Crescent Point Energy Corp. (NYSE:CPG) Q4 2022 Earnings Call Transcript

Craig Bryksa: Yes. Thanks for the question, Chris. It’s Craig here. When you look at us here in the front half of the year, we’re about 20% hedged, using mainly the callers as the tool. And then when you look to the back part of the year, we’re about 10% hedged. We do have hedge targets set, and we are hedges, as you do well know. Historically, when you look at Crescent Point, we’ve been somewhere in the neighborhood of bought 40% to 50% of our volumes hedged with our balance sheet being in the position that it’s in right now is as strong as it is. And with some of that backwardation in the curve, we don’t really feel the need to continue to build that book up into that 40% to 50% level. I think going forward, you’re going to see a hedge book in the range of around that 20-ish, 25% and then building that out roughly 12 months going forward.

And that — what that really does for us, Chris, is it allows us to protect our fixed costs at the same time that base level dividend here into the future. So we will have a hedge book, probably somewhere in that 20%, 25% range. going out about 12 months and typical tool right now has been callers. So targets are set. And as the market moves into that, we bump into those.

Operator: And at this time, Mr. Bryksa, we have no other questions registered. Please proceed.

Craig Bryksa: Thanks for joining our call today. If you have any questions that were not answered, please call our Investor Relations team at your convenience. Thanks, again, everyone.

Operator: Thank you sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your lines.