Here's this morning's report - looks good. GLTA

 

 

Crescent Point Energy Corp.

Reinstating Sector Outperformer Rating After Coming Off Restriction; Q3 In Line

? We are reinstating our Sector Outperformer rating on Crescent Point with an unchanged price target of $50 after coming off restriction following the close of CPG's equity offering. The company issued 18.8MM shares (excl. overallotment) at $40.00/share, for total gross proceeds of $750MM.

? While we were restricted, Crescent Point reported (on November 8) Q3 results that were in line with our expectations. Q3 production of 99,631 Boe/d was within 2% of our forecast and consensus. Q3 diluted cash flow of $1.13/share was also within 2% of both our forecast and consensus.

? We note that on November 1, CPG announced the acquisition of UTE Energy with ~7,800 Boe/d of production (88% oil), 270 net sections of land and ~55.1 MMBoe of 2P reserves for ~$861MM. CPG continues to be very active on the acquisition front, spending ~$3B YTD, incl. ~$0.9B for UTE.

? We maintain our Sector Outperformer rating and $50 price target. Our price target is based on a 1.1x target multiple to our Risked NAV (versus the group average of 1.0x).