KEY HIGHLIGHTS

• Generated approximately $120 million of excess cash flow during third quarter, demonstrating continued capital discipline.
• Significantly reduced net debt by over $575 million year-to-date 2020, providing ample liquidity of over $2.5 billion.
• Upwardly revising 2020 production guidance with unchanged capital expenditures.
• Enhanced sustainability and cost structure, allowing for 2021 preliminary program to be fully funded at approximately US$40/bbl.

“Our third quarter results continue to demonstrate the success of our disciplined approach and our strong operational execution,” said Craig Bryksa, President and CEO of Crescent Point. “Our continued prioritization of returns and the long-term development of our assets, within the context of our key strategic pillars of balance sheet strength and sustainability, are reflected in our preliminary 2021 outlook and capital allocation.”

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FINANCIAL HIGHLIGHTS

• Adjusted funds flow totaled $235.7 million during third quarter 2020, or $0.44 per share diluted, driven by a strong operating netback of $21.11 per boe, or $26.73 per boe including hedging gains.
• For the quarter ended September 30, 2020, Crescent Point’s development capital expenditures totaled $93.3 million. The Company’s capital budget for fourth quarter remains focused on high return assets, including the continued advancement of long-term projects to further enhance sustainability, such as decline mitigation.  
• Net debt as at September 30, 2020 was approximately $2.2 billion and reflects over $575 million of net debt reduction year-to-date 2020 and approximately $1.2 billion since third quarter 2019. Cash and unutilized credit capacity was over $2.5 billion as at September 30, 2020. Crescent Point has no material near-term senior note debt maturities and its credit facilities do not mature until October 2023.
• As part of its risk management program to protect against commodity price volatility, the Company has currently hedged approximately 70 percent of its oil and liquids production, net of royalty interest, for the fourth quarter 2020. These hedges consist primarily of swaps with an average price of over CDN$62/bbl. Crescent Point has also hedged approximately 40 percent of its first quarter 2021 production, primarily through swaps, at levels above current strip prices at an average price of approximately CDN$62/bbl. The Company also has additional hedges extending throughout 2021 and it will continue to layer on added protection in the context of commodity prices.
• Subsequent to the quarter, Crescent Point declared a quarterly cash dividend of $0.0025 per share payable on January 4, 2021.

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OPERATIONAL HIGHLIGHTS

• Crescent Point’s average third quarter production was 113,383 boe/d, comprised of over 90 percent oil and liquids. As previously announced, the Company reactivated economic volumes during third quarter that were previously shut-in.
• Crescent Point’s average per well capital costs are trending in-line with its previously announced expectation for cost reductions of over 10 percent by year-end 2020. These capital cost improvements include internal efficiencies resulting from the Company’s supply chain initiatives and drilling and completion optimization along with the benefits of knowledge transfer within its asset portfolio.
• Crescent Point continued to optimize its workflows and successfully implement its operational technology (“OT”) platform throughout its Saskatchewan assets during third quarter 2020. As a result of these and other cost reduction initiatives, the Company has now removed approximately $60 million, or nine percent, of its budgeted operating expenses in 2020. Crescent Point plans to continue this rollout throughout 2021. The Company’s OT platform has also further enhanced safe operations and risk management practices, while reducing emissions.
• Year-to-date, Crescent Point has converted approximately 110 producing wells to water injection, as part of its waterflood program, and expects to convert a total of approximately 135 wells in 2020. These activities are expected to continue to moderate the Company’s long-term decline rate.
• All financial figures are approximate and in Canadian dollars unless otherwise noted. This press release contains forward-looking information and references to non-GAAP financial measures. Significant related assumptions and risk factors, and reconciliations are described under the Non-GAAP Financial Measures and Forward-Looking Statements sections of this press release, respectively.

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