09:07 AM EDT, 05/07/2024 (MT Newswires) -- Crescent Point Energy ( CPG ) maintained its "outperform" rating and $19 target price from the National Bank of Canada after the company agreed to sell certain non-core assets in Saskatchewan to Saturn Oil & Gas Inc. (SOIL.TO) for $600 million.

Crescent Point plans to use the proceeds to reduce debt, which the bank expects to decline to $2.8 billion by the end of 2024.

The Flat Lake and Battrum are among the assets being divested, and were expected to produce 13,500 barrels of oil equivalent per day over the next 12 months. The sale is expected to close in the second quarter.

"This news comes as no surprise as the company has been quite vocal surrounding its intention to sell its remaining non-core assets in an effort to narrow organizational focus around its recently acquired Montney and Duvernay assets, while providing an opportunity to significantly deleverage in the wake of its HHRS acquisition last fall," National Bank said in a note.

Crescent Point's share price rose 2.1% to around $12 yesterday.