Crescent Point Energy, a Calgary-based energy company, saw a decline in earnings for the second quarter due to a weaker average selling price for oil and natural gas. Despite this downturn, the company plans to reward its shareholders with a special dividend.
The net income for the quarter was recorded at 212.3 million Canadian dollars ($161.2 million), or C$0.39 per share, down from the previous year’s C$331.5 million or C$0.58 per share. Analysts had projected earnings of C$0.37 per share. On an adjusted basis, earnings stood at C$0.38 per share.
Sales of oil and gas dropped by 26% to C$949.6 million during the three months.
Despite recent wildfires in Alberta causing disruption, daily production for the quarter averaged 155,031 barrels of oil equivalent, up from 129,176 barrels in the same period last year. Analysts had estimated an average output of 153,800 barrels per day for the quarter.
Crescent Point Energy aims to maintain an annual average production of 160,000 to 166,000 barrels of oil equivalent per day. All production affected by the wildfires has been restored, and the company expects production for the second half of the year to average about 179,000 barrels per day.
To reward shareholders for their support, Crescent Point Energy will pay a special cash dividend of C$0.035 per share based on its second-quarter results, in addition to its quarterly dividend of C$0.10 per share. The payout will occur on October 2 for shareholders of record as of September 15.
Looking ahead, Crescent Point Energy is currently in the initial stages of its annual budgeting process. The company plans to provide a preliminary outlook for 2024 and an updated five-year plan in the fall.