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Oil Producer Closes Two Sales of Assets
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Together, the transactions yielded CA$912 million for the energy firm.

Crescent Point Energy Corp. (CPG:TSX) announced in a news release it closed the sales of its Uinta Basin asset and of some noncore conventional assets in southeast Saskatchewan for a total of CA$912 million.

"The sale of the Uinta Basin and certain conventional assets is accretive for our shareholders and aligned with the key criteria we established for our asset portfolio. These transactions are a considerable step forward in our ongoing plan to focus our asset base," President and CEO Craig Bryksa said in an earlier news release that described the deal specifics.

The company sold the Uinta Basin to a private operator for CA$700 million in cash. This equated to 4.8 times cash flow at then strip prices, based on an operating netback of CA$20.05 per barrel of oil equivalent, along with CA$35,000 per producing barrel of oil equivalent (boe).

"Crescent Point expects to generate improved corporate returns and a stronger operating netback from lower royalties and reduced expenses as a result of this disposition," the release noted.

As for the divested conventional assets, they were sold to a different party for CA$275 million. They consisted of about 7,000 boe per day of current production (70% crude oil and 85% total liquids) and 49,200,000 boe of Proven and Probable (2P) reserves.

This transaction yielded 4.5 times 2020 cash flow at then strip prices, based on an operating netback of CA$18.55 per boe, in addition to CA$30,000 per producing boe and CA$9.80 per 2P boe.


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