The transaction is valued at US$1.86 billion (CA$2.55 billion), including the assumption of approximately US$332 million (CA$455 million) of Hammerhead’s net debt, the companies announced after markets closed on Nov. 6.
The deal extends Alberta-based Crescent Point’s development runway in the Montney Shale with approximately 800 incremental drilling locations. At Crescent Point’s current pace, its premium inventory will grow to more than 20 years through the Hammerhead acquisition.
“This strategic consolidation is an integral part of our overall portfolio transformation,” said Craig Bryksa, president and CEO at Crescent Point. “The acquired assets, which are situated in the volatile oil window in the Alberta Montney and adjacent to our existing lands, provide significant value with premium drilling inventory, infrastructure ownership and scalable market access.”
After closing, Crescent Point will focus on development in the Montney and Kaybob Duvernay plays, while maintaining complementary, long-cycle assets in Saskatchewan.
The deal is expected to create the seventh-largest Canadian E&P by production volume. Crescent Point also expects to be the largest land owner in the Alberta Montney’s volatile oil window with the Hammerhead acquisition.
Crescent Point anticipates that the deal will be immediately accretive to its per share metrics and boost shareholder returns.
The company plans to increase its base dividend by 15% to $0.46/share on an annual basis after closing.
This summer, Crescent Point announced selling its North Dakota assets to a private operator for US$500 million (approximately CA$675 million) in cash.
2023-11-28 - Petrobras plans to invest $102 billion between 2024-2028 under its new strategic plan, up 31% compared to their 2023-2027 plan, aiming to achieve production of 3.2 MMboe/d by the end of the five-year timeframe.
2023-11-28 - Emer Higgins will oversee Capstone Green Energy’s manufacturing, procurement/planning, warehouse, environmental, health/safety and facilities departments.
2023-11-28 - The Hall of Fame honors groundbreaking pioneers in the energy sector from the last 50 years and Hart Energy is recognizing more than 20 Agents of Change in Energy who are making positive impacts on how the world is powered now and into the future.
2023-11-27 - Ellen R. DeSanctis, formerly a senior vice president at ConocoPhillips, replaces Strategic Value Partners’ David Geenberg who is stepping down as his firm reduces its equity in SilverBow.
2023-09-14 - Swan is the current president of Panasonic Energy.