Canada's Crescent Point Energy to sell North Dakota assets for $500 mln

Veren

24/08/2023 16:52

Aug 24 (Reuters) - Crescent Point Energy  CPG.TO  said
on Thursday it will sell its North Dakota assets to a private
operator for $500 million in cash, as the Canadian oil and gas
producer looks to repay its debt.
    The Calgary, Alberta-based company said that its net debt is
expected to be less than C$2.2 billion ($1.62 billion) by the
end of this year, down from C$3 billion outstanding at the end
of the second quarter.
    "Given the limited drilling inventory associated with these
assets, production in North Dakota was expected to decrease to
18,000 boe/d by 2027 and decline further in future years,"
Crescent Point said in a statement.
    Since 2018, the company has acquired assets in Canada's
basins, Kaybob Duvernay and Alberta Montney, for C$3 billion
that were primarily funded through the sale of non-core assets
worth nearly C$2.7 billion. 
    The company also lowered its full-year production and
capital expenditure forecast by 2.8% and 8.1%, respectively,
compared to the mid-point of its prior expectations. 
    The deal is expected to close in the fourth quarter,
Crescent said. 
    
($1 = 1.3563 Canadian dollars)

 (Reporting by Tanay Dhumal in Bengaluru; Editing by Shweta
Agarwal)
 ((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))