Crescent Point Energy Releases Letter to Shareholders; Warns Cation Will Derail Momentum and Put Shareholders’ Investments at Risk - Seite 2
This is an example of opportunism at its worst – opportunism that will put your investment at risk.
We – and, more importantly, the investment community – believe that our current Board and management are on the right track. From a business perspective, we are making great progress.
Here are the facts. In the last year alone, we have:
- Achieved exit guidance of 183,000 boe/d and growth target of 10 percent per share
- Increased productive capacity by ~1.2 million boe/d (70 percent increase) led by new high-impact Uinta horizontal drilling locations, which now total >1,700
- Entered into a new scalable light oil resource play by adding >355,000 net acres in the emerging East Shale Duvernay
- Low entry cost of ~$315/acre
- Strategically targeted areas in the oil window based on thicker pay, higher pressure and depth
- Cash neutral A&D program that increased our position in core areas with three times the potential upside relative to our non-core dispositions
- Organically replaced 152 percent of production with reserves growth of over 4 percent per share
- Achieved record Proved Plus Probable reserves >1 billion boe with 18 percent of organic reserves growth attributed to waterflood
While we have made significant progress over the past year and since the downturn, our actions and the value of our high-quality assets are not fully reflected in our share price.
At least not yet.
And that’s why we are going to keep working hard on the changes we are making to create value now.
CHANGE IS UNDERWAY & WORKING.
Following the collapse in global oil prices, we implemented a detailed strategic plan to best position us to maximize shareholder value for you. The plan is the culmination of a Board-led comprehensive review of Crescent Point’s portfolio and various alternatives within the context of the commodity price environment that existed.
While we know that not all of the changes we have implemented have been popular, they have been necessary in this environment and, in the end, will be proven right.
The use of hindsight is convenient and sometimes illustrates areas where we could have done things differently. Based on the information available at the time, we took the steps we believed were necessary to protect shareholders. Going into the oil price downturn, we had a strong balance sheet and commodity hedge book and the knowledge that many of our shareholders, particularly individuals, put a priority on the dividend. We maintained the dividend level for a period thinking we could bridge through the oil price downturn. As the downturn continued and looked as if it was going to last longer than we, and almost everyone, thought it would, we made the decision to cut the dividend. As the downturn persisted, we made another difficult decision to raise equity to protect our balance sheet in the event oil prices lingered for longer than the market expected, which in fact is what happened.