Crescent Point is cheap

Article Excerpt

CRESCENT POINT ENERGY $2.19 (Toronto symbol CPG; Shares o/s: 529.3 million; Market cap: $1.2 billion; TSINetwork Rating: Speculative; Dividend yield: 0.5%; produces oil and gas in Western Canada, with a focus on its Bakken light oil development in southeastern Saskatchewan. In the quarter ended June 30, 2020, Crescent’s average daily output fell 29.9%, to 120,842 barrels (90% oil, 10% gas) from 172,476. The company shut down some production to wait for higher energy prices. The reduced output, plus lower oil prices, cut per-share cash flow by 77.2%, to $0.21 from $0.92. Crescent Point’s long-term debt of $2.4 billion is a high 2.0 times its currently depressed market cap. The stock has dropped along with many energy producers. Still, the shares trade at just 2.1 times the company’s forecast 2021 cash flow per share of $1.05. The shares yield 0.5%, and the dividend appears sustainable. Crescent Point is a buy for aggressive investors. investors…

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