UPDATE 2-Crescent Point production rises despite low oil prices

Wed Mar 11, 2015 12:42pm EDT
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March 11 (Reuters) - Crescent Point Energy, Canada's No. 4 independent oil and gas producer, said on Wednesday its production jumped more than 20 percent in the fourth quarter of 2014, underlining how weak crude prices are so far failing to dent Canadian output.

The company, which focuses on light and medium crude production and is active in the Bakken fields of southern Saskatchewan, said average production rose 21 percent in the quarter to 153,822 barrels of oil equivalent per day (boepd).

That helped cash flow from operations climb 7 percent to C$572.9 million ($452.1 million) from C$533.3 million a year earlier, despite the slide in oil prices.

Global crude prices have more than halved since June, hurt by a supply glut and weak demand, forcing energy companies to cut budgets and pull back drilling activity to save cash.

Crescent Point credited its cost cuts as well as increased output for its performance.

The company slashed its 2015 capital budget by 28 percent to C$1.45 billion in January, and said on Wednesday it would review spending plans again after the spring break-up.

"We believe the steps we are taking now, in terms of lowering our cost structure and improving our efficiencies, will benefit the company in all price environments," Crescent Point Chief Executive Scott Saxberg said.

The company said it expected savings of 15-20 percent in some projects this year and said further savings could be achieved.   Continued...