CPG CN

Crescent Point Energy Corp

Energy


Presented:11/27/2019
Price:CA$4.83
Cap:$2.11B
Current Price:CA$8.46
Cap:$4.18B

Presented

Date11/27/2019
PriceCA$4.83
Market Cap$2.11B
Ent Value$5.40B
P/E RatioN/A
Book ValueCA$11.72
Div Yield0.83%
Shares O/S545.23M
Ave Daily Vol3,846,133
Short IntN/A

Current

PriceCA$8.46
Market Cap$4.18B
Crescent Point Energy Corp. engages in the exploration, development, and production of oil and gas properties. It focuses on the following locations: Viewfield Bakken, Shaunavon, Flat Lake, Duvernay, and Uinta Basin. The company was founded on April 20, 1994 and is headquartered in Calgary, Canada.

Publicly traded companies mentioned herein: Crescent Point Energy Corp (CPG CN), TORC Oil & Gas ltd (TOG CN),Whitecap Resources Inc (WCP CN)

Highlights

The presenter is long shares of Crescent Point Energy Corp (CPG CN), based on what he views as a large valuation disconnect while the company goes through a major transition. In September 2018, a new management team, led by CEO Craig Bryska, was brought in. This new management team has focused on cleaning up the company’s balance sheet, tightening up their resource base, and bringing costs down. They’ve also begun to repurchase shares that trade at a material discount to NAV. The company’s shares currently trade at CA$6 for 2P reserves and less than CA$14 for Proved Developed Producing reserves. The presenter believes that the shares should trade at CA$20 per Proved Developed Producing reserves, which is what the company pays for 2P finding and development costs. In that scenario, he places a greater than CA$9 price target on the stock. The company also has over CA$10 billion dollars in NOL’s versus a current pro forma enterprise value of around CA $5 billion.

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Idea Discussion

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