Crescent Point To Buy Certain Kaybob Duvernay Assets For C$375 Mln; Lifts Base Dividend By 25%

Canadian energy company Crescent Point Energy Corp. (CPG,CPG.TO) announced Friday that it has entered into an agreement to acquire certain additional Kaybob Duvernay assets from Paramount Resources Ltd. for cash consideration of $375 million.

The company also said its Board of Directors has approved and declared to increase its base dividend by 25 percent to $0.10 per share, or $0.40 per share annually. The increased base dividend is payable on April 3, 2023 to shareholders of record at the close of business on March 15, 2023.

Crescent Point said the acquiring assets are adjacent to its existing land base and further enhance the company's scale, high-return drilling inventory and development opportunities within the basin. This acquisition will be funded through existing credit facilities and is expected to close during January 2023.

The company noted that Kaybob Duvernay acquisition adds 130 net locations and increases drilling inventory in the play to over 20 years.

Crescent Point plans to grow its Kaybob Duvernay asset from approximately 35,000 boe/d in 2022 to over 55,000 boe/d within its five-year plan.

Crescent Points plans to add a second rig in the Kaybob Duvernay in 2024.

Crescent Point's 2023 annual average production guidance is now 138,000 to 142,000 boe/d, an increase of 4,000 boe/d, with development capital expenditures unchanged at $1.0 to $1.1 billion.

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