Crescent needs higher oil

Article Excerpt

CRESCENT POINT ENERGY $4.34 (Toronto symbol CPG; Shares ooutstanding: 550.6 million; Market cap: $2.3 billion; TSINetwork Rating: Extra Risk; Dividend yield: 1.0%; www.crescentpointenergy.com) produces oil and gas at its Bakken light oil development in southeastern Saskatchewan. In the quarter ended December 31, 2018, Crescent’s average daily output fell 0.4%, to 178,198 barrels (90% oil, 10% gas) from 178,975 a year earlier. That drop, plus lower oil prices, cut per-share cash flow by 32.2%, to $0.61 from $0.90. Like all oil-weighted producers, the company needs oil prices to move higher to report rising cash flow. However, we still like its long-term prospects. Meanwhile, the stock trades at just 1.3 times the company’s forecast 2019 cash flow per share of $3.05. The shares yield 1.0%. Crescent Point Energy is a buy. buy. …