Crescent Point Energy is selling off assets in its largest producing area as the company shifts its strategy.
Since early May Crescent Point has put together two transactions to divest of “non-core” properties in the Williston Basin for total proceeds of $280 million.
For Crescent Point, the play consists of the Viewfield Bakken and Flat Lake light oil pools in Saskatchewan.
The company has said it is undergoing a transformation plan with a formal portfolio review where it will “prioritize key value drivers.”
In late May Crescent Point appointed interim CEO Craig Bryksa to replace CEO Scott Saxberg after shareholders rejected a dissident slate of directors that was put forth by Cation Capital Inc. Cation had been critical of the company, attributing its poor share performance to unwise spending decisions and overly generous executive pay.
Crescent Point’s production guidance has been revised down by about 5,000 boe/d as a result of the dispositions, and is now expected to average 181,000 boe/d this year.
The transactions are expected to result in a reduction in net debt to $4.0 billion from $4.2 billion, an improvement in debt to cash flow, and a reduction in interest payments, analysts with GMP FirstEnergy noted.
--with files from the Canadian Press