Latest news with #Kakwa
Calgary Herald
15-05-2025
- Business
- Calgary Herald
Strathcona shifts to pure heavy oil producer with $2 billion Montney sale
Article content Canadian oil tycoon Adam Waterous's Strathcona Resources Ltd. agreed to sell its assets in the Montney shale formation in western Canada in a shift that makes it a pure heavy oil producer. Article content Strathcona is disposing of gas-focused operations in three separate transactions worth C$2.8 billion. The largest will see the company sell its Kakwa asset to ARC Resources Ltd. for C$1.7 billion in cash and assumed lease obligations. Article content Article content Calgary-based Strathcona is also unloading its Grande Prairie asset to an unnamed buyer for C$850 million, while Tourmaline Oil Corp. is taking a smaller asset and paying C$292 million in shares, according to a statement. Article content Article content The sale marks a change of direction under Waterous, a former investment banker who built one of Canada's largest producers through a flurry of acquisitions during what was an often challenging period for the industry. Article content Exiting from the Montney, a formation straddling Alberta and British Columbia that yields natural gas and light oil, will make Strathcona into a pure heavy oil player that has a sizeable presence in Alberta's oilsands. Once the deals are completed, the company will produce 120,000 barrels a day of crude oil and no gas. Article content Strathcona shares jumped as much as 14 per cent to C$30.94 in Toronto trading, the highest intraday since Jan. 14. Article content The slower decline in production rates in the oilsands will contribute to an extension of the company's reserve life to 50 from 40 years and will lower the company's break-even oil price, TD Cowen analysts said in a note. The deal also shores up the company's balance sheet, marking 'a massive, positive swing' from about C$2.5 billion of total debt before the deal, they wrote. Article content Article content 'They won't kill the debt as they use the cash to go out and do an all-cash or part-cash, part-stock deal this fall,' said Cole Smead, chief executive officer of Smead Capital Management. 'Now, as a pure-play heavy oil company, they can go out and focus on other heavy oil companies,' including possibly rival oilsands producer MEG Energy Corp., which is slightly smaller by market capitalization. MEG officials did not immediately reply to a message requesting comment.
Bloomberg
15-05-2025
- Business
- Bloomberg
Strathcona Shifts to Pure Heavy Oil Producer With $2 Billion Montney Sale
Canadian oil tycoon Adam Waterous's Strathcona Resources Ltd. agreed to sell its assets in the Montney shale formation in western Canada in a shift that makes it a pure heavy oil producer. Strathcona is disposing of gas-focused operations in three separate transactions worth C$2.8 billion ($2 billion). The largest will see the company sell its Kakwa asset to ARC Resources Ltd. for C$1.7 billion in cash and assumed lease obligations.
Reuters
15-05-2025
- Business
- Reuters
Canadian oil and gas producer Strathcona sells Montney assets for $2.84 billion
May 14 (Reuters) - Canadian oil and gas producer Strathcona Resources ( opens new tab said on Wednesday that it has sold all of its Montney assets for about $2.84 billion. The company sold its Kakwa asset to ARC Resources ( opens new tab for around $1.7 billion, its Grade Prairie asset for around $850 million, and its Groundbirch asset to Tourmaline Oil ( opens new tab for $291.5 million. Strathcona stated that the Kakwa and Grande Prairie asset sales are expected to close in the early part of the third quarter this year, while the Groundbirch sale is anticipated to close in the second quarter. The company also revised its guidance, projecting second-quarter 2025 production at 180 Mboe/d. Full-year 2025 production is expected to range between 150–160 Mboe/d, with 120–125 Mbbls/d anticipated in the third and fourth quarters following the Montney asset dispositions, it said in a statement. Strathcona went public in 2023 after acquiring its smaller rival Pipestone Energy. It has a market capitalization of $4.17 billion, as per LSEG data.
Yahoo
15-05-2025
- Business
- Yahoo
Canadian oil and gas producer Strathcona sells Montney assets for $2.84 billion
(Reuters) -Canadian oil and gas producer Strathcona Resources said on Wednesday that it has sold all of its Montney assets for about $2.84 billion. The company sold its Kakwa asset to ARC Resources for around $1.7 billion, its Grade Prairie asset for around $850 million, and its Groundbirch asset to Tourmaline Oil for $291.5 million. Strathcona stated that the Kakwa and Grande Prairie asset sales are expected to close in the early part of the third quarter this year, while the Groundbirch sale is anticipated to close in the second quarter. The company also revised its guidance, projecting second-quarter 2025 production at 180 Mboe/d. Full-year 2025 production is expected to range between 150–160 Mboe/d, with 120–125 Mbbls/d anticipated in the third and fourth quarters following the Montney asset dispositions, it said in a statement. Strathcona went public in 2023 after acquiring its smaller rival Pipestone Energy. It has a market capitalization of $4.17 billion, as per LSEG data.
