CALGARY, Aug. 5 /CNW/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX: CPG) is pleased to announce its operating and financial results for the second quarter ended June 30, 2010. The unaudited financial statements and notes, as well as management's discussion and analysis, are available on Crescent Point's website at www.crescentpointenergy.com and on SEDAR at www.sedar.com.

    <<
    FINANCIAL AND OPERATING HIGHLIGHTS
    -------------------------------------------------------------------------
                              Three months ended         Six months ended
                                    June 30                  June 30
    ($000s except shares, ---------------------------------------------------
     per share and per boe                      %                          %
     amounts)                2010     2009  Change      2010     2009  Change
    -------------------------------------------------------------------------
    Financial
    Funds flow from
     operations (1)(3)    185,135  137,960     34    389,217  326,188     19
      Per share (1)(2)(3)    0.84     0.91     (8)      1.80     2.25    (20)
    Net income (loss) (4)  63,399  (67,262)   194     91,008  (72,408)   226
      Per share (2)(4)       0.29    (0.45)   164       0.42    (0.51)   182
    Dividends paid or
     declared             150,155  104,014     44    297,079  202,004     47
      Per share (2)          0.69     0.69      -       1.38     1.38      -
    Payout ratio (%) (1)       81       75      6         76       62     14
      Per share (%) (1)(2)     82       76      6         77       61     16
    Net debt (1)(5)       691,505  681,419      1    691,505  681,419      1
    Capital acquisitions
     (net) (6)             (3,952) 327,416   (101)   550,113  464,380     18
    Development capital
     expenditures         189,446   50,161    278    363,545  116,437    212
    Weighted average
     shares outstanding
     (mm)
      Basic                 215.2    149.2     44      212.6    142.8     49
      Diluted               219.3    151.6     45      216.4    145.2     49
    -------------------------------------------------------------------------
    Operating
    Average daily
     production
      Crude oil and NGLs
       (bbls/d)            48,928   36,645     34     49,537   35,999     38
      Natural gas (mcf/d)  35,919   28,037     28     35,689   27,072     32
    -------------------------------------------------------------------------
      Total (boe/d)        54,915   41,318     33     55,485   40,511     37
    -------------------------------------------------------------------------
    Average selling
     prices (7)
      Crude oil and NGLs
       ($/bbl)              71.14    64.98      9      73.57    56.50     30
      Natural gas ($/mcf)    4.13     3.58     15       4.53     4.34      4
    -------------------------------------------------------------------------
      Total ($/boe)         66.08    60.06     10      68.60    53.11     29
    -------------------------------------------------------------------------
    Netback ($/boe)
      Oil and gas sales     66.08    60.06     10      68.60    53.11     29
      Royalties            (11.79)  (10.31)    14     (12.24)   (8.83)    39
      Operating expenses   (10.81)   (8.80)    23     (10.66)   (8.48)    26
      Transportation        (1.67)   (1.45)    15      (1.73)   (1.55)    12
    -------------------------------------------------------------------------
      Netback prior to
       realized
       derivatives          41.81    39.50      6      43.97    34.25     28
      Realized gain on
       derivatives (8)       0.69     3.71    (81)      0.31     6.60    (95)
    -------------------------------------------------------------------------
      Operating netback (1) 42.50    43.21     (2)     44.28    40.85      8
    -------------------------------------------------------------------------
    Crescent Point's financial and operating results do not reflect the
    production or cash flows of Shelter Bay Energy Inc. ("Shelter Bay") other
    than the production and cash flows associated with Crescent Point's
    interests in the wells farmed out to Shelter Bay by Crescent Point.
    Crescent Point accounts for its investment in Shelter Bay using the
    equity method of accounting. Accordingly, Crescent Point records its
    share of Shelter Bay net income or loss in the "equity and other income
    (loss)" caption on the consolidated statements of operations,
    comprehensive income and deficit.

    (1) Funds flow from operations, payout ratio, net debt and operating
        netback as presented do not have any standardized meaning prescribed
        by Canadian generally accepted accounting principles and, therefore,
        may not be comparable with the calculation of similar measures
        presented by other entities.
    (2) The per share amounts (with the exception of per share dividends) are
        the per share - diluted amounts. Comparative amounts are Trust
        distributions and per trust unit - diluted.
    (3) Funds flow from operations for the three and six month period ended
        June 30, 2009 includes a realized derivative gain on crystallization
        of various oil contracts of $3.5 million and $72.5 million,
        respectively.
    (4) Net income of $91.0 million for the six months ended June 30, 2010
        includes unrealized derivative gains of $89.1 million. The net loss
        of $72.4 million for the six months ended June 30, 2009 includes
        unrealized derivative losses of $238.6 million, a $72.5 million
        realized derivative gain on crystallization of various oil contracts
        and a $11.4 million bad debt provision for SemCanada.
    (5) Net debt includes long-term debt, working capital and long-term
        investments, but excludes risk management assets, risk management
        liabilities and unrealized foreign exchange loss on translation of US
        dollar senior guaranteed notes.
    (6) Capital acquisitions represent total consideration for the
        transactions including bank debt and working capital assumed and,
        commencing January 1, 2010, excluding transaction costs.
    (7) The average selling prices reported are before realized derivatives
        and transportation charges.
    (8) The realized derivative gain for the three and six month period ended
        June 30, 2009 excludes a realized derivative gain on crystallization
        of $3.5 million and $72.5 million, respectively.
    >>

HIGHLIGHTS

In second quarter 2010, Crescent Point continued to execute its integrated business strategy of acquiring, exploiting and developing high-quality, long-life light and medium oil and natural gas properties.

    <<
    -   Crescent Point achieved record second-quarter drilling activity,
        drilling 74 (48.0 net) wells with a 99 percent success rate. The
        Company spent $189.4 million on development capital activities in
        second quarter 2010, including $99.1 million on drilling and
        completions activities and $90.3 million on facilities, land and
        seismic.

    -   Crescent Point grew second quarter 2010 average daily production by
        33 percent over second quarter 2009, averaging 54,915 boe/d for the
        quarter. Production was weighted 89 percent to light and medium crude
        oil and liquids. Crescent Point achieved budget production levels for
        the quarter and remains on target to average greater than 61,000
        boe/d in 2010 and to exit the year with production greater than
        69,500 boe/d.

    -   Crescent Point's funds flow from operations increased by 34 percent
        to $185.1 million ($0.84 per share - diluted) in second quarter 2010,
        compared to $138 million ($0.91 per unit - diluted) in second quarter
        2009.

    -   Crescent Point maintained consistent monthly dividends of $0.23 per
        share, totaling $0.69 per share for second quarter 2010 and resulting
        in a payout ratio of 82 percent on a per share - diluted basis. This
        is unchanged from $0.69 per unit paid in second quarter 2009. The
        Company remains on track to achieve annual payout ratio guidance of
        71 percent.

    -   On May 12, 2010, Crescent Point announced the strategic acquisition
        of Shelter Bay Energy Inc. ("Shelter Bay"), a private oil and gas
        producer in which Crescent Point owned a 21 percent equity interest.
        The Company subsequently completed the Shelter Bay acquisition on
        July 2, 2010. Crescent Point acquired more than 7,400 boe/d of
        high-quality production, weighted 93 percent to light and medium
        crude oil and liquids, as well as more than 315 net sections of
        Bakken land and more than 40 net sections of Lower Shaunavon land.

    -   On June 23, 2010, Crescent Point announced that it had entered into
        an arrangement agreement to complete the strategic acquisition of
        Ryland Oil Corporation ("Ryland"), an oil producer with assets
        primarily located in the Flat Lake area of southeastern Saskatchewan
        and in North Dakota. Ryland is Crescent Point's working interest
        partner in the Flat Lake Bakken play and controls more than 475 net
        sections of land, the majority of which is in southeast Saskatchewan.
        The arrangement is expected to close on or before August 20, 2010.

    -   On June 2, 2010, Crescent Point closed its previously announced
        bought deal financing. A total of 9,150,000 Crescent Point shares
        were issued for gross proceeds of approximately $375 million.

    -   In June 2010, the Company renewed its credit facilities totaling
        $1.6 billion. The syndicated credit facility of $1.5 billion was
        extended from a one-year revolving term to a three-year revolving
        term. The $100 million operating facility continues to be a one-year
        revolving term. In addition to these credit facilities, Crescent
        Point holds a series of senior guaranteed notes, under various terms
        and rates, totaling US$260 million and Cdn$50 million.

    -   The Company's balance sheet remains strong, with projected average
        net debt to 12-month cash flow of approximately 1.1 times and
        approximately $750 million unutilized on its bank lines.

    -   Crescent Point continued to implement its disciplined hedging
        strategy to provide increased certainty over cash flow and dividends.
        As at July 27, 2010, the Company had hedged 50 percent, 44 percent,
        30 percent and 15 percent of production, net of royalty interest, for
        the balance of 2010, 2011, 2012 and 2013, respectively. Average
        quarterly hedge prices range from Cdn$79 per boe to Cdn$92 per boe.
    >>

OPERATIONS REVIEW

Second Quarter Operations Summary

During second quarter 2010, Crescent Point continued to aggressively implement management's business strategy of creating sustainable, value-added growth in reserves, production and cash flow through acquiring, exploiting and developing high-quality, long-life light and medium oil and natural gas properties.

Crescent Point averaged 54,915 boe/d during second quarter 2010, a 33 percent increase over second quarter 2009. During the quarter, the Company participated in the drilling of 73 (47.3 net) oil wells and 1 (0.7 net) service well, achieving a 99 percent success rate. Drilling activities resumed in May after the annual spring breakup period. Crescent Point achieved budget production levels for the quarter and remains on track to average more than 61,000 boe/d for the year and to exit the year with production greater than 69,500 boe/d.

Drilling Results

The following table summarizes our drilling results for the three and six months ended June 30, 2010:

    <<
    -------------------------------------------------------------------------
    Three months ended                                                    %
     June 30, 2010    Gas     Oil  D&A  Service Standing Total  Net  Success
    -------------------------------------------------------------------------
    Southeast
     Saskatchewan       -      55    1      1        -     57   36.8      99
    Southwest
     Saskatchewan       -      17    -      -        -     17   11.2     100
    South/Central
     Alberta            -       -    -      -        -      -      -       -
    Northeast BC and
     Peace River Arch,
     Alberta            -       -    -      -        -      -      -       -
    -------------------------------------------------------------------------
    Total               -      72    1      1        -     74   48.0      99
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Six months ended                                                      %
     June 30, 2010    Gas     Oil  D&A  Service Standing Total  Net  Success
    -------------------------------------------------------------------------
    Southeast
     Saskatchewan       -     109    1      1        -    111   82.9      99
    Southwest
     Saskatchewan       -      38    -      -        -     38   30.7     100
    South/Central
     Alberta            -       -    -      -        -      -      -       -
    Northeast BC and
     Peace River Arch,
     Alberta            -       -    -      -        -      -      -       -
    -------------------------------------------------------------------------
    Total               -     147    1      1        -    149  113.6      99
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    >>

Southeast Saskatchewan

During the quarter, Crescent Point participated in the drilling of 56 (36.1 net) oil wells and 1 (0.7 net) service well in southeast Saskatchewan, achieving a 99 percent success rate. Of the wells drilled, 34 (25.3 net) were horizontal wells in the Viewfield Bakken light oil resource play and 2 (1.5 net) were in the Flat Lake Bakken light oil resource play. Crescent Point also participated in the drilling of 20 (9.3 net) non-Bakken horizontal wells, including 4 (3.8 net) Viewfield Frobisher wells.

Crescent Point tied in 13 existing single well batteries and 14 recently drilled wells in second quarter. In April, the Company completed modifications on existing compression at the Viewfield gas plant that increased inlet capacity to 21 mmcf/d from 18 mmcf/d. Crescent Point continued design work and began ordering equipment to expand the plant's inlet capacity to 30 mmcf/d during 2011.

Subsequent to the quarter end, in early July, lightning struck a Crescent Point operated facility in southeast Saskatchewan, igniting several crude oil and produced water tanks and shutting in approximately 4,000 boe/d per day. No one was injured in the incident and more than two-thirds of the shut-in production was brought back on production within 72 hours. The remaining shut-in volumes are expected to be back on production by end of third quarter and will not substantially affect production targets.

The first water flood pilot project continues to demonstrate positive production response in offsetting wells and the pattern has yet to display definable decline trends after nearly two years of post-fracture stimulation water injection. The second pilot project has also shown positive response so far in 2010. Water injection in Crescent Point's third water flood pilot project began in July 2010 and a fourth pilot project is expected to be initiated in early August 2010. Two more pilot projects are planned for implementation by year end.

Southwest Saskatchewan

During the quarter, the Company participated in drilling 17 (11.2 net) horizontal oil wells in southwest Saskatchewan, including 9 (6.0 net) Lower Shaunavon oil wells and 5 (2.2 net) Upper Shaunavon horizontal oil wells, achieving a 100 percent success rate. Gas conservation in the area commenced late in the second quarter with non-operated, interruptible capacity of up to 500 mcf/d available. With continued expansion of the play, the Company will continue to measure and assess gas plant requirements over the next year for long-term gas conservation.

At Cantuar, 3 (1.7 net) wells were converted to injection wells into the Success zone, while 1 (0.6 net) well was converted to an injection well into the Roseray zone. The Company's working interest partners have approved plans to drill 8 (4.4 net) wells during third quarter 2010.

At Battrum, 5 (2.0 net) wells were converted to injection wells, with injection scheduled to commence during the third quarter. The Company's working interest partners have approved plans to drill 9 (3.9 net) wells in late 2010. In June 2010, Crescent Point reached production at Battrum of more than 2,300 boe/d, achieving another record interest production level since acquiring the property in 2006.

Crescent Point also drilled 3 (3.0 net) Viking formation wells in the Plato area to address land expiries. Crescent Point plans to bring these wells on production during third quarter 2010.

Acquisitions

On May 12, 2010, Crescent Point announced the acquisition of Shelter Bay, the private oil and gas producer in which Crescent Point owned a 21 percent equity interest. The acquisition was completed on July 2, 2010. Crescent Point acquired more than 7,400 boe/d of production, as well as more than 315 net sections of Bakken land and more than 40 net sections of Lower Shaunavon land.

On June 23, 2010, Crescent Point announced the acquisition, by plan of arrangement, of Ryland, the Company's working interest partner in the Flat Lake Bakken play. Ryland controls more than 475 net sections of land, the majority of which is in southeast Saskatchewan. The arrangement is expected to close on or before August 20, 2010.

OUTLOOK

Crescent Point continues to execute its business plan of creating sustainable value-added growth in reserves, production and cash flow through management's integrated strategy of acquiring, exploiting and developing high-quality, long-life light and medium oil and natural gas properties in western Canada.

With the successful completion of the Shelter Bay acquisition, Crescent Point's drilling inventory increased to more than 6,000 locations, primarily in the Bakken and Lower Shaunavon crude oil resource plays. The Company estimates this drilling inventory represents more than 425,000 boe/d of risked production additions.

During 2010, the Company will continue to execute a capital development program of $750 million, including approximately $565 million on drilling and completions activities and approximately $185 million on facilities infrastructure investments and land. The facilities and land investments portion of the program, representing approximately 25 percent of the capital budget, is focused primarily in Crescent Point's core Bakken and Lower Shaunavon areas and positions the Company for long-term production and reserves growth in these core areas.

Crescent Point expects to participate in the drilling of up to 331 net wells in 2010. This includes 185 net wells in the Bakken crude oil resource play, 70 net wells in the Lower Shaunavon crude oil resource play and 16 net wells in the Viking crude oil resource play. Sixty net wells are also planned for other Crescent Point areas, including Battrum, Cantuar and other southeast Saskatchewan areas. Of the 331 wells planned for 2010, 217 net are planned for the final half of the year, which is expected to contribute to year end exit production of greater than 69,500 boe/d.

Exploitation activities during the second half of the year are expected to include the implementation of four more water flood pilot projects in the Bakken resource play, the first of which was implemented in July and the second of which is expected to be implemented in August. Including the two water flood pilot projects initiated prior to 2010, the Company expects to have six pilot projects on line by year end, each testing different patterns and completion techniques to optimize economics and recoveries. Crescent Point believes results from the pilots are positive and that the water flood will eventually be applied throughout the play.

Crescent Point continues to actively exploit the Lower Shaunavon resource play, with 40 net wells budgeted for the second half of 2010. The area's further upside is highlighted by the Company's plan to drill eight Upper Shaunavon wells by year end. Crescent Point continues to monitor early positive results and to optimize the area's initial water flood pilot project. As well, applications for further injection wells have been submitted to have two additional water flood pilot projects operational by early 2011.

Second half activities are also expected to include up to seven net wells in the Flat Lake Bakken play along the United States border, as the Company continues to delineate and develop this area.

Crescent Point continues to budget 2010 average production of more than 61,000 boe/d, weighted 90 percent towards crude oil and natural gas liquids. Funds flow from operations is budgeted to be $915 million ($3.88 per share - diluted), based on assumed pricing of US$81.00 per barrel WTI, Cdn$4.50 per mcf AECO gas and US$0.98 exchange rate.

Crescent Point's balance sheet remains strong, with projected average net debt to 12-month cash flow of approximately 1.1 times and approximately $750 million unutilized on its bank lines.

The Company continues to implement its balanced 3 1/2-year price risk management program, using a combination of swaps, collars and purchased put options with investment grade counterparties all within Crescent Point's banking syndicate. As at July 27, 2010, the Company had hedged 50 percent, 44 percent, 30 percent and 15 percent of production, net of royalty interest, for the balance of 2010, 2011, 2012 and 2013, respectively. Average quarterly hedge prices range from Cdn$79 per boe to Cdn$92 per boe.

Crescent Point's management believes that with the Company's high-quality reserve base and development drilling inventory, excellent balance sheet and solid risk management program, the Company is well positioned to continue generating strong operating and financial results through 2010 and beyond.

2010 Guidance

Crescent Point's guidance for 2010 is as follows:

    <<
    -------------------------------------------------------------------------
    Production
      Oil and NGL (bbls/d)                                            54,750
      Natural gas (mcf/d)                                             37,500
    -------------------------------------------------------------------------
    Total (boe/d)                                                     61,000
    -------------------------------------------------------------------------
    Funds flow from operations ($000)                                915,000
    Funds flow per share - diluted ($)                                  3.88
    Dividends per share ($)                                             2.76
    Payout ratio - per share - diluted (%)                                71
    -------------------------------------------------------------------------
    Capital expenditures ($000) (1)                                  750,000
    Wells drilled, net                                                   331
    -------------------------------------------------------------------------
    Pricing
      Crude oil - WTI (US$/bbl)                                        81.00
      Crude oil - WTI (Cdn$/bbl)                                       82.65
      Natural gas - Corporate (Cdn$/mcf)                                4.50
      Exchange rate (US$/Cdn$)                                          0.98
    -------------------------------------------------------------------------
    (1) The projection of capital expenditures excludes corporate and
        property acquisitions, which are separately considered and evaluated.

    ON BEHALF OF THE BOARD OF DIRECTORS

    (signed)

    Scott Saxberg
    President and Chief Executive Officer
    August 5, 2010

http://www.theglobeandmail.com/globe-investor/news-sources/?date=20100805&archive=cnw&slug=C8398

http://www.crescentpointenergy.com/documents/news/CPG-2010-Q2-PR.pdf

Cheers;  Scott