Crescent Point to sell Williston Basin non-core assets for $280m

Canadian oil and gas firm Crescent Point has reached agreements to sell certain non-core assets in the Williston Basin for $280m.

The deals include a non-binding letter of intent signed by the company last month for sale of assets for $225m, and a $55m second transaction agreed to in the second quarter.

Crescent Point expects to complete both transactions at the end of second quarter.

Current operated and non-operated production from the non-core assets being sold stands at 4,800boe/d.

The company has revised its 2018 average production guidance to 181,000boe/d and exit production guidance to 190,000boe/d.

The proceeds from the transactions will be used to reduce debt and bolster the company’s balance sheet.

Meanwhile, Crescent Point has kept this year’s capital expenditures guidance unchanged at $1.775bn.

In a statement, Crescent Point said: “The company’s revised business strategy is reprioritising key value drivers, including continuing improvement of the balance sheet, disciplined capital allocation and cost reductions.

“These value drivers are expected to result in improved rates of return on capital employed, debt adjusted per share metrics, free cash flow generation and, ultimately, the company’s long-term sustainability.”

Crescent Point’s average production for the first quarter of this year stood at 178,418boe/d, driven by the growth of its US operations.

The company has also made changes to its executive management team as part of a transformation plan.

Ryan Gritzfeldt has been appointed as the chief operating officer of the company, while Craig Bryksa was announced as interim president and CEO in May.