Crescent Point Energy has announced plans to sell its Uinta Basin asset as well other non-core assets in southeast Saskatchewan for C$912 million.
Crescent Point Energy (TSX:CPG,NYSE:CPG) has announced plans to sell its Uinta Basin asset as well other non-core assets in southeast Saskatchewan for C$912 million.
As quoted from the press release:
- Agreements to sell 27,000 boe/d of upstream assets for approximately 4.7 times cash flow.
- Net debt expected to improve to approximately C$2.75 billion at year-end 2019, down from C$4.40 billion prior to the changes in senior management in 2018. Transactions strengthen balance sheet and lower pro-forma net debt to adjusted funds flow ratio by approximately 0.4 times.
- Accretive to debt-adjusted funds flow per share by approximately 11 percent, while also improving the corporate operating netback by approximately five percent, lowering the capital required to sustain annual production and enhancing the company’s financial flexibility.
- Increases Crescent Point’s ability to continue executing its share repurchase program, with approximately C$100 million of incremental share repurchases budgeted for the remainder of 2019, based on guidance at current strip prices.
- Continue to advance disciplined disposition program, including the monetization of certain infrastructure assets.
“Since we established our transition plan in September 2018, we have meaningfully improved the sustainability of our business model by revising our capital allocation process, lowering our cost structure and strengthening our balance sheet,” said Craig Bryksa, President and CEO of Crescent Point. “The sale of the Uinta Basin and certain conventional assets is accretive for our shareholders and aligned with the key criteria we established for our asset portfolio. These transactions are a considerable step forward in our ongoing plan to focus our asset base.”