Veren Inc T.VRN

BNN Announcement

[retiredcf]

CRESCENT POINT MAKES $1.7B SPLASH IN THE MONTNEY

Crescent Point Energy is back on the acquisition trail, announcing plans to snap up Spartan Delta’s assets in the Albertan Montney play for $1.7 billion in cash. The company says that as a result of the deal, adjusted funds flow and excess free cash flow per share should increase by about  20 per cent, and will add approximately 38,000 barrels of oil equivalent per day to production. As for Spartan Delta, its refocusing on the Deep Basin field, and will deliver the bulk of the cash from the deal straight to shareholders through a $9.50 per share special dividend. It’s also forming a new spin-co called Logan Energy, in which each shareholder will receive one share per Spartan share held.

[Anschutz]

$1.7 billion of debt for CPG shareholders.... $9.50 special dividend for SDE shareholders.  Oivey....

[Skylar1]

This is a good deal for CPG shareholders , oil will do well as China opens and resession fears move to optimism .

[Anschutz]

I hope you're right and market sentiment towards acquisitiions has shifted since SGY last November.  The share price of SGY still hasn't recovered from the hit it took.  So far CPG share price appears to be holding up.  At the moment I see significant debt added to the balance sheet, no increase in dividends (likely for a year while they again work to pay down debt), and

[Moemoney42]

I like the deal.. great drill location depth has been added again to CPG.. no worries on that front anymore..! Accretive to CPG at the close..! The additional cash flow will pay this new debt load off easily and the price is good too..!  I think the timing is good as well.. O&G shares have been lagging lately and I do expect them to start moving higher as early as late Q2-23..?  All

[Moemoney42]

I would love to see the recent shorters get CRUSHED when this deal closes.. if not before.. ~30 million shares on the buy side would surely move the price up.. ;-)