Canada’s Crescent Point Energy (Crescent Point) has completed the acquisition of oil and gas producer Hammerhead Energy.

The cash and stock deal valued at C$2.55bn ($1.86bn) was announced last month.

At the time, Crescent Point claimed that through the deal it will become the largest landowner in oil-and-liquids-rich Alberta Montney, and the seventh-largest exploration and production company in Canada based on production output.

Following this acquisition, the company has also released its formal 2024 guidance and a five-year plan.

Crescent Point now anticipates an annual average production of 198,000 to 206,000 boepd, with 65% consisting of oil and liquids, based on development capital expenditure of C$1.4bn to C$1.5bn.

The earlier projected production was between 145,000 boepd and 151,000 boepd.

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By GlobalData

For 2024, Crescent Point has allocated 45% of its budget to the Alberta Montney area, which is projected to yield an annual average production of 97,000 boepd.

In addition to the Montney investment, 35% of Crescent Point’s 2024 budget is earmarked for the Kaybob Duvernay, with expected production of 50,000 boepd.

The remaining 20% of the 2024 budget will be allocated to Crescent Point’s long-cycle, low-decline assets in Saskatchewan. These assets are anticipated to produce an annual average of 55,000 boepd.

Under its five-year plan, Crescent Point forecasts its annual production will grow to approximately 260,000 boed by 2028.

This growth is expected to be driven by the company’s assets in Alberta Montney and Kaybob Duvernay.

Crescent Point President and CEO Craig Bryksa said: “Through this strategic transaction, we have enhanced the long-term sustainability of our business, including increasing the excess cash flow per share expected within our five-year plan by approximately 20%.

“This accretion also enhances our return of capital profile for shareholders. As we approach 2024, we are excited to build on the momentum and strong results we have achieved to-date within our resource plays, including through potential synergies from our recent Montney transaction. Our strategic priorities will now focus on continued operational execution, balance sheet strength and increasing our return of capital to shareholders.”