Crescent Point Energy lowering 2023 annual average production guidance

Crescent Point Energy announces that it has entered into an agreement with a private operator to sell its North Dakota assets for $500M, or approximately C$675M, in cash. The transaction is anticipated to close in fourth quarter 2023, subject to the receipt of regulatory approvals and the satisfaction of customary closing conditions. In conjunction, Crescent Point is lowering its 2023 annual average production guidance to a range of 156,000 to 161,000 boe/d, which represents a reduction of approximately 4,500 boe/d in comparison to the mid-point of its prior guidance range. “The company’s revised annual forecast includes the production impact associated with the transaction, net of approximately 1,000 boe/d of production outperformance from its remaining assets throughout the year. Crescent Point is also decreasing its development capital expenditures guidance for 2023 by approximately $100M, to a range of $1.05 to $1.15 billion. This reflects the company’s ongoing discipline and the removal of capital that was expected to be spent on the North Dakota assets following closing of the transaction. Crescent Point plans to release its preliminary 2024 budget along with an updated five-year plan this fall,” the company stated.