In a bold move to streamline its portfolio and sharpen its focus, Strathcona announced the sale of its Montney assets for $2.84 billion. This transformational transaction accelerates Strathcona’s strategy to become a pure-play heavy oil producer, while unlocking value and maintaining financial flexibility.
Strathcona Resources Ltd. (TSX: SCR) has announced definitive agreements to sell nearly all of its Montney assets through three transactions:
✅ Kakwa to ARC Resources – $1.695B
✅ Grande Prairie to undisclosed buyer – $850M
✅ Groundbirch to Tourmaline – $291.5M in shares
🔹 Combined deal value: $2.84B (~33% of SCR’s enterprise value)
🔹 Assets represented 12% of 2024 operating earnings, 15% of proved PV-10
🔹 No cash taxes expected (leveraging $5.5B in tax pools)
🛢️ Updated Focus: Pure-Play Heavy Oil
Post-sale, Strathcona will produce ~120 Mbbls/d of heavy oil with a 50-year reserve life index.
📊 2025 Guidance:
- Q2: 180 Mboe/d (impacted by Tucker turnaround)
- Full Year: 150–160 Mboe/d
- CapEx reduced to $1.2B (from $1.35B)
📈 Long-Range Plan:
- Grow to 195 Mbbls/d by 2031 (8% CAGR)
- Focused on brownfield expansions (Cold Lake, Lloydminster)
- Lindbergh Phase 2 deferred to 2027
🚂 Hardisty Rail Terminal Acquisition:
- $45M deal, servicing 80% of W. Canada crude-by-rail volumes
- Provides egress optionality & countercyclical upside
Strathcona’s message is clear: streamline to core heavy oil, monetize gas assets, stay nimble with capital — and stay hedged against egress risk.
