雅虎香港財經 Crescent Point (CPG) Divests Non-Core Assets in Saskatchewan
Crescent Point Energy Corp. CPG has inked an agreement to sell off its non-core assets in Saskatchewan to Saturn Oil & Gas Inc. The total consideration for the deal is C$600 million, which will be financed in cash. The non-core assets put up for sale include Flat Lake and Battrum. The transaction is expected to close toward the end of the second quarter of 2024.
Crescent Point has stated that it has rebuilt its asset base over time to enhance sustainability in the long-term. The company was able to realize the value of these assets deemed as non-core by selling them off. These assets had minimal influence on the company's future plans, and divesting them would allow it to concentrate on its key priorities, such as enhancing operational efficiency, optimizing balance sheet and maximizing returns on capital.
Per management, the production from its Saskatchewan assets is estimated to be 13,500 barrels of oil equivalent per day (boe/d) over the next year. The production consists 95% oil and liquids. These assets are anticipated to generate $210 million of net operating income at current strip pricing. Moreover, for the rest of the year, minimal development capital expenditures were assigned to the assets.
Following the transaction, CPG has adjusted its 2024 annual average production guidance in the range of 191,000 to 199,000 boe/d. This represents a decrease of 7,000 boe/d compared with the mid-point of the guidance provided earlier. The company still projects its 2024 capital expenditures in the band of $1.4 -$1.5 billion. Despite a decline in production, capital expenditures remain unchanged due to the allocation of minimal development capital expenditures to the Saskatchewan assets for the rest of the year.
Zacks Rank & Key Picks
Currently, CPG has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are SM Energy SM, Hess Corporation HES and Eni SpA E. SM Energy and Hess presently sport a Zacks Rank #1 (Strong Buy) each, and Eni carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, SM expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Hess is a leading upstream energy company, with its operations focused on the prolific resources offshore Guyana. HES has made significant oil discoveries in the Stabroek Block, off the coast of Guyana. These discoveries have totaled more than 11 billion barrels of oil equivalent in gross recoverable resources, adding to Hess’ production potential.
Eni is a leading global integrated energy company with a prominent focus on liquefied natural gas businesses. As natural gas has a lesser carbon footprint compared with other fossil fuel, it will play an important role in the global energy transition process. Eni’s participation in the natural gas market will allow it capitalize on the mounting global demand in the future.
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