Crescent Point Energy Announces First Quarter 2014 Results and Upwardly Revised 2014 Guidance for Production and Funds Flow

Crescent Point Energy Announces First Quarter 2014 Results and Upwardly Revised 
2014 Guidance for Production and Funds Flow From
Operations 
CALGARY, ALBERTA -- (Marketwired) -- 05/08/14 --   Crescent Point
Energy Corp. ("Crescent Point" or the "Company") (TSX: CPG)(NYSE:
CPG) is pleased to announce its operating and financial results for
the quarter ended March 31, 2014. The Company also announces that its
unaudited financial statements and management's discussion and
analysis for the quarter ended March 31, 2014, will be available on
the System for Electronic Document Analysis and Retrieval ("SEDAR")
at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml and on Crescent
Point's website at www.crescentpointenergy.com. 
FINANCIAL AND OPERATING HIGHLIGHTS 


 
 
-----------------------------------------------------------------------
-----
                                              Three months ended March 31   
                                           ---------------------------------
(Cdn$000s except shares, per share and per                                  
 boe amounts)                                    2014       2013   % Change 
----------------------------------------------------------------------------
Financial                                                                   
Funds flow from operations (1)                580,096    455,943         27 
  Per share (1) (2)                              1.45       1.20         21 
Net income (loss)                              30,890     (1,612)    (2,016)
  Per share (2)                                  0.08          -          - 
Operating income (1)                          206,074    114,345         80 
  Per share (1) (2)                              0.52       0.30         73 
Dividends paid or declared                    278,276    267,886          4 
  Per share (2)                                  0.69       0.69          - 
Payout ratio (%) (1) (3)                           48         59        (11)
  Per share (%) (1) (2) (3)                        48         58        (10)
Net debt (1)                                2,309,906  1,957,964         18 
Net debt to funds flow from operations (1)                                  
 (4)                                              1.1        1.2         (8)
Capital acquisitions (net) (5)                 33,286     22,115         51 
Development capital expenditures (6)          570,427    532,715          7 
Decommissioning and environmental                                           
 expenditures (6)                              13,394      4,273        213 
Weighted average shares outstanding (mm)                                    
  Basic                                         396.8      378.3          5 
  Diluted                                       399.0      379.6          5 
----------------------------------------------------------------------------
Operating                                                                   
Average daily production                                                    
  Crude oil and NGLs (bbls/d)                 118,987    106,519         12 
  Natural gas (mcf/d)                          69,558     66,865          4 
----------------------------------------------------------------------------
Total (boe/d)                                 130,580    117,663         11 
----------------------------------------------------------------------------
Average selling prices (7)                                                  
  Crude oil and NGLs ($/bbl)                    92.70      80.34         15 
  Natural gas ($/mcf)                            5.78       3.57         62 
----------------------------------------------------------------------------
  Total ($/boe)                                 87.55      74.76         17 
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Netback ($/boe)                                                             
  Oil and gas sales                             87.55      74.76         17 
  Royalties                                    (15.38)    (14.07)         9 
  Operating expenses                           (12.56)    (12.07)         4 
  Transportation                                (2.15)     (2.03)         6 
----------------------------------------------------------------------------
  Netback prior to realized derivatives         57.46      46.59         23 
  Realized loss on derivatives                  (4.81)     (0.42)     1,045 
----------------------------------------------------------------------------
Netback (1)                                     52.65      46.17         14 
----------------------------------------------------------------------------
 
1.  Funds flow from operations, operating income, payout ratio, net debt,
    net debt to funds flow from operations and netback as presented do not
    have any standardized meaning prescribed by International Financial
    Reporting Standards ("IFRS") and, therefore, may not be comparable with
    the calculation of similar measures presented by other entities. Please
    refer to the Non-GAAP Financial Measures section of this press release
    for further information. 
2.  The per share amounts (with the exception of per share dividends) are
    the per share - diluted amounts. 
3.  Payout ratio is calculated as dividends paid or declared (including the
    value of dividends paid pursuant to the Company's dividend reinvestment
    plans) divided by funds flow from operations. 
4.  Net debt to funds flow from operations is calculated as the period end
    net debt divided by the sum of funds flow from operations for the
    trailing four quarters. 
5.  Capital acquisitions represent total consideration for the transactions,
    including long-term debt and working capital assumed, and exclude
    transaction costs. 
6.  Decommissioning and environmental expenditures includes environmental
    emission reduction expenditures, which are also included in development
    capital expenditures in the table above. 
7.  The average selling prices reported are before realized derivatives and
    transportation charges. 

FIRST QUARTER 2014 HIGHLIGHTS 
In first quarter 2014, Crescent Point continued to implement its
dual-track growth plan of advancing its cemented liner completions
technology and expanding its waterflood programs to shallow corporate
declines and increase ultimate reserve recoveries. 


 
 
--  Crescent Point achieved a new production record in first quarter and
    averaged 130,580 boe/d, which was weighted 91 percent to light and
    medium crude oil and liquids. This represents an increase of more than
    12,900 boe/d and production per share growth of approximately six
    percent over first quarter 2013. 
 
--  During the quarter, the Company spent $415.7 million on drilling and
    development activities, drilling 214 (173.6 net) oil wells with a 100
    percent success rate. Drilling and development expenditures were
    approximately 10 percent under budget while production levels in the
    quarter were approximately five percent over budget. Crescent Point also
    spent $154.7 million on land, seismic and facilities, for total
    development capital expenditures of $570.4 million. 
 
--  Crescent Point generated record funds flow from operations of $580.1
    million ($1.45 per share - diluted) in first quarter 2014, representing
    a 27 percent increase over first quarter 2013 funds flow from operations
    of $455.9 million ($1.20 per share - diluted). Funds flow from
    operations was driven by strong operating netbacks prior to realized
    derivatives of $57.46 per boe and better than expected production. 
 
--  As a result of the Company's strong performance to date, Crescent Point
    is upwardly revising its 2014 guidance for production and funds flow
    from operations, while keeping estimated capital expenditures for the
    year unchanged at $1.775 billion. Crescent Point's average daily
    production in 2014 is expected to increase to 134,000 boe/d from 133,000
    boe/d and its funds flow from operations for 2014 is expected to be
    approximately $2.4 billion ($5.85 per share - diluted), up from $2.38
    billion ($5.79 per share - diluted). 
 
--  Subsequent to the quarter, on April 14, 2014, Crescent Point announced
    the delineation of a significant Torquay discovery at Flat Lake in
    southeast Saskatchewan. In just 12 months, the Company grew net Torquay
    production from zero to approximately 5,100 boe/d. The Torquay discovery
    is an extension of the Company's Three Forks resource play in North
    Dakota. In 2013, the Company added proved plus probable reserves of 11.2
    mmboe at Flat Lake in the Torquay and Bakken formations combined.
    Crescent Point's wells in the area have high rates of return, in part
    due to significantly lower capital costs relative to similarly drilled
    wells in North Dakota. 
 
--  Also subsequent to the quarter, on April 23, 2014, Crescent Point
    announced that it had entered into an arrangement agreement to acquire
    all of the issued and outstanding shares of CanEra Energy Corp.
    ("CanEra"), a privately held southeast Saskatchewan oil and gas
    producer. The CanEra assets (the "CanEra Assets") include more than 260
    net sections of land with Torquay potential, of which 60 net sections
    are in Crescent Point's core Flat Lake area, and production of
    approximately 10,000 boe/d. Following the completion of the CanEra
    arrangement, Crescent Point will have exposure to more than 880 net
    sections of land with Torquay potential, of which 280 net sections are
    in the core Flat Lake area. Total consideration for CanEra is
    approximately $1.1 billion. 
 
--  Crescent Point maintained consistent monthly dividends of $0.23 per
    share, totaling $0.69 per share, for first quarter 2014. This is
    unchanged from $0.69 per share paid in first quarter 2013. On an
    annualized basis, the first quarter dividend equates to a yield of seven
    percent, based on a volume weighted average quarterly share price of
    $39.30. The Company also achieved a payout ratio of 48 percent, which is
    among the lowest in Company history. 
 
--  The Company's balance sheet remains strong, with projected average net
    debt to cash flow of approximately 1.1 times and significant unutilized
    credit capacity. 
 
--  Crescent Point continues to aggressively hedge its oil production to
    capitalize on the current high commodity price environment. As at April
    29, 2014, the Company had hedged 65 percent of its oil production, net
    of royalty interest, for the remainder of 2014. The Company had also
    hedged 34 percent, 19 percent and 4 percent of its oil production, net
    of royalty interest, for 2015, 2016 and the first half of 2017,
    respectively. Average quarterly hedge prices range from Cdn$90 per bbl
    to Cdn$94 per bbl. The Company also has an average of greater than
    15,000 bbl/d of WTI oil differentials locked in for the remainder of
    2014. Crescent Point's hedges provide upside participation when oil
    prices increase while also providing a steady cash flow. 
 
--  On January 22, 2014, Crescent Point's shares opened for trading on the
    New York Stock Exchange ("NYSE"), under the symbol "CPG". KCG Americas
    LLC is the Designated Market Maker for the Company. 
 
--  On March 17, 2014, Crescent Point announced the appointment of Robert
    Heinemann to its board of directors. Mr. Heinemann is the former
    President and CEO of Berry Petroleum Company, a role he held from 2004
    until 2013, and a former vice president of Halliburton Company and Mobil
    Corporation. 

OPERATIONS REVIEW 
First Quarter Operations Summary 
Crescent Point achieved a new production record in first quarter and
averaged 130,580 boe/d. This represents an increase of more than
12,900 boe/d and production per share growth of approximately six
percent over first quarter 2013. The Company's strong organic
production performance during the quarter was driven by its
successful drilling program, strong results from the Torquay play at
Flat Lake and the Company's ongoing success with waterfloods and
cemented liner completion techniques. 
Drilling Results 
The following table summarizes our drilling results for the three
months ended March 31, 2014:  


 
 
Three months ended March                                                   %
 31, 2014                   Gas Oil D&A Service Standing Total   Net Success
----------------------------------------------------------------------------
Southeast Saskatchewan and                                                  
 Manitoba                     - 124   -       2        4   130 109.4    100%
Southwest Saskatchewan        -  42   -       1        -    43  41.5    100%
Alberta and West Central SK   -  22   -       2        -    24  17.6    100%
United States (1)             -  26   -       -        -    26  11.8    100%
----------------------------------------------------------------------------
Total                         - 214   -       5        4   223 180.3    100%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
1.  The net well count is subject to final working interest determination. 

Southeast Saskatchewan and Manitoba  
In first quarter, Crescent Point continued to successfully execute
its large capital program in southeast Saskatchewan and Manitoba.
Successful results in the Company's Viewfield Bakken and Flat Lake
resource plays in southeast Saskatchewan continue to be strong
drivers of Crescent Point's organic production growth. 
The Company is especially pleased with results to date in its Torquay
discovery. In just 12 months, the Company grew net Torquay production
from zero to approximately 5,100 boe/d. Crescent Point has identified
more than 480 low-risk Torquay drilling locations on its lands,
including the CanEra Assets. With more than 880 net sections of land
with Torquay potential, of which 280 net sections are in the
Company's core Flat Lake area, Crescent Point believes there is
significant potential upside in the play. Crescent Point's plans for
the Torquay play at Flat Lake in 2014 include the drilling of
approximately 45 net wells, 11 (10.6 net) of which were oil wells
drilled in first quarter, and initiating construction of a gas plant
that is expected to be operational in 2015. The Company also recently
commissioned a new battery in the Flat Lake area to accommodate
increasing production volumes. 
During first quarter, Crescent Point drilled 78 (72.9 net) oil wells
in the Viewfield Bakken resource play. The Company continues to
refine its one-mile, 25-stage cemented liner completion technique and
its waterflood program in the play, which are driving strong rates of
return. The Company has grown volumes that are positively affected by
waterfloods to more than 15,000 bbl/d and plans to double both the
number of water injection wells and the volumes affected by
waterfloods in the play over the next two years. To put the Company's
significant waterflood program into perspective, the two largest
pools in western Canada, the Weyburn Midale pool and the Pembina
Cardium pool, are producing approximately 30,000 bbl/d and 60,000
bbl/d, respectively. Crescent Point's waterfloods are expected to
ultimately lower production declines and improve rates of return on
adjacent producing oil wells. Based on results to date, the Company
estimates it has reduced decline rates by up to 10 percent in
waterflood-affected areas compared to areas not under waterflood.  
In early second quarter 2014, the Company commissioned its newly
expanded Viewfield gas plant. The expansion, which increased capacity
by 40 percent to 42 mmscf/d, is expected to accommodate Crescent
Point's growing production volumes in the Viewfield Bakken resource
play. 
During first quarter, the Company drilled 8 (7.4 net) oil wells in
the Manitoba Bakken resource play. The Company is pursuing waterflood
unitization to initiate its first waterflood in the area in 2014 and
is currently building a battery in the area to accommodate increased
production.  
Also during first quarter, the Company drilled 27 (13.7 net) oil
wells in other areas of southeast Saskatchewan. 
Southwest Saskatchewan 
Crescent Point continued to expand its waterflood program in the
Lower Shaunavon resource play during first quarter. In total,
Crescent Point currently has 21 water injection wells operating in
the Lower Shaunavon zone. In 2014, the Company plans to double the
amount of water injection wells operating in the play, to apply for
approval of its second Shaunavon unit and to expand its Upper
Shaunavon waterflood pilot. Crescent Point continues to be pleased
with production performance in both its Lower and Upper Shaunavon
waterflood projects. Based on results to date, the Company estimates
it has reduced decline rates by up to 10 percent in
waterflood-affected areas compared to areas not under waterflood.  
During first quarter, the Company drilled 41 (40.0 net) oil wells in
Shaunavon and has 142 net oil wells planned for 2014. As the Company
continues with the largest Shaunavon drilling program in Company
history, it will continue to refine its cemented liner completion
technology. Crescent Point believes using 25-stage cemented liner
completions should ultimately lead to positive technical reserve
additions on its remaining booked drilling inventory and existing
producing wells in the future. In 2014, the Company also plans to
drill 90 net wells from pad locations that allow Crescent Point to
drill up to three net wells per pad location, as opposed to one net
well. The drilling of more wells from these pad locations should
result in capital expenditure savings through cost optimizations. 
The Company also drilled 1 (0.5 net) oil well in Battrum, where it
achieved another production record in its operated units since
acquiring the properties in early 2006. 
Also during the quarter, Crescent Point completed construction of two
oil storage tanks with 120,000 barrels of total storage. The tanks
facilitate railcar loading at the Company's crude-by-rail terminal at
Dollard and provide Crescent Point with operational flexibility. 
South/Central Alberta and West Central Saskatchewan 
The Company and its partner continue to inject water into their first
waterflood pilot in the Beaverhill Lake play and plan to expand the
pilot in third quarter 2014. The Company has also received regulatory
approval for its first operated waterflood pilot in the play. Water
injection in this pilot is expected to begin in third quarter 2014. 
Crescent Point expects to begin its 2014 Viking drilling program in
Dodsland in July.  
United States  
Crescent Point continues to be pleased with results to date in the
Uinta Basin. The Company's recompletion program to access bypassed
pay is ongoing, along with the testing of various new completions
techniques in the area to further increase fracture stimulation
efficiency and improve production rates and ultimate recoveries.
Crescent Point expects to drill four operated horizontal wells in the
Uinta Basin later this year and, based on successful results to date
in the area, may also increase its capital expenditures plans.  
The permitting process for a 3-D seismic program covering a large
portion of the Company's operated lands in the Randlett area
continues. Subsequent to the quarter, Crescent Point received state
regulatory approval for a second waterflood injection pilot in the
Randlett area of the Uinta Basin. Water injection in both pilots is
expected to begin in 2015.  
Rail operations in Utah have allowed the Company to broaden the
market for Uinta Basin crude beyond the Salt Lake City refining
market. Crescent Point's permanent rail-loading site in Utah is now
fully operational, with capacity of approximately 10,000 bbl/d and
the capability to increase volumes in the future. 
ACQUISITIONS 
On April 23, 2014, Crescent Point announced it has entered into an
arrangement agreement to acquire all of the issued and outstanding
shares of CanEra, a privately held southeast Saskatchewan oil and gas
producer with a large Torquay land position and low-decline
production of approximately 10,000 boe/d. The CanEra Assets include a
significant Torquay land position of more than 260 net sections of
land with Torquay potential, including 60 net sections in Crescent
Point's core Flat Lake area. Upon completion of the acquisition,
Crescent Point will have exposure to more than 880 net sections of
land with Torquay potential, including more than 280 net sections of
core Flat Lake land. The acquisition is expected to close on or about
May 15, 2014. 
The CanEra acquisition is expected to generate significant free cash
flow of approximately $180 million in 2015, assuming a WTI oil price
of US$100 and an estimated annual decline rate of approximately 16
percent. The CanEra Assets complement the Company's successful
waterflood programs in the Bakken and Shaunavon and are expected to
lower the Company's total payout ratio by seven percent in 2015.
CanEra is the largest remaining working-interest partner in Crescent
Point's Viewfield Bakken waterflood project. 
OUTLOOK AND UPWARDLY REVISED 2014 GUIDANCE FOR PRODUCTION AND FUNDS
FLOW FROM OPERATIONS 
Crescent Point continues to implement its dual-track growth plan of
advancing its cemented liner completions technology and expanding its
waterflood programs to shallow corporate declines and increase
ultimate reserve recoveries. 
Crescent Point's active drilling program and its focus on advancing
its waterflood programs and cemented liner completion techniques
drove the Company's record production in first quarter 2014. These
results speak to the success of the Company's dual-track growth plan,
which allows Crescent Point to grow production at a steady pace while
lowering well costs and decline rates.  
"I'd like to take this opportunity to thank our technical teams,
field staff and service providers for their contributions over the
past several years and for delivering another strong quarter," said
Scott Saxberg, president and CEO of the Company. "For the first time
in our company's history, in first quarter we were recognized within
the industry for having drilled the most metres in western Canada in
a quarter. By the end of this year, we will have drilled and fracture
stimulated more than 2,700 multi-stage horizontal wells as a company.
That level of experience provides a significant technical advantage
for us, which we are always looking to leverage across our asset
base."  
As announced subsequent to first quarter 2014, Crescent Point has
delineated a large Torquay discovery in southeast Saskatchewan, which
is an extension of the Company's Three Forks resource play in North
Dakota. Assuming the successful completion of the CanEra acquisition
on or about May 15, 2014, Crescent Point's exposure to land with
Torquay potential will total more than 880 net sections, of which
more than 280 net sections are in the Company's core Flat Lake area
and more than 600 net sections are exploratory land. The Company is
excited about the development of its Torquay lands, as it believes
the play will add significant value over time.  
"The Torquay is a great addition to our portfolio of high-quality
resource plays," said Saxberg. "It is at an early stage of
delineation and we are excited about the potential scale and
economics of the play." 
For the rest of 2014, Crescent Point plans to develop its high
rate-of-return, low-risk inventory across its asset base and to
continue to advance its waterflood programs and cemented liner
completions. The Company has successfully applied waterfloods with
multi-stage fractured wells in all of its major Canadian oil fields
and believes these programs will continue to lower decline rates and
increase recovery factors over time. As such, the Company's future
plans include the expansion of its Bakken and Shaunavon waterflood
programs in Saskatchewan, and the initiation of a waterflood program
in the Uinta Basin in Utah in early 2015.  
As a result of the Company's strong performance to date, Crescent
Point is upwardly revising its 2014 guidance for production and funds
flow from operations. Crescent Point's average daily production in
2014 is expected to increase to 134,000 boe/d from 133,000 boe/d and
its funds flow from operations for 2014 is expected to be
approximately $2.4 billion ($5.85 per share - diluted), up from $2.38
billion ($5.79 per share - diluted). The Company's revised guidance
does not include any changes to its spring break-up estimate. 
Crescent Point continues to protect its future cash flow and to
preserve its balance sheet strength by aggressively hedging its oil
production. As at April 29, 2014, the Company had hedged 65 percent
of its oil production, net of royalty interest, for the remainder of
2014. The Company had also hedged 34 percent, 19 percent and 4
percent of its oil production, net of royalty interest, for 2015,
2016 and the first half of 2017, respectively. Average quarterly
hedge prices range from Cdn$90 per bbl to Cdn$94 per bbl. Crescent
Point's hedges provide upside participation when oil prices increase
while also providing a steady cash flow. 
The Company also has an average of greater than 15,000 bbl/d of WTI
oil differentials locked in for the remainder of 2014. These
differential hedges provide a measure of stability to volatile North
American oil price differentials. The corporate oil price
differential for full year 2014 is forecast at 13 percent of WTI,
which reflects the current market environment and Crescent Point's
existing differential hedges. 
The Company's balance sheet remains strong, with projected average
net debt to cash flow of approximately 1.1 times and significant
unutilized credit capacity. The Company continues to be disciplined
in its approach to capital spending, acquisition opportunities and
balance sheet management.  
Crescent Point's management believes that with the Company's
high-quality reserve base and low-risk development drilling
inventory, excellent balance sheet and solid risk management program,
the Company is well-positioned to continue generating strong
operating and financial results through 2014 and beyond. 
2014 GUIDANCE  
The Company's upwardly revised guidance for 2014 is as follows and
assumes the successful completion of the CanEra arrangement on or
about May 15, 2014:  


 
 
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-----
Production                                                 Prior     Revised
  Oil and NGL (bbls/d)                                   121,300     122,300
  Natural gas (mcf/d)                                     70,200      70,200
----------------------------------------------------------------------------
Total (boe/d)                                            133,000     134,000
----------------------------------------------------------------------------
Exit (boe/d)                                             145,000     145,000
----------------------------------------------------------------------------
Annualized fourth quarter funds flow from operations                        
 ($000) (1)                                            2,680,000   2,695,000
----------------------------------------------------------------------------
Funds flow from operations ($000)                      2,380,000   2,400,000
Funds flow per share - diluted ($)                          5.79        5.85
Cash dividends per share ($)                                2.76        2.76
----------------------------------------------------------------------------
Capital expenditures (2)                                                    
  Drilling and completions ($000)                      1,445,000   1,445,000
  Facilities, land and seismic ($000)                    330,000     330,000
----------------------------------------------------------------------------
Total ($000)                                           1,775,000   1,775,000
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Pricing                                                                     
  Crude oil - WTI (US$/bbl)                               100.00      100.00
  Crude oil - WTI (Cdn$/bbl)                              111.11      111.11
  Corporate oil differential (%)                              13          13
  Natural gas - AECO (Cdn$/mcf)                             4.65        4.65
  Exchange rate (US$/Cdn$)                                  0.90        0.90
----------------------------------------------------------------------------
 
1.  Annualized fourth quarter funds flow from operations is fourth quarter
    funds flow from operations multiplied by four. 
2.  The projection of capital expenditures excludes acquisitions, which are
    separately considered and evaluated. 

ON BEHALF OF THE BOARD OF DIRECTORS 
Scott Saxberg, President and Chief Executive Officer 
May 8, 2014 
Non-GAAP Financial Measures 
Throughout this press release, the Company uses the terms "funds flow
from operations", "funds flow from operations per share - diluted",
"operating income", "operating income per share - diluted", "net
debt", "net debt to funds flow from operations", "netback", "payout
ratio" and "payout ratio per share - diluted". These terms do not
have any standardized meaning as prescribed by IFRS and, therefore,
may not be comparable with the calculation of similar measures
presented by other issuers. Management believes that these non-GAAP
financial measures provide increased transparency. 
Funds flow from operations is calculated based on cash flow from
operating activities before changes in non-cash working capital,
transaction costs and decommissioning expenditures. Funds flow from
operations per share - diluted is calculated as funds flow from
operations divided by the number of weighted average diluted shares
outstanding. Management utilizes funds flow from operations as a key
measure to assess the ability of the Company to finance dividends,
operating activities, capital expenditures and debt repayments. Funds
flow from operations as presented is not intended to represent cash
flow from operating activities, net earnings or other measures of
financial performance calculated in accordance with IFRS. 
The following table reconciles cash flow from operating activities to
funds flow from operations:  


 
 
-----------------------------------------------------------------------
-----
                                                Three months ended March 31 
($000s)                                            2014      2013  % Change 
----------------------------------------------------------------------------
Cash flow from operating activities             574,136   459,239        25 
Changes in non-cash working capital              (7,490)  (10,454)      (28)
Transaction costs                                   289     3,414       (92)
Decommissioning expenditures                     13,161     3,744       252 
----------------------------------------------------------------------------
Funds flow from operations                      580,096   455,943        27 
----------------------------------------------------------------------------

Operating income is calculated based on net income before amortization
of exploration and evaluation ("E&E") undeveloped land, unrealized
derivative gains or losses, unrealized foreign exchange gain or loss
on translation of US dollar senior guaranteed notes and unrealized
gains or losses on long-term investments. Operating income per share
- diluted is calculated as operating income divided by the number of
weighted average diluted shares outstanding. Management utilizes
operating income to present a measure of financial performance that
is more comparable between periods. Operating income as presented is
not intended to represent net earnings or other measures of financial
performance calculated in accordance with IFRS.  
The following table reconciles net income to operating income:  


 
 
-----------------------------------------------------------------------
-----
                                                Three months ended March 31 
($000s)                                            2014      2013  % Change 
----------------------------------------------------------------------------
Net income (loss)                                30,890    (1,612)   (2,016)
Amortization of E&E undeveloped land             66,437    69,467        (4)
Unrealized derivative losses                    136,184    78,175        74 
Unrealized foreign exchange loss on                                         
 translation of US dollar senior guaranteed                                 
 notes                                           40,941    14,236       188 
Unrealized gain on long-term investments         (3,618)   (3,636)        - 
Deferred tax relating to adjustments            (64,760)  (42,285)       53 
----------------------------------------------------------------------------
Operating income                                206,074   114,345        80 
----------------------------------------------------------------------------

Net debt is calculated as long-term debt plus accounts payable and
accrued liabilities and dividends payable, less cash, accounts
receivable, prepaids and deposits and long-term investments,
excluding the equity settled component of dividends payable and
unrealized foreign exchange on translation of US dollar senior
guaranteed notes. Management utilizes net debt as a key measure to
assess the liquidity of the Company. 
Net debt to funds flow from operations is calculated as the period
end net debt divided by the sum of funds flow from operations for the
trailing four quarters. The ratio of net debt to funds flow from
operations is used by management to measure the Company's overall
debt position and to measure the strength of the Company's balance
sheet. Crescent Point monitors this ratio and uses this as a key
measure in making decisions regarding financing, capital spending and
dividend levels. 
The following table reconciles long-term debt to net debt:  


 
 
-----------------------------------------------------------------------
-----
                                            March 31,    March 31,          
($000s)                                          2014         2013  % Change
----------------------------------------------------------------------------
Long-term debt                              2,022,124    1,661,599       22 
Accounts payable and accrued liabilities      850,406      734,890       16 
Dividends payable                              91,562       87,573        5 
Cash                                          (14,667)           -        - 
Accounts receivable                          (419,131)    (354,395)      18 
Prepaids and deposits                         (12,342)      (7,151)      73 
Long-term investments                         (77,847)     (88,542)     (12)
Excludes:                                                                   
  Equity settled component of dividends                                     
   payable                                    (26,088)     (59,598)     (56)
  Unrealized foreign exchange on                                            
   translation of US dollar senior                                          
   guaranteed notes                          (104,111)     (16,412)     534 
----------------------------------------------------------------------------
Net debt                                    2,309,906    1,957,964       18 
----------------------------------------------------------------------------

Netback is calculated on a per boe basis as oil and gas sales, less
royalties, operating and transportation expenses and realized
derivative gains and losses. Netback is used by management to measure
operating results on a per boe basis to better analyze performance
against prior periods on a comparable basis. 
Payout ratio and payout ratio per share - diluted are calculated on a
percentage basis as dividends paid or declared (including the value
of dividends issued pursuant to the Company's dividend reinvestment
plan) divided by funds flow from operations. Payout ratio is used by
management to monitor the dividend policy and the amount of funds
flow from operations retained by the Company for capital
reinvestment. 
Reserves Data 
There are numerous uncertainties inherent in estimating quantities of
crude oil, natural gas and NGL reserves and the future cash flows
attributed to such reserves. The reserve and associated cash flow
information set forth above are estimates only. In general, estimates
of economically recoverable crude oil, natural gas and NGL reserves
and the future net cash flows therefrom are based upon a number of
variable factors and assumptions, such as historical production from
the properties, production rates, ultimate reserve recovery, timing
and amount of capital expenditures, marketability of oil and natural
gas, royalty rates, the assumed effects of regulation by governmental
agencies and future operating costs, all of which may vary
materially. For these reasons, estimates of the economically
recoverable crude oil, NGL and natural gas reserves attributable to
any particular group of properties, classification of such reserves
based on risk of recovery and estimates of future net revenues
associated with reserves prepared by different engineers, or by the
same engineers at different times, may vary. The Company's actual
production, revenues, taxes and development and operating
expenditures with respect to its reserves will vary from estimates
thereof and such variations could be material. 
The reserve data provided in this news release presents only a
portion of the disclosure required under National Instrument 51-101.
All of the required information is contained in the Company's Annual
Information Form for the year ended December 31, 2013, which is
available on SEDAR (accessible at www.sedar.com) and EDGAR
(accessible at www.sec.gov/edgar.shtml). 
Forward-Looking Statements 
Any "financial outlook" or "future oriented financial information" in
the press release, as defined by applicable securities legislation,
has been approved by management of Crescent Point. Such financial
outlook or future oriented financial information is provided for the
purpose of providing information about management's current
expectations and plans relating to the future. Readers are cautioned
that reliance on such information may not be appropriate for other
purposes.  
Certain statements contained in this press release constitute
"forward-looking statements" within the meaning of section 27A of the
Securities Act of 1933 and section 21E of the Securities Exchange Act
of 1934 and "forward looking information" for the purposes of
Canadian securities regulation. The Company has tried to identify
such forward-looking statements by use of such words as "could",
"should", "can", "anticipate", "expect", "believe", "will", "may",
"intend", "projected", "sustain", "continues", "strategy",
"potential", "projects", "grow", "take advantage", "estimate",
"well-positioned" and other similar expressions, but these words are
not the exclusive means of identifying such statements.  
In particular, this press release contains forward-looking statements
pertaining, inter alia, to the following: corporate strategy and
financial and operational results; the performance characteristics of
Crescent Point's oil and natural gas properties; anticipated funds
flow from operations and oil and natural gas production levels;
expected capital expenditure levels and how such expenditures are
expected to be funded; implementation of a 3-D seismic program at
Randlett; drilling programs; the future cost to drill wells,
including anticipated cost savings associated therewith; the
initiation and ongoing development of planned and existing waterflood
programs; the expected impact of waterfloods on corporate declines
and reserves; the expected impact of the conversion of producing
wells to water injection wells in Viewfield Bakken on production
declines, recovery and rates of return on adjacent wells; anticipated
waterflood pilot and unit approval applications; the anticipated
impact of refined cemented liner completion techniques on recovery
factors and reserve additions; anticipated future improvements in the
Company's completion technologies; the anticipated impact of
technological advancements on the value of the Company's development
inventory; the anticipated closing and impacts of the CanEra
arrangement; expectations of the Torquay lands; the quantity of
Crescent Point's oil and natural gas reserves and anticipated future
cash flows from such reserves; projections of commodity prices and
costs; supply and demand for oil and natural gas; expectations
regarding the ability to raise capital and to continually add to
reserves through acquisitions and development; expected debt levels
and credit facilities; battery, gas plant, facility expansion,
battery additions and tank construction plans, and the anticipated
timing of completion thereof; expected deliveries by rail; the
addition of rail loading facilities, including in Utah and the
transfer of equipment and staff to a permanent site in Utah; dividend
levels; capital expenditures; exchange rates; and treatment under
governmental regulatory regimes and the state of certain governmental
approvals. 
All forward-looking statements are based on Crescent Point's beliefs
and assumptions based on information available at the time the
assumption was made. Crescent Point believes that the expectations
reflected in these forward-looking statements are reasonable but no
assurance can be given that these expectations will prove to be
correct and such forward-looking statements included in this report
should not be unduly relied upon. By their nature, such
forward-looking statements are subject to a number of risks,
uncertainties and assumptions, which could cause actual results or
other expectations to differ materially from those anticipated,
expressed or implied by such statements, including those material
risks discussed in the Company's Annual Information Form under "Risk
Factors" and our Management's Discussion and Analysis for the year
ended December 31, 2013, under the headings "Risk Factors" and
"Forward-Looking Information." The material assumptions are disclosed
in the Management's Discussion and Analysis for the year ended
December 31, 2013, under the headings "Dividends", "Capital
Expenditures", "Decommissioning Liability", "Liquidity and Capital
Resources", "Critical Accounting Estimates", "Future Changes in
Accounting Policies" and "Outlook", and in the Management's
Discussion and Analysis for the period ended March 31, 2014, under
the headings "Dividends", "Capital Expenditures", "Decommissioning
Liability", "Liquidity and Capital Resources", "Changes in Accounting
Policies" and "Outlook". 
In addition, risk factors include: financial risk of marketing
reserves at an acceptable price given market conditions; volatility
in market prices for oil and natural gas; delays in business
operations, pipeline restrictions, blowouts; the risk of carrying out
operations with minimal environmental impact; industry conditions
including changes in laws and regulations including the adoption of
new environmental laws and regulations and changes in how they are
interpreted and enforced; uncertainties associated with estimating
oil and natural gas reserves; economic risk of finding and producing
reserves at a reasonable cost; uncertainties associated with partner
plans and approvals; operational matters related to non-operated
properties; increased competition for, among other things, capital,
acquisitions of reserves and undeveloped lands; competition for and
availability of qualified personnel or management; incorrect
assessments of the value of acquisitions and exploration and
development programs; unexpected geological, technical, drilling,
construction and processing problems; availability of insurance;
fluctuations in foreign exchange and interest rates; stock market
volatility; failure to realize the anticipated benefits of
acquisitions; general economic, market and business conditions;
uncertainties associated with regulatory approvals; uncertainty of
government policy changes; uncertainties associated with credit
facilities and counterparty credit risk; and changes in income tax
laws, tax laws, crown royalty rates and incentive programs relating
to the oil and gas industry. The impact of any one risk, uncertainty
or factor on a particular forward-looking statement is not
determinable with certainty as these are interdependent and Crescent
Point's future course of action depends on management's assessment of
all information available at the relevant time. 
Barrels of oil equivalent ("boes") may be misleading, particularly if
used in isolation. A boe conversion ratio of 6 Mcf: 1 Bbl is based on
an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the
wellhead. 
The aggregate of the exploration and development costs incurred in
the most recent financial year and the change during the year in
estimated future development costs generally will not reflect total
finding and development costs related to reserves additions for the
year. 
Additional information on these and other factors that could affect
Crescent Point's operations or financial results are included in
Crescent Point's reports on file with Canadian and U.S. securities
regulatory authorities. Readers are cautioned not to place undue
reliance on this forward-looking information, which is given as of
the date it is expressed herein or otherwise and Crescent Point
undertakes no obligation to update publicly or revise any
forward-looking information, whether as a result of new information,
future events or otherwise, unless required to do so pursuant to
applicable law. All subsequent forward-looking statements, whether
written or oral, attributable to Crescent Point or persons acting on
the Company's behalf are expressly qualified in their entirety by
these cautionary statements. 
Crescent Point is one of Canada's largest light and medium oil
producers, with a market capitalization of more than CDN$18 billion
and an annual dividend of CDN$2.76 per share.  
Crescent Point shares are traded on the Toronto Stock Exchange and
New York Stock Exchange, both under the symbol CPG. 


 
 
Crescent Point Energy Corp.                                                 
Suite 2800, 111-5th Avenue S.W.             
                                
Calgary, Alberta T2P 3Y6                                                    

  
Contacts:
Crescent Point Energy Corp.
Greg Tisdale
Chief Financial Officer
(403) 693-0020 or Toll-free (US & Canada): 888-693-0020 
Crescent Point Energy Corp.
Trent Stangl
Vice President, Marketing and Investor Relations
(403) 693-0020 or Toll-free (US & Canada): 888-693-0020
(403) 693-0070 (FAX)
www.crescentpointenergy.com
 
 
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