These factors have a big effect on return figures. Even if you assume a WTI oil price of US$46 next year, practically all of Crescent Point's drilling should earn strong returns. Meanwhile in the United States, producers are drastically cutting back on drilling, a sign that wells there simply aren't economic. A clean balance sheet According to Bloomberg News, U.S. shale producers are "drowning" in debt. In its index of more than 60 producers, total debt is equal to roughly 40% of their enterprise value. Sooner or later, many of these companies will simply collapse under the weight of their balance sheets, leading to a drop off in supply. Crescent Point is in slightly better territory, with net debt equal to roughly 30% of enterprise value. And after the company cut its dividend, there is little sign that its balance sheet is a real burden. Should you buy Crescent Point? Not necessarily. Crescent Point's dividend yields 7%, and the company needs roughly US$55 oil to sustain the dividend.