Energy company Crescent Point Energy Corp (NYSE: CPG) stock went on a remarkable rally during the premarket trading period on Thursday after the company made a significant announcement.
The stock soared by as high as 31% in premarket trading and it is likely going to be on the radars of many investors over the coming days. Yesterday, the company announced that it reached an agreement with regards to the acquisition of Shell Canada Energy. Shell Canada Energy is an affiliate of the energy giant Royal Dutch Shell PLC.
According to the terms of the deal, Crescent Point is going to take over the company Kaybob Duvernay assets which are located in Alberta. The total value of the deal is pegged at $900 million. Crescent Point is going to pay $700 million in cash and the rest in the form of 50 million common shares of the company’s stock. It is a significant acquisition for the company and could bring it into sharp focus among investors.