Both gain from asset swap

Article Excerpt

CRESCENT POINT ENERGY CORP. $39.59 (Toronto symbol CPG; Shares outstanding: 202.4 million; Market cap: $8.0 billion; SI Rating: Extra Risk; Dividend yield: 7.0%) and PENN WEST ENERGY TRUST $19.30 (Toronto symbol PWT.UN; Units outstanding: 420.9 million; Market cap: $8.1 billion; SI Rating: Extra Risk; Dividend yield: 9.3%) have agreed to an asset swap. The move will let them consolidate their positions in key areas and use their holdings more efficiently. Crescent Point will get oil-producing lands in southwestern Saskatchewan from Penn West in exchange for oil-producing interests in Alberta and $434 million in cash. Crescent Point plans to spend a total of $450 million on exploration and development this year. Penn West will spend between $750 million and $900 million. Both Crescent Point and Penn West are still buys. buys…

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