It is with great sadness – ok, that's a bit of exaggeration – that I must liquidate my position in Crescent Point Energy (TSX: CPG ) . It seems the fact that it is traded on the Toronto Stock Exchange has presented the Fool with some bookkeeping issues. Since my original post, the company is down slightly, but my thesis remains unchanged on the company.
What investors are buying when adding Crescent Point to a portfolio is a growing energy player that treats investors to a meaningful dividend in comparison to other exploration & production companies. Drilling in both Canada and the U.S. is expected to expand at CPG in some fairly lucrative plays – e.g., the Canadian Bakken and the Uinta basin in Utah. With waterflooding just getting under way in these regions, it is unlikely that growth rates are anywhere near their peak. I hope investors in Crescent Point realize the full potential that I believe exists here.