Crescent Point Energy Corp. (NYSE:CPG) Q4 2023 Earnings Call Transcript

Ken Lamont: Yes. So we obviously are hedgers and we’ll continue to hedge. I would say 45% for 2024 feels like a good level. So I think that makes a lot of sense for us. And just given that we’re still active in trying to deleverage, as that balance sheet gets more into shape, we can look at the hedge percentage a little bit, as we go forward as to what levels that we’re looking for. As you saw in the past, when we were a little lighter on the leverage side and on the debt side, we were kind of in that 20% hedged range. So, I would say, look for that, look for us to take advantages, as the back end of the curve hopefully does move up in 2025, then we’ll chip away there and secure at least a year out, and looking just maybe slightly beyond that to where we can.

Shant Madian: Another question coming back on the return of capital. We’ve stated our intention to increase the return of capital to shareholders over time. Can you provide any specifics on what that may entail?

Ken Lamont: Sure. And so, Craig, do you want me to take this? So, yes, I would say that as far as our priorities right now, priorities obviously operational execution, the next one is our balance sheet. The third one is increasing our return of capital. We kind of stated that very clearly in all our literature. With respect to that, we really do need to see our, to get our balance sheet paid down, that will be the priority. So, look for us to have a target here of about $1.5 billion over the next couple of years of getting our balance sheet down. When we’re in that position that’s when we would look to potentially increase our return of capital proposition. And that’s really how we’re thinking about that. So, yes, hopefully that answers the question.

Shant Madian: Yes. I think at this time, there are no additional questions from those listening on the line. Thanks to everyone for joining our call today. And if you have any other additional questions that weren’t answered, please call our investor relations team at your convenience.

Craig Bryksa: Thanks, everyone.

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for joining. You may now disconnect.