Crescent Point Energy Corp. has entered into an agreement with Spartan Delta Corp. to acquire Spartan's oil and liquids-rich Montney assets in Alberta for $1.7 billion in cash.
Craig Bryksa, president and CEO of Crescent Point said the Montney enhances its return of capital to shareholders, and is aligned with the company’s long-term strategy to focus on high quality, scalable resource plays that meet its defined asset criteria.
“These assets include over 20 years of drilling locations and increase our total corporate inventory of premium locations to 15 years,” he said in a news release. “The acquired lands are also situated in the volatile oil fairway with similar resource characteristics to our adjacent Kaybob Duvernay play, where we have demonstrated significant operational excellence."
Key highlights
- Acquisition adds 600 Montney locations in Alberta, or over 20 years of premium drilling inventory;
- Immediately accretive to excess cash flow per share by 20 per cent, resulting in a higher return of capital for shareholders;
- Maintaining commitment to return approximately 60 per cent of excess cash flow to shareholders, including the base dividend;
- Pro-forma leverage ratio of 1.3 times adjusted funds flow at closing and 1.0 times at year-end 2023;
- Targeting additional non-core asset dispositions over time to further optimize portfolio.
