Strathcona Resources announces $2bn Montney assets sale in three separate transactions

Strathcona Resources has entered into definitive agreements for the merchantability of its assets successful Montney, Canada, for astir C$2.84bn.

The transactions see the merchantability of the Kakwa, Grande Prairie and Groundbirch assets to ARC Resources and Tourmaline Oil.

The Kakwa merchantability to ARC Resources is valued astatine C$1.69bn, comprising C$1.65bn successful currency and astir C$45m successful assumed lease obligations.

The Grande Prairie merchantability to Tourmaline Oil is expected to fetch astir C$850m, with C$750m successful currency and astir C$100m successful assumed lease obligations.

Tourmaline Oil volition besides get the Groundbirch plus for C$291.5m successful communal shares of Tourmaline.

The combined merchantability worth is astir 33% of Strathcona's existent endeavor value.

Collectively, the assets sold generated C$149m successful operating net successful 2024, which was 12% of Strathcona's full operating net for that year, excluding involvement and different firm items.

The assets had a year-end 2024 proved PV-10 before-tax worth of astir C$2.3bn, representing 15% of Strathcona's full proved PV-10 for the aforesaid period.

The Kakwa and Grande Prairie income are expected to adjacent aboriginal successful the 3rd 4th of 2025 (Q3 2025), portion the Groundbirch merchantability is anticipated successful Q2.

All transactions are taxable to regulatory approvals and customary closing conditions.

Post-divestment, Strathcona volition absorption connected being a pure-play dense lipid shaper with an output of astir 120 cardinal barrels per time (mbbl/d) and a 50-year 2P reserve beingness index.

The company's projected accumulation for Q2 2025 is 180 cardinal barrels of lipid equivalent per time (mboe/d), which includes the interaction of a large turnaround astatine Tucker.

Full-year accumulation for 2025 is expected to mean betwixt 150mboe/d and 160mboe/d.

The improved full-year accumulation forecast reflects a 5mbbl/d summation implicit the archetypal 2025 guidance, adjusted for the Montney divestment, driven by show astatine Cold Lake.

Capital expenditures for the afloat twelvemonth are estimated astatine C$1.2bn, reduced from the erstwhile C$1.35bn forecast owed to the removal of Montney superior successful the second fractional of 2025.

"Strathcona Resources announces $2bn Montney assets merchantability successful 3 abstracted transactions" was primitively created and published by Offshore Technology, a GlobalData owned brand.

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