Production growth has been taking place at Crescent Point Energy (TSX:CPG) through both acquisitions and operational advancements. Last year, the company added to its stateside portfolio by purchasing acreage in Utah’s Uinta Basin. These assets have performed well beyond Crescent Point’s initial estimates, and this has helped management boost guidance midyear.
Another reason why production has been growing within this company is its use of waterflooding. Much like its Canadian counterpart, Legacy Oil and Gas (TSX:LEG), Crescent Point has been using this enhanced oil recovery technique to much success early on. Reserves have grown along with production as a result of this method. As the company continues rolling it out across its portfolio, investors growing confidence in this high-yielding, Canadian stock should keep pace with the company’s performance.
For The Motley Fool Canada’s FREE special report on investing in a niche energy play, click here to download your copy of “Fuel Your Portfolio With This Energetic Commodity.”
Neither Joel South nor Taylor Muckerman owns shares of any companies mentioned.
