Strathcona Resources has announced the sale of its Montney assets in Canada for approximately C$2.84bn ($2bn) through three separate transactions.
The North American oil and gas producer will sell its Kakwa asset to ARC Resources for a total value of around C$1.7bn ($1.2bn), comprising C$1.65bn ($1.18bn) in cash and C$45m ($32.2m) in assumed lease obligations.
Additionally, the Grande Prairie asset will be sold for C$850m ($608m), with C$750m ($536.4m) in cash and C$100m ($71.5m) in assumed lease obligations. The Groundbirch asset will be transferred by Strathcona to Tourmaline Oil in exchange for C$291.5m ($208.5m) in common shares of the latter.
The Montney assets generated C$149m ($106.5m) in operating earnings in 2024, accounting for 12% of Strathcona’s total operating earnings for that year. The combined sale price represents about 33% of the company’s current enterprise value.
The sales of the Kakwa and Grande Prairie assets are expected to be completed in Q3 2025, pending regulatory approvals and customary closing conditions.
The Groundbirch sale is anticipated to close in Q2 2025 should it secure regulatory approvals and meet other customary conditions.
In addition to the asset sales, Strathcona has acquired the Hardisty Rail Terminal (HRT) for approximately C$45m ($32.2m). Located in Hardisty, Alberta, HRT is the largest crude-by-rail terminal in Western Canada, with a capacity of 262 thousand barrels per day (Mbbls/d) and a year-to-date throughput of approximately 50Mbbls/d.
This acquisition aligns with Strathcona’s strategy of consolidating core areas and provides a hedge against future pipeline bottlenecks.
Following these transactions, Strathcona will focus on heavy oil production, expecting to produce approximately 120Mbbls/d post-dispositions. The company anticipates Q2 2025 production to reach 180 thousand barrels of oil equivalent per day (Mboe/d), including impacts from a major turnaround at Tucker.
Full-year production is projected to average between 150 and 160Mboe/d.
Strathcona’s capital expenditures for 2025 are estimated at C$1.2bn ($860m), reflecting the removal of Montney-related capital from the second half of the year.
