Crescent Point Energy (CPG) has raised its quarterly dividend by more than 40% as its profits climb with oil and gas prices.
High commodity prices fueled by the war in Ukraine lifted the Calgary-based oil producer to strong first-quarter earnings for the three months ended March 31.
The company reported net income for the first quarter of $1.18 billion, or $2.03 per share, up from a profit of $21.7 million or $0.04 per share a year ago.
On the back of the positive earnings, Crescent Point Energy raised its quarterly dividend to $0.065 per share, up from $0.045 a share previously.
The company said it will soon be in a position to increase shareholder returns even more once it hits its net debt target later this year.
On a conference call with analysts, Crescent Point Energy chief executive officer (CEO) Craig Bryksa said given strong commodity prices and the company's recent performance, Crescent Point now expects to reach its net debt target of $1.3 billion in the third quarter of this year.
Total oil and gas revenue for Crescent Point Energy during Q1 was $978.4 million, up from $547.5 million in the same quarter last year.
Average daily production in the first quarter was 132,788 barrels of oil equivalent per day, up from 119,384 in the same quarter last year, while the company's average selling price was $91.43 U.S. per barrel of oil equivalent, up from $58.65 U.S. a year ago.
