Toronto Star

Crescent Point raising dividend on bullish outlook


Point Energy Corp. is raising its quarterly dividend after what it says has been significan­t progress in improving its balance sheet strength and sustainabi­lity.

The company says it will now pay a quarterly dividend of three cents per share starting with its payment for the fourth quarter.

Crescent Point slashed its dividend at the start of the pandemic last year to a quarterly rate of 0.25 of a cent per share.

The increased payment to shareholde­rs came as the company said it expects its production next year to be between 131,000 and 135,000 barrels of oil equivalent per day.

The preliminar­y estimate is based on developmen­t capital expenditur­es of $825 million to $900 million. Excess cash flow, after dividends, is expected to be $625 million to $875 million.

“We are prioritizi­ng debt reduction as part of our capital allocation framework including the establishm­ent of a core dividend that is sustainabl­e, provides flexibilit­y and has the ability to grow over time,” Crescent Point CEO Craig Bryksa said in a statement.

“We are committed to a model that returns capital to shareholde­rs while also generating returns through debt-adjusted per share growth.”

Newspapers in English

Newspapers from Canada