Crescent Point expands Canadian shale presence with $1.5 billion Hammerhead acquisition
(Bloomberg) – Crescent Point Energy Corp. agreed to buy Hammerhead Energy Inc. for about C$2.05 billion ($1.5 billion) in the driller’s latest deal to expand its presence in the prolific shale oil and gas fields of western Canada.
The cash-and-stock acquisition will add about 800 drilling locations and an expected 56,000 boed of production in 2024, Calgary-based Crescent Point said Monday. The purchase includes about C$455 million in assumed net debt for a total transaction value of about C$2.55 billion.
The purchase marks the latest push westward by Crescent Point, which has shifted its portfolio from Saskatchewan and North Dakota into the growing Montney and Kaybob Duvernay oil and gas plays in Alberta. Crescent Point in March agreed to buy Spartan Delta Corp.’s assets in the prolific Montney formation for about C$1.7 billion, adding holdings near the assets it had bought from from Shell Plc two years earlier.
The move comes amid a wave of consolidation among major energy companies, with Exxon Mobil Corp. agreeing to buy Pioneer Natural Resources Co. and Chevron Corp. striking a deal to purchase Hess Corp. last month.
The deal will make Crescent Point the seventh-largest Canadian explorer and producer by volume and the largest land owner in the Alberta Montney, the company said.
Crescent Point revised its 2024 preliminary guidance after the announcement. Estimated annual production is forecast at 200,000 to 208,000 barrels of oil equivalent a day, based on development capital expenditures of C$1.45 billion to C$1.55 billion.