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February 8, 2022updated 09 Feb 2022 5:57pm

Crescent Point considers sale of some oil and gas assets in Canada

The firm is considering selling its oil and gas assets in three separate packages.

Canadian oil and gas producer Crescent Point Energy is considering the sale of some of its assets in Alberta and Saskatchewan, in Canada, reported Reuters.

The firm is considering selling its oil and gas assets in three separate packages. These assets are estimated to have a combined production output of 10,500 barrels of oil equivalent per day, in the fourth quarter of 2021.

A potential sale of the oil and gas assets could help Crescent raise approximately $394m (C$500m), reported the news agency, citing an industry source and marketing documents.

The National Bank Financial Markets has been appointed by the company to serve as adviser for the proposed sale.

Global oil and gas producers are seeking to benefit from rising oil prices, with US oil prices crossing $90 per barrel, making it the highest in seven years.

The firms are looking to sell their non-core assets to raise cash amid the oil price increase, to strengthen their balance sheets.

Since the takeover of the Kaybob Duvernay assets in Alberta, from Shell in 2021, Crescent has been looking to sell its non-core assets.

Last year, Crescent Point Energy divested its non-core conventional oil and gas producing assets, in southeast Saskatchewan, for $73.1m (C$93m).

The firm considered these assets as non-core due to their operating costs that were significantly more than the corporate average, associated asset retirement obligations, and limited scalability.

With the sale, the company then said it also reduced approximately $173m (C$220m) in asset retirement obligations.

The Canadian company increased its quarterly dividend by 50%, as well as announced share repurchases worth up to $78.6m (C$100m) in December 2021.

Last year, Crescent reported a decrease of 2.71% in total oil and gas production in August 2021.

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