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Written by Summary Crescent Point Energy enjoyed a cash windfall thanks to these booming oil and gas prices, thereby seeing their net debt target achieved earlier than anticipated. Initially, this was exciting, especially with management discussing special dividends. Although disappointingly, they are still putting a heavier weighting towards share buybacks, which in my eyes, tarnishes the appeal of their shares. Due to the cyclical nature of their industry, they risk conducting most of these share buybacks towards the top of the cycle. Their shares are cheap via free cash flow metrics, and thus I still believe that maintaining my buy rating is appropriate, although this would have been a strong buy rating if they weighted towards dividends. Dilok Klaisataporn Introduction Despite the fears of oil demand destruction and higher interest rates weighing down economic conditions, it seemed that recession or not, higher dividends are coming for Crescent Point Energy (NYSE: CPG ), as my previous article highlighted. Upon the release of their second quarter of 2022 results, it saw their net debt target achieved earlier than anticipated, which marks an important milestone to see shareholder returns boosted from their current low dividend yield of only circa 3.50%, depending upon […]
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