Crescent Point Q3

Crescent Point Energy Trust(TSX: CPG:UN) Q3 report was published yesterday

(000's)

fundsflow from operations C$ 183 843 (+99%)

net income per unit C$ 3,92 (+2078%)

operating netback C$ 58.52 (+41%)

Payout ratio per unit 48% (-19%)

Net debt 672 812 (+223%)

Outlook:
"Crescent Point is well positioned to withstand the current market uncertainty and to take advantage of acquisition opportunities. Crescent Point’s balance sheet is strong with projected 2009 net debt to 12 month cash flow of 1.1 times and its
3½ year risk management program provides cash flow stability. The Trust’s 10 year drilling inventory and current 140 well fracture stimulation inventory provide long term sustainability and capital investment flexibility at oil prices well below current levels.
In light of the uncertainty over capital markets and commodity prices, Crescent Point does not anticipate finalizing its 2009 capital expenditure budget until December of 2008. However, Crescent Point expects to spend less capital in 2009 than in
2008, with most of the reductions coming in the areas of facilities and land. Approximately 40 percent of the Trust’s 2008 budget was directed toward facilities and land. Despite expectations of lower capital spending in 2009, Crescent Point expects 2009 average production to be in the range of 37,500 boe/d and expects to exceed this level in the fourth quarter of 2008."

Report(.pdf)

Comments:
Average daily production grew 36% compared with Q3/07 to 37 630 boe(mostly light oil). The production figure doesn't include CPG's 20% equity production(~150 bbl/d) from Shelter Bay.
CPG's high quality assets and hedging should ensure that there will be no cuts in the distributions. My intent is to increase my CPG position significantly by the end of the year.