Crescent Point solidifies Montney dominance in $2.55B deal for Hammerhead Energy

CALGARY — Crescent Point Energy Corp. says it has signed a $2.55-billion deal to purchase Hammerhead Energy Inc, a Calgary-based energy company with assets in the Montney oil-producing region of northwest Alberta.

The deal positions Crescent Point as a dominant player in the Montney, one of North America’s largest unconventional petroleum plays.

As a result of the deal, Crescent Point will acquire approximately 800 drilling locations.

This will immediately make Crescent Point the largest landowner in the Alberta Montney's volatile oil fairway, in addition to already being the largest landowner in the adjacent Kaybob Duvernay play.

The purchase will make Crescent Point the seventh-largest oil and gas exploration and production company in Canada by volume, with production expected to total over 200,000 barrels of oil equivalent per day once the deal is closed.

The deal, which includes approximately $455 million of Hammerhead’s net debt, will see Hammerhead shareholders receive $21 per fully diluted common share, through a combination of approximately $1.5 billion in cash and 53.2 million common shares of Crescent Point.

This report by The Canadian Press was first published Nov. 6, 2023.

Companies in this story: (TSX:CPG)

The Canadian Press