Exhibit  99.2


MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING





The management of Crescent Point Energy Corp. is responsible for the preparation of the consolidated financial statements. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and include certain estimates that reflect management’s best estimates and judgments. Management has determined such amounts on a reasonable basis in order to determine that the consolidated financial statements are presented fairly in all material respects.





Management has developed and maintains an extensive system of internal accounting controls that provide reasonable assurance that all transactions are accurately recorded, that the consolidated financial statements realistically report the Company’s operating and financial results, and that the Company’s assets are safeguarded. Management believes that this system of internal controls has operated effectively for the year ended December 31, 2013. The Company has effective disclosure controls and procedures to ensure timely and accurate disclosure of material information relating to the Company which complies with the requirements of Canadian securities legislation.





PricewaterhouseCoopers LLP, an independent firm of chartered accountants, was appointed by a resolution of the Board of Directors to audit the consolidated financial statements of the Company and to provide an independent professional opinion. PricewaterhouseCoopers LLP was appointed to hold such office until the next annual meeting of the shareholders of the Company.





The Board of Directors, through its Audit Committee, has reviewed the consolidated financial statements including notes thereto with management and PricewaterhouseCoopers LLP. The members of the Audit Committee are composed of independent directors who are not employees of the Company. The Board of Directors has approved the information contained in the consolidated financial statements based on the recommendation of the Audit Committee.


Scott SaxbergPresident and Chief Executive OfficerGreg TisdaleChief Financial Officer





March 11, 2014





CRESCENT POINT ENERGY CORP.1


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INDEPENDENT AUDITOR’S REPORT








To the Shareholders of Crescent Point Energy Corp.





We have audited the accompanying consolidated financial statements of Crescent Point Energy Corp. and its subsidiaries, which comprise the consolidated balance sheets as at December 31, 2013 and December 31, 2012 and the consolidated statements of comprehensive income, changes in shareholders’ equity and cash flows for the years then ended, and the related notes, which comprise a summary of significant accounting policies and other explanatory information.





Management’s responsibility for the consolidated financial statements


Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.





Auditor’s responsibility


Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.





An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.





We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.





Opinion


In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Crescent Point Energy Corp. and its subsidiaries as at December 31, 2013 and December 31, 2012 and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

















(signed)


PricewaterhouseCoopers LLP


Chartered Accountants


Calgary, Alberta


March 11, 2014














CRESCENT POINT ENERGY CORP.2


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CONSOLIDATED BALANCE SHEETS


As at December 31(Cdn$000s)Notes20132012ASSETSCash15,941-Accounts receivable352,519301,770Prepaids and deposits5,5328,484Derivative asset223,12619,457Total current assets377,118329,711Long-term investments574,22984,906Derivative asset2248,09842,241Other long-term assets637,95822,232Exploration and evaluation7, 8688,3241,080,757Property, plant and equipment8, 911,259,14710,319,868Goodwill10251,919251,919Total assets12,736,79312,131,634LIABILITIESAccounts payable and accrued liabilities789,305655,191Dividends payable1390,84986,182Derivative liability2299,38815,349Decommissioning liability1218,469-Total current liabilities998,011756,722Long-term debt111,734,1141,474,589Derivative liability2225,8468,483Long-term compensation liability203,0721,931Decommissioning liability12611,069502,432Deferred income tax19864,608792,665Total liabilities4,236,7203,536,822SHAREHOLDERS’ EQUITYShareholders’ capital1311,990,30511,249,168Contributed surplus109,564102,755Deficit14(3,692,437)(2,755,832)Accumulated other comprehensive income (loss)92,641(1,279)Total shareholders' equity8,500,0738,594,812Total liabilities and shareholders' equity12,736,79312,131,634


Commitments (Note 24)


See accompanying notes to the consolidated financial statements.


Approved on behalf of the Board of Directors:


Gerald A. RomanzinDirectorD. Hugh GillardDirector





CRESCENT POINT ENERGY CORP.3


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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


For the years ended December 31(Cdn$000s, except per share amounts)Notes20132012REVENUE AND OTHER INCOMEOil and gas sales3,526,4482,694,994Royalties(644,240)(468,226)Oil and gas revenue2,882,2082,226,768Derivative gains (losses)16, 22(202,747)168,120Other loss17(10,064)(60,455)2,669,3972,334,433EXPENSESOperating505,060421,125Transportation95,31766,147General and administrative67,46663,384Interest on long-term debt77,75471,530Foreign exchange (gain) loss1864,505(2,792)Share-based compensation2067,75251,141Depletion, depreciation, amortization and impairment7, 91,558,8991,443,982Accretion on decommissioning liability14,16211,2452,450,9152,125,762Net income before tax218,482208,671Tax expense (recovery)Current19173(1,418)Deferred1973,43319,436Net income144,876190,653Other comprehensive income (loss)Items that may be subsequently reclassified to profit or lossForeign currency translation of foreign operations93,920(9,144)Comprehensive income238,796181,509Net income per share21Basic0.380.58Diluted0.370.57


See accompanying notes to the consolidated financial statements.


CRESCENT POINT ENERGY CORP.4


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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY


(Cdn$000s)NotesShareholders’ capitalContributed surplusDeficitAccumulated other comprehensive income (loss)Total shareholders’ equityDecember 31, 201211,249,168102,755(2,755,832)(1,279)8,594,812Issued pursuant to the DRIP(1)13659,140659,140Redemption of restricted shares1382,395(82,887)70(422)Share issue costs, net of tax(398)(398)Share-based compensation2089,74989,749Forfeit of restricted shares20(53)(53)Net income144,876144,876Dividends ($2.76 per share)(1,081,551)(1,081,551)Foreign currency translation adjustment93,92093,920December 31, 201311,990,305109,564(3,692,437)92,6418,500,073December 31, 20117,706,268126,034(2,023,751)7,8655,816,416Issued for cash2,036,9082,036,908Issued on capital acquisitions919,351919,351Issued pursuant to the DRIP(1)564,086564,086Redemption of restricted shares84,380(91,395)8,6661,651Share issue costs, net of tax(61,825)(61,825)Share-based compensation67,00567,005Forfeit of restricted shares1,1111,111Net income190,653190,653Dividends ($2.76 per share)(931,400)(931,400)Foreign currency translation adjustment(9,144)(9,144)December 31, 201211,249,168102,755(2,755,832)(1,279)8,594,812


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|(1) | Premium DividendTMand Dividend Reinvestment Plan

See accompanying notes to the consolidated financial statements.


CRESCENT POINT ENERGY CORP.5


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CONSOLIDATED STATEMENTS OF CASH FLOWS


For the years ended December 31(Cdn$000s)Notes20132012CASH PROVIDED BY (USED IN) OPERATING ACTIVITIESNet income144,876190,653Items not affecting cashOther loss1710,06460,455Deferred tax expense73,43319,436Share-based compensation2067,75251,141Depletion, depreciation, amortization and impairment1,558,8991,443,982Accretion on decommissioning liability14,16211,245Unrealized (gains) losses on derivatives16, 22111,876(185,724)Unrealized (gain) loss on foreign exchange1860,994(5,774)Decommissioning expenditures(11,375)(12,096)Change in non-cash working capital26(57,349)(29,375)1,973,3321,543,943INVESTING ACTIVITIESDevelopment capital and other expenditures(1,746,873)(1,509,029)Capital acquisitions, net8(127,415)(1,855,721)Other long-term assets(15,726)(3,323)Investments-539Change in non-cash working capital26152,17376,743(1,737,841)(3,290,791)FINANCING ACTIVITIESIssue of shares, net of issue costs(1,033)1,946,186Increase in long-term debt198,547148,868Cash dividends(422,411)(367,314)Change in non-cash working capital264,66719,936(220,230)1,747,676Impact of foreign currency on cash balances680(828)INCREASE IN CASH15,941-CASH AT BEGINNING OF YEAR--CASH AT END OF YEAR15,941-


See accompanying notes to the consolidated financial statements.





Supplementary Information: Cash taxes recovered-1,646Cash interest paid(77,028)(68,035)





CRESCENT POINT ENERGY CORP.6


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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


December 31, 2013 and 2012


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|1. | STRUCTURE OF THE BUSINESS

The principal undertakings of Crescent Point Energy Corp. (the “Company” or “Crescent Point”) are to carry on the business of acquiring, developing and holding interests in petroleum and natural gas properties and assets related thereto through a general partnership and wholly owned subsidiaries.


Crescent Point is the ultimate parent company and is amalgamated in Alberta, Canada under the Alberta Business Corporations Act. The address of the principal place of business is 2800, 111 - 5 th Ave S.W., Calgary, Alberta, Canada, T2P 3Y6.


These annual consolidated financial statements were approved and authorized for issue by the Company's Board of Directors on March 11, 2014.


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|2. | BASIS OF PREPARATION

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|a) | Preparation

These consolidated financial statements are presented under International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). The policies applied in these consolidated financial statements are based on IFRS issued and outstanding as of March 11, 2014, the date the Board of Directors approved the statements.


The Company’s presentation currency is Canadian dollars and all amounts reported are Canadian dollars unless noted otherwise. References to “US$” are to United States dollars. Crescent Point's operations are aggregated into one reportable segment based on the similarities between the Company's Canadian and U.S. operations.


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|b) | Basis of measurement, functional and presentation currency

The Company’s presentation currency is Canadian dollars. The accounts of the Company’s foreign operations that have a functional currency different from the Company’s presentation currency are translated into the Company’s presentation currency at period end exchange rates for assets and liabilities and at the average rate over the period for revenues and expenses. Translation gains and losses relating to the foreign operations are recognized in Other Comprehensive Income (“OCI”) as cumulative translation adjustments.


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|c) | Use of estimates and judgments

The preparation of consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future years affected. Significant estimates and judgments made by management in the preparation of consolidated financial statements are outlined below.


Oil and gas activities


Reserves estimates, although not reported as part of the Company’s consolidated financial statements, can have a significant effect on net income, assets and liabilities as a result of their impact on depletion, depreciation and amortization (“DD&A”), decommissioning liability, deferred taxes, asset impairments and business combinations. Independent petroleum reservoir engineers perform evaluations of the Company’s oil and gas reserves on an annual basis. The estimation of reserves is an inherently complex process requiring significant judgment. Estimates of economically recoverable oil and gas reserves are based upon a number of variables and assumptions such as geoscientific interpretation, production forecasts, commodity prices, costs and related future cash flows, all of which may vary considerably from actual results. These estimates are expected to be revised upward or downward over time, as additional information such as reservoir performance becomes available, or as economic conditions change.


For purposes of impairment testing, property, plant and equipment (“PP&E”) is aggregated into cash-generating units (“CGUs”), based on separately identifiable and largely independent cash inflows. The determination of the Company’s CGUs is subject to judgment. Factors considered in the classification of CGUs include the integration between assets, shared infrastructures, the existence of common sales points, geography, geologic structure and the manner in which management monitors and makes decisions regarding operations.


The determination of technical feasibility and commercial viability, based on the presence of reserves and which results in the transfer of assets from exploration and evaluation ("E&E") to PP&E, is subject to judgment.


Decommissioning liability


Upon retirement of its oil and gas assets, the Company anticipates incurring substantial costs associated with decommissioning. Estimates of these costs are subject to uncertainty associated with the method, timing and extent of future decommissioning activities. The liability, the related asset and the expense are impacted by estimates with respect to the cost and timing of decommissioning.


CRESCENT POINT ENERGY CORP.7


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Business combinations


Business combinations are accounted for using the acquisition method of accounting. The determination of fair value often requires management to make assumptions and estimates about future events. The assumptions and estimates with respect to determining the fair value of PP&E and E&E assets acquired generally require the most judgment and include estimates of reserves acquired, forecast benchmark commodity prices, and discount rates. Changes in any of the assumptions or estimates used in determining the fair value of acquired assets and liabilities could impact the amounts assigned to assets, liabilities and goodwill. Future net earnings can be affected as a result of changes in future DD&A, asset impairment or goodwill impairment.


Fair value measurement


The estimated fair value of derivative instruments resulting in derivative assets and liabilities, by their very nature, are subject to measurement uncertainty. Estimates included in the determination of the fair value of derivative instruments include forward benchmark prices, discount rates and forward foreign exchange rates.


Joint control


Judgment is required to determine when the Company has joint control over an arrangement, which requires an assessment of the capital and operating activities of the projects it undertakes with partners and when the decisions in relation to those activities require unanimous consent.


Share-based compensation


Compensation costs recorded pursuant to share-based compensation plans are subject to estimated fair values, forfeiture rates and the future attainment of performance criteria.


Income taxes


Tax regulations and legislation and the interpretations thereof are subject to change. In addition, deferred income tax liabilities recognize the extent that temporary differences will be payable in future periods. The calculation of the liability involves a significant amount of estimation including an evaluation of when the temporary differences will reverse, an analysis of the amount of future taxable earnings, the availability of cash flows and the application of tax laws. Changes in tax regulations and legislation and the other assumptions listed are subject to measurement uncertainty.


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|3. | SIGNIFICANT ACCOUNTING POLICIES

The accounting policies set out below have been applied consistently by the Company and its subsidiaries for all periods presented in these annual consolidated financial statements.


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|a) | Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries and any reference to the “Company” throughout these consolidated financial statements refers to the Company and its subsidiaries. All transactions between the Company and its subsidiaries have been eliminated.


The Company conducts many of its oil and gas production activities through jointly controlled operations and the financial statements reflect only the Company's proportionate interest in such activities. Joint control exists for contractual arrangements governing the Company's assets whereby the Company has less than 100 percent working interest, all of the partners have control of the arrangement collectively, and spending on the project requires unanimous consent of all parties that collectively control the arrangement and share the associated risks. The Company does not have any joint arrangements that are material to the Company or that are structured through joint venture arrangements.


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|b) | Property, Plant and Equipment

Items of PP&E, which primarily consist of oil and gas development and production assets, are measured at cost less accumulated depletion, depreciation and any accumulated impairment losses. Development and production assets are accumulated into major area cost centres and represent the cost of developing the commercial reserves and initiating production.


Costs incurred subsequent to the determination of technical feasibility and commercial viability and the costs of replacing parts of PP&E are recognized as development and production assets only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures are recognized in net income as incurred. Capitalized development and production assets generally represent costs incurred in developing reserves and initiating or enhancing production from such reserves. The carrying amount of any replaced or sold component is derecognized.


Depletion and Depreciation


Development and production costs accumulated within major areas are depleted using the unit-of-production method based on estimated proved plus probable reserves before royalties, as determined by independent petroleum reservoir engineers. Natural gas reserves and production are converted to equivalent barrels of oil based upon the relative energy content (6:1). The depletion base includes capitalized costs, plus future costs to be incurred in developing proved plus probable reserves.


Corporate assets are depreciated over 5 years on a straight-line basis.


CRESCENT POINT ENERGY CORP.8


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Impairment


The carrying amounts of PP&E are grouped into CGUs and reviewed quarterly for indicators of impairment. Indicators are events or changes in circumstances that indicate the carrying amount may not be recoverable. If indicators of impairment exist, the recoverable amount of the CGU is estimated. If the carrying amount of the CGU exceeds the recoverable amount, the CGU is written down with an impairment recognized in net income.


Assets are grouped into CGUs based on the integration between assets, shared infrastructures, the existence of common sales points, geography, geologic structure and the manner in which management monitors and makes decisions regarding operations. Estimates of future cash flows used in the calculation of the recoverable amount are based on reserve evaluation reports prepared by independent petroleum reservoir engineers. The recoverable amount is the higher of fair value less costs of disposal and the value-in-use. Fair value less costs of disposal is derived by estimating the discounted after-tax future net cash flows. Discounted future net cash flows are based on forecasted commodity prices and costs over the expected economic life of the reserves and discounted using market-based rates to reflect a market participant’s view of the risks associated with the assets. Value-in-use is assessed using the expected future cash flows discounted at a pre-tax rate.


Impairment losses recognized in prior periods, other than goodwill impairments, are assessed at each reporting date for any indicators that the impairment losses may no longer exist or may have decreased. In the event that an impairment loss reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the carrying amount does not exceed the amount that would have been determined, net of depletion, had no impairment loss been recognized on the asset in prior periods. The amount of the reversal is recognized in net earnings.


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|c) | Exploration and Evaluation

Exploration and evaluation assets are comprised of the accumulated expenditures incurred in an area where technical feasibility and commercial viability has not yet been determined. Exploration and evaluation assets include undeveloped land and any drilling costs thereon.


Technical feasibility and commercial viability are considered to be determinable when reserves are discovered. Upon determination of reserves, E&E assets attributable to those reserves are first tested for impairment and then reclassified from E&E assets to PP&E.


Costs incurred prior to acquiring the legal rights to explore an area are expensed as incurred.


Amortization


Undeveloped land classified as E&E is amortized by major area over the average primary lease term and recognized in net income. Drilling costs classified as E&E assets are not amortized but are subject to impairment.


Impairment


Exploration and evaluation assets are reviewed quarterly for indicators of impairment and upon reclassification from E&E to PP&E. Exploration and evaluation assets are tested for impairment at the operating segment level by combining E&E assets with PP&E. The recoverable amount is the greater of fair value less costs of disposal or value-in-use. Fair value less costs of disposal is derived by estimating the discounted after-tax future net cash flows as described in the PP&E impairment test, plus the fair market value of undeveloped land and seismic. Value-in-use is assessed using the present value of the expected future cash flows discounted at a pre-tax rate.


Impairments of E&E assets are reversed when there has been a subsequent increase in the recoverable amount, but only to the extent of what the carrying amount would have been had no impairment been recognized.


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|d) | Decommissioning Liability

The Company recognizes the present value of a decommissioning liability in the period in which it is incurred. The obligation is recorded as a liability on a discounted basis using the relevant risk free rate, with a corresponding increase to the carrying amount of the related asset. Over time, the liabilities are accreted for the change in their present value and the capitalized costs are depleted on a unit-of-production basis over the life of the underlying proved plus probable reserves. Accretion expense is recognized in net income. Revisions to the discount rate, estimated timing or amount of future cash flows would also result in an increase or decrease to the decommissioning liability and related asset.


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|e) | Reclamation Fund

The Company established a reclamation fund to fund future decommissioning costs and environmental emissions reduction costs. Effective January 1, 2013, the Board of Directors approved contributions of $0.70 per barrel of oil equivalent (“boe”) of production; prior to this, 2012 contributions were $0.50 per boe. Additional contributions can be made at the discretion of management.


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|f) | Goodwill

The Company records goodwill relating to business combinations when the purchase price exceeds the fair value of the net identifiable assets and liabilities of the acquired business. The goodwill balance is assessed for impairment annually or as events occur that could result in impairment. Goodwill is tested for impairment at an operating segment level by combining the carrying amounts of PP&E, E&E assets and goodwill and comparing this to the recoverable amount. The recoverable amount is the greater of fair value less costs of disposal or value-in-use. Fair value less costs of disposal is derived by estimating the discounted


CRESCENT POINT ENERGY CORP.9


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after-tax future net cash flows as described in the PP&E impairment test, plus the fair market value of undeveloped land and seismic. Value-in-use is assessed using the present value of the expected future cash flows discounted at a pre-tax rate. Any excess of the carrying amount over the recoverable amount is the impairment amount. Impairment charges, which are not tax affected, are recognized in net income. Goodwill is reported at cost less any accumulated impairment. Goodwill impairments are not reversed.


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|g) | Share-based Compensation

Restricted shares granted under the Restricted Share Bonus Plan are accounted for at fair value. Share-based compensation expense is determined based on the estimated fair value of shares on the date of grant. Forfeitures are estimated at the grant date and are subsequently adjusted to reflect actual forfeitures. The expense is recognized over the service period, with a corresponding increase to contributed surplus. The Company capitalizes the portion of share-based compensation directly attributable to development activities, with a corresponding decrease to share-based compensation expense. At the time the restricted shares vest, the issuance of shares is recorded as an increase to shareholders’ capital and a corresponding decrease to contributed surplus.


Deferred share units (“DSUs”) are accounted for at fair value. Share-based compensation expense is determined based on the estimated fair value of the DSUs on the date of the grant and subsequently adjusted to reflect the fair value at each period end. Fair value is based on the prevailing Crescent Point share price.


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|h) | Income Taxes

The Company follows the liability method of accounting for income taxes. Under this method, deferred income taxes are recognized for the estimated effect of any differences between the accounting and tax basis of assets and liabilities, using enacted or substantively enacted income tax rates expected to apply when the deferred tax asset or liability is settled. The effect of a change in income tax rates on deferred income taxes is recognized in net income in the period in which the change occurs.


The tax expense for the period comprises current and deferred tax. Tax is recognized in the income statement, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.


The Company is able to deduct certain settlements under its Restricted Share Bonus Plan. To the extent the tax deduction exceeds the cumulative remuneration cost for a particular restricted share grant recorded in net income, the tax benefit related to the excess is recorded directly within equity.


Deferred income tax assets and liabilities are presented as non-current.


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|i) | Financial Instruments

The Company has early adopted IFRS 9, Financial Instruments (“IFRS 9”), with a date of initial application of January 1, 2010. This new standard replaces the current multiple classification and measurement model for non-equity financial assets and liabilities with a single model that has only two classification categories: amortized cost and fair value. Classification depends on the entity’s business model for managing financial instruments and the contractual cash flow characteristics of the financial instrument.


In addition, the fair value option for financial liabilities was amended. The changes in fair value attributable to a liability’s credit risk will be recorded in other comprehensive income rather than through net income, unless this presentation creates an accounting mismatch. Changes in fair value attributable to a financial liability’s credit risk are not subsequently reclassified to net income.


For investments in equity instruments which are not subject to control, joint control, or significant influence, on initial recognition IFRS 9 allows an entity to irrevocably elect classification at “fair value through profit or loss” or “fair value through other comprehensive income”.


The Company uses financial derivative instruments and physical delivery commodity contracts from time to time to reduce its exposure to fluctuations in commodity prices, foreign exchange rates and interest rates. The Company also makes investments in companies from time to time in connection with the Company’s acquisition and divestiture activities.


Financial derivative instruments


Financial derivative instruments are included in current assets/liabilities except for those with maturities greater than 12 months after the end of the reporting period, which are classified as non-current assets/liabilities.


The Company has not designated any of its financial derivative contracts as effective accounting hedges and, accordingly, fair values its financial derivative contracts with the resulting gains and losses recorded in net income.


The fair value of a financial derivative instrument on initial recognition is normally the transaction price. Subsequent to initial recognition, the fair values are based on quoted market prices where available from active markets, otherwise fair values are estimated based on market prices at the reporting date for similar assets or liabilities with similar terms and conditions, or by discounting future payments of interest and principal at estimated interest rates that would be available to the Company at the reporting date.


CRESCENT POINT ENERGY CORP.10


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Financial assets and liabilities


Financial assets and liabilities are measured at fair value on initial recognition. For non-equity instruments, measurement in subsequent periods depends on the classification of the financial asset or liability as “fair value through profit or loss” or “amortized cost”.


Financial assets and liabilities classified as fair value through profit or loss are subsequently carried at fair value, with changes recognized in net income.


Financial assets and liabilities classified as amortized cost are subsequently carried at amortized cost using the effective interest rate method.


Currently, the Company classifies all non-equity financial instruments which are not financial derivative instruments as amortized cost.


At each reporting date, the Company assesses whether there is objective evidence that a financial asset carried at amortized cost is impaired. If such evidence exists, the Company recognizes an impairment loss in net income. Impairment losses are reversed in subsequent periods if the impairment loss decrease can be related objectively to an event occurring after the impairment was recognized.


For investments in equity instruments, the subsequent measurement is dependent on the Company’s election to classify such instruments as fair value through profit or loss or fair value through other comprehensive income. Currently, the Company classifies all investments in equity instruments as fair value through profit or loss, whereby the Company recognizes movements in the fair value of the investment (adjusted for dividends) in net income. If the fair value through other comprehensive income classification is selected, the Company would recognize any dividends from the investment in net income and would recognize fair value re-measurements of the investment in other comprehensive income. Regardless of the classification, such investments are not subject to impairment testing.


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|j) | Business Combinations

Business combinations are accounted for using the acquisition method. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured at their fair values at the acquisition date. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the acquisition date. The excess of the cost of the acquisition over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recorded as goodwill. If the cost of the acquisition is less than the fair value of the net assets acquired, the difference is recognized immediately in net income. Transaction costs associated with business combinations are expensed as incurred.


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|k) | Foreign Currency Translation

Foreign operations


The Company has operations in the United States (“U.S.”) transacted via U.S. subsidiaries. The assets and liabilities of foreign operations are restated to Canadian dollars at exchange rates in effect at the balance sheet date. The income and expenses of foreign operations are translated to Canadian dollars using the average exchange rate for the period. The resulting unrealized gain or loss is included in other comprehensive income.


Foreign transactions


Transactions in foreign currencies not incurred by the Company’s U.S. subsidiaries are translated to Canadian dollars at exchange rates in effect at the transaction dates. Foreign currency assets and liabilities are restated to Canadian dollars at exchange rates in effect at the balance sheet date and income and expenses are restated to Canadian dollars using the average exchange rate for the period. Both realized and unrealized gains and losses resulting from the settlement or restatement of foreign currency transactions are included in net income.


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|l) | Revenue Recognition

Oil and gas revenue includes the sale of crude oil, natural gas and natural gas liquids and is recognized when the risks and rewards of ownership have been substantially transferred.


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|m) | Cash and Cash Equivalents

Cash and cash equivalents include short-term investments with original maturities of three months or less.


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|n) | Leases

Leases in which substantially all of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Operating lease payments are recognized as an expense on a straight-line basis over the lease term.


Leases where the Company assumes substantially all the risks and rewards of ownership are classified as finance leases within property, plant and equipment.


All of the Company's leases are treated as operating leases and are recognized in net income on a straight-line basis.


CRESCENT POINT ENERGY CORP.11


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|o) | Earnings Per Share

Basic earnings per share (“EPS”) is calculated by dividing the net income for the period attributable to equity owners of the Company by the weighted average number of common shares outstanding during the period.


Diluted EPS is calculated by adjusting the weighted average number of common shares outstanding for dilutive instruments. The number of shares included with respect to dilutive instruments, being restricted shares issued under the Company’s Restricted Share Bonus Plan, is computed using the treasury stock method. The treasury stock method assumes that the deemed proceeds related to unrecognized share-based compensation are used to repurchase shares at the average market price during the period.


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|4. | CHANGES IN ACCOUNTING POLICIES

Effective January 1, 2013, the Company adopted the following IFRS:


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|• | IFRS 7Financial Instruments: Disclosures- IFRS 7 was amended to provide more extensive quantitative disclosures for financial instruments that are offset in the statement of financial position or that are subject to enforceable master netting or similar agreements. The additional disclosures can be found in Note 22. The application of the amendment had no impact on the consolidated statements of comprehensive income or the consolidated balance sheets.

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|• | IFRS 9Financial Instruments- IFRS 9 was amended to present a new hedge accounting model.  The Company does not currently apply hedge accounting and determined that the amendment to IFRS 9 had no impact on the consolidated statements of comprehensive income or the consolidated balance sheet.

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|• | IFRS 10Consolidated Financial Statements- IFRS 10 provides guidance to determine whether an investee should be consolidated. The guidance applies to all investees, including special purpose entities. The Company reviewed its consolidation methodology and determined that the adoption of IFRS 10 did not result in a change to the consolidation status of its subsidiaries.

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|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | IFRS 11Joint Arrangements- IFRS 11 presents a new model for determining whether an entity should account for joint arrangements using proportionate consolidation or the equity method. An entity will have to follow the substance rather than legal form of a joint arrangement and will no longer have a choice of accounting method. The Company reviewed its joint arrangements and determined that the adoption of IFRS 11 did not result in any changes in the accounting for its joint arrangements. The Company's share of the assets, liabilities, revenues and expenses are recognized in the annual consolidated financial statements.

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|• | IFRS 12Disclosure of Interests in Other Entities- IFRS 12 aggregates and amends disclosure requirements included within other standards. The standard requires an entity to provide disclosures about subsidiaries, joint arrangements, associates and unconsolidated structured entities. The application of IFRS 12 had no impact on the consolidated statements of comprehensive income or the consolidated balance sheets.

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|• | IFRS 13Fair Value Measurement- IFRS 13 provides a single framework for measuring fair value. The measurement of the fair value of an asset or liability is based on assumptions that market participants would use when pricing the asset or liability under current market conditions, including assumptions about risk. The Company adopted IFRS 13 on January 1, 2013 on a prospective basis. The adoption of IFRS 13 did not require any adjustments to the valuation techniques used by the Company to measure fair value and did not result in any measurement adjustments as at January 1, 2013.

Effective January 1, 2014, the Company will adopt the following IFRS:


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|• | IAS 36Impairment of Assets- IAS 36 was amended in May 2013 to reduce the circumstances in which the recoverable amount of CGUs is required to be disclosed and clarify the disclosures required when an impairment loss has been recognized or reversed in the period. The amendments require retrospective application and will be adopted by the Company on January 1, 2014. The adoption will only impact Crescent Point's disclosures in the notes to the financial statements in periods when an impairment loss or impairment recovery is recognized.

CRESCENT POINT ENERGY CORP.12


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|-- | ---------------------
|5. | LONG-TERM INVESTMENTS

($000s)20132012Investments in public companies, beginning of year28,314101,657Acquisitions and dispositions, net-(2,539)Unrealized loss recognized in other loss(4,055)(70,804)Investments in public companies, end of year24,25928,314Investments in private companies, beginning of year56,59250,260Acquisitions and dispositions, net-25,000Unrealized loss recognized in other loss(6,622)(18,668)Investments in private companies, end of year49,97056,592Long-term investments, end of year74,22984,906


|   |                 
|-- | ----------------
|a) | Public Companies

The Company holds common shares and common share purchase warrants in publicly traded oil and gas companies. The investments are classified as financial assets at fair value through profit or loss and are fair valued with the resulting gain or loss recorded in net income. At December 31, 2013, the investments are recorded at a fair value of $24.3 million which is $79.7 million less than the original cost of the investments. At December 31, 2012, the investments were recorded at a fair value of $28.3 million which was $75.6 million less than the original cost of the investments.


|   |                  
|-- | -----------------
|b) | Private Companies

The Company holds common shares in private oil and gas companies. The investments are classified as financial assets at fair value through profit or loss and are fair valued with the resulting gain or loss recorded in net income. At December 31, 2013, the investments are recorded at a fair value of $50.0 million which is $17.0 million less than the original cost of the investments. At December 31, 2012, the investments were recorded at a fair value of $56.6 million which was $10.4 million less than the original cost of the investments.


|   |                       
|-- | ----------------------
|6. | OTHER LONG-TERM ASSETS

($000s)20132012Reclamation fund26,18110,455Other receivables11,77711,777Other long-term assets37,95822,232


|   |                 
|-- | ----------------
|a) | Reclamation fund

The following table reconciles the reclamation fund: ($000s)20132012Balance, beginning of year10,4557,816Contributions30,73418,079Expenditures(15,008)(15,440)Balance, end of year26,18110,455


|   |                  
|-- | -----------------
|b) | Other receivables

At December 31, 2013, the Company had investment tax credits of $11.8 million (December 31, 2012 - $11.8 million).


CRESCENT POINT ENERGY CORP.13


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|-- | ---------------------------------
|7. | EXPLORATION AND EVALUATION ASSETS

($000s)20132012Exploration and evaluation assets at cost1,590,2981,700,442Accumulated amortization(901,974)(619,685)Net carrying amount688,3241,080,757Reconciliation of movements during the yearCost, beginning of year1,700,4421,242,573Accumulated amortization, beginning of year(619,685)(376,210)Net carrying amount, beginning of year1,080,757866,363Net carrying amount, beginning of year1,080,757866,363Acquisitions through business combinations, net6,600414,255Additions471,900583,791Dispositions(1,993)(1,239)Transfers to property, plant and equipment(614,446)(530,835)Amortization(275,504)(247,883)Foreign exchange21,010(3,695)Net carrying amount, end of year688,3241,080,757


E&E assets consist of the Company's undeveloped land and exploration projects which are pending the determination of technical feasibility. Additions represent the Company's share of the cost of E&E assets. At December 31, 2013, $688.3 million remains in E&E assets after $614.4 million was transferred to PP&E following the determination of technical feasibility during the year ended December 31, 2013 (year ended December 31, 2012 - $1.1 billion and $530.8 million, respectively).


Impairment test of exploration and evaluation assets


There were no indicators of impairment at December 31, 2013 or December 31, 2012.


|   |                                      
|-- | -------------------------------------
|8. | CAPITAL ACQUISITIONS AND DISPOSITIONS

In the year ended December 31, 2013, the Company incurred $5.8 million (December 31, 2012 - $16.4 million) of transaction costs related to business combinations that are recorded as general and administrative expenses.


Minor Property Acquisitions and Dispositions


Crescent Point completed minor property acquisitions and dispositions during the year ended December 31, 2013 for net consideration of $118.3 million ($121.8 million was allocated to PP&E and E&E assets). These minor property acquisitions and dispositions were completed with full tax pools.


CRESCENT POINT ENERGY CORP.14


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|-- | -----------------------------
|9. | PROPERTY, PLANT AND EQUIPMENT

($000s)20132012Development and production assets14,964,22012,740,337Corporate assets26,17622,843Property, plant and equipment at cost14,990,39612,763,180Accumulated depletion, depreciation and impairment(3,731,249)(2,443,312)Net carrying amount11,259,14710,319,868Reconciliation of movements during the yearDevelopment and production assetsCost, beginning of year12,740,3378,409,567Accumulated depletion and impairment, beginning of year(2,431,102)(1,244,709)Net carrying amount, beginning of year10,309,2357,164,858Net carrying amount, beginning of year10,309,2357,164,858Acquisitions through business combinations, net119,6112,838,778Additions1,414,0671,008,973Dispositions(2,454)(36,243)Transfers from exploration and evaluation assets614,446530,835Depletion(1,181,383)(1,004,321)Impairment(98,291)(189,074)Foreign exchange73,678(4,571)Net carrying amount, end of year11,248,90910,309,235Cost, end of year14,964,22012,740,337Accumulated depletion and impairment, end of year(3,715,311)(2,431,102)Net carrying amount, end of year11,248,90910,309,235Corporate assetsCost, beginning of year22,84317,109Accumulated depreciation, beginning of year(12,210)(9,506)Net carrying amount, beginning of year10,6337,603Net carrying amount, beginning of year10,6337,603Additions3,2855,740Depreciation(3,721)(2,704)Foreign exchange41(6)Net carrying amount, end of year10,23810,633Cost, end of year26,17622,843Accumulated depreciation, end of year(15,938)(12,210)Net carrying amount, end of year10,23810,633


At December 31, 2013, future development costs of $5.9 billion (December 31, 2012 - $5.7 billion) are included in costs subject to depletion.


Direct general and administrative costs capitalized by the Company during the year ended December 31, 2013 were $42.2 million (year ended December 31, 2012 - $32.0 million), including $23.1 million of share-based compensation costs (year ended December 31, 2012 - $17.7 million).


CRESCENT POINT ENERGY CORP.15


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Impairment test of property, plant and equipment


For the purposes of determining whether impairment of assets has occurred, and the extent of any impairment or its reversal, management exercises their judgment in estimating future cash flows for the recoverable amount, being the higher of fair value less costs of disposal and value in use. These key judgments include estimates about recoverable reserves (see Use of estimates and judgments discussion in Note 2c), forecast benchmark commodity prices, royalties, operating costs and discount rates.


Forecast benchmark commodity price assumptions tend to be stable because short-term increases or decreases in prices are not considered indicative of long-term price levels, but are nonetheless subject to change.


The following table outlines the forecast benchmark commodity prices and the exchange rate used in the impairment calculation of property, plant and equipment at December 31, 2013. The Company used an average after-tax discount rate of 10 percent.


2014201520162017201820192020202120222023(2)WTI ($US/bbl)97.5097.5097.5097.5097.5097.5098.54100.51102.52104.57Exchange Rate ($US/$Cdn)0.950.950.950.950.950.950.950.950.950.95WTI ($Cdn/bbl)102.63102.63102.63102.63102.63102.63103.73105.80107.92110.07AECO ($Cdn/MMbtu)4.034.264.504.744.975.215.335.445.555.66


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|(1) | The forecast benchmark commodity prices listed above are adjusted for quality differentials, heat content, distance to market and other factors in performing our impairment tests.

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|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Forecast benchmark commodity prices are assumed to increase by 2% in each year after 2023 to the end of the reserve life. Exchange rates are assumed to be constant at 0.95.

At December 31, 2013, the Company determined that the carrying amount of the Southern Alberta CGU exceeded its fair value less costs of disposal. The full amount of the impairment was attributed to PP&E and, as a result, an impairment loss of $98.3 million was recorded as a component of depletion, depreciation, amortization and impairment expense. The Southern Alberta CGU is comprised primarily of properties in the early stages of development for which the operating results are included in the Canadian operating segment. The impairment in 2013 was largely a result of the exploratory nature of the Alberta Bakken resource play which resulted in negative technical revisions to proved plus probable reserves and an increase in expected operating and abandonment costs. Changes in any of the key judgments, such as a downward revision in reserves, a decrease in forecast benchmark commodity prices, an increase in royalties, or an increase in operating costs would decrease the recoverable amounts of assets and any impairment charges would affect net income. For the year ended December 31, 2013, a one percent increase in the assumed discount rate would result in an additional impairment for the Southern Alberta CGU of approximately $54.3 million, while a five percent decrease in the forward commodity price estimate would result in an additional impairment of approximately $95.5 million.


The Company reported an impairment loss of $189.1 million for the year ended December 31, 2012 related to the Southern Alberta CGU largely as a result of the decrease in forecast benchmark commodity prices at December 31, 2012 compared to December 31, 2011, the early development stage of the properties and associated higher initial capital expenditures.


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|--- | --------
|10. | GOODWILL

($000s)20132012Goodwill, beginning of year251,919207,672Wild Stream Exploration Inc. acquisition-24,022Reliable Energy Ltd. acquisition-20,225Goodwill, end of year251,919251,919


Goodwill has been assigned to the Canadian operating segment.


Impairment test of goodwill


The impairment test of goodwill at December 31, 2013 and 2012 concluded that the estimated recoverable amount exceeded the carrying amount. As such, no goodwill impairment existed. The recoverable amount of the Canadian operating segment was estimated to be $14.2 billion at December 31, 2013 and was determined based on fair value less costs of disposal. The fair value measurement of the recoverable amount of the Canadian operating segment is categorized as Level 3 according to the IFRS 13 fair value hierarchy. Refer to Note 9 - “Property, Plant and Equipment” for a description of the key input estimates and the methodology used in the determination of the estimated recoverable amount related to goodwill.


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|--- | --------------
|11. | LONG-TERM DEBT

The following table reconciles long-term debt: ($000s)20132012Bank credit facilities546,595653,123Senior guaranteed notes1,187,519821,466Long-term debt1,734,1141,474,589


CRESCENT POINT ENERGY CORP.16


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|-- | ----------------------
|a) | Bank Credit Facilities

The Company has a syndicated unsecured credit facility with fourteen banks and an operating credit facility with one Canadian chartered bank, for a total amount available under the combined facilities of $2.1 billion. The syndicated unsecured credit facility also includes an accordion feature that allows the Company to increase the facility by up to $500.0 million.


The credit facilities bear interest at the Canadian prime rate plus a margin based on a sliding scale ratio of the Company's senior debt to EBITDA, adjusted for certain non-cash items. The syndicated unsecured credit facility constitutes a revolving credit facility for a three year term which is extendible annually; the current maturity date is June 10, 2016. The operating credit facility constitutes a revolving facility for a 364 day term which is extendible annually for a further 364 day revolving period, subject to a one year term out period should the lender not agree to an annual extension; the current conversion date is June 6, 2014. The combined credit facilities have covenants which restrict the Company's ratio of senior debt to EBITDA, adjusted for certain non-cash items, to a maximum of 3.0:1.0 and the ratio of debt to capital, adjusted for certain non-cash items, to a maximum of 0.5:1.0. The Company is in compliance with all debt covenants at December 31, 2013.


The Company has letters of credit in the amount of $3.9 million outstanding at December 31, 2013.


The Company manages its credit facilities through a combination of bankers' acceptance loans and interest rate swaps.


|   |                        
|-- | -----------------------
|b) | Senior Guaranteed Notes

The Company has closed private offerings of senior guaranteed notes raising total gross proceeds of US$983.0 million and           Cdn$142.0 million. The notes are unsecured and rank pari passu with the Company's bank credit facilities and carry a bullet repayment on maturity. The senior guaranteed notes have financial covenants similar to those of the combined credit facilities described above. The terms, rates and carrying amounts of the Company's outstanding senior guaranteed notes are detailed below: Principal ($000s)Maturity DateCoupon RateInterest Payment Dates20132012Cdn$50,000March 24, 20154.92%September 24 and March 2450,00050,000US$37,500March 24, 20154.71%September 24 and March 2439,88537,309US$52,000April 14, 20163.93%October 14 and April 1455,30751,735US$67,500March 24, 20175.48%September 24 and March 2471,79367,156US$31,000April 14, 20184.58%October 14 and April 1432,97230,842US$20,000June 12, 20182.65%December 12 and June 1221,272-Cdn$7,000May 22, 20194.29%November 22 and May 227,0007,000US$68,000May 22, 20193.39%November 22 and May 2272,32567,653US$155,000March 24, 20206.03%September 24 and March 24164,858154,209Cdn$50,000April 14, 20215.53%October 14 and April 1450,00050,000US$82,000April 14, 20215.13%October 14 and April 1487,21581,582Cdn$25,000May 22, 20224.76%November 22 and May 2225,00025,000US$200,000May 22, 20224.00%November 22 and May 22212,720198,980Cdn$10,000June 12, 20234.11%December 12 and June 1210,000-US$270,000June 12, 20233.78%December 12 and June 12287,172-Senior guaranteed notes1,187,519821,466


Concurrent with the issuance of US$953.0 million senior guaranteed notes, the Company entered into cross currency interest rate swaps (''CCIRS'') with a syndicate of financial institutions. To manage the Company's foreign exchange risk, the CCIRS fix the US dollar amount of the notes for purposes of interest and principal repayments at a notional amount of $953.2 million. Concurrent with the issuance of US$30.0 million senior guaranteed notes, the Company entered a cross currency principal swap which fixed the principal repayment at a notional amount of $32.2 million. See additional information in Note 22 - “Financial Instruments and Derivatives”.


CRESCENT POINT ENERGY CORP.17


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|12. | DECOMMISSIONING LIABILITY

The following table reconciles the decommissioning liability: ($000s)20132012Decommissioning liability, beginning of year502,432379,616Liabilities incurred32,56218,919Liabilities acquired through capital acquisitions4,29166,684Liabilities disposed through capital dispositions(793)(9,497)Liabilities settled(11,375)(12,096)Revaluation of acquired decommissioning liabilities(1)3,25657,251Change in estimated future costs115,266(9,690)Change in discount rate(30,263)-Accretion expense14,16211,245Decommissioning liability, end of year629,538502,432Expected to be incurred in one year18,469-Expected to be incurred beyond one year611,069502,432


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|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | These amounts relate to the revaluation of acquired decommissioning liabilities at the end of the period using a risk-free discount rate.  At the date of acquisition, acquired decommissioning liabilities are fair valued.

The total future decommissioning liability was estimated by management based on the Company’s net ownership in all wells and facilities. This includes all estimated costs to reclaim and abandon the wells and facilities and the estimated timing of the costs to be incurred in future periods. The Company has estimated the net present value of its total decommissioning liability to be $629.5 million at December 31, 2013 (December 31, 2012 - $502.4 million) based on total estimated undiscounted cash flows to settle the obligation of $739.8 million (December 31, 2012 - $531.6 million). These obligations are expected to be settled through 2047, with the majority expected after 2028. The estimated cash flows have been discounted using an average risk free rate of approximately 3 percent and an inflation rate of 2 percent (December 31, 2012 - approximately 2.5 percent and 2 percent, respectively).


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|13. | SHAREHOLDERS’ CAPITAL

Crescent Point has an unlimited number of common shares authorized for issuance. 20132012Number ofsharesAmount($000s)Number ofsharesAmount($000s)Common shares, beginning of year374,702,26411,439,861288,025,4657,835,136Issued for cash--48,784,5002,036,908Issued on capital acquisitions--21,311,081919,351Issued on redemption of restricted shares(1)2,045,16982,3952,150,03384,380Issued pursuant to the dividend reinvestment plans18,246,133659,14014,431,185564,086Common shares, end of year394,993,56612,181,396374,702,26411,439,861Cumulative share issue costs, net of tax-(191,091)-(190,693)Total shareholders’ capital, end of year394,993,56611,990,305374,702,26411,249,168


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|(1) | The amount of shares issued on redemption of restricted shares is net of any employee withholding taxes.

At December 31, 2013, the Company recorded dividends payable of $90.8 million which was settled with cash of $65.0 million and Crescent Point common shares issued pursuant to the DRIP valued at $25.8 million (678,361 common shares) on January 15, 2014.  At December 31, 2012, the Company recorded dividends payable of $86.2 million which was settled with cash of $27.9 million and Crescent Point common shares issued pursuant to the DRIP valued at $58.3 million (1,638,734 common shares) on January 15, 2013. In preceding years (December 31, 2012 - $58.3 million), the component of the dividend payable to be settled with Crescent Point common shares pursuant to the DRIP was recorded as shareholders’ capital at the balance sheet date.


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|--- | -------
|14. | DEFICIT

($000s)20132012Accumulated earnings1,054,349909,473Accumulated tax effect on redemption of restricted shares8,7368,666Accumulated dividends(4,755,522)(3,673,971)Deficit(3,692,437)(2,755,832)


CRESCENT POINT ENERGY CORP.18


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|15. | CAPITAL MANAGEMENT

The Company’s capital structure is comprised of shareholders’ equity, long-term debt and working capital. The balance of each of these items is as follows: ($000s)20132012Long-term debt1,734,1141,474,589Working capital deficiency(1)406,134287,911Unrealized foreign exchange on translation of US dollar senior guaranteed notes(63,170)(2,176)Net debt2,077,0781,760,324Shareholders’ equity8,500,0738,594,812Total capitalization10,577,15110,355,136


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|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Working capital deficiency is calculated as accounts payable and accrued liabilities plus dividends payable, less cash, accounts receivable, prepaids and deposits and long-term investments, excluding the equity settled component of dividends payable.

Crescent Point's objective for managing capital is to maintain a strong balance sheet and capital base to provide financial flexibility, stability to dividends and to position the Company for future development of the business. Ultimately, Crescent Point strives to maximize long-term stakeholder value by ensuring the Company has the financing capacity to fund projects that are expected to add value to stakeholders and distribute any excess cash that is not required for financing projects.


Crescent Point manages and monitors its capital structure and short-term financing requirements using a non-GAAP measure, the ratio of net debt to funds flow from operations. Net debt is calculated as long-term debt plus accounts payable and accrued liabilities and dividends payable, less cash, accounts receivable, prepaids and deposits and long-term investments, excluding the equity settled component of dividends payable and unrealized foreign exchange on translation of US dollar senior guaranteed notes. Funds flow from operations is calculated as cash flow from operating activities before changes in non-cash working capital, transaction costs and decommissioning expenditures. Crescent Point's objective is to maintain a net debt to funds flow from operations ratio of approximately 1.0 times. This metric is used to measure the Company's overall debt position and measure the strength of the Company's balance sheet. Crescent Point monitors this ratio and uses this as a key measure in making decisions regarding financing, capital spending and dividend levels. The Company's net debt to funds flow from operations ratio at December 31, 2013 was 1.0 times (December 31, 2012 - 1.1 times). The funds flow from operations only reflects funds flow from operations generated on acquired properties since the closing date of the acquisitions.


Crescent Point strives to provide stability to its dividends over time by managing risks associated with the oil and gas industry. To accomplish this, the Company maintains a conservative balance sheet with significant unutilized lines of credit, manages its exposure to fluctuating interest rates and foreign exchange rates on its long-term debt, and actively hedges commodity prices using a 31⁄2 year risk management program by hedging up to 65 percent, unless otherwise approved by the Board of Directors, of after royalty volumes using a portfolio of swaps, collars and put option instruments and up to 35 percent of after royalty volumes using a combination of financial derivatives and fixed differential physical contracts to manage price differentials.


Crescent Point is subject to certain financial covenants on its credit facility and senior guaranteed notes agreements and is in compliance with all financial covenants as at December 31, 2013.


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|--- | -------------------------
|16. | DERIVATIVE GAINS (LOSSES)

($000s)20132012Realized losses(90,871)(17,604)Unrealized gains (losses)(111,876)185,724Derivative gains (losses)(202,747)168,120


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|--- | ----------
|17. | OTHER LOSS

($000s)20132012Unrealized loss on long-term investments(10,677)(89,472)Gain on the sale of marketable securities-2Gain on sale of long-term investments-470Gain on disposition of assets-28,545Other gain613-Other loss(10,064)(60,455)


CRESCENT POINT ENERGY CORP.19


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|--- | ----------------------------
|18. | FOREIGN EXCHANGE GAIN (LOSS)

($000s)20132012RealizedForeign exchange loss on cross currency interest rate swaps(4,308)(3,838)Other foreign exchange gain1,134495UnrealizedForeign exchange gain (loss) on translation of US dollar senior guaranteed notes(60,994)5,774Other foreign exchange gain (loss)(337)361Foreign exchange gain (loss)(64,505)2,792


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|--- | ------------
|19. | INCOME TAXES

The provision for income taxes is as follows: ($000s)20132012Current tax:Canada137(1,418)Luxembourg36-Current expense (recovery)173(1,418)Deferred tax:Canada76,80133,980United States(3,368)(14,544)Deferred expense73,43319,436Income tax expense73,60618,018


The following table reconciles income taxes calculated at the Canadian statutory rate with the recorded income taxes: ($000s)20132012Income before income taxes218,482208,671Statutory income tax rate26.04%26.14%Expected provision for income taxes56,89354,547Effect of change in corporate tax rates(3,101)-Effect of tax rates in foreign jurisdictions(9,009)(5,779)Effect of restricted share bonus plan(3,373)(38,695)Effect of change in deferred tax asset20,530-Effect of non-taxable capital losses8,61710,874Other3,049(2,929)Income tax expense73,60618,018


The statutory combined federal and provincial income tax rate decreased from 26.14% in 2012 to 26.04% in 2013 due to a change in the allocation of taxable income between provinces.


The deferred income tax liabilities are expected to be settled in the following periods: ($000s)20132012Deferred income tax:To be settled within 12 months31,121(1,074)To be settled after more than 12 months(895,729)(791,591)Deferred income tax(864,608)(792,665)








CRESCENT POINT ENERGY CORP.20


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The movement in deferred income tax liabilities and assets is as follows: ($000s)At January 1,2013(Charges) / credits due to acquisitions & other(Charged) / credited to earningsAt December 31, 2013Deferred income tax assets:Decommissioning liability134,144-32,870167,014Income tax losses carried forward184,974-(62,394)122,580Share issue costs33,195141(10,924)22,412Risk management contracts6,230-26,38132,611Other11,3081,349(10,611)2,046369,8511,490(24,678)346,663Deferred income tax liabilities:Property, plant & equipment(966,007)-(94,514)(1,060,521)Timing of partnership items(180,381)-42,970(137,411)Risk management contracts(16,128)-2,789(13,339)(1,162,516)-(48,755)(1,211,271)Net deferred income tax liabilities(792,665)1,490(73,433)(864,608)


($000s)At January 1,2012(Charges) / credits due to acquisitions & other(Charged) / credited to earningsAt December 31, 2012Deferred income tax assets:Decommissioning liability99,6019,43425,109134,144Income tax losses carried forward163,52222,557(1,105)184,974Share issue costs21,26325,310(13,378)33,195Risk management contracts43,4491,346(38,565)6,230Other2848,6892,33511,308328,11967,336(25,604)369,851Deferred income tax liabilities:Property, plant & equipment(760,265)(186,306)(19,436)(966,007)Timing of partnership items(215,466)-35,085(180,381)Risk management contracts(4,921)(1,224)(9,983)(16,128)Other-(502)502-(980,652)(188,032)6,168(1,162,516)Net deferred income tax liabilities(652,533)(120,696)(19,436)(792,665)


The approximate amounts of tax pools available as at December 31, 2013 and 2012 are as follows: ($000s)20132012Tax pools:Canada6,751,4727,131,035United States1,626,2981,365,756Total8,377,7708,496,791


The tax pools presented do not include the impact of income from the general partnership for its fiscal period ended December 31, 2013 for which the Company is entitled to claim a reserve for current income tax purposes. Including the impact of income from the general partnership which is taxable to the Company in future years, the net tax pools remaining at December 31, 2013 are approximately $7.9 billion (December 31, 2012 - $7.8 billion).


The above tax pools include estimated Canadian non-capital losses carried forward of $387.2 million (December 31, 2012 - $683.1 million) that expire in the years 2029 through 2031, and U.S. net operating losses of $72.5 million (December 31, 2012 - $30.2 million) which expire in the years 2024 through 2032. A deferred income tax asset has not been recognized for U.S. net operating losses of $15.3 million (December 31, 2012 - $14.3 million) as there is not sufficient certainty regarding future utilization.


CRESCENT POINT ENERGY CORP.21


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A deferred tax asset has not been recognized in respect of certain unrealized capital losses and capital losses carried forward for Canadian tax purposes in the amount of $20.5 million (December 31, 2012 - nil). Recognition is dependent on the realization of future taxable capital gains.


A deferred tax asset has not been recognized in respect of temporary differences associated with investments in subsidiaries as it is not likely that the temporary differences will reverse in the foreseeable future. The deductible temporary differences associated with investments in subsidiaries is approximately $52.8 million (December 31, 2012 - $44.7 million).


|    |                         
|--- | ------------------------
|20. | SHARE-BASED COMPENSATION

Restricted Share Bonus Plan


The Company has a Restricted Share Bonus Plan pursuant to which the Company may grant restricted shares to directors, officers, employees and consultants. The restricted shares vest on terms up to three years from the grant date as determined by the Board of Directors.


Restricted shareholders are eligible for monthly dividends on their restricted shares, immediately upon grant.


Deferred Share Unit Plan


The Company has a DSU plan for directors. Each DSU vests on the date of the grant, however the settlement of the DSU occurs following a change of control or when the individual ceases to be a director of the Company. Deferred Share Units are settled in cash based on the prevailing Crescent Point share price.


The following table reconciles the number of restricted shares and DSUs for the year ended December 31, 2013: Restricted SharesDeferred Share UnitsBalance, beginning of year3,366,49251,318Granted1,413,27124,062Redeemed(2,058,318)-Forfeited(133,302)-Balance, end of year2,588,14375,380


For the year ended December 31, 2013, the Company calculated total share-based compensation, net of estimated forfeitures and forfeiture true-ups, of $90.8 million (December 31, 2012 - $68.8 million), of which $23.1 million was capitalized (December 31, 2012 - $17.7 million).


|    |                  
|--- | -----------------
|21. | PER SHARE AMOUNTS

The following table summarizes the weighted average shares used in calculating net income per share:


20132012Weighted average shares–basic386,253,999329,410,803Dilutive impact of restricted shares1,476,7392,370,430Weighted average shares–diluted387,730,738331,781,233


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|--- | -------------------------------------
|22. | FINANCIAL INSTRUMENTS AND DERIVATIVES

The Company's financial assets and liabilities are comprised of cash, accounts receivable, long-term investments, reclamation fund, derivative assets and liabilities, accounts payable and accrued liabilities, dividends payable and long-term debt.


Crescent Point's derivative assets and liabilities are transacted in active markets. Crescent Point's long-term investments are transacted in active and non-active markets. The Company classifies the fair value of these transactions according to the following fair value hierarchy based on the amount of observable inputs used to value the instrument:


|  |                                                                                                                                                 
|- | ------------------------------------------------------------------------------------------------------------------------------------------------
|• | Level 1 - Values are based on unadjusted quoted prices available in active markets for identical assets or liabilities as of the reporting date.

|  |                                                                                                                                                                                                                                                                                           
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | Level 2 - Values are based on inputs, including quoted forward prices for commodities, time value and volatility factors, which can be substantially observed or corroborated in the marketplace. Prices in Level 2 are either directly or indirectly observable as of the reporting date.

|  |                                                                                                           
|- | ----------------------------------------------------------------------------------------------------------
|• | Level 3 - Values are based on prices or valuation techniques that are not based on observable market data.

Accordingly, Crescent Point's derivative assets and liabilities are classified as Level 2. Long-term investments are classified as Level 1, Level 2 or Level 3 depending on the valuation methods and inputs used, whether the applicable company is publicly traded or private, and whether the investment is comprised of common shares or common share purchase warrants. Assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement within the fair value hierarchy.


CRESCENT POINT ENERGY CORP.22


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Crescent Point's valuation of investments in private companies is based primarily on recent trading activity in the relevant company's common shares. Crescent Point validates these valuations using a variety of peer comparison metrics and industry data. The Company's finance department is responsible for performing the valuation of financial instruments, including the calculation of Level 3 fair values. Refer to Note 5 for changes in the Company's Level 3 investments.


Discussions of the fair values and risks associated with financial assets and liabilities, as well as summarized information related to derivative positions are detailed below:


a) Carrying Amount and Fair Value of Financial Instruments


The fair value of cash, accounts receivable, reclamation fund, accounts payable and accrued liabilities and dividends payable approximate their carrying amount due to the short-term nature of those instruments. The fair value of the amounts drawn on bank credit facilities is equal to its carrying amount as the facility bears interest at floating rates and credit spreads within the facility are indicative of market rates. These financial instruments are classified as financial assets and liabilities at amortized cost and are reported at amortized cost.


The following table summarizes the recurring fair value measurement information for financial assets and liabilities as of December 31, 2013: 2013 Carrying Value2013 Fair ValueQuoted prices in active markets for identical assets (Level1)Significant other observable inputs (Level 2)Significant unobservable inputs (Level 3)($000s)Financial assetsDerivatives51,22451,224-51,224-Long-term investments(1)74,22974,22924,259-49,970125,453125,45324,25951,22449,970Financial liabilitiesDerivatives125,234125,234-125,234-Senior guaranteed notes(2)1,187,5191,202,304---1,312,7531,327,538-125,234-


|    |                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------
|(1) | Long-term investments are comprised of equity securities in public and private upstream oil and gas companies.

|    |                                                                                                                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | The senior guaranteed notes are classified as financial liabilities at amortized cost and are reported at amortized cost. The notes denominated in US dollars are translated to Canadian dollars at the period end exchange rate. The fair value of the notes is calculated based on current interest rates and is not recorded in the financial statements.

The following table summarizes the recurring fair value measurement information for financial assets and liabilities as of December 31, 2012:


2012 Carrying Value2012 Fair ValueQuoted prices in active markets for identical assets (Level1)Significant other observable inputs(Level 2)Significant unobservable inputs  (Level 3)($000s)Financial assetsDerivatives61,69861,698-61,698-Long-term investments(1)84,90684,90628,2417356,592146,604146,60428,24161,77156,592Financial liabilitiesDerivatives23,83223,832-23,832-Senior guaranteed notes(2)821,466894,756---845,298918,588-23,832-


|    |                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------
|(1) | Long-term investments are comprised of equity securities in public and private upstream oil and gas companies.

|    |                                                                                                                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | The senior guaranteed notes are classified as financial liabilities at amortized cost and are reported at amortized cost. The notes denominated in US dollars are translated to Canadian dollars at the period end exchange rate. The fair value of the notes is calculated based on current interest rates and is not recorded in the financial statements.

Investment in marketable securities


In March 2012, the Company disposed of its investment in marketable securities for proceeds of $0.6 million, resulting in a realized gain of less than $0.1 million recognized in net income.


Derivative assets and liabilities


Derivative assets and liabilities arise from the use of derivative contracts. The Company's derivative financial instruments are classified as fair value through profit or loss and are reported at fair value with changes in fair value recorded in net income.


CRESCENT POINT ENERGY CORP.23


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The following table summarizes the fair value as at December 31, 2013 and the change in fair value for the year ended December 31, 2013: ($000s)Commodity contracts(1)Interest contractsCCIRS contracts(2)Foreign exchange contractsTotalDerivative assets / (liabilities), beginning of year43,337(8,518)2,84020737,866Unrealized change in fair value(154,905)1,98241,254(207)(111,876)Derivative assets / (liabilities), end of year(111,568)(6,536)44,094-(74,010)Derivative assets, end of year3,512-47,712-51,224Derivative liabilities, end of year(115,080)(6,536)(3,618)-(125,234)


|    |                                       
|--- | --------------------------------------
|(1) | Includes oil, gas and power contracts.

|    |                                                 
|--- | ------------------------------------------------
|(2) | Includes cross currency principal swap contract.

The following table summarizes the fair value as at December 31, 2012 and the change in fair value for the year ended December 31, 2012: ($000s)Commodity contracts(1)Interest contractsCCIRS contracts(2)Foreign exchange contractsTotalDerivative assets / (liabilities), beginning of year(131,256)(15,575)(582)21(147,392)Acquired through capital acquisitions(466)---(466)Unrealized change in fair value175,0597,0573,422186185,724Derivative assets / (liabilities), end of year43,337(8,518)2,84020737,866Derivative assets, end of year52,430-9,05920961,698Derivative liabilities, end of year(9,093)(8,518)(6,219)(2)(23,832)


|    |                                       
|--- | --------------------------------------
|(1) | Includes oil, gas and power contracts.

|    |                                                 
|--- | ------------------------------------------------
|(2) | Includes cross currency principal swap contract.

Offsetting Financial Assets and Liabilities


Financial assets and liabilities are only offset if the Company has the legal right to offset and intends to settle on a net basis or settle the asset and liability simultaneously. The Company offsets derivative assets and liabilities when the counterparty, commodity, currency and timing of settlement are the same. The following table summarizes the gross asset and liability positions of the Company's financial derivatives by contract that are offset on the balance sheet as at December 31, 2013 and December 31, 2012: 20132012($000s)AssetLiabilityNetAssetLiabilityNetGross amount55,614(129,624)(74,010)76,192(38,326)37,866Amount offset(4,390)4,390-(14,494)14,494-Net amount51,224(125,234)(74,010)61,698(23,832)37,866


|   |                                                       
|-- | ------------------------------------------------------
|b) | Risks Associated with Financial Assets and Liabilities

The Company is exposed to financial risks from its financial assets and liabilities. The financial risks include market risk relating to commodity prices, interest rates and foreign exchange rates as well as credit and liquidity risk.


Market Risk


Market risk is the risk that the fair value or future cash flows of a derivative will fluctuate because of changes in market prices. Market risk is comprised of commodity price risk, interest rate risk and foreign exchange risk as discussed below.


Commodity Price Risk


The Company is exposed to commodity price risk on crude oil and natural gas revenues as well as power on electricity consumption. As a means to mitigate the exposure to commodity price volatility, the Company has entered into various derivative agreements and physical contracts. The use of derivative instruments is governed under formal policies and is subject to limits established by the Board of Directors.


Crude oil - To partially mitigate exposure to crude oil commodity price risk, the Company enters into option contracts and swaps, which manage the Cdn$ WTI price fluctuations. The Company also enters physical delivery and derivative WTI price differential contracts which manage the spread between US$ WTI and various stream prices. The Company manages physical delivery


CRESCENT POINT ENERGY CORP.24


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contracts on a month-to-month spot and on a term contract basis. As at December 31, 2013, Crescent Point had committed, on a term contract basis, to deliver an average of 14,000 bbl/d of crude oil on railways from January 2014 to June 2014.


Natural gas - To partially mitigate exposure to natural gas commodity price risk, the Company enters into AECO natural gas swaps, which manage the AECO natural gas price fluctuations.


Power - To partially mitigate exposure to electricity price changes, the Company may enter into swaps or fixed price physical delivery contracts which fix the power price.


The following table summarizes the sensitivity of the fair value of the Company's derivative positions as at December 31, 2013 and 2012 to fluctuations in commodity prices or differentials, with all other variables held constant. When assessing the potential impact of these commodity price or differential changes, the Company believes 10 percent volatility is a reasonable measure. Fluctuations in commodity prices or differentials potentially could have resulted in unrealized gains (losses) impacting income before tax as follows: Impact on Income Before TaxImpact on Income Before Tax($000s)Year ended December 31, 2013Year ended December 31, 2012Increase 10%Decrease 10%Increase 10%Decrease 10%Commodity priceCrude oil(308,532)305,675(223,326)226,385Natural gas(4,006)4,006(2,013)2,013Power264(264)280(280)


Interest Rate Risk


The Company is exposed to interest rate risk on bank credit facilities to the extent of changes in the prime interest rate. For the year ended December 31, 2013, a one percent increase or decrease in the interest rate on floating rate debt would have amounted to a $3.5 million impact on income before tax.


The Company partially mitigates its exposure to interest rate changes by entering into interest rate swap transactions. The following sensitivities show the resulting unrealized gains (losses) and the impact on income before tax of the respective changes in the applicable forward interest rates as at December 31, 2013 and 2012 with all other variables held constant: Impact on Income Before TaxImpact on Income Before Tax($000s)Year ended December 31, 2013Year ended December 31, 2012Forward interest ratesIncrease 10%Decrease 10%Increase 10%Decrease 10%Interest rate swaps329(329)803(803)


Foreign Exchange Risk


Foreign exchange risk arises from changes in foreign exchange rates that may affect the fair value or future cash flows of the Company's financial assets or liabilities. As the Company operates in Canada and the U.S., fluctuations in the exchange rate between the US/Canadian dollars can have a significant effect on reported results. The Company is exposed to foreign exchange risk in relation to its US dollar denominated senior guaranteed notes, investment in U.S. subsidiaries and in relation to its crude oil sales.


Concurrent with the issuance of US$953.0 million senior guaranteed notes, the Company entered into CCIRS with a syndicate of financial institutions. Under the terms of the CCIRS, the US dollar amount of the notes was fixed for purposes of interest and principal repayments at a notional amount of $953.2 million. Concurrent with the issuance of US$30.0 million senior guaranteed notes, the Company entered a cross currency principal swap which fixed the principal repayment at a notional amount of $32.2 million.


The Company can partially mitigate its exposure to foreign exchange rate changes by entering into US dollar swaps. To partially mitigate the foreign exchange risk relating to crude oil sales, the Company has fixed crude oil contracts to settle in Cdn$ WTI.


The following sensitivities show the resulting unrealized gains (losses) and the impact on income before tax of the respective changes in the period end and applicable forward foreign exchange rates at December 31, 2013 and 2012 with all other variables held constant: Impact on Income Before TaxImpact on Income Before Tax($000s)Exchange RateYear ended December 31, 2013Year ended December 31, 2012Cdn$ relative to US$Increase 10%Decrease 10%Increase 10%Decrease 10%US dollar swapsForward--(4,059)4,059US dollar senior guaranteed notesPeriod End104,552(104,552)68,947(68,947)Cross currency interest rate swapsForward(113,694)113,694(81,301)81,301Cross currency principal swapsForward(3,230)3,230(3,173)3,173


CRESCENT POINT ENERGY CORP.25


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Credit Risk


Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. A substantial portion of the Company's accounts receivable are with customers in the oil and gas industry and are subject to normal industry credit risks. The Company monitors the creditworthiness and concentration of credit with customers of its physical oil and gas sales. The Company is authorized to transact derivative contracts with counterparties rated A (or equivalent) or better, based on the lowest rating of the three ratings providers. Should one of the Company's financial counterparties be downgraded below the A rating limit, the Chief Financial Officer will advise the Audit Committee and provide recommendations to minimize the Company's credit risk to that counterparty . The maximum credit exposure associated with accounts receivable is the total carrying amount and the maximum exposure associated with the derivative instruments approximates their fair value.


To further mitigate credit risk associated with its physical sales portfolio, Crescent Point has secured credit insurance from a global credit insurance provider. This policy provides credit coverage for approximately 30 percent of the Company's physical sales portfolio. Crescent Point believes this insurance policy is a prudent component of its formal credit policies and procedures.


Less than 3 percent of the Company's accounts receivable balance at December 31, 2013 is outstanding for more than 90 days and the Company considers the entire balance to be collectible.


Liquidity Risk


The timing of undiscounted cash outflows relating to the financial liabilities outstanding at December 31, 2013 is outlined in the table below: ($000s)1 year2 to 3 years4 to 5 yearsMore than 5 yearsTotalAccounts payable and accrued liabilities789,305---789,305Dividends payable90,849---90,849Derivative liabilities(1)95,36022,144--117,504Senior guaranteed notes(2)56,108242,717210,337969,3571,478,519Bank credit facilities(3)-546,595--546,595


|    |                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------
|(1) | These amounts exclude undiscounted cash outflows pursuant to the CCIRS and cross currency principal swaps.

|    |                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | These amounts include the notional principal and interest payments pursuant to the CCIRS and cross currency principal swaps, which fix the amounts due in Canadian dollars.

|    |                                                                                       
|--- | --------------------------------------------------------------------------------------
|(3) | These amounts exclude interest payable on amounts drawn on the bank credit facilities.

The timing of undiscounted cash outflows relating to the financial liabilities outstanding at December 31, 2012 is outlined in the table below: ($000s)1 year2 to 3 years4 to 5 yearsMore than 5 yearsTotalAccounts payable and accrued liabilities655,191---655,191Dividends payable86,182---86,182Derivative liabilities(1)19,7028,412271-28,385Senior guaranteed notes(2)43,031172,11495,080785,6741,095,899Bank credit facilities(3)-653,123--653,123


|    |                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------
|(1) | These amounts exclude undiscounted cash outflows pursuant to the CCIRS and cross currency principal swaps.

|    |                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | These amounts include the notional principal and interest payments pursuant to the CCIRS and cross currency principal swaps, which fix the amounts due in Canadian dollars.

|    |                                                                                       
|--- | --------------------------------------------------------------------------------------
|(3) | These amounts exclude interest payable on amounts drawn on the bank credit facilities.

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The Company manages its liquidity risk through cash and debt management. As disclosed in Note 15, Crescent Point targets an average net debt to funds flow from operations ratio of approximately 1.0 times.


In managing liquidity risk, the Company has access to a wide range of funding at competitive rates through capital markets and banks. At December 31, 2013, the Company had available unused borrowing capacity on bank credit facilities of approximately $1.5 billion, including $3.9 million letters of credit drawn on the facility. Crescent Point believes it has sufficient funding to meet its foreseeable spending requirements.


Included in the Company's bank credit facilities balance of $546.6 million at December 31, 2013 (December 31, 2012 - $653.1 million) are obligations of $460.0 million (December 31, 2012 - $400.0 million) of bankers' acceptances, obligations of $89.8 million (December 31, 2012 - $257.3 million) for borrowings under the operating and syndicated prime loans, partially offset by prepaid credit facility renewal fees of $2.1 million (December 31, 2012 - $3.2 million) and prepaid interest on bankers' acceptances of $1.1 million (December 31, 2012 - $1.0 million). These amounts are fully supported and management expects that they will continue to be supported by revolving credit facilities that have no repayment requirements until maturity, other than interest.


CRESCENT POINT ENERGY CORP.26


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|-- | --------------------
|c) | Derivative Contracts

The Company enters into fixed price oil, gas, power, foreign currency, interest rate, cross currency interest rate, cross currency principal and crude oil differential contracts to manage its exposure to fluctuations in the price of crude oil, gas, power, foreign exchange and interest on debt .


The following is a summary of the derivative contracts in place as at December 31, 2013 : Financial WTI Crude Oil Derivative Contracts–Canadian Dollar(1)TermVolume(bbls/d)AverageSwapPrice($/bbl)Average   CollarSoldCall Price($/bbl)Average   CollarBoughtPut Price($/bbl)Average BoughtPut Price($/bbl)AveragePutPremium($/bbl)201457,09796.71102.7988.0898.124.73201526,75092.3597.6087.41--201618,00090.34----2017 January - March6,00090.31----


|    |                                                                                            
|--- | -------------------------------------------------------------------------------------------
|(1) | The volumes and prices reported are the weighted average volumes and prices for the period.

Financial AECO Natural Gas Derivative Contracts – Canadian Dollar(1)Average                     Volume (GJ/d)Average           Swap Price ($/GJ)Term201414,4933.54201513,3323.552016 January – October5,7903.67


|    |                                                                                            
|--- | -------------------------------------------------------------------------------------------
|(1) | The volumes and prices reported are the weighted average volumes and prices for the period.

Financial Power Derivative Contracts – Canadian DollarVolume (MW/h)Fixed Rate ($/MW/h)TermContract2014Swap3.075.002015Swap3.049.50


Financial Interest Rate Derivative Contracts – Canadian DollarNotional Principal ($)Fixed Annual Rate (%)TermContractJanuary 2014  – May 2015Swap25,000,0002.90January 2014  – May 2015Swap25,000,0003.50January 2014  – May 2015Swap50,000,0003.09January 2014  – June 2015Swap50,000,0003.78January 2014  – July 2015Swap50,000,0003.63


Financial Cross Currency Interest Rate Derivative ContractsTermContractReceive Notional Principal (US$)Fixed Annual Rate (US%)Pay Notional Principal (Cdn$)Fixed Annual Rate (Cdn%)January 2014 – March 2015Swap37,500,0004.7138,287,5005.24January 2014 – April 2016Swap52,000,0003.9350,128,0004.84January 2014 – March 2017Swap67,500,0005.4868,917,5005.89January 2014 – April 2018Swap31,000,0004.5829,884,0005.32January 2014 – June 2018Swap20,000,0002.6520,350,0003.52January 2014 – May 2019Swap68,000,0003.3966,742,0004.53January 2014 – March 2020Swap155,000,0006.03158,255,0006.45January 2014 – April 2021Swap82,000,0005.1379,048,0005.83January 2014 – May 2022Swap170,000,0004.00166,855,0005.03January 2014 – June 2023Swap270,000,0003.78274,725,0004.32


CRESCENT POINT ENERGY CORP.27


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Financial Cross Currency Principal Derivative ContractsSettlement DateContractReceive Notional Principal (US$)Pay Notional Principal (Cdn$)May 22, 2022Swap30,000,00032,241,000


Concurrent with the issuance of US$953.0 million senior guaranteed notes, the Company entered into CCIRS with a syndicate of financial institutions. Under the terms of the CCIRS, the US dollar amount of the notes was fixed for purposes of interest and principal repayments at a notional amount of $953.2 million. Concurrent with the issuance of US$30.0 million senior guaranteed notes, the Company entered a cross currency principal swap which fixed the principal repayment at a notional amount of $32.2 million.


|    |                           
|--- | --------------------------
|23. | RELATED PARTY TRANSACTIONS

All related party transactions are recorded at the exchange amount.


During the year ended December 31, 2013, Crescent Point recorded $0.8 million (December 31, 2012 - $1.9 million) of legal fees in the normal course of business to a law firm of which a partner is the Company's corporate secretary. Crescent Point also recorded $0.3 million during the year ended December 31, 2013, (December 31, 2012 - $0.8 million) of legal fees in the normal course of business to a law firm of which a partner is a director of the Company.


Compensation of Key Management Personnel


Key management personnel of the Company consist of its directors and executive officers. In addition to the directors fees and salaries paid to the directors and officers, respectively, the directors participate in the Restricted Share Bonus Plan and DSU Plan and the officers participate in the Restricted Share Bonus Plan. The compensation relating to key management personnel for the year recorded as general and administrative expenses was $12.1 million (December 31, 2012 - $11.3 million) and share-based compensation costs were $37.6 million (December 31, 2012 – $30.8 million).


|    |            
|--- | -----------
|24. | COMMITMENTS

At December 31, 2013, the Company had contractual obligations and commitments as follows: ($000s)1 year2 to 3 years4 to 5 yearsMore than 5 yearsTotalOperating leases (building and vehicle leases)(1)18,34348,24248,241281,817396,643Transportation commitments1,705461144132,323Derivative contract premiums15,697---15,697Total contractual commitments35,74548,70348,385281,830414,663


|    |                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------
|(1) | Included in operating leases are nominal recoveries of rent expense on office space the Company has subleased.

At December 31, 2012, the Company had contractual obligations and commitments as follows: ($000s)1 year2 to 3 years4 to 5 yearsMore than 5 yearsTotalOperating leases (building and vehicle leases)(1)14,92126,53543,449284,364369,269Capital commitments(2)60,114---60,114Derivative contract premiums10,804---10,804Total contractual commitments85,83926,53543,449284,364440,187


|    |                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------
|(1) | Included in operating leases are nominal recoveries of rent expense on office space the Company has subleased.

|    |                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Included in capital commitments is the expected remaining cost of the two-year agreement terminating December 31, 2013, with a U.S. fracture stimulation company with operations in North Dakota.

|    |                         
|--- | ------------------------
|25. | SIGNIFICANT SUBSIDIARIES

The Company has the following significant subsidiaries, each owned 100% directly and indirectly, at December 31, 2013: Subsidiary NameCountry of IncorporationCrescent Point Resources PartnershipCanadaCrescent Point Holdings Inc.CanadaCrescent Point Energy U.S. Corp.United States of AmericaCrescent Point U.S. Holdings Corp.United States of AmericaCrescent Point Energy Lux S.à r.l.Luxembourg


CRESCENT POINT ENERGY CORP.28


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|--- | ------------------------
|26. | SUPPLEMENTAL DISCLOSURES

Income Statement Presentation


The Company’s statement of income is prepared primarily by nature of expense, with the exception of compensation expenses which are included in the operating, general and administrative and share-based compensation line items, as follows: ($000s)20132012Operating60,38747,043General and administrative41,91034,323Share-based compensation67,75251,141Total compensation expenses170,049132,507


Cash Flow Statement Presentation ($000s)20132012Operating activitiesChanges in non-cash working capital:Accounts receivable(66,537)70,241Prepaids and deposits2,996(3,642)Accounts payable and accrued liabilities6,192(95,974)(57,349)(29,375)Investing activitiesChanges in non-cash working capital:Accounts receivable19,105435Accounts payable and accrued liabilities133,06876,308152,17376,743Financing activitiesChanges in non-cash working capital:Dividends payable4,66719,936


|    |                        
|--- | -----------------------
|27. | GEOGRAPHICAL DISCLOSURE

As at December 31, 2013, Crescent Point's non-current assets related to the U.S. foreign operations is $1.6 billion (December 31, 2012 - $1.3 billion). For the year ended December 31, 2013, Crescent Point's oil and gas revenue related to the U.S. foreign operations is $335.5 million (December 31, 2012 - $67.0 million).


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|--- | -----------------
|28. | SUBSEQUENT EVENTS

New York Stock Exchange ("NYSE") Listing


On January 22, 2014, Crescent Point's common shares began trading on the NYSE under the ticker symbol "CPG".





CRESCENT POINT ENERGY CORP.29


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DirectorsPeter Bannister, Chairman(1) (3) (4)Ken Cugnet(3) (4) (5)Hugh Gillard(1) (2) (5)Gerald Romanzin(1) (2) (3)Scott Saxberg(4)Greg Turnbull(2) (5)(1)Member of the Audit Committee of the Board of Directors(2)Member of the Compensation Committee of the Board of Directors(3)Member of the Reserves Committee of the Board of Directors(4)Member of the Health, Safety and Environment Committee of the Board of Directors(5)Member of the Corporate Governance and Nominating CommitteeOfficersScott SaxbergPresident and Chief Executive OfficerGreg TisdaleChief Financial OfficerC. Neil SmithChief Operating OfficerBrad BorggardVice President, Corporate PlanningDerek ChristieVice President, Exploration and GeosciencesRyan GritzfeldtVice President, Engineering EastKen LamontVice President, Finance and TreasurerTamara MacDonaldVice President, LandTrent StanglVice President, Marketing and Investor RelationsSteve ToewsVice President, Engineering WestMark EadeCorporate SecretaryHead OfficeSuite 2800, 111 - 5th Avenue S.W.Calgary, Alberta T2P 3Y6Tel: (403) 693-0020Fax: (403) 693-0070Toll Free: (888) 693-0020BankerThe Bank of Nova ScotiaCalgary, AlbertaAuditorPricewaterhouseCoopers LLPCalgary, AlbertaLegal CounselNorton Rose Fulbright Canada LLPCalgary, AlbertaEvaluation EngineersGLJ Petroleum Consultants Ltd.Calgary, AlbertaSproule Associates Ltd.Calgary, AlbertaRegistrar and Transfer AgentInvestors are encouraged to contact Crescent Point's Registrar and Transfer Agent for information regarding their security holdings:Olympia Trust Company2300, 125 - 9th Avenue S.E.Calgary, Alberta T2G 0P6Tel: (403) 261-0900Stock ExchangesToronto Stock Exchange - TSXNew York Stock Exchange - NYSEStock SymbolCPGInvestor ContactsScott SaxbergPresident and Chief Executive Officer(403) 693-0020Greg TisdaleChief Financial Officer(403) 693-0020Trent StanglVice President, Marketing and Investor Relations(403) 693-0020





CRESCENT POINT ENERGY CORP.30