Crescent Point Energy Corp. (NYSE:CPG) Q2 2023 Earnings Call Transcript

Ken Lamont: Sure. So, just as matter of an update, we are about 25% hedged now through the second-half of 2023. So, I think we’ve built a pretty solid book there, and always just looking to enhance it a little bit. But I would expect us probably not to get past the 30% level. As we look into 2024, we’ve actually started a program now into 2024, into the first-half, so we’re going to start chipping away at hedging there. We are looking to get hedged out about a year out in that 20% to 30% level, and obviously, still fighting a little bit of backwardation as you get out a year out here now. And so, we’ll be patient and disciplined. And when, as these market moves up, as it has done in the past week here, we’ll look to take advantage of that.

Shant Madian: Thanks, Ken. Market access-related question, can you talk to CPG’s relative market access position, and if Trans Mountain coming online soon will help in any way.

Craig Bryksa: You want to grab that, Ryan?

Ryan Gritzfeldt: Yes, sure. Yes, obviously, Trans Mountain coming on definitely helps egress out of the basin. We don’t have any volumes earmarked for that pipeline, but definitely it will open up space. And you’d have to think that differentials for most products, hopefully especially our products out of the Montney will strengthen significantly with that. So, I think that’s a definitely a positive for industry, and hopeful that will help realize pricing go forward.

Craig Bryksa: And the only thing I would add on that is when you look at our portfolio, we are very good positioned as far as where we sit on the Enbridge Mainline. So, on that front, takeaway for us is the strength. I would also say as we look into — as we look at assets, in particular what we liked about both Montney and Duvernay acquisitions that we have done over the past few years, is the takeaway or the flexibility around the takeaway out of those assets. So, that’s certainly a criteria we look at is ensuring that we always have that market access.

Shant Madian: Thanks, Craig. Another question back on Montney Gold Creek West, why are you seeing Gold Creek West results stronger than Gold Creek?

Ryan Gritzfeldt: Yes, I’ll take that, Craig.

Craig Bryksa: Yes.

Ryan Gritzfeldt: So, yes, I mean Gold Creek East still where we get our results are on type well there. Three of the four wells that we are in the top five of the top of the top Alberta liquids producers in May are Gold Creek East, so, really on type well there. I think we are obviously most excited about are the Gold Creek West results we are getting. I would say based on all the work our teams have done geo-modeling, reservoir, petrophysical, when you look at the outperformers in Gold Creek West, still early days there. But we think — kind of like we what we did in the Duvernay was wells that are landed at the bottom part of the reservoir are getting the best results. And so, we think that the way we are going to frac these wells, we can access all of the net pay by drilling a single bench.