Crescent Point Energy completes deal to buy Hammerhead Energy

The corporate logo of Crescent Point Energy Corp. is shown in this handout image.

CALGARY — Crescent Point Energy Corp. says it expects average production of 198,000 to 206,000 barrels of oil equivalent per day in 2024 now that it has closed its deal to buy Hammerhead Energy Inc.

The guidance includes development capital expenditures of $1.4 billion to $1.5 billion for the year.

The company says it plans to spend 45 per cent of its 2024 budget in Alberta's Montney region where it expects average annual production of 97,000 boe/d.

Thirty-five per cent of the budget will go to the Kaybob Duvernay region where production is expected to average 50,000 boe/d.

Crescent Point says it plans to spend the remaining 20 per cent of its 2024 budget on its assets in Saskatchewan, which are expected to generate annual average production of 55,000 boe/d.

The company announced a deal in November to buy Hammerhead Energy and its assets in the Montney region of northwest Alberta for a total of $2.55 billion, including approximately $455 million of Hammerhead's net debt.

This report by The Canadian Press was first published Dec. 21, 2023.