What happened

Shares of Crescent Point Energy Corp. (NYSE:CPG) surged more than 12% by 12:30 p.m. EDT on Thursday after the Canadian oil company posted solid third-quarter results.

So what

Crescent Point Energy reported funds flow from operations of 474.7 million Canadian dollars ($362.9 million), or CA$0.86 per share ($0.66), for the third quarter. That was more than enough money to cover its CA$416 million ($318 million) in capital expenditures for the quarter. Further, it was well ahead of the year-ago quarter, when funds flow was CA$389 million ($271.4 million), or $0.71 per share ($0.51), due to higher oil prices. 

An oil pump in a field with the mountains in the background.

Image source: Getty Images.

Production, meanwhile, averaged 174,275 barrels of oil equivalent per day (BOE/d). While that was down 1% from the year-ago quarter, that's mainly due to asset sales, which impacted production by 4,800 BOE/d in the quarter. After adjusting for those sales, output was slightly ahead of the company's expectation for the quarter.

Crescent Point Energy recently completed a strategic review of its portfolio, where it identified several more noncore assets that it could sell. The company plans to market these properties in the coming quarters and use the proceeds to pay down debt. It aims to get its net debt–to–funds flow from operations ratio down to a target of 1.3 times or less in the next two years, which is nearly half of its current 2.1 times ratio.

Now what

Crescent Point Energy is working toward a goal of becoming a more focused and efficient oil company with a stronger balance sheet. While the company has a plan in place, it has some work to do before it achieves its goal. Because of that, investors might want to consider buying one of these top oil stocks instead.

Matthew DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.