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.[NLINSERT]
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.