Crescent Energy to sell North Dakota assets to Kraken Resources (updated)

Veren

24/08/2023 20:57

(Adds background in paras 3, 4, details on deal in para 5)
       Aug 24 (Reuters) - Crescent Point Energy  CPG.TO  would
sell its North Dakota assets to Kraken Resources for $500
million in cash, according to sources familiar with the matter,
as the Canadian oil and gas producer looks to repay its debt.
    Neither of the companies immediately responded to requests
for comment. 
    Kraken Resources is a portfolio company of alternative asset
manager Kayne Anderson Capital Advisors, focusing on drilling
and development opportunities in the Williston Basin of Montana
and North Dakota.
    Los Angeles-based Kayne Anderson had bought assets worth
$1.43 billion located in the eastern part of the Eagle Ford
basin from Chesapeake Energy Corp  CHK.O  earlier this year
through WildFire Energy, which it owns along with buyout firm
Warburg Pincus.
    Crescent Point's deal is expected to close in the fourth
quarter, and would bring the company's net debt to 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.
    Earlier on Thursday, Crescent had announced a deal to sell
its North Dakota assets for cash to a private operator.     
    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. 

    
($1 = 1.3563 Canadian dollars)

 (Reporting by Tanay Dhumal, Seher Dareen, and Shariq Khan in
Bengaluru; Editing by Shweta Agarwal and Krishna Chandra Eluri)
 ((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))