Crescent Point Energy Corp. (NYSE:CPG) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 12:00 pm ET


Crescent Point Energy Corp. (NYSE:CPG) Q2 2020 Earnings Conference Call - Final Transcript


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This conference call is being recorded today and will be webcast along with a slide deck, which can be found on Crescent Point's website home page. The webcast may not be recorded or rebroadcast without the express consent of Crescent Point Energy. All amounts discussed today are in Canadian dollars unless otherwise stated. The complete financial statement and management's discussion and analysis for the period ending June 30, 2020, were announced this morning and are available on the Crescent Point, SEDAR and EDGAR websites. [Operator Instructions]

During the call, management may make projections or other forward-looking statements regarding future events or future financial performance. Actual performance, events or results may differ materially. Additional information or factors that could affect Crescent Point's operations or financial results are included in Crescent Point's most recent annual information form, which may be accessed through the Crescent Point, SEDAR or EDGAR websites or by contracting -- contacting Crescent Point Energy. Management also calls your attention to the forward-looking information and non-GAAP measures section of the press release issued earlier today.

I will now turn the call over to Craig Bryksa, President and Chief Executive Officer at Crescent Point. Please go ahead, Mr. Bryksa.

Craig Bryksa

Thank you, operator. I'd like to welcome everyone to our Second Quarter 2020 Conference Call. With me today are Ken Lamont, Chief Financial Officer; and Ryan Gritzfeldt, Chief Operating Officer. As the operator highlighted, this conference call is being webcast along with the slide deck, which can be found on our website.

Before we discuss our second quarter highlights, I think it's important to provide some comments on our current macro environment and what it means for Crescent Point moving forward. During the last several months, our industry has witnessed an unprecedented series of events. With global oil demand declining by up to 20 million barrels per day, increased volatility in commodity prices, greater uncertainty around market access and widespread financial restructuring, in some cases, including bankruptcies. Despite these negative headlines, I strongly believe that those energy companies that remain disciplined and agile, such as ourselves, will successfully overcome these current market headwinds.

Over the coming months, we expect demand for crude to naturally increase as economies reopen. To put things in context, this past quarter saw the largest drop in global oil demand in recent history, yet demand only fell by approximately 20%. Oil remains a leading source of energy around the world, and demand is expected to fully recover to pre-pandemic levels over the next year, according to the EIA.

With respect to supply, we believe future production growth will be limited as industry continues to shift towards prioritizing returns, free cash flow generation and conservative balance sheet. If companies remain disciplined, supply and demand dynamics for oil and gas should improve, which will help support stronger long-term commodity prices. Though the longevity of the current pandemic remains unknown, I'm confident that our industry will continue to adapt to prevailing conditions. For Crescent Point, this adaptation is nothing new.

Over the