By January 7, 2016 Read More →

Crescent Point Energy cuts capital budget in response to lower prices

Crescent Point Energy operates in North Dakota, US Midwest and Canada

Crescent Point Energy

Crescent Point Energy looking to spend less in 2016 and increase production.

CALGARY _ Crescent Point Energy Corp. (TSX:CPG) is planning on spending significantly less on capital projects than last year, with a 2016 budget of between $950 million and $1.3 billion.

In a press release, Scott Saxberg, president and CEO of Crescent Point said “We are reducing our capital expenditures significantly from 2015 and expect to live within cash flow to protect our balance sheet. We are starting the year strong and are well positioned to achieve our 2016 targets.”

That means the company will spend between 16 to 39 per cent less than 2015 levels, although the Calgary-based oil and gas producer will increase production by about five per cent compared with last year.

“Over the past several years, we have continually increased our focus on waterflood projects, implementation of new technology and cost saving initiatives,” said Saxberg. “These long-term initiatives have improved our capital efficiencies and substantially lowered our corporate decline rate from 35 percent to 28 percent.”

Saxburg added “We will potentially spend less than we did in 2011 when we were a much smaller company and averaged production of 74,000 boe/d.”

Crescent Point produces light and medium crude oil as well as natural gas primarily from Saskatchewan, North Dakota and other areas of the Prairie provinces and the U.S. Midwest.

It expects this year’s production will rise to a range of between 165,000 and 172,000 oil-equivalent barrels per day, including natural gas.

With files from The Canadian Press

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