Crescent Point Energy Corp. (TSE:CPG), a light oil producer, advanced to the highest in more than three years after agreeing to acquire assets in the Viking oil play in Saskatchewan for cash and stock worth about C$334 million, and raising its annual guidance for production and cash flow.
Crescent gained 2.8 percent to C$46.85 at 1:29 p.m. in Toronto after hitting C$47.00, the highest intraday price since April 2011. The stock is up 14 percent this year.
The assets, acquired from Polar Start Canadian Oil and Gas Inc., produce more than 2,800 barrels of oil equivalent a day, the Calgary, Alberta-based company said in a statement late yesterday.
The Viking Acquisition consolidates Crescent Point's existing Viking land position at Dodsland, Saskatchewan, and increases its land position by 38 percent to approximately 145 net sections.
"The Saskatchewan Viking play has very high netbacks of more than $85 per barrel," Chief Executive Officer Scott Saxberg said in the statement. "We expect these assets to provide free cash flow that will help us reduce our 2015 all-in payout ratio by another two percent."
FirstEnergy Capital Corp. acted as financial advisor to Crescent Point with respect to the Viking Acquisition.
Also yesterday, Crescent Point said its average daily production in 2014 is expected to increase to 135,500 boe/d from 134,000 boe/d and its 2014 exit production rate is expected to increase to 148,000 boe/d from 145,000 boe/d.
Funds flow from operations is expected to increase to $2.45 billion from $2.40 billion, the company said.
The company's capital expenditures budget for the year has also increased by $25 million to $1.8 billion. Of the increase, Crescent Point expects to spend $15 million on drilling and completions and $10 million on land and facilities across the Company's asset base.
Reported by Proactive Investors 22 hours ago.
Crescent gained 2.8 percent to C$46.85 at 1:29 p.m. in Toronto after hitting C$47.00, the highest intraday price since April 2011. The stock is up 14 percent this year.
The assets, acquired from Polar Start Canadian Oil and Gas Inc., produce more than 2,800 barrels of oil equivalent a day, the Calgary, Alberta-based company said in a statement late yesterday.
The Viking Acquisition consolidates Crescent Point's existing Viking land position at Dodsland, Saskatchewan, and increases its land position by 38 percent to approximately 145 net sections.
"The Saskatchewan Viking play has very high netbacks of more than $85 per barrel," Chief Executive Officer Scott Saxberg said in the statement. "We expect these assets to provide free cash flow that will help us reduce our 2015 all-in payout ratio by another two percent."
FirstEnergy Capital Corp. acted as financial advisor to Crescent Point with respect to the Viking Acquisition.
Also yesterday, Crescent Point said its average daily production in 2014 is expected to increase to 135,500 boe/d from 134,000 boe/d and its 2014 exit production rate is expected to increase to 148,000 boe/d from 145,000 boe/d.
Funds flow from operations is expected to increase to $2.45 billion from $2.40 billion, the company said.
The company's capital expenditures budget for the year has also increased by $25 million to $1.8 billion. Of the increase, Crescent Point expects to spend $15 million on drilling and completions and $10 million on land and facilities across the Company's asset base.
Reported by Proactive Investors 22 hours ago.