Calgary-based Crescent Point Energy Corp. is continuing its organizational slim-down launched last year by inking a deal to sell Uinta Basin and Saskatchewan assets for C$912 million ($684 million) to undisclosed buyers.
"Since we established our transition plan in September 2018, we have meaningfully improved the sustainability of our business model by revising our capital allocation process,” said CEO Craig Bryksa. “These transactions are a considerable step forward in our ongoing plan to focus our asset base.”
The Uinta assets, which comprise C$700 million of the sale, have production of roughly 27,000 boe/d, including 123.1 million boe of proved plus probable (2P) reserves and 29.5 million boe of proved developed producing reserves. The Saskatchewan sale includes conventional assets that represent 7,000 boe/d in production and 49.2 million boe of 2P reserves.
Crescent has divested assets worth more than C$1.3 billion since last year. The latest sale should be completed by the end of this month.
Crescent’s 2019 capital expenditures remain unchanged at C$1.2-1.3 billion, while its production outlook has been cut by roughly 8,000 boe/d from a previous midpoint to 160,000-164,000 boe/d.
“The company continues to pursue additional asset sales, including the balance of its southeast Saskatchewan conventional assets, and the monetization of its Saskatchewan gas infrastructure assets,” management said.