Crescent Point launches sale of gas assets in Saskatchewan

Canadian oil and gas company Crescent Point Energy Corporation has launched the sale of its natural gas processing facilities in Saskatchewan to Steel Reef Infrastructure for a total consideration of CAD500 million (US$378.07 million). 

The deal includes nine natural gas gathering and processing facilities and two gas sales pipelines that are currently operational. The gas assets can produce more than a million cubic feet per day (MMcf/d).

Under the terms of the agreement, Steel Reef has committed in financing an upcoming 12 MMcf/d expansion of one of the gas processing facilities. The expansion would cause approximately CAD30 million (US$22.56 million). The expansion is expected to commence in 2020. 

RBC Capital Markets acted as exclusive financial advisor to the Crescent Point on this sale while GMP FirstEnergy represented Crescent Point as its strategic advisor.

The transaction is expected to close during the first quarter of 2020, subject to customary closing conditions and regulatory approvals.