Crescent Point sells non-core southeast Saskatchewan assets for $93 million

Crescent point pumpjacks Source: Pipeline News file photo

Crescent Point Energy Corp. has sold its remaining non-core southeast Saskatchewan conventional assets for $93 million.

As a result of the transaction, the Calgary-based company says it has also reduced its asset retirement obligations by about $220 million, or nearly a quarter of its overall obligations as of March 31.

The assets generated minimal free cash flow, after incorporating development capital required to sustain production and reclamation activities, despite contributing annual net operating income of about $55 million based on current production of approximately 6,500 boe/d and a crude oil price of US$60 per barrel.

Crescent Point's budgeted development capital expenditures range remains unchanged.

Its acquisition and disposition strategy remains centred on its strategic priorities of enhancing the company's balance sheet strength and sustainability.

Crescent Point's revised 2021 guidance, which incorporates the transaction, is expected to generate about $500 million to $625 million of cash flow at US$55 to US$65 per barrel.

© 2021 The Canadian Press

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