Why is Crescent Point (TSX:CPG) Stock Surging Today? - Kalkine Media

February 18, 2021 06:48 PM EST | By Ipsita Sarkar
Follow us on Google News:

Summary

  • Crescent Point (TSX: CPG) stocks surged by over 100 per cent in the last three months.
  • It is one of the most active stocks on the Toronto Stock Exchange for the last 10 days.
  • Crescent’s acquisition of prized Kaybob Duvernay oil fields generates huge interest.

The stock of Canadian oil and gas company Crescent Point Energy Corp. (TSX:CPG) is one of the most actively traded scrips on the Toronto Stock Exchange currently, with 10-day and 30-day volumes averaging 4.7 million and 5.1 million, respectively.

Crescent stocks (TSX: CPG) were priced at C$4.62 on Thursday, which was an increase of 10% from the previous close as they continue their rally on TSX.

Besides its high-performance, investors were drawn to Crescent’s considerable achievements in 2020. But the most significant one has been its recent game-changing deal with Shell Canada Energy for purchasing its Kaybob Duvernay oil fields in Alberta, which puts it on a path of high returns.

Pic Credit: Pixabay.


Why Kaybob Duvernay is a Game-Changer

The company said on Wednesday that the acquisition would guarantee 10 years of high return, with little risk to drilling inventory. It estimates that it can make $600 million in revenues in 2021 alone.

Investors were also impressed by the fact that Kaybob Duvernay is a ready-to-drill site with immense reserves. The Calgary-based company plans to scoop out around 134,000 barrels of oil per day.

Kaybob Duvernay will be one of Crescent’s most valuable assets. The deal execution, however, would be completed only by April 2021. Crescent will pay C$900 million to Royal Dutch Shell Plc. affiliate Shell Canada Energy, which currently owns the field.

The asset is expected to provide a steady cash flow over the next decade. No wonder why investors were rushing to grab the stock.

A day after the shell announcement, some 11 million Crescent shares were bought or sold.

The stock value rose by more than 100 per cent in the last three months.

In the third quarter ended September 31, 2020, the company reported an excess cash flow of $120 million and cut debts considerably by over $575 year-to-date.

Crescent, which has a market cap of $2.4 billion, hopes to maintain the same operational and capital discipline in 2021 to boost production and profits. It will announce its Q4 results on February 24, 2021.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.



Top TSX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK