Crescent Point Energy to sell North Dakota assets for $500M

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. “This transaction allows Crescent Point to bring forward the expected future value of the assets, as the proceeds equate to over five years of the cumulative excess cash flow that was expected from these assets within the company’s long-term development plan at current commodity prices. In the second quarter of 2023, these assets had gross production of approximately 23,500 boe/d – 89% oil and liquids – with annualized net operating income of approximately $375M at a WTI price of approximately US$75/bbl. 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 is accelerating its debt repayment with proceeds from this transaction,” the company stated.