Crescent Point Energy Corp. closed on its previously announced acquisition of oil and liquids-rich Montney assets in Alberta for CA$1.7 (US$1.26) billion in cash. (Source: Shutterstock.com)
Crescent Point Energy Corp. closed on its previously announced acquisition of oil and liquids-rich Montney assets in Alberta for CA$1.7 (US$1.26) billion in cash.
The acquisition adds 600 high-return Montney locations to Crescent Point’s portfolio and represents a higher return of capital for shareholders, the company said. The transaction was immediately accretive to the company’s adjusted funds flow and excess cash flow per share by 20%, Crescent Point said in a May 10 press release.
RELATED: Crescent Point to Buy Montney Assets in $1.28 Billion Deal
The Montney assets are in close proximity to Crescent Point’s operations in the Kaybob Duvernay play and have several unbooked locations with significant resource.
Production in Kaybob Duvernay was temporarily shut down on May 8 due to recent Alberta wildfires, but has since restored 75% of production with no damage to assets. The acquired Montney assets were not affected by the wildfires.