of C$85.6 million (C$0.16 per share) in the prior-year quarter.
CEO Commentary
Crescent Point president and CEO Craig Bryksa said, “Our discipline and execution over the past few years positioned us to not only capitalize on strategic opportunities during 2021, but also to begin returning additional capital to shareholders. We are very pleased with our initial success in the Kaybob Duvernay, including our strong operational execution that has resulted in increased rates of return. Due to our continued discipline and focus, we are on track to achieve our near-term leverage targets over the next six months at current commodity prices. As we continue to strengthen our balance sheet we will look to provide increased returns to shareholders in the context of a more defined return of capital framework.”
Dividend and Shares Repurchases
As previously announced, Crescent Point’s board of directors has approved and declared a dividend of C$0.045 per share for Q1 2022, an increase of 50% from the previous dividend.
Thanks to the continued strength in commodity prices and Crescent Point’s improved financial condition, the company is increasing its total planned share buybacks to C$150 million from the previously announced C$100 million.
Wall Street’s Take
On March 1, RBC Capital analyst Michael Harvey maintained a Buy rating on CPG and set a price target of C$11. This implies 16.7% upside potential.
The rest of the Street is bullish on CPG with a Strong Buy consensus rating based on seven Buys and two Holds. The average Crescent Point Energy price target of C$10.78 implies 14.3% upside potential to current levels.
TipRanks’ Smart Score
Crescent Point scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock returns have strong chances to beat the overall market.
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