Strathcona Resources has entered into definitive agreements to sell substantially all of its Montney assets for approx. $2.84 billion, pursuant to three separate transactions:
- The sale of its Kakwa asset to ARC Resources for approx. $1,695 million in total value ($1,650 million in cash and approx. $45 million in assumed lease obligations)
- The sale of its Grande Prairie asset for approx. $850 million in total value ($750 million in cash and approx. $100 million in assumed lease obligations)
- The sale of its Groundbirch asset to Tourmaline Oil Corp.for $291.5 million in common shares of Tourmaline
Taken together, the disposed assets generated $149 million of operating earnings in 2024 (12% of total Strathcona YE 2024 operating earnings, excluding interest and other corporate items) and had a YE 2024 proved PV-10 before-tax of approximately $2.3 billion (15% of total Strathcona YE 2024 proved PV-10), while the combined sale price represents approximately 33% of Strathcona’s current enterprise value.
Upon completion of the Montney dispositions, Strathcona will be a pure-play heavy oil company producing approx. 120 Mbbls / d (100% oil, 95 Mbbls / d thermal, 25 Mbbls / d conventional) with a 50-year 2P reserve life index and positive net cash (including marketable securities).
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Source: Strathcona Resources
