Canada’s Crescent Point to acquire liquids-rich Montney producer
Crescent Point Energy said November 7 it had entered into an arrangement agreement to acquire Hammerhead Energy, and oil- and liquids-rich Montney producer, for C$2.55bn (US$1.86bn), including about C$455mn of assumed debt.
Hammerhead’s shareholders will receive C$21/share through a combination of about C$1.5bn in cash and 53.2mn Crescent Point shares, worth about C$548mn.
The transaction, expected to close in December 2023, will create Canada’s 7thlargest exploration & production company by production volume (more than 200,000 barrels of oil equivalent/day, weighted 65% to oil and liquids) and the largest land holder in the Alberta Montney’s volatile oil window. In Q3 2023, Hammerhead produced 144mn ft3/day of natural gas and 22,039 barrels/day of oil and natural gas liquids, it reported in its third quarter financial results.