Are Activist Investors Targeting Crescent Point Energy?

It appears some energy investors are starting to get impatient with Crescent Point Energy Corp (TSX:CPG)(NYSE:CPG).

After being one of the darlings of Canada’s oilpatch for years, things haven’t gone so smoothly for the last little while. Investors are growing weary of management’s promises that production growth is coming, and recent weakness affecting the whole sector hasn’t helped. Total average production actually fell in the company’s most recent quarter.

Crescent Point shares have taken this sentiment on the chin, falling 14% thus far in 2017.

Things have gotten so bad that rumours have begun to swirl about the company being targeted by activist investors, a notion CEO Scott Saxberg firmly squashed on Thursday. He told analysts in the company’s quarterly conference call: "we always welcome feedback and engagement with our shareholders. We have not, in our entire history, ever been approached by an activist and that’s all I can say about that."

Market rumours disagree with Saxberg, however. A newsletter specializing in mergers and acquisitions reported last week a U.S. activist shareholder was poised to start harassing management. Speculators may also be buoyed by Saxberg’s "that’s all I can say about that" comment, which may imply that he knows more than he’s letting on.

At this point, all investors have is whispers. While there’s often something there when we hear reports like these, it appears these rumours are on shaky ground.