Crescent Point to buy Spartan Delta assets for $1.2 billion to boost Alberta presence

(Reuters) -Crescent Point Energy Corp said on Tuesday it would acquire Spartan Delta Corp’s oil and gas assets in Canada’s Alberta province, for C$1.7 billion ($1.24 billion) to expand in the Montney region.

The deal would immediately add to its excess cash flow per share by 20%, the company said.

Calgary, Alberta-headquartered Crescent said the newly acquired assets are adjacent to its Kaybob Duvernay assets which it bought over the past two years and would add 600 Montney locations in Alberta, or over 20 years of premium drilling inventory.

Crescent said the assets add production capacity worth 38,000 barrels of oil equivalent per day (boepd) to its portfolio.

The company said it is looking to reduce its net debt by about C$1 billion over the next 12 months and is also pursuing the potential sale of one or more of its assets.

It also raised its production outlook to 160,000 to 166,000 boepd from the earlier forecast of 138,000 to 142,000 boepd.

The deal is expected to close during the second quarter of 2023.

($1 = 1.3669 Canadian dollars)

(Reporting by Sourasis Bose in Bengaluru; Editing by Rashmi Aich and Krishna Chandra Eluri)