Crescent Point Energy to sell Uinta Basin asset, Saskatchewan assets for $912M
Crescent Point Energy announced that it has entered into definitive agreements with select parties to sell its Uinta Basin asset in its entirety and certain southeast Saskatchewan conventional assets for total cash consideration of approximately $912M. The transaction includes agreements to sell 27,000 boe/d of upstream assets for approximately 4.7 times cash flow. Net debt is expected to improve to approximately $2.75B at year end, down from $4.4B prior to the changes in senior management in 2018. The transactions strengthen balance sheet and lower pro-forma net debt to adjusted funds flow ratio by approximately 0.4 times. The sale is accretive to debt-adjusted funds flow per share by approximately 11%, 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. The transaction also increases Crescent Point's ability to continue executing its share repurchase program, with approximately $100M of incremental share repurchases budgeted for the remainder of 2019, based on guidance at current strip prices.