September 02, 2014 - 3:07 PM
CALGARY - Crescent Point Energy Corp. (TSX:CPG) is bulking up its holdings in Saskatchewan and Manitoba through a $378-million deal with Lightstream Resources Ltd. (TSX:LTS)
The land, near where Crescent Point already operates, currently produces about 3,300 barrels of oil equivalent per day and is expected to generate about $51 million in free cash flow over the next year. The deal is expected to close by the end of the month.
Crescent Point also said Tuesday it's bumping up its capital spending this year by $200 million to $2 billion because of a combination of factors, including recent acquisitions, promising drilling results in southeast Saskatchewan and good performance from other assets.
Its total average production for this year is now expected to be 140,000 barrels per day, up from 138,000.
Lightstream said it will use the proceeds from the sale announced Tuesday, and others, to pay off debt. Including the Crescent Point deal, Lightstream has sold $729 million in assets this year — well ahead of its goal of divesting $600 million by the end of next year.
Taking the deal into account, Lightstream expects to produce about 1,000 barrels per day less on average this year compared with its August forecast. Funds flow from operations is expected to drop by $20 million and capital spending is expected to drop by $15 million.
News from © The Canadian Press, 2014