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Mergers & acquisition activity in the Canadian energy sector continues to the most active we have seen in many years. Yesterday, Crescent Point Energy announced its second transformational acquisition in the Alberta Montney within the calendar year. Crescent Point announced that it was acquiring Hammerhead Resources for $2.55 billion. This follows up on the company’s acquisition of Montney assets from Spartan Delta Corp. in March of this year for $1.7 billion. On a flowing barrel metric, this deal was done at about the same price ($45,535/boe/d) as the previous acquisition ($44,737/boe/d). Of note is that Crescent Point quotes the volumes for the acquisition at 56,000 BOE/d as an expected 2024 average, whereas Hammerhead reported its 2023 Q3 volumes yesterday at 46,046 BOE/d, so additional capital will likely be required to bring those volumes up to the expected 2024 figures. This marks the 6th Alberta Montney transaction valued at over $150 MM in the last year and a half. The transaction metrics for those deals are summarized below, with our full M&A table accessible here. Figure 1 – Recent Alberta Montney acquisitions (tilt phone sideways to view full table on mobile device) *Formal metrics not press released. Assumed deal metrics […]
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