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Beaten-down upstream oil explorer and producer Crescent Point (TSX:CPG) (NYSE:CPG) continues to advance its plans aimed at unlocking value for investors by bolstering its balance sheet and return on capital invested. The upstream oil producer has done this through a combination of reducing costs, focusing on the development of core oil properties, and selling non-core assets. Improved outlook Crescent Point has announced that it intends to sell its natural gas infrastructure assets in Saskatchewan for $500 million. This is the third major asset disposition for 2019, which, in aggregate, have generated $1.45 billion for the beleaguered driller. Crescent Point intends to use those proceeds to reduce its massive pile of debt. That will further strengthen Crescent Point’s balance sheet, thereby bolstering its financial flexibility. The company anticipates that net debt at the end of 2019 will be $2.8 billion and on receipt of the proceeds of the asset sale that will fall to $2.3 billion, which will be a very manageable 1.3 times adjusted funds flow from operations. Crescent Point also has no near-term material debt maturities, providing it with enough time to amass the cash required to meet its financial obligations and for crude to rebound. That bodes […]
