Crescent Point Energy sells some non-core Williston Basin assets

By Patrick C. Miller | June 25, 2018

Crescent Point Energy Point Corp. of Calgary, Alberta, has entered into two definitive purchase agreements to sell some of its non-core Williston Basin assets to an unidentified buyer for about $280 million.

These transactions include a disposition announced on May 3 in which Crescent Point signed a non-binding letter of intent for approximately $225 million, as well as a second transaction in the second quarter valued at approximately $55 million. Both transactions are expected to close at the end of second quarter.

Current operated and non-operated production from these assets is approximately 4,800 barrels of oil equivalent per day (boepd). Crescent Point is adjusting its 2018 average production guidance to 181,000 boepd and exit production guidance to 190,000 boepd.

The company expects to allocate proceeds from these dispositions toward debt reduction and continued strengthening of its balance sheet. Crescent Point’s capital expenditures guidance for 2018 remains unchanged at $1.775 billion because minimal capital expenditures were planned for the disposed assets for the remainder of the year.

The company’s revised business strategy includes continuing improvement of its balance sheet, disciplined capital allocation and cost reductions. This is expected to result in improved rates of return on capital employed, debt adjusted per share metrics, free cash flow generation and long-term sustainability.

Crescent Point’s updated guidance for 2018 reflects the announced dispositions of non-core assets and does not reflect potential changes that could be implemented under the company’s new strategic direction.

The company also announced changes to its executive management team. Ryan Gritzfeldt, formerly vice president of marketing and innovation, was named chief operating officer. Former COO Neil Smith and Tamara MacDonald, senior vice president of corporate and business development, have stepped down as Crescent Point officers.