XOP - Crescent Point: $500 Million Infrastructure Sale And Increased Buyback May Send Its Share Price Higher

Crescent Point (CPG) announced the sale of its gas infrastructure assets for $500 million on November 14th. It is a sale-leaseback arrangement with an estimated $47 million annual impact to cash flow, implying a 10.6x sale price multiple. This compares favorably to CPG's approximately 3x EV/EBITDA multiple, and is the third accretive transaction CPG has announced this year. Crescent Point has outperformed its peers (XOP), particularly in the aftermath of the first two asset sales announced September 3rd:

It is interesting to note that much of the share

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