CORPORATE PRESENTATION September 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 demonstrated discipline in shut-in and reactivation program • 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
Improving Excess Cash Flow Generation • Reactivated economic shut-in volumes, increasing H2/20 production by ~20% CORPORATE PRESENTATION • Expect to generate ~$125MM of excess cash flow in H2/20 at strip pricing, to be allocated to net debt reduction Production & Capital Expenditures Outlook H2/20 Capital Expenditures ($MM) H2/20 Production (mboe/d) Preliminary 2021 Outlook CRESCENT POINT ׀ Trending towards the low end of Reactivated economic shut-in volumes previous guidance Sustain or exceed H2/20 production in 2021 with capital expenditures of ~$500 - $550MM $260 - $310 ~$275 ~110 91 - 95 Fully funded at low US$40/bbl WTI range with ~$45MM of funds flow sensitivity for every US$1/bbl change in WTI Previous Guidance Revised Guidance Previous Guidance Revised Guidance (Implied H2/20) (Implied H2/20) (Implied H2/20) (Implied H2/20) Actions taken in 2020 have enhanced ability to generate excess cash flow in a low commodity price environment 4
Key Focus Areas Key Focus Areas (Cumulative NOI Less Capital Expenditures) CORPORATE PRESENTATION $2,000 >$1.7B over the last 5 years AB SK $1,500 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 5 2019 and US$40.00/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 $1.8B decrease in net debt since YE18 $3,000 • ~$600MM of expected net debt $4.0B reduction in 2020 • Protecting and enhancing balance CRESCENT POINT ׀ $2.8B sheet strength during low oil price Million $ CAD Cash & Unutilized environment $2.2B Credit Capacity • Credit facilities don't mature until 2023 • >$2.4B in cash and unutilized credit $445 >$350 ~$600 $224 capacity, as well as >$350MM of $185 Drawn unrealized CCS gains YE 2018 YE 2019 YE 2020E 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; cash and unutilized credit capacity and unrealized CCS gains as at June 30, 2020 6 Expected net debt reduction in 2020 based on current strip prices. 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 moderate 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 7
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) • ~70% of H2/20 production hedged 60,000 • ~$250MM in gains in 2020 based on strip 40,000 pricing for the balance of the year CRESCENT POINT ׀ • Opportunistic in layering on additional hedges 20,000 - Q3 2020 Q4 2020 Q1 2021 $64.49 $66.36 Swap (CDN$) $55.60 Wtd. Avg. $75.62 $76.86 $73.50 Bought Put (CDN$) 3-Way $82.29 $82.54 Sold Call (CDN$) $78.87 Collar Prices $62.00 $62.00 $63.50 Sold Put (CDN$) Swaps 3-Way Collars Hedged volumes as at August 26, 2020 with strip pricing assumed for the balance of the year 8 Hedged production is oil and liquids, net of royalty interest
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 9 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 10
October 2018 CORPORATE PRESENTATION Appendix CRESCENT POINT ׀
Capital Markets Summary and 2020 Guidance CORPORATE PRESENTATION Capital Markets Summary CPG (TSX and NYSE) 2020 Guidance Prior Revised Trading Price (Aug. 26, 2020) C$2.40 (TSX), US$1.83 (NYSE) Development Capital $650 - $700 million ~$665 million Expenditures Shares Outstanding 529.7 million Annual Avg. Production 110 - 114 mboe/d 119 - 121 mboe/d Avg. Daily Trading Volume 9.5 million Development capital expenditures excludes ~$80 million of capitalized G&A, land acquisitions, capital leases CRESCENT POINT ׀ and reclamation activities Dividend Yield 0.4% Revised 2020 guidance reflects an increase in production from reactivating economic shut-in volumes in H2/20 Market Capitalization $1.3 billion Net Debt $2.3 billion Enterprise Value $3.6 billion Market capitalization, enterprise value and dividend yield based on share price as of market close on August 26, 2020 Shares outstanding (common shares) as of August 26, 2020 Net debt as at June 30, 2020 Avg. daily trading volume based on CDN and US volumes from trailing 3-months as of August 26, 2020 Divided yield is based on a quarterly dividend that equates to $0.01 per share per annum 12
High Netback Asset Base CORPORATE PRESENTATION 2021E Operating Netback Relative advantage over Canadian peers due to disciplined capital $25 allocation, continued sustainable cost reductions and relative market access $20 CRESCENT POINT ׀ $15 $/boe $10 $5 $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 13 Netback Source: Peters & Co. Equity Research (metric as defined by Peters & Co.; 2021 strip of US$44.54/bbl WTI & CAD/US fx of $0.76)
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