Crescent Point Energy Corp. has agreed to sell is North Dakota assets to an undisclosed private operator for $500 million in cash.
In second-quarter 2023, the assets had gross production of about 23,500 boe/d (89% oil and liquids) with annualized net operating income of about $375 million at a WTI price of $75/bbl. Given the limited drilling inventory associated with the assets, production in North Dakota was expected to decrease to 18,000 boe/d by 2027 and decline further in future years, the company said in a release Aug. 24.
The deal is the result of a years-long portfolio review process, said Craig Bryksa, Cresent Point president and chief executive officer, and allows the company “realize future value for an area with limited scalability” while enhancing its financial position and increasing its focus on core operating areas in the Kaybob Duvernay and Alberta Montney.
Crescent Point is lowering its 2023 annual average production guidance to 156,000-161,000 boe/d (about 75% liquids), a decrease of about 4,500 boe/d when compared with the mid-point of its prior guidance range. The revised forecast includes the production impact associated with the North Dakota asset sale, net of about 1,000 boe/d of production outperformance from its remaining assets throughout the year, it said.
The company is also decreasing its development capital expenditures guidance for 2023 by about $100 million to $1.05-1.15 billion, partly due to an unspecified amount of capital that would have been spent on the North Dakota assets.
The deal is expected to close in fourth-quarter 2023, subject to regulatory approvals and customary closing conditions.