Crescent Point Energy has announced the sale of its North Dakota assets to a private operator for $500 million in cash. The assets, which produced 23,500 barrels of oil equivalent per day in the second quarter of 2023, generated an annualized net operating income of $375 million.
Due to the limited drilling inventory associated with these assets, Crescent Point expects production in North Dakota to decline to 18,000 boe/d by 2027 and continue to decrease in the years ahead.
The proceeds from the sale will be used by Crescent Point to expedite its debt repayment. The company’s net debt is projected to be less than $2.2 billion by the end of 2023, significantly lower than the $3 billion reported at the end of the second quarter.
In light of the divestiture, Crescent Point has revised its 2023 annual average production guidance. The new forecast ranges from 156,000 to 161,000 boe/d, representing a reduction of 4,500 boe/d compared to the midpoint of its previous guidance.