SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________
F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of
October 2017
Commission File Number 001-36258
Crescent Point Energy Corp.
(Name of Registrant)
Suite 2000, 585-8th Avenue S.W.
Calgary, Alberta, T2P 1G1
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☐ Form 40-F ☒
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐ No ☒
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Crescent Point Energy Corp. | |||
(Registrant) | |||
By: | /s/ Ken Lamont | ||
Name: | Ken Lamont | ||
Title: | Chief Financial Officer |
Date: October 26, 2017
EXHIBITS
Exhibit 99.1 | News Release re: Crescent Point Announces Strong Q3 2017 Results and Upwardly Revised 2017 Guidance |
• |
Achieved third quarter 2017 average production growth of 10 percent year-over-year. |
• |
Increased 2017 average production guidance to 175,500 boe/d from 174,500 boe/d based on positive operating results. |
• |
Advanced new play development in Uinta and Williston basins, organically expanding resource base and inventory. |
• |
Transacted over $190 million of non-core dispositions at an accretive metric of approximately $64,000 per flowing boe. |
• |
Crescent Point achieved average production of 176,069 boe/d. This increase of over 15,000 boe/d since third quarter 2016 is driven by growth in each of the Company's core resource plays. |
• |
In the Uinta Basin, Crescent Point advanced horizontal development across multiple zones while delivering strong results. The Company's previously reported one-mile Wasatch well continues to flow at approximately 1,000 boe/d and has produced over 200 mboe in only 125 days. Crescent Point also recently completed a successful one-mile Uteland Butte well with a 60-day flow rate of approximately 640 boe/d. Initial production rates for the Wasatch and Uteland Butte wells were comprised of over 90 percent oil and liquids, similar to results from the Company's Castle Peak program. Further optimizing its capital efficiencies, Crescent Point plans to complete vertically stacked two-mile horizontals targeting each of the Castle Peak, Wasatch and Uteland Butte zones in fourth quarter 2017. |
• |
During 2017, the Company increased its strategic position in the Flat Lake resource play by adding approximately 500 net sections targeting multiple zones, including a new large developing resource in the Lodgepole zone. |
• |
Crescent Point is improving capital efficiencies and ultimate recoveries by advancing new technologies such as its Injection Control Device (ICD) waterflood systems. The Company currently has 46 ICD waterflood systems in place showing encouraging results and remains on track to have a total of 50 ICD systems installed by year end. |
• |
As part of its operations improvement program, Crescent Point continued the implementation of remote field monitoring and automation pilots in its core areas to reduce downtime, optimize wellbores and increase staff efficiency. The Company also recently initiated a solar power pilot in Saskatchewan supporting its climate change initiatives. |
• |
Funds flow from operations totaled $389.0 million or $0.71 per share diluted. Crescent Point achieved a payout ratio of 13 percent based on cash dividends paid of $0.09 per share during the quarter. |
• |
The Company spent $423.7 million on drilling and development activities during third quarter, drilling 251.0 (201.2 net) wells. Total capital expenditures, including land, seismic and facilities were $505.7 million. |
• |
During third quarter 2017, Crescent Point completed or entered into agreements to dispose of over $190 million of non- core assets. The Company expects the majority of these transactions to close during fourth quarter 2017 and continues to market additional non-core assets. |
• |
Crescent Point continued to add oil hedges during third quarter 2017 as part of its risk management program. As at October 23, 2017, 48 percent of fourth quarter 2017 oil production, net of royalty interest, and 25 percent of first half 2018 oil production, net of royalty interest, are hedged at a weighted average market value price of approximately CDN$70.00/bbl. The Company has also recently added oil hedges through to second quarter 2019 and continues to have a significant amount of natural gas production hedged through 2019 at a weighted average price of CDN$2.82/GJ. |
• |
Crescent Point retains a significant amount of liquidity with no material near-term debt maturities. As at September 30, 2017, the Company's cash and unutilized credit capacity was approximately $1.5 billion. |
Three months ended September 30, 2017 |
Gas |
Oil |
D&A |
Service |
Standing |
Total |
Net |
% Success |
Williston Basin (1) |
- |
113 |
- |
- |
- |
113 |
99.5 |
100 |
Southwest Saskatchewan |
- |
107 |
- |
- |
- |
107 |
84.5 |
100 |
Uinta Basin (1) |
- |
23 |
- |
- |
- |
23 |
9.9 |
100 |
Other |
- |
8 |
- |
- |
- |
8 |
7.3 |
100 |
Total |
- |
251 |
- |
- |
- |
251 |
201.2 |
100 |
(1) |
The net well count is subject to final working interest determination |
Production
Oil and NGLs (bbls/d)
Natural gas (mcf/d) |
Prior
157,500
102,000 |
|
Revised
158,000
105,000 |
|
Total average annual production (boe/d) |
174,500 |
|
175,500 |
|
Exit production (boe/d) |
183,000 |
|
183,000 |
|
Capital expenditures (1)
Drilling and development ($ millions)
Facilities and seismic ($ millions) |
$1,290
$160 |
|
$1,380
$170 |
|
Total ($ millions) |
$1,450 |
|
$1,550 |
|
Three months ended September 30 |
Nine months ended September 30 | |||||||||
(Cdn$ millions except per share and per boe amounts) |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
||
Financial |
||||||||||
Cash flow from operating activities |
437.0 |
|
330.2 |
|
1,269.1 |
|
1,085.8 |
|
||
Funds flow from operations (1) |
389.0 |
|
368.1 |
|
1,234.1 |
|
1,150.5 |
|
||
Per share (2) |
0.71 |
|
0.72 |
|
2.26 |
|
2.25 |
|
||
Net income (loss) |
(270.6 |
) |
(108.5 |
) |
(67.6 |
) |
(422.1 |
) |
||
Per share (2) |
(0.50 |
) |
(0.21 |
) |
(0.12 |
) |
(0.83 |
) |
||
Adjusted net earnings from operations (1) |
33.7 |
|
(22.0 |
) |
135.1 |
|
(12.1 |
) |
||
Per share (1) (2) |
0.06 |
|
(0.04 |
) |
0.25 |
|
(0.02 |
) |
||
Dividends declared |
49.4 |
|
47.2 |
|
148.2 |
|
211.1 |
|
||
Per share (2) |
0.09 |
|
0.09 |
|
0.27 |
|
0.41 |
|
||
Payout ratio (%) (1) |
13 |
|
13 |
|
12 |
|
18 |
|
||
Net debt (1) |
4,135.9 |
|
3,620.3 |
|
4,135.9 |
|
3,620.3 |
|
||
Net debt to funds flow from operations (1) (3) |
2.5 |
|
2.2 |
|
2.5 |
|
2.2 |
|
||
Climate change initiatives and asset retirement (4) |
0.7 |
|
2.8 |
|
18.2 |
|
16.8 |
|
||
Weighted average shares outstanding |
||||||||||
Basic |
545.4 |
|
511.3 |
|
545.0 |
|
507.8 |
|
||
Diluted |
546.2 |
|
514.0 |
|
546.7 |
|
510.5 |
|
||
Operating |
||||||||||
Average daily production |
||||||||||
Crude oil (bbls/d) |
139,254 |
|
125,713 |
|
139,811 |
|
134,107 |
|
||
NGLs (bbls/d) |
18,811 |
|
17,750 |
|
17,850 |
|
17,134 |
|
||
Natural gas (mcf/d) |
108,021 |
|
102,883 |
|
104,117 |
|
104,515 |
|
||
Total (boe/d) |
176,069 |
|
160,610 |
|
175,014 |
|
168,660 |
|
||
Average selling prices (5) |
||||||||||
Crude oil ($/bbl) |
54.74 |
|
51.56 |
|
57.27 |
|
45.70 |
|
||
NGLs ($/bbl) |
25.90 |
|
15.90 |
|
25.47 |
|
12.93 |
|
||
Natural gas ($/mcf) |
2.10 |
|
2.48 |
|
2.71 |
|
2.08 |
|
||
Total ($/boe) |
47.34 |
|
43.71 |
|
49.96 |
|
38.94 |
|
||
Netback ($/boe) |
||||||||||
Oil and gas sales |
47.34 |
|
43.71 |
|
49.96 |
|
38.94 |
|
||
Royalties |
(7.08 |
) |
(6.25 |
) |
(7.32 |
) |
(5.47 |
) |
||
Operating expenses |
(12.97 |
) |
(12.18 |
) |
(12.58 |
) |
(11.06 |
) |
||
Transportation expenses |
(1.96 |
) |
(1.96 |
) |
(2.09 |
) |
(2.13 |
) |
||
Netback before hedging |
25.33 |
|
23.32 |
|
27.97 |
|
20.28 |
|
||
Realized gain on derivatives |
3.29 |
|
5.95 |
|
1.83 |
|
9.00 |
|
||
Netback (1) |
28.62 |
|
29.27 |
|
29.80 |
|
29.28 |
|
||
Capital Expenditures |
||||||||||
Capital acquisitions (dispositions), net (6) |
(12.7 |
) |
208.4 |
|
157.8 |
|
216.7 |
|
||
Development capital expenditures (4) |
||||||||||
Drilling and development |
423.7 |
|
279.5 |
|
1,119.4 |
|
600.1 |
|
||
Facilities and seismic |
42.5 |
|
36.2 |
|
130.4 |
|
104.0 |
|
||
Land |
39.5 |
|
10.5 |
|
82.6 |
|
24.1 |
|
||
Total |
505.7 |
|
326.2 |
|
1,332.4 |
|
728.2 |
|
(1) |
Funds flow from operations, adjusted net earnings from operations, payout ratio, net debt, net debt to funds flow from operations and netback as presented do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other entities. |
(2) |
The per share amounts (with the exception of dividends per share) are the per share – diluted amounts. |
(3) |
Net debt to funds flow from operations is calculated as the period end net debt divided by the sum of funds flow from operations for the trailing four quarters. |
(4) |
Climate change initiatives and asset retirement includes environmental emission reduction expenditures, which are also included in development capital expenditures in the table above. |
(5) |
The average selling prices reported are before realized derivatives. |
(6) |
Capital acquisitions represent total consideration for the transactions, including long-term debt and working capital assumed, and exclude transaction costs. |
Three months ended September 30 |
Nine months ended September 30 |
|||||||||||
($ millions) |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
||||
Cash flow from operating activities |
437.0 |
|
330.2 |
|
1,269.1 |
|
1,085.8 |
|
||||
Changes in non-cash working capital |
(52.5 |
) |
33.9 |
|
(54.2 |
) |
53.4 |
|
||||
Transaction costs |
(0.4 |
) |
1.2 |
|
2.3 |
|
1.8 |
|
||||
Decommissioning expenditures |
4.9 |
|
2.8 |
|
16.9 |
|
9.5 |
|
||||
Funds flow from operations |
389.0 |
|
368.1 |
|
1,234.1 |
|
1,150.5 |
|
Three months ended September 30 |
Nine months ended September 30 |
|||||||||||
($ millions) |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
||||
Net income (loss) |
(270.6 |
) |
(108.5 |
) |
(67.6 |
) |
(422.1 |
) |
||||
Amortization of E&E undeveloped land |
33.7 |
|
44.1 |
|
99.5 |
|
143.3 |
|
||||
Impairment to PP&E |
306.5 |
|
- |
|
306.5 |
|
- |
|
||||
Unrealized derivative (gains) losses |
58.0 |
|
31.7 |
|
(16.4 |
) |
568.1 |
|
||||
Unrealized foreign exchange (gain) loss on translation of hedged US dollar long-term debt |
(13.4 |
) |
25.5 |
|
(147.5 |
) |
(154.7 |
) |
||||
Unrealized (gain) loss on long-term investments |
0.6 |
|
(1.1 |
) |
7.2 |
|
(6.0 |
) |
||||
(Gain) loss on capital dispositions |
(10.1 |
) |
15.3 |
|
(10.1 |
) |
15.3 |
|
||||
Deferred tax relating to adjustments |
(71.0 |
) |
(29.0 |
) |
(36.5 |
) |
(156.0 |
) |
||||
Adjusted net earnings (loss) from operations |
33.7 |
|
(22.0 |
) |
135.1 |
|
(12.1 |
) |
($ millions) |
September 30, 2017 |
|
September 30, 2016 |
|
||
Long-term debt (1) |
4,149.9 |
|
3,799.5 |
|
||
Accounts payable and accrued liabilities |
644.8 |
|
502.6 |
|
||
Dividends payable |
16.7 |
|
16.2 |
|
||
Long-term compensation liability (2) |
12.3 |
|
3.1 |
|
||
Cash |
(74.4 |
) |
(13.8 |
) |
||
Accounts receivable |
(304.3 |
) |
(268.1 |
) |
||
Prepaids and deposits |
(7.4 |
) |
(6.4 |
) |
||
Long-term investments |
(28.6 |
) |
(36.3 |
) |
||
Excludes: |
||||||
Unrealized foreign exchange on translation of US dollar long-term debt |
(273.1 |
) |
(376.5 |
) |
||
Net debt |
4,135.9 |
|
3,620.3 |
|