Crescent Point Energy Corp., Calgary, has cut its 2020 capital spending by 35% to $700-800 million from the previous guidance of $1.1–1.2 billion in response to the decline in commodity prices. Development capital expenditure excludes $80 million of capitalized G&A, land acquisitions, capital leases, and reclamation activities.
Expected annual average production has been cut to 130,000-134,000 boe/d (91% oil and NGLs) from 140,000–144,000 boe/d. This guidance reflects a high-graded, lower activity budget with fewer wells drilled, the company said.
Minimal drilling and development activity is expected in the year’s second quarter, driven by normal seasonality related to spring break-up, with the majority of remaining activity expected to resume late in the third quarter.
Crescent Point does not have any material near-term senior note debt maturities and currently retains liquidity of $2.7 billion of cash and unutilized capacity on its credit facilities which are not due for renewal until October 2023.