Crescent Point Energy Corp. plans to decrease its capital expenditures in 2020 to a range of C$1.10 billion to C$1.20 billion, from the C$1.2 billion to C$1.3 billion range in 2019.
The Calgary, Alberta-based oil and gas producer will allocate more than 80% of its 2020 capital expenditure budget to four resource plays. About 60% of the allocation will be for the Viewfield, Shaunavon and Flat Lake plays, while the remaining allocation will go to the North Dakota resource play, according to a Jan. 14 news release. Meanwhile, approximately 7% of the 2020 budget will go to Crescent Point's long-term development projects.
In addition, Crescent Point is expecting to produce a range of roughly C$200 million to C$350 million of excess cash flow, which it will use for reducing debt and repurchasing shares. The producer will allocate 70% to 80% of its 2020 cash flow to debt reduction and 20% to 30% to share repurchases.
The Canadian producer is anticipating its annual average production for the year to be in a range of 140,000 barrels of oil equivalent per day to 144,000 boe/d. The range remains the same as the prior year's figures, except for the deducted 30,000 boe/d that was included in dispositions in 2019. Crescent Point has hedged about 50% of its oil and liquids production for the year, according to the news release.
The company is also planning to convert about 120 producing wells to water injection wells for the year, representing a decrease from the 145 well conversions in the previous year.