Crescent Point Energy Lowers Production Outlook Following Divestment Of North Dakota Assets For $500M
Portfolio Pulse from Nabaparna Bhattacharya
Crescent Point Energy Corporation (NYSE:CPG) has agreed to sell its North Dakota assets for $500 million to a private operator, reportedly Kraken Resources, to accelerate its debt repayment. This has led to a reduction in its 2023 annual average production guidance and its development capital expenditures guidance for 2023. The company's net debt is expected to be less than C$2.2 billion by year-end, down from C$3 billion at the end of Q2.
August 25, 2023 | 1:30 pm
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Crescent Point Energy's sale of its North Dakota assets will reduce its 2023 production and capital expenditures guidance, but will also significantly reduce its net debt.
The sale of assets will reduce Crescent Point Energy's production and capital expenditures in the short term, which could negatively impact its revenues. However, the significant reduction in net debt could improve the company's financial health and make it more attractive to investors.
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