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Crescent Point sells Canadian gas pipeline infrastructure for $500 million

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Crescent Point Energy has agreed to sell certain gas infrastructure assets in Saskatchewan, Canada to Steel Reef Infrastructure for a total of $500 million (€452 million).

"Through the sale of these gas infrastructure assets, we will unlock value for our shareholders and further strengthen our financial position,” said Craig Bryksa, president and CEO of Crescent Point. “We have now entered into agreements to sell, or have sold, in aggregate approximately $1.45 billion [€1.31 billion] of assets in 2019. This sale is also aligned with our strategy, as it allows us to further focus on our core competencies to strengthen our corporate returns."

Through the sale of the assets, Crescent Point will monetise nine natural gathering and processing facilities, as well as two gas sales pipelines currently in operation in Saskatchewan. These gas processing facilities have a total throughput capacity of over 90 million cubic feet per day.

Under the terms of the agreement, Crescent Point will enter into a number of long-term take-or-pay commitments with Steel Reef in exchange for Steel Reef granting the company processing rights at the facilities.

Steel Reef has additionally committed to fund a 12 million cubic feet per day expansion of one of the gas processing facilities. The cost of construction is expected to be around $30 million (€27.1 million), which will be on top of the purchase price.

The expansion is expected to commence in 2020 and will be complete within 12-18 months, following closing of the sale of the assets. It is expected to enhance sales volumes while reducing the emissions intensity of the facility.