TSX:CPG

Stock Analysis Report

Crescent Point Energy

Executive Summary

Crescent Point Energy Corp. explores, develops, and produces light and medium crude oil and natural gas reserves in Western Canada and the United States.


Snowflake Analysis

Fair value with imperfect balance sheet.


Similar Companies

Share Price & News

How has Crescent Point Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CPG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

CPG

11.7%

CA Oil and Gas

11.7%

CA Market


1 Year Return

-79.0%

CPG

-46.7%

CA Oil and Gas

-26.0%

CA Market

Return vs Industry: CPG underperformed the Canadian Oil and Gas industry which returned -46.7% over the past year.

Return vs Market: CPG underperformed the Canadian Market which returned -26% over the past year.


Shareholder returns

CPGIndustryMarket
7 Day0%11.7%11.7%
30 Day-75.1%-40.2%-21.9%
90 Day-84.3%-46.9%-26.6%
1 Year-78.7%-79.0%-44.2%-46.7%-23.6%-26.0%
3 Year-93.0%-93.6%-48.0%-53.9%-15.8%-23.6%
5 Year-96.4%-97.0%-49.4%-57.9%-3.5%-17.8%

Price Volatility Vs. Market

How volatile is Crescent Point Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Crescent Point Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPG (CA$0.91) is trading below our estimate of fair value (CA$7.96)

Significantly Below Fair Value: CPG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CPG is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: CPG is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CPG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CPG is good value based on its PB Ratio (0.1x) compared to the CA Oil and Gas industry average (0.4x).


Next Steps

Future Growth

How is Crescent Point Energy forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

95.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CPG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CPG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CPG's revenue is expected to decline over the next 3 years (-17.2% per year).

High Growth Revenue: CPG's revenue is forecast to decline over the next 3 years (-17.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPG is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Crescent Point Energy performed over the past 5 years?

-43.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPG is currently unprofitable.

Growing Profit Margin: CPG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CPG is unprofitable, and losses have increased over the past 5 years at a rate of -43.1% per year.

Accelerating Growth: Unable to compare CPG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CPG is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-2.5%).


Return on Equity

High ROE: CPG has a negative Return on Equity (-19.34%), as it is currently unprofitable.


Next Steps

Financial Health

How is Crescent Point Energy's financial position?


Financial Position Analysis

Short Term Liabilities: CPG's short term assets (CA$631.5M) do not cover its short term liabilities (CA$775.3M).

Long Term Liabilities: CPG's short term assets (CA$631.5M) do not cover its long term liabilities (CA$4.0B).


Debt to Equity History and Analysis

Debt Level: CPG's debt to equity ratio (54.4%) is considered high.

Reducing Debt: CPG's debt to equity ratio has increased from 29% to 54.4% over the past 5 years.


Balance Sheet

Inventory Level: CPG has a high level of physical assets or inventory.

Debt Coverage by Assets: CPG's debt is not covered by short term assets (assets are 0.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CPG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CPG is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -14.9% per year.


Next Steps

Dividend

What is Crescent Point Energy's current dividend yield, its reliability and sustainability?

4.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CPG's dividend (4.4%) is higher than the bottom 25% of dividend payers in the Canadian market (2.73%).

High Dividend: CPG's dividend (4.4%) is low compared to the top 25% of dividend payers in the Canadian market (8.76%).


Stability and Growth of Payments

Stable Dividend: CPG's dividend payments have been volatile in the past 10 years.

Growing Dividend: CPG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: CPG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CPG's dividends in 3 years are forecast to be thoroughly covered by earnings (4.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Craig Bryksa (42yo)

1.83s

Tenure

CA$2,567,449

Compensation

Mr. Craig Bryksa has been President and Chief Executive Officer at Crescent Point Energy Corp since September 05, 2018 and has been its Director since May 2018. He served as an Interim President and CEO at ...


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD1.82M) is above average for companies of similar size in the Canadian market ($USD1.23M).

Compensation vs Earnings: Craig's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Craig Bryksa
President1.83yrsCA$2.57m0.029% CA$141.1k
Kenneth Lamont
Chief Financial Officerno dataCA$2.21m0.045% CA$217.7k
Ryan Chad Gritzfeldt
Chief Operating Officer1.75yrsCA$2.04m0.040% CA$192.0k
Brad Borggard
Senior Vice President of Corporate Planning & Capital Markets1.75yrsCA$1.92m0.021% CA$100.9k
Shant Madian
Vice President of Investor Relations & Corporate Communicationsno datano datano data
Mark Eade
Senior VP4.5yrsno data0.0079% CA$38.0k
Garret Holt
Senior Vice President of Corporate Development1.17yrsno datano data
Deniene Patriquin
Vice President of Marketing2.17yrsno datano data
Mike Blair
Vice President of Exploration1.17yrsno datano data
Anthony Baldwin
President of Crescent Point Energy U.S. Corp.2.17yrsno datano data

1.8yrs

Average Tenure

Experienced Management: CPG's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Craig Bryksa
President1.83yrsCA$2.57m0.029% CA$141.1k
Mike Jackson
Independent Director3.33yrsCA$279.24k0.012% CA$58.4k
Francois Langlois
Independent Director1.83yrsCA$170.66k0.00010% CA$480.2
Barbara Munroe
Independent Chairman0.42yrCA$244.72k0.0013% CA$6.3k
James Craddock
Additional Independent Director0.75yrno datano data
Laura Cillis
Independent Director6.17yrsCA$236.75k0.0053% CA$25.2k
Jennifer Koury
Additional Independent Director0.75yrno datano data
Edward Goldthorpe
Independent Director2.83yrsCA$254.74k0.0028% CA$13.6k
John Dielwart
Independent Director1yrno datano data

1.8yrs

Average Tenure

59yo

Average Age

Experienced Board: CPG's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CPG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Crescent Point Energy Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Crescent Point Energy Corp.
  • Ticker: CPG
  • Exchange: TSX
  • Founded:
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$480.227m
  • Shares outstanding: 527.72m
  • Website: https://www.crescentpointenergy.com

Number of Employees


Location

  • Crescent Point Energy Corp.
  • 585–8th Avenue SW
  • Suite 2000
  • Calgary
  • Alberta
  • T2P 1G1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPGTSX (The Toronto Stock Exchange)YesCommon StockCACADOct 2001
CPGNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2001
16DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2001
0UR7LSE (London Stock Exchange)YesCommon StockGBCADOct 2001

Biography

Crescent Point Energy Corp. explores, develops, and produces light and medium crude oil and natural gas reserves in Western Canada and the United States. The company's crude oil and natural gas properties, and related assets are located in the provinces of Saskatchewan, Alberta, British Columbia, and Manitoba; and the states of North Dakota and Montana. Crescent Point Energy Corp. is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:04
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.