Crescent Point profit jumps as acquisitions boost output
CALGARY Alberta (Reuters) - Crescent Point Energy Corp, Canada's No. 3 independent oil producer, said on Wednesday its quarterly profit rose 36 percent as acquisitions boosted oil production and prices strengthened.
The company said net income in the second quarter was C$98.6 million ($90.5 million), or 24 Canadian cents a share, up from C$72.3 million, or 19 Canadian cents, in the year-before period.
Operating income, which excludes most one-time items, rose 34 percent to C$174.6 million, or 43 Canadian cents a share, from C$130.3 million, or 34 Canadian cents. The result lagged analysts' average forecast of 48 Canadian cents for the measure, according to Thomson Reuters I/B/E/S.
The company, which focuses on producing oil from unconventional fields such as the Bakken shales of southern Saskatchewan, has grown through acquisitions, including the C$1.1 billion purchase of CanEra Energy Corp in cash and debt in April.
Cash flow, a key indicator of the company's ability to fund new drilling, rose 26 percent to C$636.7 million, or C$1.55 a share.
Average daily oil and gas production rose 17 percent in the quarter to 137,368 barrels of oil equivalent per day, up from 117,799 boepd a year earlier. Crescent Point's output was boosted by the CanEra acquisition as well as by its purchase of Saskatchewan oil properties from a private company. That deal closed in mid June.
The company raised its 2014 production targets to account for the impact of its acquisitions. It expects average output this year of 138,000 boepd, up from its previous estimate of 135,500 boepd. It pegged annual cash flow at C$2.5 billion, up from C$2.45 billion.
The company said its average oil price rose 15 percent in the quarter to C$97.52 per barrel.
Crescent Point shares, up 14 percent over the past 12 months, were down 34 Canadian cents at C$43.95 at midmorning on the Toronto Stock Exchange. Continued...