Mr. Craig Bryksa reports

CRESCENT POINT ANNOUNCES Q2 2023 RESULTS

Crescent Point Energy Corp. has released its operating and financial results for the quarter ended June 30, 2023.

Key highlights:

• Closed the strategic acquisition of Alberta Montney assets, adding 600 premium locations and enhancing excess cash flow profile;
• Maintained 2023 production and capital expenditures guidance despite recent wildfires, highlighting operational outperformance;
• Generated $278-million of excess cash flow in second quarter, supporting debt reduction and return of capital to shareholders;
• Returned $167-million, or 60 per cent of excess cash flow, to shareholders during the quarter;
• Repurchased 16.5 million shares year to date, including 9.7 million shares during the quarter;
• Continue to achieve strong results in Alberta Montney, which recently included four of the top five producing wells in the Western Canadian sedimentary basin (WCSB);
• Released fifth annual sustainability report, highlighting record safety scores and continued progress on environmental targets.

"Our second quarter and year-to-date results demonstrate our strategic approach to building our asset portfolio and generating long-term returns for shareholders," said Craig Bryksa, president and chief executive officer of Crescent Point. "Through our recent Alberta Montney acquisition, we have bolstered our portfolio of high-return, scalable drilling locations while enhancing our per-share metrics and return of capital profile. This acquisition also provides us with the opportunity to create additional value for shareholders over time through productivity enhancements, cost-efficiencies and reserves growth."

Financial highlights:

• Adjusted funds flow totalled $552.6-million during second quarter 2023, or $1.01 per share diluted, driven by a strong operating netback of $41.02 per boe (barrel of oil equivalent).
• Development capital expenditures for the quarter, which included drilling and development, facilities and seismic costs, totalled $230.1-million.
• Crescent Point's net debt as at June 30, 2023, totalled approximately $3-billion, or less than 1.4 times adjusted funds flow. The company's net debt includes cash consideration of $1.7-billion paid for the acquisition of Alberta Montney assets, which closed on May 10, 2023.
• During the second quarter, Crescent Point repaid senior note maturities totalling $445-million. The company's next senior note maturities, totalling $316-million, do not occur until second quarter 2024.
• Crescent Point currently has over 20 per cent of its oil and liquids production hedged for the second half of 2023, net of royalty interest. The company has also hedged approximately 15 per cent of its natural gas production for the second half of the year, with hedges extending to the end of 2024. Crescent Point will continue to layer on additional protection in the context of market conditions.
• Net income for the quarter totalled $212.3-million, or 39 cents per share diluted.

Return of capital highlights:

• Crescent Point's total return of capital to shareholders in second quarter 2023, including the base dividend, was $166.7-million, or 60 per cent of its excess cash flow. In the first half of 2023, the company returned a total of approximately $270-million.
• Share repurchases continue to account for the largest allocation within Crescent Point's return of capital framework. During the second quarter, the company repurchased 9.7 million shares for $93.1-million. Subsequent to the quarter, Crescent Point repurchased an additional 1.7 million shares for $16-million for a total of 16.5 million shares year to date.
• The company's board of directors has declared a special cash dividend, based on second quarter 2023 results, of 3.5 cents per share payable on Aug. 15, 2023, to shareholders of record as of the close of business on Aug. 8, 2023.
• Subsequent to the quarter, the board also declared a quarterly cash base dividend of 10 cents per share payable on Oct. 2, 2023, to shareholders of record on Sept. 15, 2023.

Operational highlights:

• Average production in second quarter 2023 was 155,031 boe/day (78 per cent oil and liquids), which included the impact of approximately 7,000 boe/d of downtime in the Kaybob Duvernay related to the recent Alberta wildfires. Due to the company's strong operational execution and production outperformance from its Kaybob Duvernay asset in the first half of the year, Crescent Point was able to maintain its annual average production guidance with its capital expenditures budget remaining unchanged.
• During late 2022 and in the first half of 2023, Crescent Point brought onstream 13 wells across three multiwell pads in the Kaybob Duvernay. These wells achieved significant 30-day initial production (IP30) rates averaging approximately 1,150 boe/d per well (58 per cent condensate, 13 per cent natural gas liquids (NGLs)) and continue to outperform type wells in the area with recent 90-day initial production (IP90) rates averaging approximately 1,100 boe/d per well (54 per cent condensate, 14 per cent NGLs). Crescent Point plans to drill 15 wells in the Kaybob Duvernay during the second half of 2023, adding a second rig in fourth quarter to further accelerate the development of its inventory.
• In second quarter 2023, three multiwell pads with a total of 11 wells were brought onstream in the Alberta Montney, delivering strong IP30 rates averaging approximately 1,050 boe/d per well (69 per cent light crude oil, 5 per cent NGLs). These wells continue to trend higher postinitial cleanup and are currently averaging approximately 1,300 boe/d (57 per cent light crude oil, 8 per cent NGLs). During the month of May, Crescent Point's Montney results included four of the top five oil and liquids producing wells in the WCSB.
• The company's highest producing wells in the Alberta Montney were in its Gold Creek West area, which came onstream during the month of June, achieving IP30 rates of approximately 1,500 boe/d (76 per cent light crude oil, 3 per cent NGLs). These wells are currently averaging approximately 1,600 boe/d (72 per cent light crude oil, 4 per cent NGLs), similar to a recent company well in the same area which generated an IP30 and IP90 rate of approximately 1,900 boe/d (86 per cent light crude oil, 2 per cent NGLs). Crescent Point remains on track to drill 15 wells in the play in 2023 based on a one-rig program, with the potential to add a second rig over time.
• During the quarter, the company released its 2023 annual sustainability report highlighting Crescent Point's strong performance and strategic approach in managing its environmental, social and governance (ESG) initiatives. The company achieved its safest year on record in 2022, demonstrating Crescent Point's strong safety culture and active engagement with staff and contractors. Over the past five years, the company has significantly improved its environmental profile, including by reducing both its scope 1 emissions intensity and asset retirement liabilities by approximately 50 per cent. Crescent Point continues to progress toward each of its environmental targets which are centred around further reductions in emissions, freshwater use and inactive well inventory across its land base.

Outlook

Crescent Point continues to execute operationally and remains on track to meet its 2023 annual average production guidance of 160,000 to 166,000 boe/d with development capital expenditures expected to be in line with its budget of $1.15-billion to $1.25-billion.

In the second half of 2023, Crescent Point's production is expected to average approximately 179,000 boe/d, reflecting the recent Alberta Montney acquisition and continued momentum in the Kaybob Duvernay. This strong second-half outlook is expected to generate over $1-billion of excess cash flow on an annualized basis at $75 (U.S.)/barrel West Texas Intermediate.

Crescent Point plans to return approximately 60 per cent of its excess cash flow to shareholders, including its base dividend, with the balance directed toward debt reduction. The company expects to exit the year with a leverage ratio of approximately one-time adjusted funds flow, at $75 (U.S.)/bbl WTI, and will continue to evaluate asset dispositions to further reinforce its financial position.

Crescent Point is in the initial stages of its annual budgeting process and plans to provide a preliminary 2024 outlook along with an updated five-year plan this fall. The company's capital allocation decisions remain driven by risk-adjusted returns with a continued focus on disciplined growth and generating excess cash flow. The Kaybob Duvernay and Alberta Montney assets, which rank in the top quartile in the company's portfolio, are expected to garner a growing proportion of capital in future years, alongside continued investment in decline mitigation programs throughout Saskatchewan to further enhance Crescent Point's excess cash flow profile.

The company's strategy is centred around creating sustainable long-term returns for shareholders through a combination of per-share growth, return of capital and balance sheet strength.

Conference call details

Crescent Point management will hold a conference call on Wednesday, July 26, 2023, at 10 a.m. MT (12 p.m. ET) to discuss the company's results and outlook. A slide deck will accompany the conference call and can be found on Crescent Point's website.

Participants can listen to this event on-line. To join the call without operator assistance, participants may register on-line by entering their phone number to receive an instant automated call back. Alternatively, the conference call can be accessed with operated assistance by dialling 1-888-390-0605. Participants will be able to take part in a question-and-answer session following management's opening remarks through both the webcast dashboard and the conference line.

The webcast will be archived for replay and can be accessed on-line at Crescent Point's conference calls and webcasts page. The replay will be available shortly after the completion of the call.

Shareholders and investors can also find the company's most recent investor presentation on Crescent Point's website.

The company's unaudited financial statements and management's discussion and analysis for the quarter ended June 30, 2023, will be available on SEDAR+, on EDGAR and on Crescent Point's website.

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