CALGARY — Crescent Point Energy Corp. is raising its quarterly dividend after announcing it has sold off some of its non-core assets and reached its net debt target ahead of schedule.
The Calgary-based oil company announced Thursday it has completed the sale of its non-core Viking and East Shale Duvernay assets for $300 million.
Crescent Point says proceeds from the sale of the assets, which include approximately 4,000 barrels of oil production per day, are being used to pay down the company's debt.
In a news release, Crescent Point said continued improvement in the company's financial position and outlook will allow it to increase its shareholder returns. On a quarterly basis and beginning in the third quarter of 2022, Crescent Point will target the return of up to 50 per cent of its discretionary excess cash flow to shareholders.
The company said it will now make a base quarterly payment to shareholders of eight cents per share. The new dividend will be paid on Oct. 3 to shareholders of record on Sept. 15.
In May, Crescent Point raised its quarterly dividend to 6.5 cents per share from 4.5 cents.
Like all Canadian oil producers, Crescent Point is benefiting from a surge in commodity prices in 2022. Crescent Point expects to generate more than $1.4 billion of excess cash flow in 2022, of which it said approximately $775 million will be realized during the second half of the year based on the presumption of a West Texas Intermediate price of approximately US$100 per barrel.
Crescent Point also updated its environmental targets Thursday, saying it is now targeting a 38 per cent reduction from 2020 levels in Scope One and Two greenhouse gas emissions intensity by 2030. The company also announced a goal to reduce surface freshwater use in Saskatchewan by 25 per cent by 2025 and said it is on track to reduce its inactive well count by 30 per cent by 2031.
This report by The Canadian Press was first published July 7, 2022.
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