Mr. Craig Bryksa reports

CRESCENT POINT ANNOUNCES Q3 2023 RESULTS

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

Key highlights:

• Generated third-quarter excess cash flow of $322-million (60 cents per share), with full-year 2023 expected to total over $1-billion.
• Returned $480-million to shareholders year-to-date, including $188-million, or 60 per cent of excess cash flow, for third quarter.
• Repurchased 28.1 million shares for $287-million year-to-date, including 11.4 million shares for $125-million during the quarter.
• Achieved peak 30-day rates of up to 1,200 boe/d (barrels of oil equivalent per day) and 1,500 boe/d in the Alberta Montney and Kaybob Duvernay, respectively.
• Closed the disposition of North Dakota assets subsequent to the quarter, with proceeds directed toward the balance sheet.
• Maintaining preliminary 2024 guidance, which is expected to generate $1-billion of excess cash flow at $80 (U.S.)/bbl (barrel) WTI (West Texas Intermediate).

"Throughout 2023, we have successfully advanced our portfolio optimization strategy and operational execution," said Craig Bryksa, president and chief executive officer of Crescent Point. "Our focus on high-quality, long- and short-cycle assets with attractive netbacks allows us to generate significant excess cash flow on a per-share basis. The strength of this balanced portfolio, coupled with our disciplined capital allocation and operational track record, underpins our ability to provide shareholders with long-term sustainable returns."

Financial highlights:

• Adjusted funds flow totalled $687.1-million during Q3 2023, or $1.28 per share diluted, driven by a strong operating netback of $47.14 per boe.
• Development capital expenditures for the quarter, which included drilling and development, facilities, and seismic costs, totalled $315.5-million.
• Crescent Point's net debt as at Sept. 30, 2023, totalled less than $2.9-billion, reflecting a reduction of approximately $125-million in the quarter. Subsequent to the quarter, the company closed its previously announced disposition of North Dakota assets. Crescent Point directed all proceeds from this disposition toward its balance sheet, with net debt currently at approximately $2.2-billion, or less than one times adjusted funds flow.
• Crescent Point has currently hedged approximately 30 per cent of its oil and liquids production for Q4 2023, and approximately 25 per cent for 2024, net of royalty interest. The company has also hedged approximately 25 per cent of its natural gas production for Q4 2023 and approximately 40 per cent for 2024.
• The company reported net income from continuing operations of $133.6-million for Q3 2023. Crescent Point's total after-tax net loss for the quarter of $809.9-million was driven by non-cash charges related to the announced sale of its United States assets. This included an impairment charge recorded on classifying these assets as held for sale and a deferred income tax expense related to the derecognition of all U.S. tax pools. In conjunction with the sale closing in fourth quarter and discontinuation of operations in the U.S., Crescent Point expects to record a non-cash gain of approximately $600-million, representing the cumulative foreign exchange gain on the company's net investment in its U.S. subsidiary.

Return of capital highlights:

• Crescent Point's total return of capital to shareholders in third quarter 2023, including the base dividend, was $187.5-million (35 cents per share), or approximately 60 per cent of its excess cash flow. Year-to-date as at Oct. 31, 2023, the company has returned a total of approximately $480-million to shareholders.
• Crescent Point continues to prioritize share repurchases as part of its return of capital framework. During the third quarter, the company repurchased approximately 11.4 million shares for $124.5-million. Subsequent to the quarter, an additional 1.9 million shares were repurchased for $21-million, for a total of 28.1 million shares year-to-date.
• Based on third quarter 2023 results, Crescent Point's board of directors has declared a special cash dividend of two cents per share payable on Nov. 22, 2023, to shareholders of record as of the close of business on Nov. 15, 2023. Special dividends are used in combination with share repurchases within the company's return of capital framework, to ensure that Crescent Point fulfills its targeted return to shareholders for the quarter.
• Subsequent to the quarter, the board also declared a quarterly cash base dividend of 10 cents per share payable on Jan. 2, 2024, to shareholders of record on Dec. 15, 2023.

Operational highlights:

• Average production during third quarter 2023 was 180,581 boe/d, composed of over 70 per cent oil and liquids. Third-quarter production included approximately 30,800 boe/d of non-core assets, which were disposed of subsequent to the quarter.
• In the Kaybob Duvernay, the company brought on stream a multiwell pad within the eastern portion of its lands in the volatile oil window. This multiwell pad generated an average peak 30-day rate of approximately 1,500 boe/d per well (70 per cent condensate, 13 per cent NGLs (natural gas liquids)), outperforming type wells and prior operator's results in the area. Crescent Point recently commenced drilling two additional multiwell pads in this region of the play, which it expects to bring on stream in the first half of 2024.
• Subsequent to the quarter, Crescent Point recently brought on stream another multiwell pad in the northern portion of its Kaybob Duvernay lands, with strong initial production. The company expects to have 30-day rates for this pad over the coming weeks. The consistency of results generated within this asset, alongside Crescent Point's operational execution to date, further support the recent addition of a second drilling rig to accelerate the development of inventory in this high-return asset.
• In the Alberta Montney, the company brought on stream three multiwell pads during the third quarter across its Gold Creek and Karr areas, with results in line or ahead of type well expectations. In Gold Creek West, Crescent Point's pad generated a strong average peak 30-day rate of approximately 1,200 boe/d per well (63 per cent light crude oil, 5 per cent NGLs). In Gold Creek East, the company drilled a pad with shorter lateral length (less than 2,000 metres per well) which generated an average peak 30-day rate of approximately 900 boe/d per well (63 per cent light crude oil, 7 per cent NGLs). At Karr, the company's pad produced an average peak 30-day rate of approximately 700 boe/d per well (90 per cent light crude oil, 2 per cent NGLs). Crescent Point is very pleased with the results it has generated since acquiring this asset and remains focused on further enhancing the attractive returns it is currently achieving in the play.
• In its Saskatchewan operations, the company continues to advance its decline-mitigation projects to further enhance its long-term sustainability and excess cash flow generation. Crescent Point remains on target to convert approximately 100 producing wells to water injection wells in 2023, further supporting its current base decline rate of approximately 15 per cent in Saskatchewan. In addition to its decline-mitigation programs, the company continues to progress its open-hole multilateral (OHML) development. In southeast Saskatchewan, Crescent Point's two most recent eight-leg OHML wells came on stream with a strong average peak 30-day rate of approximately 300 bbl/d (100 per cent light crude oil) per well. The company plans to drill several additional eight-leg OHML wells in 2024, while also evaluating the application of this technique in other areas of its asset portfolio.

Outlook

Third quarter 2023 results reflect the company's continued operational momentum and strategic execution.

Crescent Point expects to complete its 2023 capital program on budget, generating significant excess cash flow of over $1-billion for the year based on approximately $80 (U.S.)/bbl WTI. The company's 2023 capital budget includes the recent removal of $100-million of expenditures following the sale of its North Dakota assets, further demonstrating its continuing capital discipline and focus on maximizing excess cash flow generation.

Crescent Point's preliminary 2024 annual average production guidance of 145,000 boe/d to 151,000 boe/d and development capital expenditures budget of $1.05-billion to $1.15-billion remains unchanged. As previously announced, Crescent Point plans to allocate 70 per cent of its 2024 budget to its Kaybob Duvernay and Alberta Montney assets, with the balance allocated to its long-cycle assets in Saskatchewan. This guidance is expected to generate significant excess cash flow of approximately $1-billion in 2024 at $80 (U.S.)/bbl WTI, with approximately 60 per cent to be returned to shareholders through dividends and share repurchases. The company plans to formalize its 2024 guidance prior to the end of the year.

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 Thursday, Nov. 2, 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 operator 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 Sept. 30, 2023, will be available on SEDAR+, on EDGAR and on Crescent Point's website.

Product type production information

The company's aggregate average production for the three months ended Sept. 30, 2023, and Sept. 30, 2022, and the references to natural gas and crude oil reported in this press release consist of the product types shown in the associated table, as defined in National Instrument 51-101, and using a conversion ratio of six mcf (thousand cubic feet): one bbl where applicable.

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