- Crescent Point Energy (NYSE:CPG) and other oil and gas companies with operations in Saskatchewan are closely watching political developments in Alberta, whose royalty review could present opportunities to pick up assets at lower prices.
- "There is significant risk in Alberta that if you make a tweak here and a tweak there like eliminating the royalty holiday or some little thing, it can completely change the outcome on the valuation," says CPG CEO Scott Saxberg.
- While the new Alberta government has pledged not to change the royalty regime until the end of 2016, a panel is expected to present a new royalty framework to the government by the end of this year.
- The last royalty review in 2009 saw land sales values plummet, allowing CPG to pick up Alberta assets such as Swan Hill plays at attractive prices.