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Crescent Point Third-Quarter Profit Declines 99%

Nov. 8 (Bloomberg) -- Crescent Point Energy Corp., the most acquisitive Canadian energy company this year, said third-quarter profit dropped 99 percent on losses from derivatives contracts.

Net income fell to C$2.35 million ($2.35 million), or 1 cent a share, from C$204.6 million, or 74 cents, a year earlier, the Calgary-based company said in a statement today. The company reported a C$71.2 million loss from derivatives during the quarter, compared with a C$293.3 million gain a year earlier.

Cash flow of C$384.2 million, or C$1.13 a share, matched the average estimate of 16 analysts surveyed by Bloomberg.

The results, absent of “operational surprises,” were a “non-event, given that the company had provided preliminary production and cash flow estimates for the quarter,” Allan Stepa, an analyst at Desjardins Securities Inc. in Calgary, said in a note today.

Crescent Point produced the equivalent of 99,631 barrels of oil a day during the quarter, up from 72,258 barrels last year.

Crescent Point fell 1 percent to C$38.80 at the close in Toronto. The stock, which has 11 buys, four holds and one sell rating from analysts, has declined 14 percent this year.

Output Increasing

The company, which produces light oil from fields in Saskatchewan, is increasing the amount of output shipped by rail to avoid U.S. pipeline bottlenecks and get a higher price for its product. Barrels transported by rail can fetch C$10 more than crude transported by pipe, Chief Executive Officer Scott Saxberg said in an Oct. 18 interview.

Crescent Point, which tripled output in the past five years, has announced seven acquisitions in 2012, the most in Canada’s energy sector, according to data compiled by Bloomberg. The company agreed last week to buy Ute Energy Upstream Holdings LLC for $784 million in cash, its first purchase in Utah’s Uinta Basin.

Western Canada Select crude futures rose to an average of $76.75 a barrel in the third quarter, up 2.3 percent from a year earlier.

To contact the reporter on this story: Rebecca Penty in Calgary at rpenty@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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