During second quarter, Crescent Point shut-in certain higher cost production to preserve value and enhance its financial flexibility. The Company's reactivation plan is now complete and all economic production has been brought back on-line. 

Crescent Point's annual average production guidance is now forecast to be 119,000 to 121,000 boe/d. The mid-point of the Company's revised 2020 guidance implies second half production of approximately 110,000 boe/d, which is approximately 20 percent higher in comparison to its previous guidance. Crescent Point's 2020 capital expenditures are now expected to be approximately $665 million, in-line with the lower end of its prior guidance range of $650 to $700 million. The Company also retains continued flexibility and discretion to adjust capital expenditures, if necessary. 

Crescent Point expects to generate approximately $125 million of excess funds flow during the second half of 2020, based on guidance at current strip prices, which it plans to allocate to continued net debt reduction. Given the Company's strong results and execution during the first half of the year, total net debt reduction during 2020 is now expected to total approximately $600 million. 

Approximately 70 percent of Crescent Point's second half of 2020 oil and liquids production, net of royalty interest, is hedged primarily through swaps with an average price of over CAD$65/bbl WTI. The Company has also hedged into 2021, and will remain disciplined in its approach to layering on additional hedges in the context of commodity prices.  

OUTLOOK

Based on preliminary work done on its 2021 program and current market expectations, Crescent Point anticipates being able to generate annual average production in 2021 that is in-line with, or exceeds, its estimated second half 2020 production while spending approximately $500 to $550 million in development capital. The Company continues to work through its plans for 2021 and expects to formalize its annual guidance early in the new year.

This 2021 preliminary program is expected to be fully funded in the low US$40/bbl WTI range and generate excess cash flow at current strip prices. Crescent Point's current funds flow sensitivity in 2021 is approximately $45 million for every US$1/bbl change in WTI.

The Company retains flexibility and discretion in the allocation of its capital and overall operations in the event lower commodity prices, or other market developments, impacts its plans. Crescent Point will continue to focus on its key value drivers of disciplined capital allocation, cost efficiencies and balance sheet strength.

Crescent Point remains in a strong financial position, having over $2.4 billion of available liquidity as at June 30, 2020 and no material near term debt maturities.

2020 BUDGET AND GUIDANCE SUMMARY

KeyFacts Energy: Crescent Point Energy Canada country profile