Crescent Point Sells Saskatchewan Gas Facilities to Steel Reef Infrastructure

Updated 1 year 4 months ago

In November 2019, Crescent Point Energy agreed to sell certain associated gas infrastructure assets in Saskatchewan to Steel Reef Infrastructure for total cash consideration of $500 million. Assets include nine gathering and processing facilities and two pipelines with a total capacity of more than 90 million cu ft /d of natural gas. The transaction is expected to close in 1Q 2020.

Crescent Point will enter into a long-term take-or-pay contract with Steel Reef in exchange for Steel Reef granting Crescent Point processing rights at the facilities. The expected annual cash flow to Steel Reef is estimated at approximately $47 million, excluding cash flow from third parties. Steel Reef has committed to fund an upcoming 12 MMcf/d expansion of one of the gas processing facilities. The cost of this expansion is estimated at $30 million and is expected to begin in 2020 and be completed in 12-18 months. The deal closed in January 2020.