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Actionable news in CPG: CRESCENT POINT ENERGY Corp,

Crescent Point Energy Corp CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

The following excerpt is from the company's SEC filing.

Three months ended September 30

Nine months ended September 30

(UNAUDITED) (Cdn$000s, except per share amounts)

REVENUE AND OTHER INCOME

Oil and gas sales

730,287

1,103,029

2,120,078

3,279,838

Royalties

(115,468

(205,102

(332,524

(588,179

Oil and gas revenue

614,819

897,927

1,787,554

2,691,659

Derivative gains (losses)

16, 22

617,019

222,080

583,740

(124,735

Other income (loss)

(6,536

(12,611

10,975

(3,716

1,225,302

1,107,396

2,382,269

2,563,208

EXPENSES

Operating

202,499

163,805

529,194

469,196

Transportation

38,610

29,616

103,268

85,605

General and administrative

28,560

21,754

81,725

69,074

Interest on long-term debt

38,060

28,112

105,010

75,569

Foreign exchange loss

169,371

69,870

267,322

73,586

Share-based compensation

11,577

47,106

59,961

Depletion, depreciation, amortization and impairment

1,035,975

438,723

1,860,645

1,222,663

Accretion

18,111

15,238

1,531,583

763,998

3,012,381

2,070,892

Net income (loss) before tax

(306,281

343,398

(630,112

492,316

Tax expense (recovery)

Current

Deferred

(104,930

85,339

(142,471

104,776

(201,365

258,059

(487,877

387,535

Other comprehensive income

Items that may be subsequently reclassified to profit or loss

Foreign currency translation of foreign operations

141,346

85,595

266,889

86,602

Comprehensive income (loss)

(60,019

343,654

(220,988

474,137

Net income (loss) per share

Diluted

See accompanying notes to the consolidated financial statements.

CRESCENT POINT ENERGY CORP.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

Shareholders’ capital

Contributed surplus

Deficit

Accumulated other comprehensive income

Total

shareholders’

equity

December 31, 2014

14,157,519

118,045

(4,357,053

242,378

10,160,889

Issued for cash

660,060

Issued on capital acquisitions

541,938

Issued pursuant to the DRIP

and SDP

261,726

270,173

Redemption of restricted shares

79,994

(81,304

(1,304

Share issue costs, net of tax

(20,558

62,849

Forfeit of restricted shares

(1,704

Dividends ($1.81 per share)

(867,568

Foreign currency translation adjustment

September 30, 2015

15,680,679

97,886

(5,704,045

509,267

10,583,787

December 31, 2013

11,990,305

109,564

(3,692,437

92,641

8,500,073

800,079

974,164

250,310

69,257

(70,510

(24,678

75,589

Dividends ($2.07 per share)

(864,167

September 30, 2014

14,059,437

114,143

(4,167,982

179,243

10,184,841

Premium Dividend

and Dividend Reinvestment Plan.

Share Dividend Plan.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED) (Cdn$000s)

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

Items not affecting cash

Other (income) loss

(10,975

Deferred tax expense (recovery)

Unrealized gains on derivatives

(443,153

(260,956

(130,614

(43,175

Unrealized loss on foreign exchange

170,014

69,417

269,713

71,411

Decommissioning expenditures

(3,557

(10,813

(10,965

(28,123

Change in non-cash working capital

68,671

(21,414

18,358

547,186

583,084

1,437,531

1,803,705

INVESTING ACTIVITIES

Development capital and other expenditures

(330,624

(575,861

(1,239,884

(1,449,633

Capital acquisitions, net

(2,932

(490,647

(20,026

(828,225

Other long-term assets

(4,649

(2,004

(17,505

Investments

(89,891

108,112

(200,712

(59,983

(428,096

(960,400

(1,457,060

(2,355,346

FINANCING ACTIVITIES

Issue of shares, net of issue costs

(1,525

766,687

630,903

765,415

Increase (decrease) in long-term debt

114,156

(188,541

72,621

396,786

Cash dividends

(145,908

(212,035

(597,396

(613,857

(65,466

(52,236

11,136

(98,743

371,315

53,892

559,480

Impact of foreign currency on cash balances

INCREASE (DECREASE) IN CASH

22,066

(5,276

38,738

CASH AT BEGINNING OF PERIOD

20,625

30,030

15,941

CASH AT END OF PERIOD

42,691

24,754

Supplementary Information:

Cash taxes (paid) recovered

Cash interest paid

(22,038

(20,767

(88,550

(67,123

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2015 (UNAUDITED)

STRUCTURE OF THE BUSINESS

The principal undertakings of Crescent Point Energy Corp. (the “Company” or “Crescent Point”) are 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 company and is amalgamated in Alberta, Canada under the Alberta Business Corporations Act. The address of the principal place of business is 2000, 585 - 8

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 November 4, 2015.

BASIS OF PREPARATION

These interim consolidated financial statements of the Company are prepared in accordance with 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, 2014. 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, 2014.

The policies applied in these interim consolidated financial statements are based on IFRS issued and outstanding as of November 4, 2015, 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 dollars. Crescent Point's operations are aggregated into one reportable segment based on the similar nature of products produced, production processes and economic characteristics between the Company's Canadian and U.S. operations.

CHANGES IN ACCOUNTING POLICIES

In future accounting periods, the Company will adopt the following IFRS:

IFRS 15

Revenue from Contracts with Customers

- IFRS 15 was issued in May 2014 and replaces IAS 18

, IAS 11

Construction Contracts

and related interpretations. The standard is required to be adopted either retrospectively or using a modified transaction approach. In September 2015, the IASB amended IFRS 15, deferring the effective date of the standard by one year to annual periods beginning on or after January 1, 2018 with early adoption still permitted. IFRS 15 will be adopted by the Company on January 1, 2018 and the Company is currently evaluating the impact of the standard on the consolidated financial statements.

IFRS 9

Financial Instruments

- IFRS 9 was amended in July 2014 to include guidance to assess and recognize impairment losses on financial assets based on an expected loss model. The amendments are effective for fiscal years beginning on or after January 1, 2018 with earlier adoption permitted. This amendment will be adopted by the Company on January 1, 2018 and the Company is currently evaluating the impact of the amendment on the consolidated financial statements.

LONG-TERM INVESTMENTS

($000s)

Investments in public companies, beginning of period

21,024

24,259

Acquired through capital acquisitions

Dispositions

(1,295

Unrealized loss recognized in other income (loss)

(1,581

(3,235

Investments in public companies, end of period

20,704

Investments in private companies, beginning of period

28,854

49,970

Derecognized through capital acquisitions

(6,957

(7,147

(21,116

Investments in private companies, end of period

14,750

Long-term investments, end of period

35,454

49,878

Public Companies

The Company holds common shares in publicly traded oil and gas companies. The investments are classified as financial assets at fair value through profit or loss and are fair valued with the resulting gain or loss recorded in net income. At September 30, 2015, the investments are recorded at a fair value of $20.7 million which is $10.2 million more than the original cost of the investments. At December 31, 2014, the investments were recorded at a fair value of $21.0 million which was $82.9 million less than the original cost of the investment.

Private Companies

The Company holds common shares in a private oil and gas company. The investment is classified as financial assets at fair value through profit or loss and is fair valued with the resulting gain or loss recorded in net income. At September 30, 2015, the investment is recorded at a fair value of $14.8 million which is $10.3 million less than the original cost of the investment. At December 31, 2014, the investments were recorded at a fair value of $28.9 million which was $38.1 million less than the original cost of the investments. See Note 22 - "Financial Instruments and Derivatives" for additional information regarding the Company's Level 3 investments.

OTHER LONG-TERM ASSETS

September 30, 2015

Reclamation fund

47,810

47,800

Other receivables

11,557

11,777

59,367

59,577

The following table reconciles the reclamation fund:

Balance, beginning of period

26,181

Contributions

17,806

60,318

Expenditures

(19,113

(38,699

Balance, end of period

At September 30, 2015, the Company had investment tax credits of $11.6 million (December 31, 2014 - $11.8 million).

EXPLORATION AND EVALUATION ASSETS

Exploration and evaluation assets at cost

1,969,577

1,789,812

Accumulated amortization

(1,352,052

(1,167,303

Net carrying amount

617,525

622,509

Reconciliation of movements during the period

Cost, beginning of period

1,590,298

Accumulated amortization, beginning of period

(901,974

Net carrying amount, beginning of period

688,324

Acquisitions through business combinations, net

162,268

65,029

Additions

327,806

578,942

Transfers to property, plant and equipment

(385,475

(486,466

Amortization

(148,876

(248,854

39,293

25,534

Net carrying amount, end of period

Exploration and evaluation ("E&E") assets consist of the Company's undeveloped land and exploration projects which are pending the determination of technical feasibility. Additions represent the Company's share of the cost of E&E assets. At September 30, 2015, $617.5 million remains in E&E assets after $385.5 million was transferred to property, plant and equipment ("PP&E") following the determination of technical feasibility during the nine months ended September 30, 2015 (year ended December 31, 2014

$622.5 million and $486.5 million, respectively).

Impairment test of exploration and evaluation assets

There were no indicators of impairment at September 30, 2015.

CAPITAL ACQUISITIONS AND DISPOSITIONS

If the material business combinations outlined below under Corporate Acquisitions had closed on January 1, 2015, Crescent Point's oil and gas sales and oil and gas sales less royalties, transportation and operating expenses for the nine months ended September 30, 2015 would have been approximately $2.3 billion and $1.2 billion, respectively. This pro-forma information is not necessarily indicative of the results should the material business combinations have actually occurred on January 1, 2015.

In the nine months ended September 30, 2015, the Company incurred $11.2 million (September 30, 2014 - $13.1 million) of transaction costs related to business combinations that are recorded as general and administrative expenses.

a) Corporate Acquisitions

Legacy Oil + Gas Inc.

On June 30, 2015, Crescent Point completed the acquisition, by way of plan of arrangement, of all issued and outstanding common shares of Legacy Oil + Gas Inc. ("Legacy"), a public oil and gas company with properties in southeast Saskatchewan, Manitoba, Alberta and North Dakota. Consideration has been allocated as follows:

Fair value of net assets acquired

Working capital

(8,865

Property, plant and equipment

1,354,252

95,385

Deferred income tax asset

108,875

Long-term debt

(983,719

Other long-term liabilities

(6,793

Decommissioning liability

(76,023

Total net assets acquired

486,985

Shares issued (18,229,428 common shares)

467,585

Accrued cash consideration

19,400

Total purchase price

The above amounts are estimates, which were made by management at the time of the preparation of these financial statements based on information then available. Amendments may be made as amounts subject to estimates are finalized.

Total net assets acquired excludes approximately $35.0 million of commitments related to a building lease and approximately $2.9 million related to capital commitments.

Oil and gas sales and oil and gas sales less royalties, transportation and operating expenses from the acquisition date to September 30, 2015 includes $69.4 million and $30.6 million, respectively, attributable to the Legacy acquisition.

Coral Hill Energy Ltd.

On August 14, 2015, Crescent Point completed the acquisition, by way of plan of arrangement, of all remaining issued and outstanding common shares of Coral Hill Energy Ltd. ("Coral Hill"), a private oil and gas company with properties in Alberta. Consideration has been allocated as follows:

118,650

54,147

52,914

(130,514

(4,374

92,667

Crescent Point's previously held investment

Shares issued (4,283,680 common shares)

73,208

Gain on acquisition recognized in other income (loss)

12,502

Oil and gas sales and oil and gas sales less royalties, transportation and operating expenses from the acquisition date to September 30, 2015 includes $5.2 million and $2.3 million, respectively, attributable to the Coral Hill acquisition.

b) Minor Property Acquisitions and Dispositions

Crescent Point completed minor property acquisitions and dispositions during the nine months ended September 30, 2015 ($12.4 million was allocated to PP&E and $12.7 million was allocated to E&E assets, including $0.2 million related to decommissioning liability and $6.3 million related to gain on capital acquisitions). These minor property acquisitions and dispositions were completed with full tax pools and no working capital items.

PROPERTY, PLANT AND EQUIPMENT

Development and production assets

23,158,422

19,891,460

Corporate assets

99,072

87,692

Property, plant and equipment at cost

23,257,494

19,979,152

Accumulated depletion, depreciation and impairment

(7,559,912

(5,729,090

15,697,582

14,250,062

14,964,220

Accumulated depletion and impairment, beginning of period

(5,708,032

(3,715,311

14,183,428

11,248,909

1,485,548

2,420,584

1,047,847

1,871,391

Transfers from exploration and evaluation assets

(1,149,843

(1,380,412

(555,681

(588,200

229,354

124,973

15,625,906

Cost, end of period

Accumulated depletion and impairment, end of period

(7,532,516

26,176

Accumulated depreciation, beginning of period

(21,058

(15,938

66,634

10,238

11,008

61,408

Depreciation

(6,245

(5,090

71,676

Accumulated depreciation, end of period

(27,396

At September 30, 2015, future development costs of $8.2 billion (December 31, 2014 - $6.9 billion) are included in costs subject to depletion.

Direct general and administrative costs capitalized by the Company during the nine months ended September 30, 2015 were $35.6 million (year ended December 31, 2014 - $41.3 million), including $13.7 million of share-based compensation costs (year ended December 31, 2014 - $18.0 million).

Impairment test of property, plant and equipment

At September 30, 2015, the significant decrease in forecast benchmark commodity prices as compared to December 31, 2014 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 the respective assets.

For the purposes of determining whether impairment of assets has occurred, and the extent of any impairment or its reversal, management exercises their judgment in estimating future cash flows for the recoverable amount, being the higher of fair value less costs of disposal and value in use. These key judgments include estimates about recoverable reserves, forecast benchmark commodity prices, royalties, operating costs and discount rates. The fair value less costs of disposal and value in use estimates are categorized as Level 3 according to the IFRS 13 fair value hierarchy.

Forecast benchmark commodity price assumptions tend to be stable because short-term increases or decreases in prices are not considered indicative of long-term price levels, but are nonetheless subject to change.

The following table outlines the forecast benchmark commodity prices and the exchange rate used in the impairment calculation of property, plant and equipment at September 30, 2015. The Company used an average after-tax discount rate of approximately nine percent.

Q4 2015

WTI ($US/bbl)

Exchange Rate ($US/$Cdn)

WTI ($Cdn/bbl)

101.39

102.92

AECO ($Cdn/MMbtu)

The forecast benchmark commodity prices...


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