Crescent Point completes sale of Saskatchewan gas infrastructure assets

On November 14, 2019, Crescent Point Energy Corp. ("Crescent Point") announced that it entered into a definitive agreement to sell certain associated gas infrastructure assets in Saskatchewan to Steel Reef Infrastructure Corp. ("Steel Reef") for total cash consideration of C$500 million. The assets include nine natural gas gathering and processing facilities and two gas sales pipelines currently in operation within Saskatchewan with a combined total throughput capacity of more than 90 MMcf/d.

Under the terms of the agreement, Crescent Point entered into certain long-term take-or-pay commitments with Steel Reef in exchange for Steel Reef, who will operate the assets, granting Crescent Point processing rights at the facilities.

Further, as part of the agreement, Steel Reef committed to fund an upcoming 12 MMcf/d expansion of one of the gas processing facilities. Steel Reef's cost to construct the expansion is estimated to be approximately C$30 million, in addition to the purchase price of C$500 million. Work on the expansion is expected to begin in 2020 and completed within approximately 12 to 18 months following closing of the sale.

The closing of the transaction was announced on January 20, 2020.

Further information can be found on Globe Newswire's website.

Crescent Point, based in Calgary, Alberta, is a leading North American oil producer focused on the development of high-return resource plays, including Viewfield Bakken, Shaunavon, Flat Lake and East Shale Duvernay.

Steel Reef is a privately held mid-stream company targeting strategic small and mid-sized infrastructure projects focused in the Western Canadian Sedimentary Basin.