Crescent Point set to grow

Article Excerpt

CRESCENT POINT ENERGY $37.50 (Toronto symbol CPG; Shares outstanding: 252.4 million; Market cap: $9.5 billion; SI Rating: Extra Risk; Dividend yield: 7.4%) continues to build for the future by adding exploration prospects. The company just acquired more than one million acres of exploratory land in southern Alberta and Saskatchewan. That includes additional land at its Bakken light-oil development in southeast Saskatchewan. Light oil generally sells for a higher price than conventional crude oil, because light oil is easier to refine. As well, royalties paid to the government are lower in Saskatchewan than Alberta. Crescent Point is also raising its 2010 capital spending by 23.3%, to $925 million from $750 million. It will spend 80% of the increase on its new exploratory land, and the rest on drilling on its Alberta and Saskatchewan properties. To pay for the additional spending, the company will raise $375 million by issuing 10.3 million shares at $36.60 each. Crescent Point is still a buy. buy. …