Crescent Point (CPG): A dividend-paying TSX energy stock to buy on dip?

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Crescent Point (CPG): A dividend-paying TSX energy stock to buy on dip?

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 Crescent Point (CPG): A dividend-paying TSX energy stock to buy on dip?
Image source: © 2022 Kalkine Media®

Highlights

  • Crescent (TSX: CPG) has announced plans to raise its quarterly base dividend by over 20 per cent
  • CPG stock zoomed by over 58 per cent in 12 months
  • The mid-cap company expects to return C$ 430 million to shareholders in Q3 and Q4 this year

Canadians can explore dividend-paying TSX oil stocks like Crescent Point Energy (TSX: CPG), which is currently available at a lower price than its 52-week high.

CPG stock closed 13 per cent higher at C$ 9.4 on Thursday, July 7, as oil prices jumped and the energy space rebounded. Crescent stocks also continued to trade in the green on Friday morning at 9.36 AM EST.

The Canadian midcap company has announced its plans to raise its quarterly base dividend by over 20 per cent to C$ 0.08 while releasing some business updates recently.

So, let us know more about Crescent Point’s latest release and performance.

Crescent Point (TSX: CPG)’s latest announcement

Crescent Point said proceeds from asset dispositions amounted to C$ 300 million, which helped the company achieve the near-term debt target earlier than expected. The oil and gas company also executed a planned share repurchased of C$ 150 million (17.5 million shares) since December last year.

Crescent also pointed out that it would target the return of up to 50 per cent from its discretionary cash flows in addition to base dividend every quarter, starting from Q3 2022.

The C$ 4-billion market cap company expects to return C$ 430 million to shareholders in Q3 and Q4 this year, based on US$ 100 per barrel of WTI.

Crescent (CPG): A dividend paying TSX energy stock to buy at dip?©Kalkine Media®; ©Garis Studio via Canva.com

Crescent’s 2022 guidance

Crescent revised its expectations about annual average production to the range of 1,30,000 to 1,34,000 barrels of oil equivalent per day this year compared to the original projection of 1,33,000 to 1,37,000 boe/d.

All other projections, including the total capital expenditure range of C$ 915 to C$ 940 million, remained the same for 2022.

Crescent stock performance

CPG stock zoomed by over 58 per cent in 12 months. However, this mid-cap oil stock was still down by over 39 per cent from a 52-week high of C$ 13.74 (June 8, 2022).

As per Refinitiv findings, CPG seems to be on a bearish trend with a relative Strength Index of 35.79 on July 6, marginally up from the oversold mark. Crescent’s return on equity (ROE) of almost 77 per cent signals profitability.

Bottomline

Crescent Point significantly improved its net profit to C$ 1.18 billion in Q1 2022 from C$ 21.7 million in Q1 2021. Earlier in May, CPG hiked its quarterly dividend by over 40 per cent. Hence, high-risk investors looking to benefit from oil volatility could explore such stocks.

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks. 

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