EX-99.1 2 cpgq12020fs.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1
CONSOLIDATED BALANCE SHEETS
 
 
As at
 
 
March 31,

 
December 31,

 
(UNAUDITED) (Cdn$ millions)
Notes
2020

 
2019

 
ASSETS
 
 
 
 
 
Cash
 
19.6

 
56.9

 
Accounts receivable
 
196.7

 
295.9

 
Prepaids and deposits
 
12.6

 
6.9

 
Derivative asset
18
309.3

 
76.8

 
Assets held for sale
5
—

 
195.0

 
Total current assets
 
538.2

 
631.5

 
Derivative asset
18
420.1

 
251.1

 
Other long-term assets
 
16.9

 
22.4

 
Exploration and evaluation
4, 5
186.0

 
245.5

 
Property, plant and equipment
5, 6
4,324.7

 
7,841.6

 
Right-of-use asset
9
116.1

 
123.5

 
Goodwill
5, 7
223.9

 
230.9

 
Deferred income tax
 
1,383.8

 
745.3

 
Total assets
 
7,209.7

 
10,091.8

 
LIABILITIES
 
 
 
 
 
Accounts payable and accrued liabilities
 
418.2

 
479.4

 
Current portion of long-term debt
8
—

 
201.0

 
Other current liabilities
 
45.1

 
87.0

 
Liabilities associated with assets held for sale
5
—

 
7.9

 
Total current liabilities
 
463.3

 
775.3

 
Long-term debt
8
2,539.2

 
2,704.1

 
Other long-term liabilities
 
2.1

 
10.8

 
Lease liability
9
140.6

 
149.9

 
Decommissioning liability
5, 10
952.4

 
1,109.0

 
Total liabilities
 
4,097.6

 
4,749.1

 
SHAREHOLDERS’ EQUITY
 
 
 
 
 
Shareholders’ capital
11
16,443.2

 
16,449.0

 
Contributed surplus
 
26.7

 
35.1

 
Deficit
12
(13,966.2
)
 
(11,636.9
)
 
Accumulated other comprehensive income
 
608.4

 
495.5

 
Total shareholders' equity
 
3,112.1

 
5,342.7

 
Total liabilities and shareholders' equity
 
7,209.7

 
10,091.8

 
Commitments (Note 19)
See accompanying notes to the consolidated financial statements.


CRESCENT POINT ENERGY CORP.
1

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 
 
Three months ended March 31
 
 
 
 
 
 
2019
(Revised)

 
(UNAUDITED) (Cdn$ millions, except per share and shares outstanding amounts)
Notes
2020

 
 
REVENUE AND OTHER INCOME
 
 
 
 
 
Oil and gas sales
21
548.4

 
892.4

 
Purchased product sales
 
11.3

 
7.3

 
Royalties
 
(73.0
)
 
(119.2
)
 
Oil and gas revenue
 
486.7

 
780.5

 
Commodity derivative gains (losses)
14, 18
314.9

 
(161.2
)
 
Other income
5
303.5

 
29.8

 
 
 
1,105.1

 
649.1

 
EXPENSES
 
 
 
 
 
Operating
 
158.3

 
202.2

 
Purchased product
 
8.6

 
7.1

 
Transportation
 
28.8

 
33.3

 
General and administrative
 
24.5

 
20.0

 
Interest
15
9.5

 
49.9

 
Foreign exchange gain
16
(8.8
)
 
(7.7
)
 
Share-based compensation
 
(8.1
)
 
3.9

 
Depletion, depreciation, amortization and impairment
4, 6, 9
3,814.7

 
336.1

 
Accretion and financing
9, 10
6.9

 
9.3

 
 
 
4,034.4

 
654.1

 
Net income (loss) before tax
 
(2,929.3
)
 
(5.0
)
 
 
 
 
 
 
 
Tax recovery
 
 
 
 
 
Current
 
—

 
—

 
Deferred
 
(605.2
)
 
(6.9
)
 
Net income (loss)
 
(2,324.1
)
 
1.9

 
 
 
 
 
 
 
Other comprehensive income (loss)
 
 
 
 
 
Items that may be subsequently reclassified to profit or loss
 
 
 
 
Foreign currency translation of foreign operations
 
112.9

 
(49.8
)
 
Comprehensive income (loss)
 
(2,211.2
)
 
(47.9
)
 
 
 
 
 
 
 
Net income (loss) per share
 
 
 
 
 
Basic
 
(4.40
)
 
—

 
Diluted
 
(4.40
)
 
—

 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
Basic
 
528,284,435

 
550,292,056

 
Diluted
 
528,284,435

 
550,299,674

 
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, 2019
 
16,449.0

 
35.1

 
(11,636.9
)
 
495.5

 
5,342.7

 
Redemption of restricted shares
11
6.9

 
(7.0
)
 
0.1

 


 
—

 
Common shares repurchased
11
(12.7
)
 
 
 
 
 
 
 
(12.7
)
 
Forfeit of restricted shares
17


 
(1.4
)
 


 


 
(1.4
)
 
Net income (loss)
 


 


 
(2,324.1
)
 


 
(2,324.1
)
 
Dividends ($0.01 per share)
 


 


 
(5.3
)
 


 
(5.3
)
 
Foreign currency translation adjustment
 


 


 


 
112.9

 
112.9

 
March 31, 2020
 
16,443.2

 
26.7

 
(13,966.2
)
 
608.4

 
3,112.1

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
16,546.9

 
41.4

 
(10,567.2
)
 
591.7

 
6,612.8

 
Adoption of accounting policy
 
 
 
 
 
(14.4
)
 
 
 
(14.4
)
 
Redemption of restricted shares
 
14.2

 
(14.8
)
 


 


 
(0.6
)
 
Common shares repurchased
 
(13.3
)
 
 
 
 
 
 
 
(13.3
)
 
Share-based compensation
 


 
5.4

 


 


 
5.4

 
Forfeit of restricted shares
 


 
(1.0
)
 


 


 
(1.0
)
 
Net income (loss)
 


 


 
1.9

 


 
1.9

 
Dividends ($0.01 per share)
 


 


 
(5.6
)
 


 
(5.6
)
 
Foreign currency translation adjustment
 


 


 


 
(49.8
)
 
(49.8
)
 
March 31, 2019
 
16,547.8

 
31.0

 
(10,585.3
)
 
541.9

 
6,535.4

 
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
2020

 
2019

 
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
 
 
 
 
 
Net income (loss)
 
(2,324.1
)
 
1.9

 
Items not affecting cash
 
 
 
 
 
Other income
 
(302.0
)
 
(4.8
)
 
Deferred tax recovery
 
(605.2
)
 
(6.9
)
 
Share-based compensation
 
(1.0
)
 
3.5

 
Depletion, depreciation, amortization and impairment
4, 6, 9
3,814.7

 
336.1

 
Accretion
10
5.0

 
9.3

 
Unrealized (gains) losses on derivatives
18
(418.5
)
 
270.4

 
Translation of US dollar long-term debt
16
197.9

 
(94.5
)
 
Other
 
—

 
0.3

 
Realized gain on cross currency swap maturity
16
(62.0
)
 
(2.2
)
 
Decommissioning expenditures
10
(8.6
)
 
(5.3
)
 
Change in non-cash working capital
20
33.1

 
(91.0
)
 
 
 
329.3

 
416.8

 
INVESTING ACTIVITIES
 
 
 
 
 
Development capital and other expenditures
4, 6
(331.5
)
 
(394.5
)
 
Capital acquisitions
5
(1.4
)
 
(2.3
)
 
Capital dispositions
5
506.9

 
5.1

 
Other long-term assets
 
—

 
18.6

 
Change in non-cash working capital
20
(16.2
)
 
43.7

 
 
 
157.8

 
(329.4
)
 
FINANCING ACTIVITIES
 
 
 
 
 
Issue of shares, net of issue costs
 
(0.1
)
 
(0.6
)
 
Common shares repurchased
11
(12.7
)
 
(13.3
)
 
Decrease in bank debt, net
20
(337.5
)
 
(39.8
)
 
Repayment of senior guaranteed notes
8, 20
(224.4
)
 
—

 
Realized gain on cross currency swap maturity
16, 20
62.0

 
2.2

 
Payments on principal portion of lease liability
9, 20
(7.9
)
 
(8.3
)
 
Cash dividends
20
(5.3
)
 
(5.6
)
 
Change in non-cash working capital
20
—

 
(11.0
)
 
 
 
(525.9
)
 
(76.4
)
 
Impact of foreign currency on cash balances
 
1.5

 
(0.5
)
 
INCREASE (DECREASE) IN CASH
 
(37.3
)
 
10.5

 
CASH AT BEGINNING OF PERIOD
 
56.9

 
15.3

 
CASH AT END OF PERIOD
 
19.6

 
25.8

 
See accompanying notes to the consolidated financial statements.

Supplementary Information:
Cash taxes paid
(0.1
)
 
(0.1
)
 
Cash interest paid
(12.8
)
 
(31.5
)
 

CRESCENT POINT ENERGY CORP.
4

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS    
March 31, 2020 (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 5, 2020.
2.
BASIS OF PREPARATION
These interim consolidated financial statements are presented under International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). 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, 2019 except as described in Note 3 - "Changes in Accounting Policies". 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, 2019.
The policies applied in these consolidated financial statements are based on IFRS issued and outstanding as of May 5, 2020, 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$” are to United States ("U.S.") dollars.
a) Use of estimates and judgments
Impact of COVID-19
The COVID-19 pandemic, and actions taken in response, have resulted in a significant contraction in the global economy. This has caused an unprecedented disruption in the oil and gas industry and negatively impacted the demand for and pricing of energy products, including crude oil, NGLs and natural gas produced by the Company.
As there are many variables and uncertainties regarding the COVID-19 pandemic, as well as its impact on the economic environment, including the duration and magnitude of the disruption in the oil and gas industry, it is not possible to precisely estimate the potential impact of the COVID-19 pandemic on the Company's financial condition and operations. There may also be effects that are not currently known as the full impact of the COVID-19 pandemic is still uncertain. This presents various risks and uncertainty, including to management's judgments, estimates and assumptions that affect the application of accounting policies. Further information on the Company's use of estimates and judgments can be found in the notes to the annual consolidated financial statements for the year ended December 31, 2019.
The following outlines changes to and additional use of estimates and assumptions for the period ended March 31, 2020:
Decommissioning Liability
Upon retirement of its oil and gas assets, the Company anticipates incurring substantial costs associated with decommissioning. Estimates of these costs are subject to uncertainty associated with the method, timing and extent of future decommissioning activities. The Company previously recorded the liability using estimated inflation and the relevant risk-free rate to discount cash flows. At March 31, 2020, the Company used a derived inflation from the real-return rate and discounted using the relevant risk-free rate. This change in accounting estimate is applied on a prospective basis.
Saskatchewan gas infrastructure asset disposition
Significant judgments were involved in assessing the economic benefit under the purchase and sale agreement in determining the right to control the assets for the conditions of a sale. Judgments were also involved in forecasting future cash flows to determine the Company's expected utilization of the asset under lease accounting. If one or a combination of the underlying assumptions were materially different than the assumptions used in the Company’s analysis, this could potentially impact the underlying accounting treatment for the transaction.

CRESCENT POINT ENERGY CORP.
5

3. CHANGES IN ACCOUNTING POLICIES
Updated significant accounting policies and amendments
The following change to the Company's accounting policy is applicable from January 1, 2020:
•
IFRS 3 Business Combinations - IFRS 3 was amended in October 2018 to revise the definition of the term 'business'. The amendments narrowed the definitions of a business and outputs and includes an optional concentration test. The adoption of this amendment did not have a material impact on the Company's consolidated financial statements.
4.
EXPLORATION AND EVALUATION ASSETS
($ millions)
March 31, 2020

 
December 31, 2019

 
Exploration and evaluation assets at cost
1,829.1

 
1,848.1

 
Accumulated amortization
(1,643.1
)
 
(1,602.6
)
 
Net carrying amount
186.0

 
245.5

 
 
 
 
 
 
Reconciliation of movements during the period
 
 
 
 
Cost, beginning of period
1,848.1

 
2,325.0

 
Accumulated amortization, beginning of period
(1,602.6
)
 
(1,852.4
)
 
Net carrying amount, beginning of period
245.5

 
472.6

 
 
 
 
 
 
Net carrying amount, beginning of period
245.5

 
472.6

 
Acquisitions through business combinations, net
1.3

 
7.3

 
Additions
74.6

 
384.9

 
Dispositions
(0.2
)
 
(101.9
)
 
Transfers to property, plant and equipment
(119.7
)
 
(380.6
)
 
Amortization
(21.7
)
 
(129.1
)
 
Foreign exchange
6.2

 
(7.7
)
 
Net carrying amount, end of period
186.0

 
245.5

 
Impairment test of exploration and evaluation ("E&E") assets
At March 31, 2020, the value of the Company's market capitalization as compared to shareholders' equity as well as the indication that potential further development of E&E assets may not be currently economical was an indicator of impairment. As a result, impairment testing was required and the Company prepared estimates of future cash flows and fair market values of undeveloped land to determine the recoverable amount of the respective assets. As a result of these tests, the Company concluded that the estimated recoverable amounts exceeded the carrying amounts and no impairments were recorded.

CRESCENT POINT ENERGY CORP.
6

5.
CAPITAL ACQUISITIONS AND DISPOSITIONS
In the three months ended March 31, 2020, the Company incurred $4.7 million (three months ended March 31, 2019 - $0.9 million) of transaction costs related to acquisitions through business combinations and dispositions that were recorded as general and administrative expenses.
a) Major Property Dispositions
Saskatchewan gas infrastructure asset disposition
In the three months ended March 31, 2020, the Company disposed of certain Saskatchewan gas infrastructure assets for consideration of $500.0 million. These assets were classified as held for sale at December 31, 2019, and had a net carrying value of $198.3 million, resulting in a gain of $301.7 million.
b) Minor property acquisitions and dispositions
In the three months ended March 31, 2020, the Company completed minor property acquisitions and dispositions for net consideration of $5.5 million. These assets had a net carrying value of $0.3 million, resulting in a gain of $5.8 million.
($ millions)
 
Saskatchewan gas infrastructure

 
Other minor, net

 
Dispositions:
 
 
 
 
 
 
 
 
 
 
 
Consideration
 
 
 
 
 
Cash
 
500.0

 
5.5

 
 
 
500.0

 
5.5

 
Carrying Value
 
 
 
 
 
Exploration and evaluation
 
—

 
1.1

 
Property, plant and equipment
 
(199.4
)
 
(19.2
)
 
Goodwill
 
(6.4
)
 
(0.6
)
 
Decommissioning liability
 
7.5

 
19.0

 
 
 
(198.3
)
 
0.3

 
 
 
 
 
 
 
Gain on capital dispositions
 
301.7

 
5.8

 

CRESCENT POINT ENERGY CORP.
7

6.
PROPERTY, PLANT AND EQUIPMENT
($ millions)
March 31, 2020

 
December 31, 2019

 
Development and production assets
23,324.7

 
23,038.6

 
Corporate assets
119.0

 
117.2

 
Property, plant and equipment at cost
23,443.7

 
23,155.8

 
Accumulated depletion, depreciation and impairment
(19,119.0
)
 
(15,314.2
)
 
Net carrying amount
4,324.7

 
7,841.6

 
 
 
 
 
 
Reconciliation of movements during the period
 
 
 
 
Development and production assets
 
 
 
 
Cost, beginning of period
23,038.6

 
26,635.3

 
Accumulated depletion and impairment, beginning of period
(15,251.0
)
 
(16,262.2
)
 
Net carrying amount, beginning of period
7,787.6

 
10,373.1

 
 
 
 
 
 
Net carrying amount, beginning of period
7,787.6

 
10,373.1

 
Acquisitions through business combinations, net
0.1

 
8.7

 
Additions
95.3

 
1,075.7

 
Dispositions, net
(23.7
)
 
(1,230.9
)
 
Transfers from exploration and evaluation assets
119.7

 
380.6

 
Reclassified as assets held for sale
—

 
(195.0
)
 
Depletion
(226.0
)
 
(1,087.4
)
 
Impairment
(3,557.8
)
 
(1,466.4
)
 
Foreign exchange
75.3

 
(70.8
)
 
Net carrying amount, end of period
4,270.5

 
7,787.6

 
 
 
 
 
 
Cost, end of period
23,324.7

 
23,038.6

 
Accumulated depletion and impairment, end of period
(19,054.2
)
 
(15,251.0
)
 
Net carrying amount, end of period
4,270.5

 
7,787.6

 
 
 
 
 
 
Corporate assets
 
 
 
 
Cost, beginning of period
117.2

 
114.6

 
Accumulated depreciation, beginning of period
(63.2
)
 
(57.5
)
 
Net carrying amount, beginning of period
54.0

 
57.1

 
 
 
 
 
 
Net carrying amount, beginning of period
54.0

 
57.1

 
Additions
1.2

 
2.9

 
Depreciation
(1.2
)
 
(5.9
)
 
Foreign exchange
0.2

 
(0.1
)
 
Net carrying amount, end of period
54.2

 
54.0

 
 
 
 
 
 
Cost, end of period
119.0

 
117.2

 
Accumulated depreciation, end of period
(64.8
)
 
(63.2
)
 
Net carrying amount, end of period
54.2

 
54.0

 
Direct general and administrative costs capitalized by the Company during the three months ended March 31, 2020 were $9.1 million (year ended December 31, 2019 - $40.0 million), including $0.3 million of share-based compensation recoveries (year ended December 31, 2019 - $4.3 million of share-based compensation costs).

CRESCENT POINT ENERGY CORP.
8

Impairment test of property, plant and equipment
At March 31, 2020, the significant decrease in forecast benchmark commodity prices and the value of the Company's market capitalization as compared to shareholders' equity were indicators of impairment. As a result, impairment and recovery testing were required and the Company prepared estimates of future cash flows to determine the recoverable amount of the respective assets.
The following table outlines the forecast benchmark commodity prices and the exchange rate used in the impairment calculation of PP&E at March 31, 2020:
 
2020 (1)

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030 (3)

WTI ($US/bbl) (2)
29.17

40.45

49.17

53.28

55.66

56.87

58.01

59.17

60.35

61.56

62.79

Exchange Rate ($US/$Cdn)
0.707

0.728

0.745

0.747

0.748

0.750

0.750

0.750

0.750

0.750

0.750

WTI ($Cdn/bbl)
41.26

55.56

66.00

71.33

74.41

75.83

77.35

78.89

80.47

82.08

83.72

AECO ($Cdn/MMbtu) (2)
1.74

2.20

2.38

2.45

2.53

2.60

2.66

2.72

2.79

2.85

2.92

(1)
Effective April 1, 2020.
(2)
The forecast benchmark commodity prices listed above are adjusted for quality differentials, heat content, distance to market and other factors in performing the impairment tests.
(3)
Forecast benchmark commodity prices are assumed to increase by 2.0% in each year after 2030 to the end of the reserve life. Exchange rates are assumed to be constant at 0.750.
At March 31, 2020, the Company determined that the carrying amount of the Southeast Saskatchewan, Southwest Saskatchewan, Northern U.S., and Southern Alberta CGUs exceeded their recoverable amount. The full amount of the impairments were attributed to PP&E and, as a result, impairment losses of $3.56 billion were recorded as a component of DD&A and impairment expense. The impairment loss was due to the significant decrease in forecast benchmark commodity prices used in impairment testing at March 31, 2020 compared to December 31, 2019.
In future periods, the impairment can be reversed up to the original carrying value less any associated DD&A if the estimated recoverable amounts of the CGUs exceed their carrying amount. At March 31, 2020, the after tax impairment losses that can be reversed for the Canada and U.S. operating segments were $5.89 billion and $471.4 million, respectively.
The following table summarizes the impairment expense for the three months ended March 31, 2020 by CGU:
CGU
($ millions, except %)
Operating segment
Recoverable amount

Discount rate

Impairment

Impairment, net of tax

Southeast Saskatchewan
Canada
2,500.0

15.00
%
1,726.1

1,286.7

Southwest Saskatchewan
Canada
940.9

15.00
%
866.7

646.1

Northern U.S.
U.S.
465.8

15.00
%
549.7

410.0

Southern Alberta
Canada
489.2

15.00
%
415.3

309.6

Total impairment
4,395.9

 
3,557.8

2,652.4

Changes in any of the key judgments, such as a revision in reserves, changes in forecast benchmark commodity prices, foreign exchange rates, capital or operating costs would impact the recoverable amounts of assets and any recoveries or impairment charges would affect net income. The following sensitivities show the resulting impact on income before tax of the changes in discount rate and forecast benchmark commodity price estimates at March 31, 2020, with all other variables held constant:
CGU
($ millions)
Discount Rate
 
Commodity Prices
 
Increase 1%

 
Decrease 1%

 
Increase 5%

 
Decrease 5%

 
Southeast Saskatchewan
(139.3
)
 
153.9

 
255.8

 
(251.4
)
 
Southwest Saskatchewan
(55.5
)
 
61.3

 
109.8

 
(108.9
)
 
Northern U.S.
(35.8
)
 
39.8

 
77.7

 
(79.4
)
 
Southern Alberta
(31.6
)
 
35.0

 
60.8

 
(64.0
)
 
Increase (decrease)
(262.2
)
 
290.0

 
504.1

 
(503.7
)

The movement in the deferred tax asset was a result of the impairment expense recognized during the three months ended March 31, 2020. Deferred tax assets are recognized to the extent of expected utilization of tax attributes, based on estimated undiscounted future cashflows included in the Company's independent reserve report.

CRESCENT POINT ENERGY CORP.
9

7.
GOODWILL
($ millions)
March 31, 2020

 
December 31, 2019

 
Goodwill, beginning of period
230.9

 
244.0

 
Saskatchewan gas infrastructure asset disposition
(6.4
)
 
—

 
Southeast Saskatchewan asset dispositions
—

 
(13.1
)
 
Other dispositions
(0.6
)
 
—

 
Goodwill, end of period
223.9

 
230.9

 
Goodwill has been assigned to the Canadian operating segment.
Impairment test of goodwill
At March 31, 2020, the value of the Company's market capitalization as compared to shareholders' equity was an indicator of impairment. As a result, impairment testing was required and the Company prepared estimates of future cash flows to determine the recoverable amount of goodwill.
The impairment tests of goodwill compared the recoverable amount of the Company's PP&E and E&E to the carrying amount of the combined PP&E, E&E and goodwill at March 31, 2020. As a result of these tests, the Company concluded that the estimated recoverable amounts exceeded the carrying amounts and no impairments were recorded.
8.
LONG-TERM DEBT
The following table reconciles long-term debt:
($ millions)
March 31, 2020

 
December 31, 2019

 
Bank debt (1)
496.5

 
806.3

 
Senior guaranteed notes (2)
2,042.7

 
2,098.8

 
Long-term debt
2,539.2

 
2,905.1

 
Long-term debt due within one year
—

 
201.0

 
Long-term debt due beyond one year
2,539.2

 
2,704.1

 
(1)
The Company has London Inter-bank Offered Rate ("LIBOR") loans under its bank credit facilities. The US dollar amounts of the LIBOR loans were fixed for purposes of interest and principal repayments. At March 31, 2020, the total notional amount due upon bank debt maturity was $482.3 million (December 31, 2019 - $824.2 million).
(2)
The Company entered into cross currency swaps ("CCS") and a foreign exchange swap concurrent with the issuance of the US dollar senior guaranteed notes to fix the US dollar amount of the notes for the purpose of principal repayment at Canadian dollar notional amounts. At March 31, 2020, the total notional principal due on the maturity of the senior guaranteed notes was $1.66 billion (December 31, 2019 - $1.82 billion) of which nil (December 31, 2019 - $158.3 million) was due within one year.
Bank debt
The Company has combined facilities of $3.00 billion, including a $2.90 billion syndicated unsecured credit facility with fourteen banks and a $100.0 million unsecured operating credit facility with one Canadian chartered bank. The current maturity dates of the facilities is October 25, 2023. Both of these facilities constitute revolving credit facilities and are extendible annually.
The credit facilities bear interest at the applicable market rate plus a margin based on a sliding scale ratio of the Company's senior debt to earnings before interest, taxes, depletion, depreciation, amortization and impairment, adjusted for payments on lease liability and certain non-cash items including unrealized derivatives, translation of US dollar long-term debt, equity settled share-based compensation expense and accretion and financing expense ("adjusted EBITDA").
The credit facilities and senior guaranteed notes 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, 2020.
The Company had letters of credit in the amount of $7.7 million outstanding at March 31, 2020 (December 31, 2019 - $6.5 million).

CRESCENT POINT ENERGY CORP.
10

Senior guaranteed notes
The Company has closed private offerings of senior guaranteed notes raising total gross proceeds of US$1.26 billion and Cdn$270.0 million. The notes are unsecured and rank pari passu with the Company's bank credit facilities and carry a bullet repayment on maturity. The senior guaranteed notes have financial covenants similar to those of the combined credit facilities described above. The Company's senior guaranteed notes are detailed below:
Principal
($ millions)
Coupon Rate

Principal Due on Maturity (1)
(Cdn$ millions)

Interest Payment Dates
Maturity Date
Financial statement carrying value
March 31, 2020

 
December 31, 2019

 
US$155.0
6.03
%
—

September 24 and March 24
March 24, 2020
—

 
201.0

 
Cdn$50.0
5.53
%
50.0

October 14 and April 14
April 14, 2021
50.0

 
50.0

 
US$82.0
5.13
%
79.0

October 14 and April 14
April 14, 2021
115.8

 
106.3

 
US$52.5
3.29
%
56.3

December 20 and June 20
June 20, 2021
74.1

 
68.1

 
Cdn$25.0
4.76
%
25.0

November 22 and May 22
May 22, 2022
25.0

 
25.0

 
US$200.0
4.00
%
199.1

November 22 and May 22
May 22, 2022
282.4

 
259.3

 
US$61.5
4.12
%
80.3

October 11 and April 11
April 11, 2023
86.8

 
79.7

 
Cdn$80.0
3.58
%
80.0

October 11 and April 11
April 11, 2023
80.0

 
80.0

 
Cdn$10.0
4.11
%
10.0

December 12 and June 12
June 12, 2023
10.0

 
10.0

 
US$270.0
3.78
%
274.7

December 12 and June 12
June 12, 2023
381.2

 
350.1

 
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
363.6

 
333.8

 
US$82.0
4.30
%
107.0

October 11 and April 11
April 11, 2025
115.8

 
106.3

 
Cdn$65.0
3.94
%
65.0

October 22 and April 22
April 22, 2025
65.0

 
65.0

 
US$230.0
4.08
%
291.1

October 22 and April 22
April 22, 2025
324.8

 
298.2

 
US$20.0
4.18
%
25.3

October 22 and April 22
April 22, 2027
28.2

 
26.0

 
Senior guaranteed notes
1,659.2

 
 
2,042.7

 
2,098.8

 
Senior guaranteed notes due within one year
—

 
201.0

 
Senior guaranteed notes due beyond one year
2,042.7

 
1,897.8

 
(1)
Includes underlying derivatives which manage the Company's foreign exchange exposure on its US dollar senior guaranteed notes. The Company considers this to be the economic amount due at maturity instead of the financial statement carrying amount.
Concurrent with the issuance of US$1.23 billion senior guaranteed notes, the Company entered into CCS to manage the Company's foreign exchange risk. The CCS fix the US dollar amount of the notes for purposes of interest and principal repayments at a notional amount of $1.36 billion. Concurrent with the issuance of US$30.0 million senior guaranteed notes, the Company entered a foreign exchange swap which fixed the principal repayment at a notional amount of $32.2 million. See Note 18 - “Financial Instruments and Derivatives” for additional information.

CRESCENT POINT ENERGY CORP.
11

9.
LEASES
Right-of-use asset
The following table reconciles the right-of-use ("ROU") asset by class as at March 31, 2020:
($ millions)
Office (1)

 
Fleet Vehicles

 
Other

 
Total

 
ROU asset at cost
120.4

 
17.1

 
11.1

 
148.6

 
Accumulated depreciation
(21.0
)
 
(8.3
)
 
(3.2
)
 
(32.5
)
 
Net carrying amount
99.4

 
8.8

 
7.9

 
116.1

 
 
 
 
 
 
 
 
 
 
Reconciliation of movements during the period
 
 
 
 
 
 
 
 
Cost, beginning of period
120.1

 
17.0

 
10.9

 
148.0

 
Accumulated depreciation, beginning of period
(14.8
)
 
(7.0
)
 
(2.7
)
 
(24.5
)
 
Net carrying amount, beginning of period
105.3

 
10.0

 
8.2

 
123.5

 
 
 
 
 
 
 
 
 
 
Net carrying amount, beginning of period
105.3

 
10.0

 
8.2

 
123.5

 
Additions
0.1

 
—

 
0.1

 
0.2

 
Depreciation
(6.2
)
 
(1.3
)
 
(0.5
)
 
(8.0
)
 
Foreign exchange
0.2

 
0.1

 
0.1

 
0.4

 
Net carrying amount, end of period
99.4

 
8.8

 
7.9

 
116.1

 
(1)
A portion of the Company's office space is subleased. During the three months ended March 31, 2020, the Company recorded sublease income of $1.5 million as a component of other income.
Lease liability
($ millions)
March 31, 2020

 
December 31, 2019

 
Lease liability, beginning of period
181.2

 
223.8

 
Additions
0.3

 
5.5

 
Dispositions
—

 
(3.0
)
 
Financing
1.9

 
8.9

 
Payments on lease liability
(9.8
)
 
(34.1
)
 
Lease modification
—

 
(19.7
)
 
Foreign exchange
0.3

 
(0.2
)
 
Lease liability, end of period
173.9

 
181.2

 
Expected to be incurred within one year
33.3

 
31.3

 
Expected to be incurred beyond one year
140.6

 
149.9

 
Some leases contain variable payments that are not included within the lease liability as they are based on amounts determined by the lessor annually and not dependent on an index or rate. For the three months ended March 31, 2020, variable lease payments of $0.5 million were included in general and administrative expenses relating to property tax payments on office leases.
During the three months ended March 31, 2020, the Company recorded $0.2 million in general and administrative expenses related to short-term leases and leases for low dollar value underlying assets.
The undiscounted cash flows relating to the lease liability are as follows:
($ millions)
March 31, 2020

 
1 year
33.7

 
2 to 3 years
46.4

 
4 to 5 years
38.7

 
More than 5 years
89.5

 
Total (1)
208.3

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

CRESCENT POINT ENERGY CORP.
12

10.
DECOMMISSIONING LIABILITY
Upon retirement of its oil and gas assets, the Company anticipates substantial costs associated with decommissioning. The estimated cash flows have been discounted using a risk-free rate of 1.25 percent and a derived inflation rate of 0.75 percent (December 31, 2019 - risk-free rate of 1.75 percent and inflation rate of 2 percent). Refer to Note 2 - "Basis of Preparation" for additional information.
The following table reconciles the decommissioning liability:
($ millions)
March 31, 2020

 
December 31, 2019

 
Decommissioning liability, beginning of period
1,144.0

 
1,230.7

 
Liabilities incurred
9.6

 
30.7

 
Liabilities acquired through capital acquisitions
—

 
0.7

 
Liabilities disposed through capital dispositions
(18.6
)
 
(223.6
)
 
Liabilities settled
(8.6
)
 
(28.7
)
 
Revaluation of acquired decommissioning liabilities
0.1

 
0.9

 
Change in estimated future costs
(39.5
)
 
6.2

 
Change in discount rate
(130.3
)
 
115.3

 
Accretion expense
5.0

 
23.5

 
Reclassified as liabilities associated with assets held for sale
—

 
(7.9
)
 
Foreign exchange
0.8

 
(3.8
)
 
Decommissioning liability, end of period
962.5

 
1,144.0

 
Expected to be incurred within one year
10.1

 
35.0

 
Expected to be incurred beyond one year
952.4

 
1,109.0

 
11.
SHAREHOLDERS' CAPITAL
Crescent Point has an unlimited number of common shares authorized for issuance.
 
March 31, 2020
 
 
December 31, 2019
 
 


Number of
shares

 
Amount
($ millions)

 
Number of
shares

 
Amount
($ millions)

 
Common shares, beginning of period
529,399,923

 
16,705.1

 
550,151,561

 
16,803.0

 
Issued on redemption of restricted shares
1,725,452

 
6.9

 
3,321,362

 
24.7

 
Common shares repurchased
(2,165,600
)
 
(12.7
)
 
(24,073,000
)
 
(122.6
)
 
Common shares, end of period
528,959,775

 
16,699.3

 
529,399,923

 
16,705.1

 
Cumulative share issue costs, net of tax
—

 
(256.1
)
 
—

 
(256.1
)
 
Total shareholders’ capital, end of period
528,959,775

 
16,443.2

 
529,399,923

 
16,449.0

 
Normal Course Issuer Bid ("NCIB")    
In January 2020, the Company purchased and cancelled 2.2 million common shares for total consideration of $12.7 million. 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.
On March 5, 2020, 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 36,884,438 common shares, or seven percent of the Company's public float, as at February 28, 2020. The NCIB commenced on March 9, 2020 and is due to expire on March 8, 2021. In response to the current price environment, the Company is deferring share repurchases under its NCIB with flexibility for it to be resumed as market conditions permit. 

CRESCENT POINT ENERGY CORP.
13

12.
DEFICIT
($ millions)
March 31, 2020

 
December 31, 2019

 
Accumulated earnings (deficit)
(6,352.3
)
 
(4,028.3
)
 
Accumulated gain on shares issued pursuant to DRIP (1) and SDP (2)
8.4

 
8.4

 
Accumulated tax effect on redemption of restricted shares
12.1

 
12.1

 
Accumulated dividends
(7,634.4
)
 
(7,629.1
)
 
Deficit
(13,966.2
)
 
(11,636.9
)
 
(1)
Premium Dividend TM and Dividend Reinvestment Plan.
(2)
Share Dividend Plan.
13.
CAPITAL MANAGEMENT
($ millions)
March 31, 2020

 
December 31, 2019

 
Long-term debt (1)
2,539.2

 
2,905.1

 
Adjusted working capital deficiency (2)
190.5

 
126.1

 
Unrealized foreign exchange on translation of US dollar long-term debt
(401.8
)
 
(265.9
)
 
Net debt
2,327.9

 
2,765.3

 
Shareholders’ equity
3,112.1

 
5,342.7

 
Total capitalization
5,440.0

 
8,108.0

 
(1)
Includes current portion of long-term debt.
(2)
Adjusted working capital deficiency is calculated as accounts payable and accrued liabilities and long-term compensation liability, less cash, accounts receivable, prepaids and deposits and long-term investments.
The following table reconciles cash flow from operating activities to adjusted funds flow from operations for the three months ended March 31, 2020 and March 31, 2019:
($ millions)
March 31, 2020

 
March 31, 2019

 
Cash flow from operating activities
329.3

 
416.8

 
Changes in non-cash working capital
(33.1
)
 
91.0

 
Transaction costs
4.7

 
0.9

 
Decommissioning expenditures
8.6

 
5.3

 
Adjusted funds flow from operations
309.5

 
514.0

 
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 and monitors its capital structure and short-term financing requirements using a measure not defined in IFRS, 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. 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 this as a key measure in making decisions regarding financing, capital spending and dividend levels. The Company's net debt to adjusted funds flow from operations ratio at March 31, 2020 was 1.4 times (December 31, 2019 - 1.5 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, 2020. See Note 8 - "Long-term Debt" for additional information regarding the Company's financial covenant requirements.
Crescent Point retains financial flexibility with significant liquidity on its credit facilities and no material near-term debt maturities. The Company is continuously monitoring the commodity price environment and will make further adjustments as needed to protect its balance sheet. The Company continues to actively manage its counterparty exposure and implement procedures to mitigate credit losses given the heightened risk exposure in the current environment.
14.
COMMODITY DERIVATIVE GAINS (LOSSES)
 
Three months ended March 31
 
 
($ millions)
2020

 
2019

 
Realized gains
56.3

 
11.6

 
Unrealized gains (losses)
258.6

 
(172.8
)
 
Commodity derivative gains (losses)
314.9

 
(161.2
)
 

CRESCENT POINT ENERGY CORP.
14

15.
INTEREST EXPENSE
 
Three months ended March 31
 
 
($ millions)
2020

 
2019 (1)
(Revised)

 
Interest expense on long-term debt
27.3

 
40.8

 
Unrealized (gain) loss on CCS - Interest
(17.8
)
 
9.1

 
Interest expense
9.5

 
49.9

 
(1)
Comparative period revised to reflect current period presentation. Unrealized derivative gain (loss) on interest rate contracts previously included in derivative gains (losses).
16.
FOREIGN EXCHANGE GAIN (LOSS)
 
Three months ended March 31
 
 
($ millions)
2020

 
2019 (1)
(Revised)

 
Realized gain on CCS - Principal
62.0

 
2.2

 
Translation of US dollar long-term debt
(197.9
)
 
94.5

 
Unrealized gain (loss) on CCS - Principal and foreign exchange swaps
142.1

 
(88.5
)
 
Other
2.6

 
(0.5
)
 
Foreign exchange gain
8.8

 
7.7

 
(1)
Comparative period revised to reflect current period presentation. Unrealized derivative gain (loss) on CCS and foreign exchange swaps previously included in derivative gains (losses).
17.
SHARE-BASED COMPENSATION
The following table reconciles the number of restricted shares, Performance Share Units ("PSUs") and Deferred Share Units ("DSUs") for the three months ended March 31, 2020:
 
Restricted Shares

 
PSUs (1)

 
DSUs

 
Balance, beginning of period
3,636,194

 
2,920,444

 
319,891

 
Granted
1,308,401

 
1,681,890

 
15,982

 
Redeemed
(1,784,750
)
 
—

 
—

 
Forfeited
(79,700
)
 
—

 
—

 
Balance, end of period
3,080,145

 
4,602,334

 
335,873

 
(1)
Based on underlying units before any effect of performance multipliers.
The following tables provide summary information regarding stock options outstanding as at March 31, 2020:
 
Stock Options (number of units)

 
Weighted average exercise price ($)

 
Balance, beginning of period
2,833,342

 
7.59

 
Expired
(85,293
)
 
8.83

 
Balance, end of period
2,748,049

 
7.55

 

Number of stock options outstanding

 
Weighted average exercise price per share for options outstanding ($)

 
Vest year
 
Weighted average remaining term (years)
 
Number of stock options exercisable

 
Weighted average exercise price per share for options exercisable ($)

 
322,698

 
10.02

 
2019
 
4.80
 
322,698

 
10.02

 
549,610

 
7.55

 
2020
 
5.31
 
505,702

 
7.45

 
549,610

 
7.55

 
2021
 
5.31
 
—

 
—

 
872,307

 
8.46

 
2022
 
5.12
 
—

 
—

 
453,824

 
4.04

 
2023
 
6.02
 
—

 
—

 

CRESCENT POINT ENERGY CORP.
15

18.
FINANCIAL INSTRUMENTS AND DERIVATIVES
The Company's financial assets and liabilities are comprised of cash, accounts receivable, long-term investments, derivative assets and liabilities, accounts payable and accrued liabilities, and long-term debt.
a) Carrying amount and fair value of financial instruments
The fair value of cash, accounts receivable, and accounts payable and accrued liabilities approximate their carrying amount due to the short-term nature of those instruments. The fair value of the amounts drawn on bank credit facilities is equal to its carrying amount as the facilities 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.
Crescent Point's derivative assets and liabilities and long-term investments 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, 2020, the senior guaranteed notes had a carrying value of $2.04 billion and a fair value of $1.81 billion (December 31, 2019 - $2.10 billion and $2.12 billion, respectively).
Derivative assets and liabilities
Derivative assets and liabilities arise from the use of derivative contracts. The Company's derivative financial instruments are classified as fair value through profit or loss and are reported at fair value with changes in fair value recorded in net income.
The following table summarizes the fair value as at March 31, 2020 and the change in fair value for the three months ended March 31, 2020:
($ millions)
Commodity contracts (1)

 
Interest contracts

 
CCS
contracts (2)

 
Foreign exchange contracts

 
Total

 
Derivative assets, beginning of period
26.1

 
2.8

 
274.0

 
6.6

 
309.5

 
Unrealized change in fair value
258.6

 
(3.3
)
 
160.0

 
3.2

 
418.5

 
Derivative assets (liabilities), end of period
284.7


(0.5
)

434.0


9.8


728.0

 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets, end of period
284.7

 
0.5

 
434.0

 
10.2

 
729.4

 
Derivative liabilities, end of period
—

 
(1.0
)
 
—

 
(0.4
)
 
(1.4
)
 
(1)
Includes oil contracts.
(2)
Includes mark-to-market on principal and interest.
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 and foreign exchange rates as well as credit and liquidity risk.
Commodity price risk
The Company is exposed to commodity price risk on crude oil, NGLs and natural gas revenues as well as power on electricity consumption. 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, with all other variables held constant:
 
Impact on Income Before Tax
 
 
Impact on Income Before Tax
 
 
($ millions)
Three months ended
March 31, 2020
 
 
Three months ended
March 31, 2019
 
 
 
Increase 10%

 
Decrease 10%

 
Increase 10%

 
Decrease 10%

 
Commodity price
 
 
 
 
 
 
 
 
Crude oil
(32.0
)
 
29.1

 
(154.4
)
 
134.3

 
Natural gas
—

 
—

 
(0.5
)
 
0.5

 
Interest rate risk
The Company is exposed to interest rate risk on bank credit facilities to the extent of changes in market interest rates. Based on the Company's floating rate debt position as at March 31, 2020, a 1 percent increase or decrease in the interest rate on floating rate debt would amount to an impact on income before tax of $0.5 million for the three months ended March 31, 2020 (three months ended March 31, 2019 - $4.0 million).

CRESCENT POINT ENERGY CORP.
16

The following table summarizes the unrealized gains (losses) on the Company's interest derivative contracts and the resulting impact on income before tax due to the respective changes in the applicable forward interest rates, with all other variables held constant:
 
Impact on Income Before Tax
 
 
Impact on Income Before Tax
 
 
($ millions)
Three months ended
March 31, 2020
 
 
Three months ended
March 31, 2019
 
 
Forward interest rates
Increase 10%

 
Decrease 10%

 
Increase 10%

 
Decrease 10%

 
Interest rate swaps
0.9

 
(0.9
)
 
1.0

 
(1.0
)
 
Foreign exchange risk
The Company is exposed to foreign exchange risk in relation to its US dollar denominated long-term debt, investment in U.S. subsidiaries and in relation to its crude oil sales. Crescent Point enters into various CCS and foreign exchange swaps to hedge its foreign exchange exposure on its US dollar denominated long-term debt. To partially mitigate the foreign exchange risk relating to crude oil sales, the Company has fixed crude oil contracts to settle in Cdn$ WTI.
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:
 
 
Impact on Income Before Tax
 
 
Impact on Income Before Tax
 
 
($ millions)
Exchange Rate
Three months ended
March 31, 2020
 
 
Three months ended
March 31, 2019
 
 
Cdn$ relative to US$
 
Increase 10%

 
Decrease 10%

 
Increase 10%

 
Decrease 10%

 
US dollar long-term debt
Period End
200.6

 
(200.6
)
 
368.1

 
(368.1
)
 
Cross currency swaps
Forward
(220.0
)
 
220.0

 
(392.1
)
 
392.1

 
Foreign exchange swaps
Forward
(2.7
)
 
2.7

 
(3.9
)
 
3.9

 
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 and third party credit insurance. Including these assurances, approximately 95 percent of the Company's oil and gas sales are with entities considered investment grade.
At March 31, 2020, approximately 2 percent (December 31, 2019 - 5 percent) of the Company's accounts receivable balance was outstanding for more than 90 days and the Company's average expected credit loss was 0.71 percent (December 31, 2019 - 0.60 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 arrangements as well as other potential sources of capital.
At March 31, 2020, the Company had available unused borrowing capacity on bank credit facilities of approximately $2.51 billion, including $7.7 million outstanding letters of credit and cash of $19.6 million.

CRESCENT POINT ENERGY CORP.
17

c)
Derivative contracts
The following is a summary of the derivative contracts in place as at March 31, 2020:
Financial WTI Crude Oil Derivative Contracts – Canadian Dollar (1)
 
Swap
 
Three-way Collar
 
Term
Volume
(bbls/d)

 
Average Price
($/bbl)

 
Volume
(bbls/d)

Average
Sold
Call Price
($/bbl)

 
Average Bought
Put Price
($/bbl)

 
Average
Sold
Put Price
($/bbl)

 
2020 April - December
20,798

 
68.30

 
36,662

82.04

 
76.01

 
62.26

 
2021 January - March
—

 
—

 
5,000

78.87

 
73.50

 
63.50

 
(1)
The volumes and prices reported are the weighted average volumes and prices for the period.
Financial Interest Rate Derivative Contracts – Canadian Dollar
 
Notional Principal
($ millions)
 
Fixed Rate (%)
 
Term
Contract
 
 
April 2020 - March 2023
Swap
50.0
 
0.92
 
April 2020 - August 2023
Swap
50.0
 
0.81
 
April 2020 - August 2023
Swap
50.0
 
0.95
 
April 2020 - September 2023
Swap
50.0
 
0.95
 
April 2020 - August 2024
Swap
100.0
 
0.87
 
Financial Cross Currency Derivative Contracts
 
 
 
 
 
Term
Contract
Receive Notional Principal
(US$ millions)

 
Fixed Rate (US%)

 
Pay Notional Principal
(Cdn$ millions)

 
Fixed Rate (Cdn%)

 
April 2020
Swap
165.0

 
3.38

 
218.8

 
3.44

 
April 2020 - April 2021
Swap
82.0

 
5.13

 
79.0

 
5.83

 
April 2020 - June 2021
Swap
52.5

 
3.29

 
56.3

 
3.59

 
April 2020 - May 2022
Swap
170.0

 
4.00

 
166.9

 
5.03

 
April 2020 - April 2023
Swap
61.5

 
4.12

 
80.3

 
3.71

 
April 2020 - June 2023
Swap
270.0

 
3.78

 
274.7

 
4.32

 
April 2020 - June 2024
Swap
257.5

 
3.75

 
276.4

 
4.03

 
April 2020 - April 2025
Swap
82.0

 
4.30

 
107.0

 
3.98

 
April 2020 - April 2025
Swap
230.0

 
4.08

 
291.1

 
4.13

 
April 2020 - April 2027
Swap
20.0

 
4.18

 
25.3

 
4.25

 
Financial Foreign Exchange Forward Derivative Contracts
 
 
 
 
Settlement Date
Contract
 
Receive Notional Principal
(US$ millions)

 
Pay Notional Principal
(Cdn$ millions)

 
April 2020
Swap
 
5.5

 
8.0

 
April 2020
Swap
 
5.6

 
8.0

 
May 2022
Swap
 
30.0

 
32.2

 

CRESCENT POINT ENERGY CORP.
18

19.COMMITMENTS
On January 20, 2020, Crescent Point closed the sale of certain gas infrastructure assets in Saskatchewan. In connection with the sale, the Company entered into a gas handling agreement that includes a long-term volume commitment.
At March 31, 2020, the Company had contractual obligations and commitments as follows:
($ millions)
 
1 year

 
2 to 3 years

 
4 to 5 years

 
More than 5 years

 
Total

 
Operating (1)
 
5.4

 
9.8

 
12.1

 
36.1

 
63.4

 
Gas processing
 
39.0

 
79.7

 
81.8

 
400.7

 
601.2

 
Transportation
 
14.9

 
25.1

 
24.4

 
10.1

 
74.5

 
Capital
 
2.3

 
—

 
—

 
—

 
2.3

 
Total contractual commitments (2)
 
61.6

 
114.6

 
118.3

 
446.9

 
741.4

 
(1)
Includes operating costs on the Company's office space, net of $13.3 million recoveries from subleases
(2)
Excludes contracts accounted for under IFRS 16. See Note 9 - "Leases" for additional information.
20. SUPPLEMENTAL DISCLOSURES
Cash flow statement presentation
 
Three months ended March 31
 
 
($ millions)
2020

 
2019

 
Operating activities
 
 
 
 
Changes in non-cash working capital:
 
 
 
 
Accounts receivable
99.2

 
(135.3
)
 
Prepaids and deposits
(5.6
)
 
(5.4
)
 
Accounts payable and accrued liabilities
(49.8
)
 
54.9

 
Other current liabilities
(1.7
)
 
(4.6
)
 
Other long-term liabilities
(9.0
)
 
(0.6
)
 
 
33.1

 
(91.0
)
 
Investing activities
 
 
 
 
Changes in non-cash working capital:
 
 
 
 
Accounts receivable
2.8

 
33.5

 
Accounts payable and accrued liabilities
(19.0
)
 
10.2

 
 
(16.2
)
 
43.7

 
Financing activities
 
 
 
 
Changes in non-cash working capital:
 
 
 
 
Accounts payable and accrued liabilities
—

 
(11.0
)
 

CRESCENT POINT ENERGY CORP.
19

Supplementary financing cash flow information
The Company's reconciliation of cash flow from financing activities is outlined in the table below:
($ millions)
 
Dividends payable

 
Long-term debt (1)

 
Lease liability (2)

 
December 31, 2019
 
5.3

 
2,905.1

 
181.2

 
Changes from cash flow from financing activities:
 
 
 
 
 
 
 
Decrease in bank debt, net
 
 
 
(337.5
)
 


 
Repayment of senior guaranteed notes
 
 
 
(224.4
)
 
 
 
Realized gain on cross currency swap maturity
 
 
 
62.0

 


 
Cash dividends paid
 
(5.3
)
 
 
 
 
 
Payments on principal portion of lease liability
 
 
 
 
 
(7.9
)
 
Non-cash changes:
 
 
 
 
 
 
 
Cash dividends declared
 
5.3

 
 
 
 
 
Additions
 
 
 
 
 
0.3

 
Foreign exchange
 
 
 
134.0

 
0.3

 
March 31, 2020
 
5.3

 
2,539.2

 
173.9

 
 
 
 
 
 
 
 
 
December 31, 2018 (3)
 
16.5

 
4,276.7

 
223.8

 
Changes from cash flow from financing activities:
 
 
 
 
 
 
 
Decrease in bank debt, net
 
 
 
(39.8
)
 


 
Realized gain on cross currency swap maturity
 
 
 
2.2

 


 
Cash dividends paid
 
(16.6
)
 
 
 
 
 
Payments on principal portion of lease liability
 
 
 
 
 
(8.3
)
 
Non-cash changes:
 
 
 
 
 
 
 
Cash dividends declared
 
5.6

 
 
 
 
 
Financing
 
 
 
 
 
2.4

 
Additions
 
 
 
 
 
1.8

 
Foreign exchange
 
 
 
(96.5
)
 
(0.1
)
 
March 31, 2019
 
5.5

 
4,142.6

 
219.6

 
(1)
Includes current portion of long-term debt.
(2)
Includes current portion of lease liability.
(3)
Lease liability is as at January 1, 2019.
21. GEOGRAPHICAL DISCLOSURE
The following table reconciles oil and gas sales by country and product type:
 
Three months ended March 31
 
 
($ millions) (1)
2020

 
2019

 
Canada
 
 
 
 
Crude oil sales
420.8

 
607.0

 
NGL sales
22.2

 
35.0

 
Natural gas sales
16.9

 
21.7

 
Total Canada
459.9

 
663.7

 
U.S.
 
 
 
 
Crude oil sales
80.5

 
207.1

 
NGL sales
5.3

 
11.2

 
Natural gas sales
2.7

 
10.4

 
Total U.S.
88.5

 
228.7

 
Total oil and gas sales
548.4

 
892.4

 
(1)
Oil and gas sales are reported before realized derivatives.

CRESCENT POINT ENERGY CORP.
20

The following table reconciles non-current assets by country:
($ millions)
March 31, 2020

 
December 31, 2019

 
Canada
5,756.9

 
8,121.9

 
U.S.
914.6

 
1,338.4

 
Total
6,671.5

 
9,460.3

 

CRESCENT POINT ENERGY CORP.
21

Directors
Barbara Munroe, Chair (6)
Laura Cillis (1) (2)
James Craddock (1) (3) (5)
John Dielwart (3) (4)
Ted Goldthorpe (1) (5)
Mike Jackson (1) (2) (5)
Jennifer Koury (2) (4)
Francois Langlois (3) (4) (5)
Craig Bryksa (4)
(1) Member of the Audit Committee of the Board of Directors
(2) Member of the Human Resources and Compensation Committee of the Board of Directors
(3) Member of the Reserves Committee of the Board of Directors
(4) Member of the Environmental, Health & Safety Committee of the Board of Directors
(5) Member of the Corporate Governance and Nominating Committee
(6) Chair of the Board serves in an ex officio capacity on each Committee
Officers
Craig Bryksa
President and Chief Executive Officer
Ken Lamont
Chief Financial Officer
Ryan Gritzfeldt
Chief Operating Officer
Brad Borggard
Senior Vice President, Corporate Planning and Capital Markets
Mark Eade
Senior Vice President, General Counsel and Corporate Secretary
Garret Holt
Senior Vice President, Corporate Development
Head Office
Suite 2000, 585 - 8th Avenue S.W.
Calgary, Alberta T2P 1G1
Tel: (403) 693-0020
Fax: (403) 693-0070
Toll Free: (888) 693-0020
Banker
The Bank of Nova Scotia
Calgary, Alberta
 
Auditor
PricewaterhouseCoopers LLP
Calgary, Alberta
Legal Counsel
Norton Rose Fulbright Canada LLP
Calgary, Alberta
Evaluation Engineers
GLJ Petroleum Consultants Ltd.
Calgary, Alberta
Sproule Associates Ltd.
Calgary, Alberta
Registrar and Transfer Agent
Investors are encouraged to contact Crescent Point's Registrar and Transfer Agent for information regarding their security holdings:
Computershare Trust Company of Canada
600, 530 - 8th Avenue S.W.
Calgary, Alberta T2P 3S8
Tel: (403) 267-6800
Stock Exchanges
Toronto Stock Exchange - TSX
New York Stock Exchange - NYSE
Stock Symbol
CPG
Investor Contacts
Brad Borggard
Senior Vice President, Corporate Planning and Capital Markets
(403) 693-0020
Shant Madian
Vice President, Investor Relations and Corporate Communications
(403) 693-0020



CRESCENT POINT ENERGY CORP.
22