Crescent Point Energy announces sale of non-core assets for $600M

Crescent Point Energy announces that it has entered into an agreement with Saturn Oil & Gas Inc. to sell certain non-core assets in Saskatchewan for $600 million in cash. Production from the Assets was expected to be 13,500 boe/d over the next 12 months, generating $210 million of net operating income at current strip commodity prices. The Company had allocated minimal development capital expenditures to the Assets for the remainder of 2024. During first quarter 2024, Crescent Point also closed the previously announced disposition of its Swan Hills and Turner Valley assets for $140 million, prior to closing adjustments. These non-core assets had associated undiscounted asset retirement obligations of $180 million. Net proceeds from these non-core dispositions have, or will be, directed to debt repayment. The Company’s pro-forma net debt is expected to total $2.8 billion, or 1.1 times adjusted funds flow, by year-end 2024 based on average commodity prices of US$80/bbl WTI and $2.10/Mcf AECO for the full year, down significantly from $3.7 billion at the end of 2023. As a result of the Transaction, Crescent Point is revising its 2024 annual average production guidance to a range of 191,000 to 199,000 boe/d, which represents a reduction of 7,000 boe/d compared to the mid-point of its prior guidance range. Crescent Point’s development capital expenditures guidance for 2024 of $1.4 billion to $1.5 billion remains unchanged given minimal development capital expenditures allocated to the Assets for the remainder of the year.