Veren Inc.

Equities

VRN

CA92340V1076

Oil & Gas Exploration and Production

Delayed Toronto S.E. Other stock markets 04:00:00 2024-05-17 pm EDT			5-day change	1st Jan Change
11.79 ^CAD	+0.17%		-1.17%	+28.29%

May. 15	Crescent Point Energy Corp. will Change its Ticker to VRN from CPG	CI
May. 15	Saturn Oil & Gas Inc. completed the acquisition Non-core properties in Saskatchewan from Crescent Point Energy Corp..	CI

Crescent Point Energy : CONSOLIDATED BALANCE SHEETS - Form 6-K

May 10, 2024 at 07:07 am EDT

CONSOLIDATED BALANCE SHEETS


As at
March 31,	December 31,
(UNAUDITED) (Cdn$ millions)	Notes	2024	2023
ASSETS
Cash	21.8	17.3
Accounts receivable	409.0	377.9
Prepaids and deposits	105.1	87.8
Derivative asset	21	114.8	240.7
Other current assets	4	90.2	79.2
Assets held for sale	6	637.0	247.1
Total current assets	1,377.9	1,050.0
Derivative asset	21	21.7	14.3
Other long-term assets		22.6	7.4
Exploration and evaluation	5	531.3	607.0
Property, plant and equipment	6, 8	9,743.9	10,718.3
Right-of-use asset	12	94.3	102.8
Goodwill	9	243.8	275.9
Total assets	12,035.5	12,775.7
LIABILITIES
Accounts payable and accrued liabilities	593.6	634.9
Dividends payable	71.3	56.8
Current portion of long-term debt	11	388.5	380.0
Derivative liability	21	74.3	51.4
Other current liabilities	10	106.6	118.0
Liabilities associated with assets held for sale	6	98.5	132.4
Total current liabilities	1,332.8	1,373.5
Long-term debt	11	3,202.7	3,186.3
Derivative liability	21	10.7	3.8
Other long-term liabilities		33.0	31.0
Lease liability	12	99.0	104.2
Decommissioning liability	6, 13	454.7	566.4
Deferred income tax		526.7	643.0
Total liabilities	5,659.6	5,908.2
SHAREHOLDERS' EQUITY
Shareholders' capital	14	17,042.7	17,052.7
Contributed surplus	18.9	17.4
Deficit	15	(10,685.5)	(10,202.5)
Accumulated other comprehensive income	(0.2)	(0.1)
Total shareholders' equity	6,375.9	6,867.5
Total liabilities and shareholders' equity	12,035.5	12,775.7

Subsequent Events (Note 24)

See accompanying notes to the consolidated financial statements.


CRESCENT POINT ENERGY CORP.	1

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


Three months ended March 31
(UNAUDITED) (Cdn$ millions, except per share and shares outstanding amounts)	Notes	2024	2023 Revised (1)
REVENUE AND OTHER INCOME
Oil and gas sales	23	1,107.9	762.0
Purchased product sales	28.3	19.8
Royalties	(113.9)	(86.0)
Oil and gas revenue	1,022.3	695.8
Commodity derivative gains (losses)	17, 21	(213.3)	13.2
Other income		1.5	8.5
810.5	717.5
EXPENSES
Operating	251.0	169.0
Purchased product	29.8	20.5
Transportation	81.8	32.8
General and administrative	28.6	24.0
Interest	18	60.8	16.0
Foreign exchange gain	19	(1.8)	(3.0)
Share-based compensation	12.2	17.5
Depletion, depreciation and amortization	5, 8, 12	344.1	186.4
Impairment	8, 9	512.3	-
Accretion and financing	12, 13	6.8	7.0
1,325.6	470.2
Net income (loss) before tax from continuing operations	(515.1)	247.3

Tax expense (recovery)
Current		-	-
Deferred		(116.2)	62.5
Net income (loss) from continuing operations	(398.9)	184.8
Net income (loss) from discontinued operations	7	(12.8)	31.9
Net income (loss)	(411.7)	216.7

Other comprehensive income
Items that may be subsequently reclassified to profit or loss
Foreign currency translation of foreign operations	(0.1)	(0.2)
Comprehensive income (loss)	(411.8)	216.5

Net income (loss) per share
Continuing operations - basic	(0.64)	0.33
Discontinued operations - basic	(0.02)	0.06
Net income (loss) per share - basic	(0.66)	0.39

Continuing operations - diluted	(0.64)	0.33
Discontinued operations - diluted	(0.02)	0.06
Net income (loss) per share - diluted	(0.66)	0.39

Weighted average shares outstanding
Basic	619,935,208	548,879,167
Diluted	619,935,208	552,727,141

(1)Comparative period revised to reflect current period presentation. See Note 7 - "Discontinued Operations" for additional information.

See accompanying notes to the consolidated financial statements.


CRESCENT POINT ENERGY CORP.	2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY


(UNAUDITED) (Cdn$ millions, except per share amounts)	Notes	Shareholders' capital	Contributed surplus	Deficit	Accumulated other comprehensive income	Total shareholders' equity
December 31, 2022	16,419.3	17.1	(10,563.3)	620.3	6,493.4
Common shares repurchased for cancellation	(48.5)	(48.5)
Share-based compensation	1.5	1.5
Stock options exercised	0.1	(0.1)	-
Net income	216.7	216.7
Dividends declared ($0.032 per share)	(17.1)	(17.1)
Foreign currency translation adjustment	(0.2)	(0.2)
March 31, 2023	16,370.9	18.5	(10,363.7)	620.1	6,645.8

December 31, 2023	17,052.7	17.4	(10,202.5)	(0.1)	6,867.5
Common shares repurchased for cancellation	14	(10.0)	(10.0)
Share issue costs, net of tax	14	(0.1)	(0.1)
Share-based compensation	1.5	1.5
Stock options exercised	14	0.1	0.1
Net income (loss)	(411.7)	(411.7)
Dividends declared ($0.115 per share)	(71.3)	(71.3)
Foreign currency translation adjustment	(0.1)	(0.1)
March 31, 2024	17,042.7	18.9	(10,685.5)	(0.2)	6,375.9

See accompanying notes to the consolidated financial statements.


CRESCENT POINT ENERGY CORP.	3

CONSOLIDATED STATEMENTS OF CASH FLOWS


Three months ended March 31
(UNAUDITED) (Cdn$ millions)	Notes	2024	2023
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net income (loss)	(411.7)	216.7
Items not affecting cash
Other (income) loss		12.0	(7.4)
Deferred tax expense (recovery)		(116.2)	71.5
Share-based compensation	1.5	1.5
Depletion, depreciation and amortization	5, 8, 12	344.1	231.7
Impairment	8, 9	512.3	-
Accretion	13	4.9	5.8
Unrealized losses on derivatives	21	152.9	3.9
Translation of US dollar long-term debt	19	65.8	(0.9)
Translation of US dollar derivatives	21	(1.1)	-
Realized loss on cross currency swap maturity	19	2.4	0.3
Decommissioning expenditures	13	(7.3)	(9.9)
Change in non-cash working capital	22	(148.4)	(39.8)
411.2	473.4
INVESTING ACTIVITIES
Development capital and other expenditures	5, 8	(417.9)	(327.4)
Capital acquisitions, net of cash acquired	-	(372.0)
Capital dispositions	6	105.8	2.6
Other long-term assets		(15.2)	-
Change in non-cash working capital	22	50.5	(40.6)
(276.8)	(737.4)
FINANCING ACTIVITIES
Issue of shares, net of issue costs	-	0.1
Common shares repurchased for cancellation	14	(10.0)	(48.5)
Increase (decrease) in bank debt, net	22	(40.9)	106.8
Realized loss on cross currency swap maturity	19, 22	(2.4)	(0.3)
Payments on principal portion of lease liability	12, 22	(8.6)	(5.3)
Dividends declared	22	(71.3)	(17.1)
Change in non-cash working capital	22	3.0	(47.2)
(130.2)	(11.5)
Impact of foreign currency on cash balances	0.3	0.6
INCREASE (DECREASE) IN CASH	4.5	(274.9)
CASH AT BEGINNING OF PERIOD	17.3	289.9
CASH AT END OF PERIOD	21.8	15.0

See accompanying notes to the consolidated financial statements.

Supplementary Information:


Cash taxes refunded (paid)	0.2	(0.1)
Cash interest paid	(59.4)	(1.8)


CRESCENT POINT ENERGY CORP.	4

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024 (UNAUDITED)

1.STRUCTURE OF THE BUSINESS

The principal undertaking of Crescent Point Energy Corp. (the "Company" or "Crescent Point") is to carry on the business of acquiring, developing and holding interests in petroleum and natural gas properties and assets related thereto through a general partnership and wholly owned subsidiaries.

Crescent Point is the ultimate parent and is amalgamated in Alberta, Canada under the Alberta Business Corporations Act. The address of the principal place of business is 2000, 585 - 8th Ave S.W., Calgary, Alberta, Canada, T2P 1G1.

These interim consolidated financial statements were approved and authorized for issue by the Company's Board of Directors on May 9, 2024.

2.BASIS OF PREPARATION

These interim consolidated financial statements are presented under IFRS Accounting Standards as issued by the International Accounting Standards Board. These interim consolidated financial statements have been prepared in accordance with IFRS applicable to the preparation of interim consolidated financial statements, including International Accounting Standard ("IAS") 34 Interim Financial Reporting and have been prepared following the same accounting policies as the annual consolidated financial statements for the year ended December 31, 2023. Certain information and disclosures included in the notes to the annual consolidated financial statements are condensed herein or are disclosed on an annual basis only. Accordingly, these interim consolidated financial statements should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2023.

The policies applied in these consolidated financial statements are based on IFRS Accounting Standards issued and outstanding as of May 9, 2024, the date the Board of Directors approved the statements.

The Company's presentation currency is Canadian dollars and all amounts reported are Canadian dollars unless noted otherwise. References to "US$" and "US dollars" are to United States ("U.S.") dollars. Crescent Point's Canadian operations are presented herein as continuing operations. The Company's U.S. operations have been classified and presented as discontinued operations. See Note 7 - "Discontinued Operations" for additional information.

3.CHANGES IN ACCOUNTING POLICIES

Presentation of Financial Statements

IAS 1 Presentation of Financial Statements was amended in January 2020 by the International Accounting Standards Board to clarify the presentation requirements of liabilities as either current or non-current within the statement of financial position. The Company adopted this amendment in 2024 and the adoption did not have an impact on the Company's interim consolidated financial statements.

Income Taxes

IAS 12 Income Taxes was amended in May 2023 by the International Accounting Standards Board to provide guidance on deferred taxes arising in jurisdictions implementing the Pillar Two model rules published by the Organisation for Economic Co-operation and Development. This amendment was effective immediately and has been adopted by the Company with no impact to the Company's interim consolidated financial statements.

4.OTHER CURRENT ASSETS

At March 31, 2024, other current assets relates to deferred consideration receivable from capital dispositions of $90.2 million (December 31, 2023 - $79.2 million). Deferred consideration receivable includes US$60.0 million from the disposition of the Company's North Dakota assets, which will be settled in two equal installments due June 2024 and December 2024. Deferred consideration receivable also includes $9.0 million from the disposition of the Company's Southern Alberta assets. An additional $15.2 million is included in other long-term assets. Deferred consideration from the Southern Alberta disposition will be settled in monthly installments until paid in full. See Note 6 - "Capital Acquisitions and Dispositions" for additional information.


CRESCENT POINT ENERGY CORP.	5

5.EXPLORATION AND EVALUATION ASSETS


($ millions)	March 31, 2024	December 31, 2023 (1)
Exploration and evaluation assets at cost	1,532.4	1,578.6
Accumulated amortization	(1,001.1)	(971.6)
Net carrying amount	531.3	607.0

Reconciliation of movements during the period
Cost, beginning of period	1,578.6	1,453.4
Accumulated amortization, beginning of period	(971.6)	(1,349.2)
Net carrying amount, beginning of period	607.0	104.2

Net carrying amount, beginning of period	607.0	104.2
Acquisitions through business combinations	-	515.2
Additions	9.8	224.8
Dispositions	-	(0.1)
Reclassified as assets held for sale	-	(1.8)
Transfers to property, plant and equipment	(55.9)	(204.3)
Amortization	(29.6)	(30.9)
Foreign exchange	-	(0.1)
Net carrying amount, end of period	531.3	607.0

(1)Comparative period revised to reflect current period presentation.

Impairment test of exploration and evaluation assets

There were no indicators of impairment at March 31, 2024.

6.CAPITAL ACQUISITIONS AND DISPOSITIONS

In the three months ended March 31, 2024, the Company incurred $1.3 million (three months ended March 31, 2023 - $1.8 million) of total transaction costs related to acquisitions through business combinations and dispositions.

a) Major property dispositions

North Dakota disposition

In 2023, the Company completed the disposition of its producing North Dakota assets. In the three months ended March 31, 2024, the Company incurred $12.8 million in final closing adjustments related to the disposition. See Note 7 - "Discontinued Operations" for additional information.

Southern Alberta disposition

On January 26, 2024, the Company completed the disposition of its Southern Alberta assets for total consideration of $38.1 million, including interim closing adjustments. Total consideration consisted of $13.1 million in cash and $25.0 million of deferred consideration receivable. See Note 4 - "Other Current Assets" for additional information. These assets were recorded as assets held for sale at December 31, 2023.

Swan Hills disposition

On March 21, 2024, the Company completed the disposition of its Swan Hills assets in Northern Alberta for total consideration of $80.5 million, including interim closing adjustments. These assets were recorded as assets held for sale at December 31, 2023.


CRESCENT POINT ENERGY CORP.	6

The following table summarizes the Company's capital dispositions:


($ millions)	North Dakota Disposition	Southern Alberta Disposition (1)	Swan Hills Disposition (1)	Other minor dispositions
Cash	(12.8)	13.1	80.5	-
Deferred consideration receivable (2)	-	25.0	-	-
Consideration (paid) received	(12.8)	38.1	80.5	-

Property, plant and equipment	-	(129.5)	(117.5)	(0.1)
Goodwill	-	(3.7)	(2.9)	-
Decommissioning liability	-	92.4	39.9	0.1
Derivative liability	-	-	3.5	-
Carrying value of net assets disposed	-	(40.8)	(77.0)	-

Gain (loss) on capital dispositions	(12.8)	(2.7)	3.5	-

(1)These assets were recorded as assets held for sale at December 31, 2023.

(2)See Note 4 - "Other Current Assets" for additional information on deferred consideration receivable.

b) Assets held for sale

At March 31, 2024, the Company classified certain non-core assets in its Southeast Saskatchewan and Southwest Saskatchewan cash-generating units ("CGUs") as held for sale. Upon classification, assets held for sale were recorded at their recoverable amount. The Company announced the disposition of these assets in May 2024. See Note 24 - "Subsequent Events" for additional information.


($ millions)	March 31, 2024	December 31, 2023 (1)
Assets held for sale - PP&E	637.0	247.1
Liabilities held for sale - Decommissioning liability	(98.5)	(132.4)

(1)Assets held for sale at December 31, 2023 were disposed of during the first quarter of 2024.

For additional information on the Company's assets and liabilities held for sale see Note 8 - "Property, Plant and Equipment" and Note 13 - "Decommissioning Liability", respectively.


CRESCENT POINT ENERGY CORP.	7

7.DISCONTINUED OPERATIONS

In 2023, the Company completed the disposition of its North Dakota assets, which made up its Northern U.S. CGU. The Northern U.S. CGU represented a geographical area of the Company's operations, therefore, its results were classified as a discontinued operation in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.

a) Results from discontinued operations

The following table summarizes the Company's financial results from discontinued operations:


Three months ended March 31
(Cdn$ millions)	2024	2023
REVENUE AND OTHER INCOME
Oil and gas sales	-	151.6
Royalties	-	(38.5)
Oil and gas revenue	-	113.1
Other loss	(12.8)	-
(12.8)	113.1
EXPENSES
Operating	-	23.4
Transportation	-	2.7
General and administrative	-	0.7
Depletion, depreciation and amortization	-	45.3
Accretion and financing	-	0.1
-	72.2
Net income (loss) before tax from discontinued operations	(12.8)	40.9
Tax expense
Current	-	-
Deferred	-	9.0
Net income (loss) from discontinued operations	(12.8)	31.9

b) Cash flows from discontinued operations

The following table summarizes cash flows from discontinued operations reported in the consolidated statements of cash flows:


Three months ended March 31
(Cdn$ millions)	2024	2023
Cash provided by (used in) discontinued operations
Operating activities	-	103.6
Investing activities	(12.8)	(119.6)
Decrease in cash from discontinued operations	(12.8)	(16.0)


CRESCENT POINT ENERGY CORP.	8

8.PROPERTY, PLANT AND EQUIPMENT


($ millions)	March 31, 2024	December 31, 2023 (1)
Development and production assets	21,299.3	24,580.6
Corporate assets	133.2	132.1
Property, plant and equipment at cost	21,432.5	24,712.7
Accumulated depletion, depreciation and impairment	(11,688.6)	(13,994.4)
Net carrying amount	9,743.9	10,718.3

Reconciliation of movements during the period
Development and production assets
Cost, beginning of period	24,580.6	22,340.0
Accumulated depletion and impairment, beginning of period	(13,901.4)	(14,651.8)
Net carrying amount, beginning of period	10,679.2	7,688.2

Net carrying amount, beginning of period	10,679.2	7,688.2
Acquisitions through business combinations	-	4,348.6
Additions	399.0	1,025.8
Dispositions	(0.1)	(26.9)
Transfers from exploration and evaluation assets	55.9	204.3
Reclassified as assets held for sale	(637.0)	(729.5)
Depletion	(304.3)	(1,009.3)
Impairment	(486.8)	(822.2)
Foreign exchange	(0.1)	0.2
Net carrying amount, end of period	9,705.8	10,679.2

Cost, end of period	21,299.3	24,580.6
Accumulated depletion and impairment, end of period	(11,593.5)	(13,901.4)
Net carrying amount, end of period	9,705.8	10,679.2

Corporate assets
Cost, beginning of period	132.1	126.2
Accumulated depreciation, beginning of period	(93.0)	(85.0)
Net carrying amount, beginning of period	39.1	41.2

Net carrying amount, beginning of period	39.1	41.2
Additions	1.1	5.9
Depreciation	(2.1)	(8.0)
Net carrying amount, end of period	38.1	39.1

Cost, end of period	133.2	132.1
Accumulated depreciation, end of period	(95.1)	(93.0)
Net carrying amount, end of period	38.1	39.1

(1)Comparative period revised to reflect current period presentation.

Direct general and administrative costs capitalized by the Company during the three months ended March 31, 2024, were $13.6 million (year ended December 31, 2023 - $42.4 million), including $3.2 million of share-based compensation costs (year ended December 31, 2023 - $5.7 million).


CRESCENT POINT ENERGY CORP.	9

Assets Held for Sale

At March 31, 2024, the Company classified certain non-core assets in its Southeast Saskatchewan and Southwest Saskatchewan CGUs as held for sale. Immediately prior to classifying the assets as held for sale, the Company conducted a review of the assets' recoverable amounts and recorded an impairment loss of $486.8 million on Property, Plant & Equipment ("PP&E"). The recoverable amount was determined based on the assets' fair value less costs of disposal and based on expected consideration. The Company announced the disposition of these assets in May 2024. See Note 24 - "Subsequent Events" for additional information.

Impairment test of property, plant and equipment

At March 31, 2024, there were no indicators of impairment or impairment reversal on its remaining PP&E.

9.GOODWILL


($ millions)	March 31, 2024	December 31, 2023
Goodwill, beginning of period	275.9	203.9
Hammerhead acquisition	-	72.6
Impairment	(25.5)	-
Southern Alberta disposition	(3.7)	-
Swan Hills disposition	(2.9)	-
Other dispositions	-	(0.6)
Goodwill, end of period	243.8	275.9

Goodwill has been assigned to the Canadian operating segment.

At March 31, 2024, the Company classified certain non-core assets in the Canadian operating segment as held for sale. Immediately prior to classifying the assets as held for sale, the Company conducted a review of the assets' recoverable amounts and recorded an impairment loss of $25.5 million related to goodwill. The Company announced the disposition of these assets in May 2024. See Note 6 - "Capital Acquisitions and Dispositions" and Note 24 - "Subsequent Events" for additional information.

10.OTHER CURRENT LIABILITIES


($ millions)	March 31, 2024	December 31, 2023
Long-term compensation liability	27.0	37.5
Lease liability	36.9	40.5
Decommissioning liability	42.7	40.0
Other current liabilities	106.6	118.0

11.LONG-TERM DEBT


($ millions)	March 31, 2024	December 31, 2023
Revolving bank debt	1,969.7	1,932.9
Bank term loan	718.7	750.0
Senior guaranteed notes	902.8	883.4
Long-term debt	3,591.2	3,566.3
Long-term debt due within one year	388.5	380.0
Long-term debt due beyond one year	3,202.7	3,186.3

Bank debt

Revolving bank debt

At March 31, 2024, the Company had total combined revolving bank credit facilities of $2.82 billion. This includes a $2.26 billion unsecured syndicated credit facility and a $100.0 million unsecured operating facility, both with a maturity date of November 26, 2026, and are extendible annually. The Company also has an additional $400.0 million unsecured syndicated credit facility that matures on May 10, 2025, and a $60.0 million unsecured demand letter of credit facility.

The credit facilities have covenants which restrict the Company's ratio of senior debt to adjusted EBITDA to a maximum of 3.5:1.0, the ratio of total debt to adjusted EBITDA to a maximum of 4.0:1.0 and the ratio of senior debt to capital, adjusted for certain non-cash items as noted above, to a maximum of 0.55:1.0. The Company was in compliance with all debt covenants at March 31, 2024.

The Company had letters of credit in the amount of $39.7 million outstanding at March 31, 2024 (December 31, 2023 - $26.2 million).


CRESCENT POINT ENERGY CORP.	10

Bank term loan

At March 31, 2024, the Company had $718.7 million outstanding under its syndicated bank term loan. The term loan matures on November 26, 2026, and has financial covenants similar to those of the revolving credit facilities described above.

Senior guaranteed notes

At March 31, 2024, the Company had senior guaranteed notes of US$589.5 million and Cdn$105.0 million outstanding. The notes are unsecured and rank pari passu with the Company's bank credit facilities and carry a bullet repayment on maturity. The senior guaranteed notes have financial covenants similar to those of the combined bank credit facilities described above.

Concurrent with the issuance of senior guaranteed notes with total principal of US$517.0 million, the Company entered into cross currency swaps ("CCS") to manage the Company's foreign exchange risk. The CCS fix the US dollar amount of the individual tranches of notes for purposes of interest and principal repayments at a notional amount of $606.9 million. See Note 21 - "Financial Instruments and Derivatives" for additional information.

The following table summarizes the Company's senior guaranteed notes:


Principal ($ millions)	Coupon Rate	Hedged Principal (1) (Cdn$ millions)	Unhedged Principal (2) (Cdn$ millions)	Interest Payment Dates	Maturity Date	Financial statement carrying value
March 31, 2024	December 31, 2023
Cdn$40.0	3.85	%	40.0	-	December 20 and June 20	June 20, 2024	40.0	40.0
US$257.5	3.75	%	276.4	-	December 20 and June 20	June 20, 2024	348.5	340.0
US$82.0	4.30	%	67.9	40.6	October 11 and April 11	April 11, 2025	111.0	108.3
Cdn$65.0	3.94	%	65.0	-	October 22 and April 22	April 22, 2025	65.0	65.0
US$230.0	4.08	%	262.6	30.4	October 22 and April 22	April 22, 2025	311.2	303.7
US$20.0	4.18	%	-	27.1	October 22 and April 22	April 22, 2027	27.1	26.4
Senior guaranteed notes	711.9	98.1	902.8	883.4
Due within one year	316.4	-		388.5	380.0
Due beyond one year	395.5	98.1	514.3	503.4

(1)Includes underlying derivatives which fix the Company's foreign exchange exposure on its US dollar senior guaranteed notes or represents the Canadian dollar principal on Canadian dollar denominated senior guaranteed notes.

(2)Includes the principal balance translated at the period end foreign exchange rate on US dollar senior guaranteed notes that do not have underlying CCS.

12.LEASES

Right-of-use asset


($ millions)	Office (1)	Fleet Vehicles	Equipment	Total
Right-of-use asset at cost	124.8	37.2	38.2	200.2
Accumulated depreciation	(67.7)	(24.6)	(13.6)	(105.9)
Net carrying amount	57.1	12.6	24.6	94.3

Reconciliation of movements during the period
Cost, beginning of period	124.8	37.2	38.6	200.6
Accumulated depreciation, beginning of period	(65.1)	(23.0)	(9.7)	(97.8)
Net carrying amount, beginning of period	59.7	14.2	28.9	102.8

Net carrying amount, beginning of period	59.7	14.2	28.9	102.8
Dispositions	-	-	(0.4)	(0.4)
Depreciation	(2.6)	(1.6)	(3.9)	(8.1)
Net carrying amount, end of period	57.1	12.6	24.6	94.3

(1)A portion of the Company's office space is subleased. During the three months ended March 31, 2024, the Company recorded sublease income of $0.7 million (three months ended March 31, 2023 - $1.1 million) as a component of other income.


CRESCENT POINT ENERGY CORP.	11

Lease liability


($ millions)	March 31, 2024	December 31, 2023
Lease liability, beginning of period	144.7	124.1
Acquisitions through business combinations	-	4.3
Additions	-	38.2
Dispositions	(0.2)	-
Reclassified as liabilities associated with assets held for sale	-	(1.1)
Financing	1.9	5.2
Payments on lease liability	(10.5)	(26.0)
Lease liability, end of period	135.9	144.7
Expected to be incurred within one year	36.9	40.5
Expected to be incurred beyond one year	99.0	104.2

The undiscounted cash flows relating to the lease liability are as follows:


($ millions)	March 31, 2024
1 year	42.5
2 to 3 years	53.0
4 to 5 years	34.9
More than 5 years	20.9
Total (1)	151.3

(1)Includes both the principal and amounts representing financing.

13.DECOMMISSIONING LIABILITY

Upon retirement of its oil and gas assets, the Company anticipates incurring substantial costs associated with decommissioning. The estimated cash flows have been discounted using a risk-free rate of 3.34 percent and a derived inflation rate of 1.84 percent (December 31, 2023 - risk-free rate of 3.02 percent and inflation rate of 1.62 percent).


($ millions)	March 31, 2024	December 31, 2023 (1)
Decommissioning liability, beginning of period	606.4	675.5
Liabilities incurred	2.7	19.8
Liabilities acquired through capital acquisitions	-	40.1
Liabilities disposed through capital dispositions	(0.1)	(4.1)
Liabilities settled (2)	(7.3)	(45.4)
Revaluation of acquired decommissioning liabilities (3)	-	38.5
Change in estimates	-	(3.0)
Change in discount and inflation rate estimates	(10.7)	(19.6)
Accretion	4.9	22.7
Reclassified as liabilities associated with assets held for sale	(98.5)	(118.1)
Decommissioning liability, end of period	497.4	606.4
Expected to be incurred within one year	42.7	40.0
Expected to be incurred beyond one year	454.7	566.4

(1)Comparative period revised to reflect current period presentation.

(2)Includes nil received from government grant programs during the three months ended March 31, 2024 (year ended December 31, 2023 - $5.4 million).

(3)These amounts relate to the revaluation of acquired decommissioning liabilities at the end of the period using a risk-free discount rate. At the date of acquisition, acquired decommissioning liabilities are fair valued.


CRESCENT POINT ENERGY CORP.	12

14.SHAREHOLDERS' CAPITAL

Crescent Point has an unlimited number of common shares authorized for issuance.


March 31, 2024	December 31, 2023
	Number of shares	Amount ($ millions)	Number of shares	Amount ($ millions)
Common shares, beginning of period	619,929,490	17,324.6	550,888,983	16,675.8
Issued on capital acquisition	-	-	53,202,339	493.0
Issued for cash	-	-	48,550,000	500.1
Issued on redemption of restricted shares	-	-	1,436,017	4.9
Issued on exercise of stock options	20,894	0.1	464,051	0.7
Common shares repurchased for cancellation	(923,100)	(10.0)	(34,611,900)	(349.9)
Common shares, end of period	619,027,284	17,314.7	619,929,490	17,324.6
Cumulative share issue costs, net of tax	-	(272.0)	-	(271.9)
Total shareholders' capital, end of period	619,027,284	17,042.7	619,929,490	17,052.7

Normal Course Issuer Bids ("NCIBs")

On March 7, 2024, the Company announced the approval by the Toronto Stock Exchange of its notice to implement a NCIB. The NCIB allows the Company to purchase, for cancellation, up to 61,663,522 common shares, or 10 percent of the Company's public float, as at February 29, 2024. The NCIB commenced on March 11, 2024 and is due to expire on March 10, 2025. The Company's previous NCIB commenced on March 9, 2023 and expired on March 8, 2024.

During the three months ended March 31, 2024, the Company purchased 0.9 million common shares for total consideration of $10.0 million under its current NCIB. The total cost paid, including commissions and fees, was recognized directly as a reduction in shareholders' equity. Under the NCIB, all common shares purchased are cancelled.

15.DEFICIT


($ millions)	March 31, 2024	December 31, 2023
Accumulated earnings (deficit)	(2,542.0)	(2,130.3)
Accumulated gain on shares issued pursuant to DRIP (1) and SDP (2)	8.4	8.4
Accumulated tax effect on redemption of restricted shares	18.2	18.2
Accumulated dividends	(8,170.1)	(8,098.8)
Deficit	(10,685.5)	(10,202.5)

(1)Premium Dividend TM and Dividend Reinvestment Plan - suspended in 2015.

(2)Share Dividend Plan - suspended in 2015.

16.CAPITAL MANAGEMENT


($ millions)	March 31, 2024	December 31, 2023
Long-term debt (1)	3,591.2	3,566.3
Adjusted working capital deficiency (2)	82.0	196.3
Unrealized foreign exchange on translation of hedged US dollar long-term debt	(90.3)	(24.5)
Net debt	3,582.9	3,738.1
Shareholders' equity	6,375.9	6,867.5
Total capitalization	9,958.8	10,605.6

(1)Includes current portion of long-term debt.

(2)Adjusted working capital deficiency is calculated as accounts payable and accrued liabilities, dividends payable and long-term compensation liability net of equity derivative contracts, less cash, accounts receivable, prepaids and deposits, and deferred consideration receivable.


CRESCENT POINT ENERGY CORP.	13

The following table reconciles cash flow from operating activities to adjusted funds flow from operations for the three months ended March 31, 2024 and March 31, 2023:


($ millions)	March 31, 2024	March 31, 2023
Cash flow from operating activities	411.2	473.4
Changes in non-cash working capital	148.4	39.8
Transaction costs	1.3	1.8
Decommissioning expenditures	7.3	9.9
Adjusted funds flow from operations	568.2	524.9

Crescent Point's objective for managing its capital structure is to maintain a strong balance sheet and capital base to provide financial flexibility, position the Company to fund future development projects and provide returns to shareholders.

Crescent Point manages its capital structure and short-term financing requirements using a measure not defined in IFRS Accounting Standards, or standardized, the ratio of net debt to adjusted funds flow from operations. Net debt to adjusted funds flow from operations is used to measure the Company's overall debt position and to measure the strength of the Company's balance sheet and may not be comparable to similar financial measures disclosed by other issuers. Crescent Point's objective is to manage this metric to be well positioned to execute its business objectives during periods of volatile commodity prices. Crescent Point monitors this ratio and uses it as a key measure in capital allocation decisions including capital spending levels, returns to shareholders including dividends and share repurchases, and financing considerations. The Company's net debt to adjusted funds flow from operations ratio for the trailing four quarters at March 31, 2024 was 1.5 times (December 31, 2023 - 1.6 times).

Crescent Point is subject to certain financial covenants on its credit facilities and senior guaranteed notes agreements and was in compliance with all financial covenants as at March 31, 2024. See Note 11 - "Long-term Debt" for additional information regarding the Company's financial covenant requirements.

Crescent Point retains financial flexibility with liquidity on its credit facilities. The Company continuously monitors the commodity price environment and manages its counterparty exposure to mitigate credit losses and protect its balance sheet.

17.COMMODITY DERIVATIVE GAINS (LOSSES)


Three months ended March 31
($ millions)	2024	2023
Realized gains (losses)	4.5	(7.4)
Unrealized gains (losses)	(217.8)	20.6
Commodity derivative gains (losses)	(213.3)	13.2

18.INTEREST EXPENSE


Three months ended March 31
($ millions)	2024	2023
Interest expense on long-term debt	61.3	16.1
Unrealized gain on interest derivative contracts	(0.5)	(0.1)
Interest expense	60.8	16.0

19.FOREIGN EXCHANGE GAIN


Three months ended March 31
($ millions)	2024	2023
Realized loss on CCS - principal	(2.4)	(0.3)
Translation of US dollar long-term debt	(65.8)	0.9
Unrealized gain on CCS - principal and foreign exchange swaps	64.3	2.9
Other	5.7	(0.5)
Foreign exchange gain	1.8	3.0


CRESCENT POINT ENERGY CORP.	14

20.SHARE-BASED COMPENSATION

The following table reconciles the number of restricted shares, Employee Share Value Plan ("ESVP") awards, Performance Share Units ("PSUs") and Deferred Share Units ("DSUs") for the three months ended March 31, 2024:


Restricted Shares	ESVP	PSUs (1)	DSUs
Balance, beginning of period	1,380,685	2,660,066	1,623,248	1,728,423
Granted	-	148,614	1,221,275	29,166
Redeemed	-	(2,656)	-	-
Forfeited	-	(46,393)	-	-
Balance, end of period	1,380,685	2,759,631	2,844,523	1,757,589

(1)Based on underlying units before any effect of performance multipliers.

The following tables summarize information regarding stock options outstanding as at March 31, 2024:


Stock options (number of units)	Weighted average exercise price ($)
Balance, beginning of period	3,224,260	4.74
Exercised	(21,000)	3.83
Balance, end of period	3,203,260	4.74


Range of exercise prices ($)	Number of stock options outstanding	Weighted average remaining term for stock options outstanding (years)	Weighted average exercise price per share for stock options outstanding ($)	Number of stock options exercisable	Weighted average exercise price per share for stock options exercisable ($)
1.09 - 1.65	1,540,362	3.00	1.09	504,996	1.09
1.66 - 5.45	573,769	3.19	4.71	303,744	4.31
5.46 - 9.86	99,598	1.57	8.64	99,598	8.64
9.87 - 10.06	989,531	0.77	10.06	989,531	10.06
3,203,260	2.30	4.74	1,897,869	6.68

The volume weighted average trading price of the Company's common shares was $9.60 per share during the three months ended March 31, 2024.

21.FINANCIAL INSTRUMENTS AND DERIVATIVES

The Company's financial assets and liabilities are comprised of cash, accounts receivable, deferred consideration receivable, derivative assets and liabilities, accounts payable and accrued liabilities, dividends payable and long-term debt.

a) Carrying amount and fair value of financial instruments

The fair value of cash, accounts receivable, accounts payable and accrued liabilities and dividends payable approximate their carrying amount due to the short-term nature of those instruments. The fair value of the amounts drawn on bank debt is equal to its carrying amount as the facilities and term loan bear interest at floating rates and credit spreads that are indicative of market rates. These financial instruments are classified as financial assets and liabilities at amortized cost and are reported at amortized cost.

A portion of the deferred consideration receivable is short-term in nature and its fair value approximates its carrying value. The remaining portion of the deferred consideration receivable bears interest. Both receivables are classified as financial assets at amortized cost and reported at amortized cost.

Crescent Point's derivative assets and liabilities are transacted in active markets, classified as financial assets and liabilities at fair value through profit or loss and fair valued at each period with the resulting gain or loss recorded in net income.

At March 31, 2024, the senior guaranteed notes had a carrying value of $902.8 million and a fair value of $888.1 million (December 31, 2023 - $883.4 million and $853.0 million, respectively).

Derivative assets and liabilities

Derivative assets and liabilities arise from the use of derivative contracts. Crescent Point's derivative assets and liabilities are classified as Level 2 with values based on inputs including quoted forward prices for commodities, time value and volatility factors. Accordingly, the Company's derivative financial instruments are classified as fair value through profit or loss and are reported at fair value with changes in fair value recorded in net income.


CRESCENT POINT ENERGY CORP.	15

The following table summarizes the fair value as at March 31, 2024 and the change in fair value for the three months ended March 31, 2024:


($ millions)	Commodity (1)	Interest (2)	Foreign exchange (3)	Equity	Total
Derivative assets, beginning of period	173.5	3.3	21.4	1.6	199.8
Dispositions	3.5	-	-	-	3.5
Unrealized change in fair value	(217.8)	0.5	64.3	0.1	(152.9)
Foreign exchange	1.1	-	-	-	1.1
Derivative assets (liabilities), end of period	(39.7)	3.8	85.7	1.7	51.5

Derivative assets, end of period	41.0	3.8	90.0	1.7	136.5
Derivative liabilities, end of period	(80.7)	-	(4.3)	-	(85.0)

(1)Includes crude oil, crude oil differentials, natural gas and natural gas differential contracts.

(2)Interest payments on CCS.

(3)Includes principal portion of CCS and foreign exchange contracts.

b) Risks associated with financial assets and liabilities

The Company is exposed to financial risks from its financial assets and liabilities. The financial risks include market risk relating to commodity prices, interest rates, foreign exchange rates and equity price as well as credit and liquidity risk.

Commodity price risk

The Company is exposed to commodity price risk on crude oil and condensate, NGLs and natural gas revenues. To manage a portion of this risk, the Company has entered into various derivative agreements.

The following table summarizes the unrealized gains (losses) on the Company's commodity financial derivative contracts and the resulting impact on income before tax due to fluctuations in commodity prices or differentials, with all other variables held constant:


($ millions)	March 31, 2024	March 31, 2023
Increase 10%	Decrease 10%	Increase 10%	Decrease 10%
Commodity price
Crude oil	(133.1)	109.1	(22.4)	25.5
Natural gas	(25.5)	25.7	(5.2)	5.2
Differential
Crude oil	-	-	0.8	(0.8)
Natural gas	15.0	(15.0)	2.5	(2.5)

Interest rate risk

The Company is exposed to interest rate risk on amounts drawn on its bank debt to the extent of changes in market interest rates. Based on the Company's floating rate debt position, as at March 31, 2024, a 1 percent increase or decrease in the interest rate on floating rate debt would amount to an impact on income before tax of $6.7 million for the three months ended March 31, 2024 (three months ended March 31, 2023 - $0.3 million).

Foreign exchange risk

The Company is exposed to foreign exchange risk in relation to its US dollar denominated long-term debt, US dollar denominated working capital, US dollar denominated commodity derivative contracts, investment in its U.S. subsidiary and on a portion of its commodity sales. Crescent Point utilizes foreign exchange derivatives to hedge its foreign exchange exposure on its US dollar denominated long-term debt. To reduce foreign exchange risk relating to commodity sales, the Company utilizes a combination of foreign exchange swaps and fixed price WTI crude oil contracts that settle in Canadian dollars.

The following table summarizes the resulting unrealized gains (losses) impacting income before tax due to the respective changes in the period end and applicable foreign exchange rates, with all other variables held constant:


($ millions)	Exchange Rate	March 31, 2024	March 31, 2023
Cdn$ relative to US$	Increase 10%	Decrease 10%	Increase 10%	Decrease 10%
US dollar long-term debt	Period End	263.6	(263.6)	124.6	(124.6)
Cross currency swaps	Forward	(254.9)	254.9	(125.3)	125.3
Foreign exchange swaps	Forward	14.1	(14.1)	1.7	(1.7)


CRESCENT POINT ENERGY CORP.	16

Equity price risk

The Company is exposed to equity price risk on its own share price in relation to certain share-based compensation plans detailed in Note 20 - "Share-based Compensation". The Company has entered into total return swaps to mitigate its exposure to fluctuations in its share price by fixing the future settlement cost on a portion of its cash settled plans.

The following table summarizes the unrealized gains (losses) on the Company's equity derivative contracts and the resulting impact on income before tax due to the respective changes in the applicable share price, with all other variables held constant:


($ millions)	March 31, 2024	March 31, 2023 (1)
Share price	Increase 25%	Decrease 25%	Increase 25%	Decrease 25%
Total return swaps	7.0	(7.0)	3.6	(3.6)

(1)Comparative period revised to reflect current period presentation.

Credit risk

The Company is exposed to credit risk in relation to its physical oil and gas sales, financial counterparty and joint venture receivables. A substantial portion of the Company's accounts receivable are with customers in the oil and gas industry and are subject to normal industry credit risks. To mitigate credit risk associated with its physical sales portfolio, Crescent Point obtains financial assurances such as parental guarantees, letters of credit, prepayments and third party credit insurance. Including these assurances, approximately 99 percent of the Company's oil and gas sales are with entities considered investment grade.

At March 31, 2024, approximately 3 percent (December 31, 2023 - 4 percent) of the Company's accounts receivable balance was outstanding for more than 90 days and the Company's average expected credit loss was 0.97 percent (December 31, 2023 - 0.83 percent) on a portion of the Company's accounts receivable balance relating to joint venture receivables.

Liquidity risk

The Company manages its liquidity risk through managing its capital structure and continuously monitoring forecast cash flows and available credit under existing banking facilities as well as other potential sources of capital.

At March 31, 2024, the Company had available unused borrowing capacity on bank credit facilities of approximately $796.0 million, including cash of $21.8 million.

c) Derivative contracts

The following is a summary of the derivative contracts in place as at March 31, 2024:


Financial WTI Crude Oil Derivative Contracts - Canadian Dollar (1)
Swap	Collar
Term	Volume (bbls/d)	Average Price ($/bbl)	Volumes (bbls/d)	Average Sold Call Price ($/bbl)	Average Bought Put Price ($/bbl)
April 2024 - December 2024 (2)	19,336	102.17	30,304	112.98	97.21
January 2025 - March 2025	6,000	95.82	4,000	105.42	95.42