I really need to tally up the amount of shares they have issued in the past 18 months in acquisitions. Likely a pretty good indication that they don't think their shares are terribly undervalued.
CALGARY, May 3, 2012 /CNW/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX: CPG.TO - News) is pleased to announce that it has entered into an arrangement agreement (the "Cutpick Arrangement") with Cutpick Energy Inc. ("Cutpick"), pursuant to which Crescent Point expects to acquire all of the issued and outstanding shares of Cutpick. Cutpick is a private oil and gas producer with production of approximately 5,600 boe/d, weighted approximately 65 percent to light oil, primarily in the Viking light oil resource play near Provost, Alberta. Total consideration for Cutpick is approximately $425 million.
Based on the above expectations for the Cutpick Arrangement, the estimated acquisition metrics, after attributing $16 million of value to land and seismic, are as follows:
2012 Cash Flow Multiple:
- 5.1 times based on production of 5,600 boe/d (US$100.00/bbl WTI, Cdn$2.75/mcf AECO and US$/CDN$0.98 exchange rate)
- $73,036 per producing boe based on production of 5,600 boe/d
- $19.95 per proved plus probable boe based on independent engineer assigned reserves
- $33.52 per proved boe