2023-08-24 19:57:16
Crescent Point Energy is reportedly selling its North Dakota assets to Kraken Resources for $500 million in cash, according to people familiar with the matter, as the Canadian oil and gas producer seeks to pay down debt.
Neither company immediately responded to requests for comment.
Kraken Resources is a portfolio company of alternative asset manager Kayne Anderson Capital Advisors, which focuses on drilling and development opportunities in the Williston Basin in Montana and North Dakota.
Los Angeles-headquartered Kayne Anderson purchased $1.43 billion in assets in the eastern Eagle Ford Basin from Chesapeake Energy Corp earlier this year through of WildFire Energy, which he owns with buyout firm Warburg Pincus.
The Crescent Point deal is expected to close during the fourth quarter, which would reduce the company’s net debt to less than C$2.2 billion ($1.62 billion) by the end of the year. year, compared to C$3 billion at the end of the second quarter.
“Given the limited drilling inventory associated with these assets, production in North Dakota is expected to decline to 18,000 boe/d by 2027 and continue to decline in future years,” Crescent Point said in a statement. a statement.
Earlier Thursday, Crescent Point announced an agreement to sell its assets in North Dakota to a private operator.
The company also lowered its full-year production and capital expenditure guidance by 2.8% and 8.1%, respectively, from the midpoint of its earlier guidance.
(1 $ = 1,3563 Canadian dollars) (Reportage de Tanay Dhumal, Seher Dareen et Shariq Khan à Bengaluru ; Rédaction de Shweta Agarwal et Krishna Chandra Eluri)
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