CORPORATE PRESENTATION July 2020 CRESCENT POINT ׀ Corporate Presentation CRESCENT POINT
CPG ’ s Key Attributes Competitive Advantages Principals For Success CORPORATE PRESENTATION • Focused, high netback asset base • Significant financial flexibility CRESCENT POINT ׀ • Disciplined & returns-based capital allocation • Cost focus & track record of operational excellence • Strong ESG practices Management execution and initiatives centered on balance sheet strength and sustainability 2 ESG: Environmental, social and governance
Navigating the Current Environment • Remain disciplined to maintain financial strength CORPORATE PRESENTATION Reduced 2020 capital expenditures by >40% and voluntarily shut-in production • Realize additional cost improvements across the organization Identified and realized >10% lower per well capital costs and ~7% lower operating expenses, building on success in 2019 • Further enhance sustainability CRESCENT POINT ׀ Lowering sustaining capital requirements, reducing corporate decline and preserving long-term value • Actively manage risk Mitigating volatility through disciplined hedging program • Protecting the health and safety of our people Achieved multi-year low LTIF and SIF incidents Took early & decisive actions to preserve the long-term value of the business LTIF: Lost time injury frequency, SIF: Severe injury and fatality 3 2019 annual cost reductions across the organization totalled >$170MM. >10% lower per well capital costs are expected by year-end 2020
Key Focus Areas Key Focus Areas (Cumulative NOI Less Capital Expenditures) CORPORATE PRESENTATION $2,000 >$1.6B over the last 5 years AB $1,500 SK Million $ CAD CRESCENT POINT ׀ $1,000 Shaunavon Viewfield Flat Lake $500 ND $0 2016 2017 2018 2019 2020E Key Focus Areas Continue to optimize asset portfolio based on key criteria Returns Scalability Free Cash Flow Market Access 5 year net operating income (NOI), less capital expenditures, is excluding hedging and generated at a full year average WTI price of US$43.37/bbl in 2016, US$50.95/bbl in 2017, US$64.78/bbl in 2018, US$57.04/bbl in 4 2019 and US$38.91/bbl WTI (assuming strip for the balance of the year) for 2020E
Significant Financial Flexibility & Liquidity CORPORATE PRESENTATION Track record of debt reduction Significant Liquidity Balance Sheet Focus No material near-term maturities Preserving financial strength $1.7B decrease in net debt since YE18 $3,000 $4.0B • Protecting and enhancing balance sheet strength during low oil price environment CRESCENT POINT ׀ $2.8B Million $ CAD Cash & Unutilized • Credit facilities don't mature until 2023 $2.3B Credit Capacity • >$2.4B in cash and unutilized credit capacity, as well as >$350MM of unrealized CCS gains $445 >$350 ~$600 $224 $185 Drawn YE 2018 YE 2019 Q2 2020 Balance Bank 2021 2022 2022 2023 2023 Unrealized 2021 Sheet Line CCS Gains Senior Note Maturities Sr. Guaranteed Notes Bank Line CCS: Cross currency swap; unrealized CCS gains as at June 30, 2020 5 Senior notes include underlying currency swaps
Enhancing Sustainability CORPORATE PRESENTATION Reducing Corporate Decline Operating Cost Savings Capital Cost Reductions >$120MM, or 15%, of permanent operating >10% reduction in per well capital costs , on Decline rate expected to fall due to expenses removed since the beginning of average, expected by year-end 2020 (i.e. fewer waterflood program and lower activity 2019 through workflow optimization and drilling days, frac optimization & pad drilling adoption of digital technologies efficiencies) in addition to ~10% reduction in 2019 35% $125 Corporate Decline Rate $100 CRESCENT POINT ׀ Million $ CAD 30% Drilling $75 Savings Completion Savings $50 25% $25 $0 20% 2019 2020E 2019 2020E 2021E Original 2020E Per Original Expected 2020E Per Revised Well Capital Costs 2020E Well Capital Costs 2020E Well Costs Well Costs Improving sustainability and excess cash flow generation in a low oil price environment 6 2021E decline rate assumes shut-in production is restored
Hedging Strategy Preserves Financial Flexibility • Disciplined hedging program shelters cash Hedging Summary CORPORATE PRESENTATION flow against commodity price volatility 80,000 Oil Hedge Volume (bbl/d) • Restructured hedges for H2/20 to provide 60,000 additional downside protection • >65% hedged for the remainder of 2020 40,000 CRESCENT POINT ׀ • >$250MM in gains in 2020 based on strip 20,000 pricing for the balance of the year - Q3 2020 Q4 2020 Q1 2021 • Opportunistic in layering on additional hedges Sold Call (CDN$) $82.54 $78.87 $82.29 Bought Put (CDN$) $75.62 $76.86 $73.50 Wtd. Avg. 3-Way Sold Put (CDN$) $62.00 $62.00 $63.50 Collar Prices Swap (CDN$) $55.66 $64.49 $66.36 Swaps 3-Way Collars 7 2020 strip pricing as at July 22, 2020. Hedged volumes as at July 24, 2020
Commitment to Strong ESG Practices CORPORATE PRESENTATION Targeting 30% reduction in direct emissions intensity by 2025 , including > 50% reduction in methane Significantly decreased asset retirement obligations by over >$220MM in 2019 Exploring low carbon power generation , such as solar and natural gas Safety-centric culture resulting in multi-year low lost-time and SIF incidents >$30MM committed to community investment projects and programs since inception CRESCENT POINT ׀ Acted quickly to adopt heightened safety protocols in response to COVID-19 Full board renewal since 2014 with a strong diversity of skill sets and experiences Board oversight of ESG strategy and execution Revised compensation program to align with shareholder returns and ESG performance Increased ESG transparency and disclosure with release of 2020 Corporate Sustainability Report and TCFD SIF: Severe injury and fatality, TCFD: Taskforce on climate-related financial disclosure 8 30% reduction in direct emissions intensity target and >50% reduction in methane target are based on 2017 baseline
Key Value Drivers CORPORATE PRESENTATION Balance Sheet Cost Reductions & Disciplined Focus Operational Execution Capital Allocation CRESCENT POINT ׀ Significant financial flexibility Enhancing efficiencies , cash Returns focused and liquidity margins and sustainability High netback assets and Well positioned to navigate the Longstanding record of strong excess cash flow generation lower oil price environment operational performance Disciplined hedging strategy Track record of returning Strong ESG practices capital to shareholders CPG ’ s Purpose Statement: Bringing energy to our world – the right way 9
October 2018 CORPORATE PRESENTATION Appendix CRESCENT POINT ׀
Capital Markets Summary and 2020 Guidance CORPORATE PRESENTATION Capital Markets Summary CPG (TSX and NYSE) 2020 Guidance Trading Price (July 24, 2020) C$2.30 (TSX), US$1.72 (NYSE) Development Capital Expenditures $650 - $700 million Shares Outstanding 529.7 million Annual Avg. Production 110 - 114 mboe/d Avg. Daily Trading Volume 11.2 million Development capital expenditures excludes ~$80 million of capitalized G&A, land acquisitions, capital CRESCENT POINT ׀ leases and reclamation activities Dividend Yield 0.4% Market Capitalization $1.2 billion Net Debt $2.3 billion Enterprise Value $3.5 billion Market capitalization, enterprise value and dividend yield based on share price as of market close on July 24, 2020 Shares outstanding (common shares) as of July 24, 2020 Net debt as at June 30, 2020 Avg. daily trading volume based on CDN and US volumes from trailing 3-months as of July 24, 2020 Divided yield is based on a quarterly dividend that equates to $0.01 per share per annum 11
High Netback Asset Base 2021E Operating Netback CORPORATE PRESENTATION Relative advantage over Canadian peers due to disciplined capital allocation, continued sustainable cost reductions and relative market access $20 $16 $12 CRESCENT POINT ׀ $/boe $8 $4 $0 CPG Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Canadian Peer List: ARX, BTE, ERF, NVA, TOG, VET, VII, WCP 12 Netback Source: Peters & Co. Equity Research (metric as defined by Peters & Co.; 2021 strip of US$41.95/bbl WTI & CAD/US fx of $0.74)
Innovation Generating Efficiencies Utilizing Technology to Optimize Workflows CORPORATE PRESENTATION Remote well monitors report on well efficiency, including flow temperature and pressure. When a well is not operating at 100% efficiency, an alert is created The monitor is equipped with a camera , which takes a photo three times a day for review by an Operator Each alert is sent to an application that notifies an Operator of the issues . The Operator can then CRESCENT POINT ׀ respond to the well in question to perform maintenance Changing the Way Our Field Operators Work More time spent Quality Fewer KM driven On wells requiring attention . At least 10% reduction in KM’s driven Quantity ~15 minutes spent at each well visited compared to 2 – 5 minutes spent at each Less time spent driving and more time spent 15 – 20 wells performing maintenance tasks previously visited per day per operator Previously averaging 50 – 70 wells. Less administrative Preventative maintenance <30 minutes spent on administration Minimizes spills and environmental impact compared to 1 - 2 hours previously per day 13
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